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How to Segment Your Customers and Target Their Needs
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How to Segment Your Customers and Target Their Needs


y digital marketer knows that relevant content leads to a better conversion rate. But how do you make sure you’re publishing the right content to the right person? Learn how through segmentation and …

y digital marketer knows that relevant content leads to a better conversion rate. But how do you make sure you’re publishing the right content to the right person? Learn how through segmentation and targeting with Webtrends Optimize.

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  • Update July 30, 2009
  • This graphic represents the ideal optimization process. Obviously, marketers need the flexibility to respond to different issues that may cause them to jump into targeting while holding off on testing. Selecting solutions that enable this agility is key to ensuring success. Process:General testing is done against all traffic – don’t make assumptions on segments and optimize against all your traffic as a first stepSegment testing - After Testing against all traffic, pick key segments to further testing to determine optimalsTargeting - Targeting kicks in once testing is completed. Personalization - Marketing expertise + segments (can be very granular) to make content decisions to personalize targets – Need to define content modification need to be made plus target rules (i.e. segments)Data being gathered throughout each step. Image represents the data not just the person.
  • Why Site Optimization mattersOk, let's start with the easy one:Make more moneyYour current traffic will convert at a higher rate resulting in a bigger R on marketingBut wait... there's more! When you increase your success rate, it also means you can…2. Increase advertising spendAfter all, when your conversion rate increases, then PPC, affiliate marketing and other advertising will suddenly become much more profitable. And when you do that, you can…3. Increase market shareThe more you increase your conversion rate, the more traffic you can buy, the more customers you getThe more customer you get..4. Make even more moneyThe more repeat business you get.And it all starts with an effective site optimization strategy.
  • In-session CriteriaHistorical = External Variables
  • Ideally a marketer would have the ability to explore and define segment opportunities independently.We see the friction of marketers having to rely on IT for segment pulls as a key obstacle that deters the use of segmentation. Ideally, defined segments would be used across channels and tactics to better associate the value they drive and create efficiencies for marketers.
  • 3 step processCrawl – walk – run approachBusiness objectives should be top of mind when considering targeting Ideally, Marketers should be empowered to perform these activities with minimal IT intervention.
  • ROMI is return on marketing investment. Prospects are spending millions of $s on PPC, email and other channels driving traffic to key pages. How are prospects ensuring the optimal performance (i.e. conversion) of this traffic? How do they differentiate high vs. low value traffic? How do they optimize their content to maximize conversions for different segments? All of this is possible within Optimize.
  • Define SegmentCampaignsEmailPPCAdsMobileSocial Media Define ContentDetermine content will be most effective for each segment, or test the same content against all segmentsIdeallyTest ContentMultivariate test recipe for each segmentTarget Optimal(s)Show optimal content for each segmentOtherwiseTarget contenet using segments
  • Marketers come at this from 2 different perspectives:Audience-centricBusiness needs- centric


