Introduction

Hey guys,

Aharon here from Hype Digital. This week’s post is a continuation of last week and dives deeper into the practical application of using audiences and segmentation.

Weekly Insight

Last week, we discussed the definitions of audiences and segmentation, why you need to know the difference and some things to take into consideration when working with the two.

This week:

Before getting into this, it is important to mention that the psychological element of purchasing behaviour plays a large role here.

The examples discussed below are both South African companies with a predominantly South African audience, and therefore, when creating our audiences and segmenting these audiences, we need to be very aware of how this affects the demographics and purchasing behaviour of South Africans. These will be the primary users of the website and the overarching audience that we are working with.

Every region will behave differently and this should be addressed before beginning anything. As you work with various regions, you will learn more about them and subsequently improve your CRO targeting.

Let’s look at two examples:

1. While working with Tshepo Jeans, a premium luxury streetwear brand - we created an audience of ‘purchasers’ (all users who had bought something in the past).
   
   We then created two segments within this audience → high spenders vs low spenders. Within these segments, we target variants (variants being different types of tests that we showcase to customers) of curated selected items that cater to their previous purchasing behaviour.

   
   Eg. For high spenders, we would focus on trying to upsell from a pair of jeans to an expensive jacket, while for low spenders, we might try upsell from a t-shirt to a cap/sunglasses/socks etc.
   
   This strategy forms part of a retention strategy that is specifically tailored for each segment. Do you see the difference?
   
   
   

2. For a client in the iGaming sector, we similarly created an audience of depositors (people who had placed deposits previously). We then created two segments → high spenders (> R500 average) vs low spenders (< R500 average).
   
   For each segment, we then displayed custom buttons displaying the minimum deposit amount for each segment, i.e. ‘high spenders’ would be shown a minimum deposit amount of R500, and vice versa for the low spenders.
   
   Users could still deposit any desired amount, however this encourages users who have previously shown a certain buying behaviour to continue spending in a similar fashion.
   
   

In summary, different sectors, regions and customers will behave very differently. Segmentation is all about showcasing the correct tests to the correct users, as oppose to showing everything to everyone.

Conclusion

And that’s it for Part 2 of our series on audiences and segmentation! Understanding and applying these concepts is crucial for creating tailored experiences that speak to the unique needs of each user segment. As we saw in the examples, even small adjustments like targeting high vs. low spenders can significantly impact conversion rates. Next week, we’ll continue breaking down these strategies with more insights and case studies. Feel free to reach out if you’d like to discuss how segmentation can work for your specific business needs. Until then, happy testing!