How to Segment Your Customers and Target Their Needs
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Transcript of How to Segment Your Customers and Target Their Needs
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© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.
Webinar #4: June 10, 2010
Optimizing Content through Segmentation and Targeting
Bob Garcia Director, Product Marketing
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© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.
Process involves testing, identifying and using segments, and using test
results to target content and create highly personalized web experiences.
What is Site Optimization?
A discipline and a continual process
Allows marketers to maximize content relevance
Result is improved conversion rates and engagement
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Site Optimization Continuum
Segment Testing General Testing Targeting Profile Targeting
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Current & Planned Use of Tactics
95%
83%
71%
74%
Use: Current or Planned
Use: Current or Planned
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“Relevance doesn't need to be rocket science.”
“Simply identifying with customers through segmentation, by
using personas, or by listening to user-generated feedback
provides fuel for increasing relevance.”
Emily Riley, Forrester Research, April 28, 2009 “: Five Ways to Improve the ROI of Your Behavioral Targeting Campaigns”
Emily RileyForrester Research
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© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.
“How Mature Is Your Marketing Organization?”
“Onsite behavioral marketing programs, delivering customized, targeted Web content are emerging as an appealing option for businesses seeking new ways to drive sales and improve conversion rates in an era where accountability for marketing spend continues to grow.”
Andrea Fishman, ClickZ, Mar 24, 2010 “Are You Ready for Behavioral Marketing?”
Andrea FishmanClickZ
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© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.
“Use your own site data.”
“Do more with the web analytics platform. The most obvious
way to extend an existing Web analytics implementation is by
closing data collection and analysis gaps through the addition of
functionality from your vendor’s own tool kit. Analytical
extensions to Web analytics include A/B and multivariate testing
and behavioral targeting applications.”
Joseph Stanhope, Forrester Research, March 29, 2010 “How Web Analytics Will Emerge as a Cornerstone of Customer Intelligence ”
Joe StanhopeForrester Research
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ONE REASON WHY?
To Get a Bigger…
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Visualizing Segments
100% of visitors
100% of visitors
1 segment = all 16 segments = all
AllNew vs. Returning
4 KeyProducts
8 MajorMarkets
16 VisitorPersonas
Segments Share one or more preferences or characteristics
Segmentation Division of visitors into segments that are then used
against defined objectives to drive relevance
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Segment Attributes
Geo IP location
DMA Code
Time of Day/Week
Browser | Device
EnvironmentGeo IP location
Organic Search Term
Paid Search Term
Banner Link
Referrer
Source
Cookie
Visitor Data Mart
CRM Data
External Variables
Pages viewed
Authentication
Login
Path
Behavior
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Prioritized Attributes for Targeting
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Segment Selection
Determine whether a segment is worthy of targeting:
1. Priority – focus on high value customers
2. Population – sufficient size and potential value
3. Objective – for example reduce excess inventory or improve UX
4. Fit – synergy and breadth of potential promotions
Tip: Marketers can use technologies like Webtrends Visitor Data Mart to explore and
discover historical segments based on behavioral and demographic customer data.
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The Process
Segmentation
Segment selection criteria:
• Geography• Keyword• Tactic – email• Device – mobile vs. desktop• Etc….
Real-Time Targeting
Create segments and define target
rules to map segments with content
Define and build content for segments to position:
1. Product2. Content3. Offers
Target Content
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Where does Segment Data Come From?
Visitor’s User Agent string Contains data identifying a web browser and other
system details (e.g. time, day, etc.).
A unique identifier for each machine connected to the
Internet. Companies such as Geotrends compile
databases of IP address locations.
Visitor’s IP Address
Used to programmatically collect information.
Solutions like Optimize makes this easy.Capture >> JavaScript
Discover richer segments based on behavioral and
demographic customer data.Visitor’s Profile
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Segmentation Criteria 101
1. Environment: visitor’s browser passed variables, e.g. browser, day, time, etc.
2. Referrer: parse on part or whole referring URL. Anything other than URL parameters.
o Full or parts of a URL (e.g. "/product/") to filter traffic coming from a URL containing "/product/“
o Types of pages (e.g. .htm, .aspx, .php, etc.)
3. Geolocation: using GeoIP database to capture location-based information
o E.g. Area Code, City, Country, Time Zone, etc.
1 of 3
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Segmentation Criteria 101
4. Query string attribute: use variables in the HTTP query string
o Domain.com/?field=value => “member”
5. Paid Search (e.g. Google) URL tracking parameters that Search Engines pass
o Google paid search term example: utm_term = running+shoes
6. Data Object Attributes: on-page variables (dynamic or JS) like cartTotal
o Data object attribute = “cartTotal” is greater than “1000”
2 of 3
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Segmentation Criteria 101
7. Cookies: solutions like Optimize allow you to inspect and segment on cookie values
o New vs. returning user state
o Campaign source
8. Imported Segment Criteria: using imported historical segment insights
o Lifetime value (revenue)
o Visit recency and frequency
o First/most recent purchase value
o First/most recent purchase time
3 of 3
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Business Value of Targeting
Segment-based Targeting is a triple win:
1. FAST TIME TO VALUE - starts producing results FAST
2. RELEVANCE - improves the experience
3. BROADER ROMI - maximizes conversions
Your audiences will reward you:o Loyaltyo Customer satisfactiono Share of walleto All the big metrics – revenue, conversions, leads, etc.
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Requirements for Success
Test PlanningTest PlanningStrategy Segment
SelectionTarget
PlanningTarget Setup
Target Activation
Campaign Performance
PROCESS
Deep customer segment insights Marketing program strategy Campaign performance / KPIs
Target development Implementation QA
Creative strategy Asset generation Usability
Business Analyst Creative Specialist Web Developer
PEOPLE
TECHNOLOGY TestingSegmentationTargetingPersonalization
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How It Works?
Targeting Process1. Strategy
2. Segment Analysis and Selection
3. Determine Target Content – Ideally through Testing
4. Target Content Setup and Activation
5. Reporting & Analysis
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The Azul marketing team is looking to deliver targeted content to high value visitor segments.
example
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Target offers to segments based on 3 criteria:
GeoLocation
Search Keyword
Loyalty Member Status
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Content Targeting Overview
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Segment Definition Example
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Target Setup
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Geolocation Example
Visitors from “Seattle” get:
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Query String Attribute Example
Visitors coming in from keyword “Vacation” get:
keyword = vacation
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Cookie Example
Existing MyAzul loyalty program
members get:
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The Future Segment Discovery
segment discovery success depends on the segment attribute data you capture during test
Add External Data & Discover Segments
Targeting (Optimals)
Define Content, Run MVT Define and Capture Attributes
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1. Increases content relevance
2. Enables onsite marketing
3. Maximizes conversion rates (ROI)
4. Reduces conversion “friction”
5. Helps you compete and win
Key Takeaways
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© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.
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© 2009 WEBTRENDS INC. ALL RIGHTS RESERVED.
Bob Garcia(e) [email protected](t) @bob_garcia
blog: For more on site optimization check out Billy’s Bloghttp://blogs.webtrends.com/optimization/
FOR MORE INFO: