This post was contributed by Sean McCarthy from Lucky Orange.
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Your website gets traffic from a wide variety of sources and people arrive at various points in their journey—requiring a website experience that accommodates a range of visitor goals.
And if you’re tasked with optimizing the website, it’s hard to choose which parts of the site and which portions of your audience present the greatest opportunities for gains.
In this article, we’ll look at the direct line between great audience segmentation and revenue growth. This includes the tie between segmentation and direct website optimization but also how you can use improved audience understanding to benefit other key business functions.
The Average E-Commerce Traffic Source Breakdown
According to a recent study done by DataReportal, the majority of e-commerce traffic comes from three main sources: direct, organic search and paid search.
Image source: https://www.oberlo.com/statistics/ecommerce-traffic-sources
So, let’s say your website follows these averages. It’s super helpful to know that 22% of traffic is searching for and finding your brand in search results, but within that 22% what portion of those people:
- Already knew about your brand before searching?
- Live in a location where you offer free or expedited shipping?
- Have purchased from you previously?
These groups and (many) more are key when it comes to optimizing not only an individual channel but your channel mix as a whole. Especially for teams working with tight marketing budgets, having an intimate understanding of channel performance is vital.
Proper use of segmentation makes your business more efficient
When teams study visitor groups, it’s typically in search of one of these three things.
Positive or negative trends within a segment: Once you’ve chosen segments to regularly analyze, a performance trend in one direction or the other provides an easy starting point for optimization. For example, if you were to notice a significant uptick in mobile traffic and orders from senior citizens (i.e. for whom the user experience might be subpar), this trend would provide an immediate need to review your site’s user experience on smartphones.
Groups that outperform similar segments: If visitors from a certain part of the world convert at a higher rate or have a higher average order value than another region, you can study what about that group causes it to perform better. From here you can decide whether you want to adjust your approach for other segments to increase their performance or double-down on this group to make it even more successful.
Groups that underperform compared to similar segments: On the other hand, if you notice that a certain segment is underperforming in comparison to similar segments (e.g. mobile users from one country vs. another), this can indicate areas for improvement or potential issues with your targeting strategies.
E-Commerce Website Visitor Segments To Find In Your Own Data
Now that we’ve walked through practical applications of segmentation, let’s take a quick look at some real-world visitor group ideas you can use in your work. Each of these segments represents a common visitor group or behavior type that offers an optimization opportunity—one where either learning or direct KPI impact is possible.
Some of the most common segments to look out for include:
- New vs. returning visitors: Understanding how your website performs for both new and returning visitors can help you identify any potential issues with attracting and retaining customers.
- Geo-based segments: Visitors from different locations may have different interests, preferences, or even cultural differences that can impact their behavior on your site. Segmenting by location can help you tailor your messaging and content to better resonate with these groups.
- Device-based segments: As mobile usage continues to grow, understanding how your website performs on different devices is crucial. You may find that certain device types or operating systems have higher conversion rates or lower bounce rates, which can guide your optimization efforts.
- Referral source segments: Knowing where your traffic is coming from can help you identify which channels are most effective at driving conversions and where to focus your marketing efforts.
- Behavioral segments: By tracking website behavior (e.g. pages visited, time spent on site), you can identify visitor segments that exhibit certain behaviors that indicate a higher likelihood of conversion or a stronger interest in your products/services.
By understanding and analyzing these different visitor segments, you can gain a deeper understanding of your audience and make informed decisions about optimization strategies that will drive revenue growth. By continuously monitoring and evaluating these segments, you can also identify any changes in behavior or trends over time, enabling you to adapt your tactics for continued success.
An easy way to find high-value visitor groups is Lucky Orange Discovery which puts Optimization Opportunities right in your lap.
Beyond Website Optimization: Using Segmentation To Benefit Other Business Functions
While optimizing website performance is a key factor in driving revenue growth, segmentation can also have a positive impact on other areas of your business.
- Customer acquisition: By understanding which customer segments are most valuable and which channels are most effective at acquiring them, you can focus your marketing efforts and budget accordingly to attract more high-value customers.
- Customer retention: Segmenting your customer base by behavior, demographics, or purchasing history can help you identify opportunities for personalized marketing and communication that will improve customer satisfaction and retention rates.
- Product development: By analyzing visitor segments and their preferences/interests, you can gain valuable insights into which products or features are most popular among different groups. This information can guide your product development efforts to better meet the needs and wants of your target audience.
- Pricing strategies: Segmenting by customer groups and their willingness to pay can help you tailor pricing strategies that are most effective at driving revenue growth. By understanding which segments are willing to pay more for certain products or services, you can adjust prices accordingly to maximize profits.
In conclusion, segmentation is a powerful tool that can benefit not only website optimization but other areas of your business as well. By understanding and analyzing different visitor groups, you can make informed decisions that will drive revenue growth, improve customer satisfaction, and guide various business functions towards success. So don’t underestimate the power of segmentation and make sure to regularly monitor and evaluate your data to stay ahead in today’s competitive market.
So keep segmenting, keep optimizing, and watch your business grow.