Six steps to boosting your ecommerce business through data-driven marketing

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Date: 12 October 2021

Marketing segmentation based on data-driven insights

We live in a world where we're provided with a constant source of data and information. From social media engagement, the constant back and forth of emails, and more metrics than we can count, data has taken over.

But with so much data available to us, how can we leverage data-driven marketing to increase sales, boost customer retention, and improve your website's user interface?

In this article, we'll walk through six steps you can take to use data-driven marketing to change the way your ecommerce store operates. Data-driven marketing platforms like Verfacto can help you achieve all of the steps below with great success and ease.

Step One – Segment your users

User segmentation is the process of splitting your customer base according to certain metrics. For example, if you're B2C orientated, you could categorise people that come onto your website by metrics such as age, gender, and location.

While one user may prefer flashy deals, another may be a discount shopper. Understanding metrics like this will allow you to target specific users differently, boosting the success your marketing interactions.

Segmentation of users is the most important first step you can take to set up a great data-driven marketing approach. If you have one large data set just labelled 'customers', you're unlikely to know how to target customers in a way that works for individuals. That's simply because what some users may flock to, others may be repelled by.

By segmenting your users, you break down that initial data set, allowing you to see trends in how certain user demographics react to your products. With this information, you can then change your approach for certain user categories. This brings us firmly onto our second step, which is where you make changes based on these user segments.

Step Two – Optimise your website

With the increased data specificity that user segmentation brings, you can then begin to optimise your website to appeal to these distinct customer categories. Let's say that by analysing the data that specific users are producing, you can see that the majority of users click on Product A for less than 5 seconds, while Product B they tend to stay on for up to one minute.

You can then assess the differences between these two products. Perhaps one has better quality photos or product copy? By working out the differences between Product A and Product B, you can assess why B is outperforming A.

By understanding how users react to your products, you can then ensure that all your products are customised especially for your users. Repeat things that are working, while using data analysis to find out exactly what isn't, and then change it.

But website optimisation doesn't just stop there. You can target whole pages with this approach, changing your copy and working out which is more objectively successful.

A couple of main points of optimisation that you can target once you have additional user data are:

  • the structure of your website, how your headings and subheadings are set up
  • the front-page copy of your website
  • the brand story of your site
  • different ways of presenting products
  • the success of bundling certain products together

Once you've optimised your website, you're ready to move to step three.

Step Three – Deliver data-driven pop-ups

The third step to using data-driven marketing to boost the success of your ecommerce business is to use targeted pop-ups in conjunction with user segmentation.

Analysing your data may reveal that some users react to certain functions more than others. For example, one user segment may enjoy flash sales, while another group prefers targeted discounts on their favourite products.

By understanding how data sets react to these factors, you can then use pop-ups that target users based on their segment, accommodating to their desires.

Instead of offering every site user a 15% discount on all products, you should instead work out which segments respond best to discounts. Look at data metrics like conversion with and without a discount and look for where the conversion rate has the most potential to improve.

Then, instead of offering everyone a discount, set your website up to initiate a pop-up to those that are most likely to convert after using the discount. This will increase your conversion rate, while also dropping the number of unnecessary discounts your business is giving out.

Data-driven marketing won't just save you money, it'll also boost your sales.

Step Four – Measure and track your KPIs

In your CRM, you'll be able to generate reports that reflect how each of your KPIs is going in real-time. By using customer data, you'll be able to actually measure and track how effective your business is in reaching your company goals.

If you see one particular KPI falling behind the rest, you can analyse your customer data and then change your approach to accommodate for this KPI.

Analysis allows for further insight into how your customers behave, which can then help you correctly target your individual KPIs and boost the success of your ecommerce store.

Step Five – Evaluate your marketing campaigns

Data-driven marketing isn't only about on-site marketing. You can also use these approaches to measure the effectiveness of your marketing campaigns.

If you're running two similar campaigns, you can run A/B testing on them, using behavioural data and response metrics, to see which is campaign is more effective.

By selecting the most successful advertising campaign and then placing it against a new ad, you can constantly refine and improve your outbound marketing. This will boost the amount of engagement on your posts and decrease your CPC per campaign.

Step Six – Targeted emails based on data-driven marketing user segmentation

Once you understand how your customers are segmented and what each of these user categories responds to best, you can then send emails that specifically target one kind of user.

In line with targeted pop-ups, these will capture the attention of your customer base, making sure that every email that your business sends is targeted and as effective as can be.

This will easily let you boost conversion and interactions within your email marketing campaigns. 

Final thoughts

Data-driven marketing is one of the most powerful tools that your business can use to boost the success of your ecommerce store.

By following these six steps, you can create better marketing campaigns, target pop-ups, gain detailed insight into how your customers respond to your store, and transform how your business understands and accommodates your customer base.

Copyright 2021. Featured post by Verfacto, a customer data platform for ecommerce that helps collect, unify, and analyse customer data with no hassle.

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