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Customer Segmentation

My dad asked me to buy 3 GPS accessories for him.  He gave me the name of the equipment and the web address of store.  I had never heard of buygpsnow.com and though it violated quite a few of my ecommerce essentials I knew dad had done his research.  I made the purchase.

Data can be highly subjective.  Looked one way it says something, looked another way something entirely different.  How much money buygpsnow.com makes off me depends entirely on how accurately they segment me as a customer.  Under one view my transaction was quite standard and I couldn’t fault them for assuming I am a typical site shopper and sending communication messages intended for GPS enthusiasts.  But this view is inaccurate, and a brief review of the transaction proves it:

— This was my first purchase on the site and I bought 3 GPS units.  [Why did I buy 3?]
— I completed my transaction in 32 seconds and spent $150. [This speed of transaction suggests I knew exactly what I wanted]
— I used expedited shipping. [Arguably, I was in a rush]

If I was working with buygpsnow.com I would have stored these extra bits of data in my customer file.  I would also add a field called “inactivity”.  If Rishi does not open our emails or make another purchase for the whole year it would clearly indicate he is not a GPS (or gadget) enthusiast and made this purchase as a gift for someone else.  Just knowing this could help me make more money through Rishi.  See, they’ve been sending me emails assuming I bought the GPS for myself and this is one reason I don’t read them.  However, if I got an email that said “Hi Rishi, six months ago you bought the GPS 33.  We believe this was a gift purchase and wanted to inform of a new accessory that would be a perfect gift for someone who already has the GPS 232 unit”.  Suddenly I am interested and would love to gift this to my dad.  Context is everything.

Related articles: Capturing Intent and KuKuRuZa Gourmet Popcorn


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