Smart segmentation tactics for Beauty and Cosmetics brands
This is a part of an ongoing series on the best practices for ecommerce brands by industry.
One-size-fits-all marketing is not helpful. Brands shouldn’t expect the same results from marketing tactics that work for one particular industry, to work for theirs.
That’s why we decided to take a closer look at what marketing “success” and strategies looked like for different ecommerce stores by industry.
One of our marketing analytics pros combed through thousands of accounts to evaluate the differences between industries.
The goal was to answer questions like, “Do some industries rely more on automated flows versus one-time campaigns?” and “Do all the top performers across all industries include the same type of content in the same automated flows?”
The analysis also compared the top and bottom quartiles — the best performers and the worst performers — with “best performance” defined by ROI or how many products got ordered.
Let’s take a look at a few of the most interesting finds from ecommerce stores in Beauty and Cosmetics related to segmentation by type of product and by the value of product or order.
Flows are critical to success
Our marketing analytics pro found that 96% of the top performers are sending flows (also known as autoresponders) in the Beauty & Cosmetics industry. Of those, top performers are sending on average 1340% more flow emails than other three quartiles combined!
But when we dug a bit deeper we found that two segment types reign supreme, segmentation by type of product and by the value of a product or an order.
I found this particularly interesting in regards to offering discounts. Just think of all the different ways you could decide to approach a win-back or abandoned cart with data. For example it might be well worth it to offer $15 off on a product over $75 vs. a product or order valued at $40.
Let’s take a look at these two different types of segmentation.
Segmentation by type of product
Segmenting by type of product is a smart way to make your flow emails even more targeted. Take a look at these two examples from Annmarie Skin Care.
This win-back email is sent to customers who have purchased their sample kit, but did not purchase again. The email is sent 180 days after the order was placed.
Instead of immediately pitching a discount code or offer, Ann Marie starts the email by inquiring why they haven’t purchased again, is it something they can improve with the product? This email is great because the setup is so relevant to those who have previously purchased the sample kit and it allows Annmarie to collect feedback from users of their products.
The promotion (20% off) at the end is a gentle enough nudge to get those who were happy with the product but likely forgot to reorder an incentive to buy again.
This second email from Annmarie is an example of a fabulous post-purchase email. They are providing helpful content related to the product just purchased and offer a coupon right away to reward purchasers, which will likely be top of mind when they run out of the products in their sample kit.
If that weren’t enough of an incentive, they also have a great CTA for their referral program, $25 is a pretty significant discount.
How to approach segmenting by type of product
Here are few ways you could segment your flows emails by product type:
1. Win-backs: Since many products in this industry are replenishable, this an easy win to get repeat buyers.
2. Segmented cross/upsells: Depending on data point like (hair/skin type or
3. Abandoned carts: Has purchased before vs. new customer
Segmentation by the value of product or order
The email on the top is sent to carts valued at over $50, the bottom is for abandoned carts under $50.
Professional styling tools and education company Sam Villa segments their abandoned cart flows by the order value as well as if the purchase is being made by a professional or a consumer. For orders over $50 they offer free shipping for customers in the US.
This is a super smart way to send the right offer to the right shopper. It might not make sense for a beauty brand to offer free shipping or a dollar off promotion so orders or products under a certain dollar amount.
How to approach segmenting by the value of product or order
Looking for a little inspiration? We recommend considering these segments:
- Abandoned carts: Segment into product or order value to determine how much, if any discount you want to offer a cart abandoner.
- Cross-sell/upsell: Related products or items that fall within a certain price range.
Making sense of it all
With so many different beauty and cosmetics companies vying for the same customers, automated flow emails are a great way to ensure you convert shoppers and keep them coming back time and time again.
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