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Segmented Shopping is the Ultimate eComm Unlock
Noah King of Popsixle and Rishabh Jain of Fermat teamed up to discuss how segmentation can provide a powerful advantage to eCommerce brands.
If you work in eCommerce and Digital Marketing then you know how challenging it has been to grapple with the shifts towards private website tracking and the impact privacy changes have had on ad attribution and performance. Popsixle and Fermat joined forces to shed light on how to gain a competitive advantage with segmented shopping, supported by segmented data.
Adapting to Privacy-Driven eCommerce
Both the present and future state of online shopping is undeniably veering towards a more privacy-centric model, with big tech platforms like Apple, Meta, and Google implementing stricter-than-ever privacy measures. The challenge and opportunity herein lie in two pivotal aspects:
- maximizing the ability to use and leverage the identifiable consumer information that remains available
- constructing ecosystems that prioritize the unidentified shopping journey over a dependence on personal data being available.
Popsixle offers a data enhancement solution to maximize the information that is available, while Fermat offers a solution that lets brands increase conversions rate with or without identifiable information via segmented shopping journeys. For these shopping journeys to work optimally from click to purchase, it’s important that every step of the customer experience is intricately aligned across all elements, including ad content, landing page imagery, and the language and tone throughout. These alignments lead to a closed-loop experience that is both scalable and impactful.
Discrepancies in Ad and Landing Page Experiences
A common and massive problem that plagues many brands is the experiential discordance between ad content and the subsequent landing page experience. This happens frequently when there are lots of ad variations and landing page variations that aren’t being thought about together. An ad that appeals to a specific demographic, say men with beards, loses its efficacy when the landing page showcases a starkly different visual, such as a woman using the product. This discrepancy can lead to confusion, disengagement, and potential loss of a sale. Ensuring a seamless and relatable journey from ad click to landing page is paramount in maintaining consumer engagement and conversion.
Harnessing Available Data for Enhanced Ad Optimization
The utilization of data, especially in a privacy-focused digital environment, becomes a linchpin for great ad performance. Popsixle’s approach of stitching data, such as Facebook click IDs, from various points of the customer journey ensures accurate attribution and enables more granular optimization. This unlocks a common identifier from ad click, to landing page, to checkout, to fulfillment, and prevents tracking gaps and misattribution.
Additionally, the concept of segment flagging, wherein a segment is created based on the initial ad click and landing page version, allows for this data to be passed through the entire customer journey and back to platforms like Meta, with important granularity. This not only better educates Meta’s algorithm but also provides a more nuanced view of customer conversions - revealing segment-specific insights. For example, one Popsixle client saw a six-fold increase in high value subscriptions by sending separate event data for subscription purchases vs non-subscription purchases.
Diverse Strategies Drive Greater Revenue
Brands that optimize for diverse objectives, such as Customer Acquisition Cost (CAC), subscriptions, bundles, and different creative concepts, are better positioned. This allows brands to cater to varied customer journeys and maximize Lifetime Value (LTV) from a range of customer segments, each with distinct online shopping behavior. Fermat knows precisely how brands can prioritize different aspects of the customer journey, such as prioritizing bundles or hitting free shipping thresholds, to enhance customer LTV. However, platforms like Facebook often see these through a naive Return on Ad Spend (RoAS) lens, underscoring the importance of feeding back nuanced customer journey data into ad strategies.
Nuance as a Competitive Edge
Brands that successfully decipher and implement these strategies carve out a significant competitive advantage for themselves. The strategic depth achieved by optimizing marketing in a more nuanced and effective manner propels these brands into a game of "chess" while many are still navigating the board of "checkers". The delta between these strategies can be the defining factor between a brand that merely survives and one that truly thrives in the increasingly challenging eCommerce market in 2023.
Navigating through the complex terrains of privacy, data utilization, and customer journey optimization necessitates a strategic and sophisticated approach. Brands that harness the power of enhanced data, ensure consistency in customer experiences, and leverage diverse optimization strategies not only illuminate the algorithms driving their marketing but also gain a substantial competitive business advantage. As 2023 comes to a close, the brands that embrace these strategies will undoubtedly lead the pack, crafting unique, engaging, and effective customer journeys that lead to outsized business growth.