When your sales strategy is based on customers’ behaviour, then you can be sure you've fully grasped the personalisation concept the right way.
Behavioral marketing - behaviour-based promotion ideas
In this post, you’ll see how to translate customers’ behaviour into appropriate segmentation. And then, how to use these segments to create personalised promotion workflows.
To make this article, we’ve used a promotion management system called Voucherify, plugged into our test CandyShop presented for illustrative purposes.
Imagine you manage brick-mortar stores placed hundreds of miles from one another. Moreover, your landing page and social media offer a newsletter and promotions for your customers. Even with one physical store and the online presence, you need a sync and transparent management over all departments. This is how business looks today. People go online and search for savings while they still haven't given up traditional shopping. Ultimately, for millennials, if you're not on the Internet, you don't exist. Digital sales and promotions need to inscribe into the omni-channel customer experience regardless of the device or technology. How to ensure and manage such a complex cross-channel promotion system? Let's use our Candy Shops chain to show you how retailers can handle digital traffic and drive more acquisitions into physical stores.
Behavioral data comes first
Collecting data is paramount. There will be no marketing personalisation, targeting and a related growth if you don’t store customers’ data. Order details are a key to get to know customer preferences and customise promotion ideas. They let you find repetitive patterns of buying habits which can be later translated into well-targeted offers. You can keep customers coming back by giving them exactly what they crave: exclusivity, favourite product promo deals, loyalty rewards.
If you still don’t have your CRM and need help with that, follow this article.
What’s a behavior-based sales promotion?
Data opens the door to marketing personalization. Having details of all orders lets us group customers based on characteristic conditions related to their buying preferences. To see how it works, look at the example orders from our Candy Shops and the related segmentation of clients. In the next step, we're going to use these segments to fire off personalised promotional campaigns triggered by specific customer behaviour.
To build a segment, you need to choose attributes that define spending habits of your audience.
E.g., Behaviour-based attribute: frequent_taste
Besides specific preferences of particular customers, we need to take into account their location.
E.g., Location-based attribute: store_city
Thanks to the store_city attribute, we know which of our two physical stores is closer to the location of each customer.
Usually, defining attributes takes some time. On the one hand, they need to be precisely related to what you offer; on the other hand, they should emphasise common habits among your audience.
For special offers, let’s make one more segment of customers who have made at least 2 orders and spent at least $50.
Let’s sum it up and look at our customer segments:
1. Chocolate lovers from Berlin
By changing the frequent_taste, we can make more segments:
2. Fruit segment Berlin
3. Layered cakes Berlin
By changing the location to Hamburg, the same tastes configuration creates respective segments.
1. Chocolate, Hamburg
2. Fruits, Hamburg
3. Layered cakes, Hamburg
Now, we can schedule tailored promotions based on segment conditions. Each group of customers gets a discount related to their favourite tastes and location.
Let’s launch a promotion series for chocolate fans from Berlin. Scheduling targeted sets of discounts enables you to cover the entire sales funnel with the outstanding experience.
- A customer visits your website and leaves their email.
- In exchange, he/she gets a coupon code for a first order and a regular newsletter.
- Each customer enters a segment accordingly to their order structure and defined preferences.
- Voucherify creates a batch of unique codes for chocolate lovers from Berlin. Emails with a 25% discount are sent to the customers who fit promotion rules defined by the segment criteria. It means that a client must be a member of the following segments:
- Segment with frequent_taste chocolate and store_city Berlin
- Segment of customers who have made at least 2 orders so far and spent more than $50.
Everyone who enters both segments gets an automatic email with a promo code.
- After a customer gets the discount, he/she can use it during a purchase in the closest brick-and-mortar store.
Sounds easy, right? Instead of aiming in every direction and trying to satisfy everyone, you can create smaller promotions with rules consistent with differences within your customers. With the appropriate infrastructure, personalisation makes promotion more efficient and cost-effective. Ultimately everybody wins, clients can have their favourite products cheaper and you have more sales instead of unredeemed incentives.