|Boost sales with customer segmentation|
Thursday, July 26, 2012
I just wanted to take 10 minutes to tell you about a powerful feature contained within VP-ASP that not many merchants are using.
Magento boast the same feature as one of the main selling points of their $14k a year Enterpise edition - they call it Rich Merchandising Suite (RMS), we call it Customer Segmentation.
Customer Segmentation allows you to create customer groups based on a number of factors such as location, date of last purchase, number of purchases in the last 3 month etc.
You can then offer the customers in these groups a special discount and / or send them a targeted email.
A few examples I have come up with include:
- Create a group for customers who have not made a purchase for 6 months then send them an email with a coupon code offering them 20% off their next purchase
- Find customers who have purchased on more than 5 occasions in the last three months and reward them with 20% off their next order to maintain loyalty
- Find customers who have bought a certain product and offer them a discount on a related product (e.g offer 20% off sleeping bags to a customer who recently purchased a tent)
Please refer to section 10.7 Customer Groups in the VP-ASP User Manual (download here) for more information on this great feature.
Once you have your lists of customers, you can use Campaign Monitor (download the free add-on here) to send targeted emails and will be able to track the effectiveness and click through rate of your emails.
Remember, asking customers who have bought from you before to buy again is much easier than attracting new customers. The customer grouping feature gives you the opportunity to send personalised, targeted emails to your previous customers who may just need that extra nudge to return to your store.
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