Leaving, again the most equal: the segmentation of clients abandoning

A very important step and phase in the life of e-commerce website is the dropping of customers. Customers who bought in the past and have since disappeared. We should invest in them and if so, in which one? In all of them or just a certain segment?

A correct segmentation of public and optimization for each type of market has become the Holy Grail of all customers who purchase online on the Internet.The options are endless and publicly distributed in several categories, from obvious choices such as age and sex, to more advanced options such as the difference between the buying patterns of users who use browser “Chrome” than those who accessed through Explorer.This time we want to focus on intelligence analysis of market segments and customers for all owners of e-commerce sites: Customers that leave us. Customers abandon us after committing one or two purchases on the site, so how can we make them come back to make other purchases on the site for a long time?

This segment is interesting for two reasons: first, most online customers give a greater share of business. Secondly, a well-known convention, it is easier and cheaper to raise the value of existing customers than to acquire new customers. Customers are already exposed to the brand and interact with the site. In most cases, in terms of marketing we have any information about these customers (such as name, email and telephone), enabling easy and intelligent interaction with them personally. So how we do to attract in a smart way so that customers purchase for those who left the site? People from Optimove came up with a very interesting idea

Check-out front late check-out
The idea was to divide customers in two groups: non-active customers and active customers.Non-active customers are those who have accessed and purchased from the site once in a period of two years. Active clients are those who have bought several times over a period of time, and have a deeper interaction with the site. It is important to understand that customer segmentation for each group varies from company to company.
The study was conducted based on information from 30 sites with a variety of fields, and its purpose was to demonstrate the assumption that customers that are ‘active’ are more valuable to the online store. This hypothesis was tested.

The report reviews retrieval: The average percentage of customers in each group who returned to perform at least one additional site conversion (purchase, etc).

Check Period: The average length of time during which the costumers became non-active after they left the site and then returned to convert.

Survival Report: The average percentage of returning customers that became active real customers ( those who have achieved more than a new conversion).

Income after the first month of clients: the average amount of money spent by customers who have returned to the site.

Information collected and analyzed indicate that two specific values showed significant differences between groups:

1. 53% of customers were converted from non-active customers in real active customers, compared to only 29% of customers being converted to non-active customers.
2. 53% of customers remain active for a long period of time. Instead, the non-active group turned in only 35% of customers that were active for a long period of time.

Indicative significant difference between groups metric: It is important to note that there are different values and they are no less important:

1. No significant differences in the amounts invested in two groups of customers but the ones that return faster are the active customers.
2. No significant differences in time spent by the two groups of customers on site (between 63-65 days).
Conclusions and insights
First, the study shows that there is a significant difference between the two groups of customers who leave. Secondly, the study shows that the difference of active customers are better than non-active customers because they tend to stay active customers for a longer period of time.
Shop owners focus on the differences between groups when building a campaign strategy. When the owner divides the budget for the revival of the customers, it is better to focus more on active customers as the effect is larger. However, customers that are converted into active customers should get the attention of the retailer and he should create a program to help customers become active over a long period of time.
Comax with the management of customers, can help you do a thorough analysis and quickly understand the client profile to lay the foundation to create a strategic plan for increasing the profitability of your business. Want to know more? Click here.
This article is based on a blog post from Optimove