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Home Running A Business Segment Customers to Increase Purchase Revenue: How to Guide
Imagine you could determine on the fly as you begin to engage with your customers, whether or not you should charge them 30% more than your typical customer. As ludicrous as this may sound, a lot of companies are doing it. It’s customer segmentation at its best.
Orbitz.com evaluates the device type of web visitors and serves up more expensive properties to visitors on a Mac computer (source). Orbitz evaluated past transactions and discovered an interesting trend: Mac users spent upwards of 30% more than PC users on vacation packages.
This how-to guide will briefly discuss how you can increase purchase revenue by segmenting your customers, and then provide four steps you can follow to establish your own customer segmentation and resulting strategies.
This is a full guide that should give you all the information and instruction you need to build out your segments. For your convenience, here is an index you can use to jump down the guide to sections that may be more relevant for you:
The example of how Orbitz suggests properties that are higher scale for Mac users is a great example. Orbitz realized Mac users tended to want higher end properties more, so by serving up higher end properties before Mac users even requested them they were saving the site visitors time and providing them with what they want before they wanted it. For Orbitz, it ensured that their customers who were more likely to spend more on a hotel were given the opportunity more quickly. Win win for both. Increased purchase revenue for Orbitz.
For those of you who have much of your business happening online, similar to Orbitz, there are some particular things you can be doing to evaluate your segment and better target them. Below are five ideas and must have software tools (both free) that you need to have on your site:
For those of you who have an on the ground business with little online presence, the power of segmentation is, even more, powerful. In online business segmentation isn’t new, and as such, many people are doing it – you don’t get as much bang for your buck as you do with non-online businesses where you likely have no competitors that are segmenting and targeting customers. Here are a few industry specific examples on how you could use segmentation to increase purchase revenue:
What industry are you in? If you’d like a custom recommendation as to how you could use segmentation comment at the bottom of this article and we’ll do our best to give you some great ideas! Please just be sure to mention that you’d like a suggestion of how to use segmentation and include what industry you’re in.
Now that you’ve got some ideas on how to use segmentation to increase purchase revenue you’re itching to know how to best segment and target, right? Here you are, in four relatively simple steps:
These are excellent questions and come up frequently when discussing segmentation and targeting. Let’s tackle the first question: is it bad for customers? Here’re a half dozen reasons why it is anything but bad:
Those are just a few examples of why segmentation can be both beneficial to the customer and increase purchase revenue for you at the same time.
As for the question of privacy violation, there are some things you need to keep in mind:
Ben loves working at the intersection of technology and entrepreneurism. From his early youth selling discount candy from his locker to building his own SMS marketing tool that he sold to the State of Utah he has learned the value of lining up vital funding for small businesses. Despite his near addiction to tech and small biz, he also loves to get away from it all and spend time in the mountains hiking, rock-climbing and off-roading. Ben and his wife live in Lehi, Utah with their two boys.
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