  • 1. Webinar #4: June 10, 2010
    Optimizing Content through Segmentation and Targeting
    Bob Garcia
    Director, Product Marketing
  • 2. 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
  • 3. Site Optimization Continuum
    Segment Testing
    General Testing
    Profile Targeting
  • 4. Current & Planned Use of Tactics
    Use: Current or Planned
    Use: Current or Planned
  • 5. “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 RileyForrester Research
    Emily Riley, Forrester Research, April 28, 2009 “: Five Ways to Improve the ROI of Your Behavioral Targeting Campaigns”
  • 6. “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 FishmanClickZ
    Andrea Fishman, ClickZ, Mar 24, 2010 “Are You Ready for Behavioral Marketing?”
  • 7. “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.”
    Joe StanhopeForrester Research
    Joseph Stanhope, Forrester Research, March 29, 2010 “How Web Analytics Will Emerge as a Cornerstone of Customer Intelligence”
    To Get a Bigger…
  • 9. Visualizing Segments
    New vs. Returning
    4 KeyProducts
    8 MajorMarkets
    16 VisitorPersonas
    100% of visitors
    100% of visitors
    16 segments = all
    1 segment = all
    SegmentsShare one or more preferences or characteristics
    Segmentation Division of visitors into segments that are then used against defined objectives to drive relevance
  • 10. Segment Attributes
    Geo IP location
    DMA Code
    Time of Day/Week
    Browser | Device
    Geo IP location
    Organic Search Term
    Paid Search Term
    Banner Link
    Visitor Data Mart
    CRM Data
    External Variables
    Pages viewed
  • 11. Prioritized Attributes for Targeting
  • 12. Segment Selection
    Determine whether a segment is worthy of targeting:
    Priority– focus on high value customers
    Population– sufficient size and potential value
    Objective– for example reduce excess inventory or improve UX
    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.
  • 13. The Process
    Real-Time Targeting
    Target Content
    Define and build content for segments to position:
    Create segments and define target rules to map segments with content
    Segment selection criteria:
  • Where does Segment Data Come From?
    Visitor’sUser 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
    Discover richer segments based on behavioral and demographic customer data.
    Visitor’s Profile
    Used to programmatically collect information. Solutions like Optimize makes this easy.
    Capture >>JavaScript
  • 18. Segmentation Criteria 101
    Environment: visitor’s browser passed variables, e.g. browser, day, time, etc.
    Referrer: parse on part or whole referring URL. Anything other than URL parameters.
    • Full or parts of a URL (e.g. "/product/") to filter traffic coming from a URL containing "/product/“
    • 19. Types of pages (e.g. .htm, .aspx, .php, etc.)
    Geolocation: using GeoIP database to capture location-based information
    • E.g. Area Code, City, Country, Time Zone, etc.
    1 of 3
  • 20. Segmentation Criteria 101
    Query string attribute: use variables in the HTTP query string
    • => “member”
    Paid Search (e.g. Google) URL tracking parameters that Search Engines pass
    • Google paid search term example: utm_term = running+shoes
    Data Object Attributes: on-page variables (dynamic or JS) like cartTotal
    • Data object attribute = “cartTotal” is greater than “1000”
    2 of 3
  • 21. Segmentation Criteria 101
    Cookies: solutions like Optimize allow you to inspect and segment on cookie values
    • New vs. returning user state
    • 22. Campaign source
    Imported Segment Criteria:using imported historical segment insights
    • Lifetime value (revenue)
    • 23. Visit recency and frequency
    • 24. First/most recent purchase value
    • 25. First/most recent purchase time
    3 of 3
  • 26. Business Value of Targeting
    Segment-based Targeting is a triple win:
    FAST TIME TO VALUE - starts producing results FAST
    RELEVANCE - improves the experience
    BROADER ROMI- maximizes conversions
    Your audiences will reward you:
    • Loyalty
    • 27. Customer satisfaction
    • 28. Share of wallet
    • 29. All the big metrics – revenue, conversions, leads, etc.
  • Requirements for Success
    Test Planning
    Test Planning
    Business Analyst
    Creative Specialist
    Web Developer
  • 38. How It Works?
    Targeting Process
    Segment Analysis and Selection
    Determine Target Content – Ideally through Testing
    Target Content Setup and Activation
    Reporting & Analysis
  • 39. example
    The Azul marketing team is looking to deliver targeted content to high value visitor segments.
  • 40. Target offers to segments based on3criteria:
    Search Keyword
    Loyalty Member Status
  • 41. Content Targeting Overview
  • 42. Segment Definition Example
  • 43. Target Setup
  • 44. Geolocation Example
    Visitors from “Seattle” get:
  • 45. Query String Attribute Example
    Visitors coming in from keyword “Vacation” get:
    keyword = vacation
  • 46. Cookie Example
    Existing MyAzul loyalty program members get:
  • 47. The Future Segment Discovery
    Add External Data & Discover Segments
    Targeting (Optimals)
    Define Content, Run MVT Define and Capture Attributes
    segment discovery success depends on the segment attribute data you capture during test
  • 48. Key Takeaways
    Increases content relevance
    Enables onsite marketing
    Maximizes conversion rates (ROI)
    Reduces conversion “friction”
    Helps you compete and win
  • 49.
  • 50. Bob Garcia
    (t) @bob_garcia
    blog: For more on site optimization check out Billy’s Blog