Any web analytics
expert will tell you how important segmentation is for your overall measuring
strategy. Visitors that come to your website are never going all be the same. They will never have the same characteristics and they will never act the
same or be looking for the same things. (1). Yes, many of them will have some of the same
attributes but they will never have the exact same attributes. This provides
analysts with the ability to group visitor and analyze how each of
those groups contribute to the goals of the site. This post will summarize some
high level steps on choosing segments and how to use them to your benefit.
I need to segment…Who
do I segment?
The answer to that
question really depends on your business and who your customers are. Who you
decide to segment should help you get closer to understanding what groups are
affecting your KPIs whether positive or negative. There are segments that
pretty much apply to all ecommerce sites, which I mention below, and others
will be up to you based on your business and the activities visitors perform on
your site. (3)
Marketing Channels
The first segment
that most site owners can focus on is their online marketing channels. These are channels used, and usually paid for, to get visitors to your site, also known
as your traffic sources or acquisition channels (2). It is important to determine how each channel
is contributing to your sites KPIs and if those marketing channels are providing a return on investment.
These channels can include PPC, SEO, email, display, social, direct, and
possibly others. When comparing the time and costs that each of
these channels take to provide visitors and metrics do they provide an increase in KPIs? You can make actionable decisions on those channels based on their affect . If the
channel is under performing, it needs to be determining what can we do to
improve and optimize or do we need to reduce the amount of time and effort we
put into that channel?
Orders from the PPC segment
Geo-Locations
Visitors will
behave differently based on the locations that they are visiting from.
Analyzing the areas of the country, or maybe even the world, can help site owners
determine which areas are most profitable, purchase the most products, or are
most responsive to internal promotions. Once analysis is done to determine
which geo locations affect KPIs promotions and targeting can be positioned to
those areas to improve conversion and revenue.
Site owners could also use this information to investment more on online
marketing for areas that are performing well to attempt to drive engagement.
Visitor Behavior
We have already
looked at how visitor behavior can change based on where they come from and
where they are located, but we can also group visitors by the level of
engagement they had with the site. Visitors who have had a
certain number of visits or consume specific number pages per visit can have
different affects on your KPIs and secondary metrics. (2) For example, visitors
who have 3 or more visits may be more likely to convert and may not need to be
sold to as much as those who are on there first time visitors. Internal
marketing messages can be more focused and provide rewards to those groups that
have more engagement with the site. These segments can also be used in remarketing
efforts, for example, if it has been some time since certain visitors have made
a transaction on the site or returned for a visit or possibly have come to the
site and consume many pages but have not purchased to provide them with
marketing efforts to entice them to make a purchase. These could be things like
sending emails, do providing display advertising related to products they have
purchased or used.
Segments for Strategy
The fundamental use for segmentation is to better understand
who the most valuable visitors are and how they interact with the site. We
can use this information to determine how well changes to the site and marketing
efforts are doing according to our KPIs. (3) Once we know what those high value
segments are and we know what changes produce positive affects future strategic
decisions can be geared toward those segments.
For more information on segmentation see Avinash Kaushik's post:
http://www.kaushik.net/avinash/excellent-analytics-tip2-segment-absolutely-everything/
http://www.kaushik.net/avinash/excellent-analytics-tip2-segment-absolutely-everything/
11.Avinash Kaushik, Web Analytics 2.0
22.Avinash Kaushik http://www.kaushik.net/avinash/web-analytics-segments-three-category-recommendations/
33. Eric T. Peterson, Web Analytics Demystified
Well done. We are actually covering a little bit of segmentation in our project for this class so I was taking in what I could from this post. For us knowing what kind of customer is visiting will be important in figuring out which groups we should target in our marketing campaign and which groups are doing fine on their own. Thanks for doing the research!
ReplyDeleteTotally agree with the statement: segment or die. We are facing this same problem right now where we are looking way too much in to broad analytics, even if they match our KPIs, to make decisions. When we don't break things down to determine how they are really useful, it's impossible to really make a good decision.
ReplyDeleteData aggregated without any direction is useless. Unless we delve into our data and break apart our results into logical buckets, our final analysis will not accurately represent what is occurring on our site. Thanks for expressing the important of segmentation.
ReplyDeleteLove the post! How do you know when you are dying? Is it while you read through the mountain of raw data?
ReplyDelete