How to Use Data Segmentation to Increase Conversions

Experts note that segmentation streamlines customization, optimizes cost efficiency, and helps with market expansion.

And it doesn’t stop there.

Data segmentation is drastically improving the customer’s shopping experience. It can assist your business with customizing everything from retargeting ads to loyalty programs.

Jarek Wasielewski, education expert at ClickMeeting, agrees,“Tailoring content to specific market segments is all about personalized marketing. In today’s world where competition over a more informed consumer base has become tighter than ever, personalized marketing is often what defines greater lead generation and customer conversion.”

Take advantage of data to offer customers noteworthy experiences. Learn how to maximize your company’s segmentation efforts to boost conversions.

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Studies report that “96% of B2B marketers say segmentation is the most valuable method for improving conversion rates.”

Data segmentation can help personalize the website experience for your visitors. This tailors your branding, instead of spreading one mass message.

“We must segment the experience not just visitor, and as such, we must address the demographic, behavioral and historical contexts of each visit,” says Derek Adelman, Co-Founder and VP Operations at Fanplayr.

Visitors are more likely to convert if they are offered something they desire. Relevant content leads to happy shoppers and more sales.

Moreover, your content should grab consumers’ attention, give massive value, and spark them to take action quickly.

For example, video maker Shakr was featured on Product Hunt. Their team used this as an opportunity to target new visitors. So, the company added a banner on their homepage offering Product Hunters an exclusive coupon.


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Segmenting your visitors based on how they arrive to your site is important. It opens the doors to developing targeted campaigns that facilitate the purchasing process.

Email Campaigns

A Lyris report uncovered that “39% of marketers who segmented their email lists experienced higher open rates, 28% experienced lower unsubscribe rates, and 24% experienced better deliverability and greater revenue.”

There’s an opportunity for your company to achieve similar results. It all starts with knowing your buyers.

Personalize your email campaigns to fit customers at varied stages of the conversion funnel. For instance, Awareness Andy may only be interested in learning more about your SaaS product. You would send him emails about features and benefits.

On the other hand, Consideration Charlotte is actually wondering if she should buy your product or a competitor’s. Then, you should send her emails about a free trial sign up or an introductory webinar tutorial.

Johnny cupcakes

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Before segmentation, clothing brand Johnny Cupcakes sent the same marketing messages to all their 80,000 email subscribers. Then, they decided to sift through their data and target customers based on gender, interests, and brand preferences.

As a result, the clothing retailer saw a “42% increase in clickthrough rates, 123% increase in conversion rate, and 141% increase in revenue per campaign.”

Segmenting your email list allows your team to give customers exactly what they want. It’s an effective way to speak directly to the customers’ needs, while giving them the right product solution.

Loyalty Programs

Developing a loyalty program is challenging. Your team must understand what will keep your current customers interested and what will spark them to purchase multiple times.

Begin with customer service in mind.

Richard Owen, president and CEO of Satmetrix, writes, “Make exceptional customer service a core value for your company and you’ll create an experience for your customers that they’ll want to tell their friends about. It’s the marketer’s dream: Your job becomes a whole lot easier when your customers do the marketing for you.”

With data segmentation, your team can provide amazing service that resonates with your customers. Designing an attractive loyalty program centers around satisfying them.

Here are two ways to segment loyalty programs: dollars and customer attributes.

Segmenting by dollars involves creating tiers based on price. It’s all about how much money the consumer spends in your eCommerce store. Establish different categories that entice customers to reach the next level.

Starting in April, Starbucks will offer its loyal customers a two-level rewards program. Each customer will receive more rewards for every purchase they make.


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Your team can also segment by customer attributes. For instance, you can target consumers by geography. Customers living in the United Kingdom may receive different rewards than those residing in Canada.

Loyalty program plus data segmentation equals more customized experiences. In return, your company increases its revenue from repeat buyers.

Retargeting Ads

Producing retargeting ads is effective for keeping your brand alive in your shoppers’ minds. The purpose is to bring interested buyers back to your site to complete the sale.

Successful re-targeting campaigns focus on personalizing the ads.

“Using a re-targeting approach, I can create a highly personalized experience for these radically different audiences based on an understanding of the content they visited,” John Jantsch, marketing consultant and author of Duct Tape Marketing.

Create a strategy concentrated on the customer’s behavior, and then offer a relevant pitch. Try these two targeted groups: cart recovery and specific URL visits.

High-end handbag company Brahmin faced issues with converting their shoppers into customers due to shopping cart abandonment.


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After hiring a retargeting provider, the company started learning more about their customers’ habits, like what sites they visited and blogs they read. In the end, Brahmin managed to reengage 20% of their shopping cart abandoners.

In addition, retarget visitors who visited a specific URL on your website. Here are a few common groups:

  1. Homepage: Target shoppers with a general messaging or a discount offer.
  2. Category page: Engage visitors with a specific product type, like shoes, pants, or shirts.
  3. Product page: Create an ad displaying the particular product, such as, the deluxe accounting software package for SME.

Learn what strategy will work best for your products and services. Then, start executing today.

Segment for Better Results

Data segmentation offers endless possibilities to engage with your customers. More importantly, that engagement translates into revenue for your business.

Monitor your referral sources to provide a better website experience. Segment your email campaigns to give shoppers personalized offers. And target current customers to increase loyalty.

Segment to increase conversions.