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TO HELP YOU IDENTIFY AND ACTIVATE TODAY’S KEY CONSUMER SEGMENTS

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SEGMENTING MODERN CONSUMERSIn the 1950s, leading brands began to bucket their audiences based on demographic insights

collected via publicly available sources like surveys and census data. Basic personas like “moms” and

“teens” were developed using information like age, gender and household income in attempt to reach

consumers with more relevant and timely marketing.

Today, as modern consumers share real-time insight into their relationships, hobbies and interests

across social and mobile channels, they are defying consumer stereotypes and demanding

personalized experiences. In today’s big data landscape, audience segmentation requires a totally

new set of tools, technology and strategies.

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3 KEYS TO SEGMENTATIONMarketing to connected consumers requires a lot more information than age and gender. Leading

brands are developing strategies to understand and segment their audiences based on a number

of influential, actionable and behavioral attributes.

To do this successfully, your business will need to leverage the 3 A’s of Audience Segmentation:

1. Access to Consumer Identity

2. Aggregate Cross-channel Data

3. Actionable Insights

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After the demographic-restricted days of the 1950s and before consumers sent over 100K tweets per minute (Domo), brands often relied on mass third-party data to fill in the gaps and more effectively reach their audience at large.

But with the rise of big data, there’s hardly need for modern marketers to make “educated” assumptions about customers. Today, innovative brands are placing increasing emphasis on collecting and analyzing their own first-party login data to gain a more current, accurate and identity-centric view of consumers.

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ACCESS TO CONSUMER IDENTITY

By giving users the option to

login using their existing social

identities, brands can gain

permission-based access to the

insights housed in their social

profiles, including their locations,

relationships, hobbies, media

preferences and more.

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AGGREGATE CROSS-CHANNEL DATAMost 3rd party data collection techniques, like cookies, track consumers as they move across the

Internet on a given device - an obsolete strategy in a world where 67% of online shoppers admit to

having recently made a purchase involving multiple channels (Zendesk).

To truly understand consumers, businesses must ditch siloed data management in favor of a

centralized database that offers a single view of identity and activity across channels. This database must

be able to handle traditional data like name and email address, as well as the surge of unstructured

data, such as interests and media preferences.

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ACTIONABLE INSIGHTSA clear picture of consumer identity is

useless without the ability to tie these

insights to your bottom line. Connect

social and behavioral data to traditional

KPIs like revenue, time spent and repeat

conversions to gain a deeper

understanding of how your customers are

impacting your business. Most

importantly, you can take action on these

insights by developing user experiences

that drive more meaningful interactions

and valuable behaviors.

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6 KEY SEGMENT TEMPLATES

To help you get started, we’ve

mapped out the defining

characteristics of 6 key audience

segments, and the data points you

need to effectively identify and

activate these consumers in relevant

and meaningful ways:

With actionable insight into cross-channel

consumer identity, you can start segmenting your audience on a highly strategic and

impactful level.

INFLUENCERS

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DEFINING CHARACTERISTICS Think of influencers as the prom kings and queens of consumers. Consumers that fall into this

segment have a natural ability to connect with and influence the decisions of others, and are

extremely outspoken about their opinions. Whether they savored that delicious steak or were

offended by the waiter, everyone will know about it - and follow suit.

WHY THIS SEGMENT MATTERS

90% of consumers admit that their purchase decisions are influenced by consumer ratings and reviews

()MarketingLand)

KEY OPPORTUNITIES The ability to recognize influencers opens the door to maximizing their social reach and impact on behalf of

your brand, effectively turning them into brand ambassadors. But beware: these trendsetters move on to

“the next thing” quickly, and often require some incentive to stick around.

Here’s an interactive template of the data points you should collect to identify and activate your Influencers.

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DATA POINTS TO COLLECT WHAT TO EXPECT YOUR FINDINGS

Number of Social Connections A large numbers of friends and followers across networks

Social Shares Frequent shares to multiple networks

Referrals A high volume of referred traffic

iRank Score Ranks customer influence according to those who drive the most engagement across your site

Top ranking among customer base

Reviewed Purchases High quantity and quality of reviews

Up-Voted Reviews A high number of up-votes per posted review

Reactions Allow consumers to give feedback with the click of a custom button

Frequent reactions to content and products

DATA POINTS TO COLLECT WHAT TO DO YOUR FINDINGS

Friends and FollowersMaximize influencers’ community visibility and impact by enabling connectivity with their individual social circles directly from your site.

InterestsRecommend content and products that are inline with influencers’ expressed interests for tailored and streamlined experiences that influencers love.

Previous PurchasesDrive brand loyalty by sending thank you notes and exclusive discounts for items inline with past buys.

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INFLUENCERS SUCCESS STORY

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24 Hour Fitness is a great example of a brand that has successfully identified

and activated its influencers. To foster member loyalty while increasing new

fitness club sign-ups, 24 Hour Fitness created an online referral program that

allows members to share free 3-day gym passes with their social networks.

As customers refer their friends socially, 24 Hour Fitness uses Gigya’s iRank

influencer reporting to rank its top referrers by number of friends, number of

shares, volume of referral traffic, and activity frequency and timing. After

discovering its top influencers, 24 Hour Fitness rewards these high-value

customers with a tailored thank you package.

By turning influencers into highly valuable, long-term brand ambassadors, 24

Hour Fitness has driven over 331K direct contact referrals, worth over $3

million in online media, in just 3 months.

BRAND LOYALISTS

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DEFINING CHARACTERISTICS Perhaps the most valuable customer segment of all, brand loyalists exhibit a deep, often emotional

connection to your brand. They are in it for the long haul, choosing your brand time and again, even

over newer or less expensive options.

WHY THIS SEGMENT MATTERS

Repeat shoppers represent just 8% of all site visitors, but account for 40% of total online sales.

(PracticalEcommerce)

KEY OPPORTUNITIES Recognize and foster long-term brand loyalty by rewarding this segment for its dedication. While loyalists

can be highly engaged in brand communities, they are not necessarily the most vocal. However, loyalists

make the best advocates if you know how to spot and nurture their potential.

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DATA POINTS TO COLLECT WHAT TO EXPECT YOUR FINDINGS

Purchase History A long list of purchases over time

Average Transaction Value Large cart sizes

Purchase Frequency A series of recurring purchases

Quantity/Quality of User-Generated Content

Active, valuable participation in your brand community

DATA POINTS TO COLLECT WHAT TO DO YOUR FINDINGS

iRank ScoreLoyalists with a high iRank score can be nurtured as brand advocates, and given incentive to drive awareness and referral traffic for your brand.

InterestsBuild lifetime value by recommending content and products relevant to loyalists’ favorite brands, sports and more.

Favorited ItemsTailor recommendations and offers toward items and content your loyalists have actively expressed interest in to show that you value their relationship and are paying attention.

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SERIAL ABANDONERS

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DEFINING CHARACTERISTICS It happens even to the best of brands: potential customers show up to your site, fill their carts to the

brim and POOF - they’re gone. Serial abandoners are notorious for sharing items and adding them to

their wish lists, but never following through and completing checkout.

TIPS TO REDUCE ABANDONMENT

Request only necessary information at login and checkout

Give users the option to register via payment providers like Amazon and PayPal, which can pre-populate mandatory checkout fields with existing data

Leverage progressive profiling, which allows you to capture additional data over time via interactions like sharing and comments

KEY OPPORTUNITIES In addition to making the checkout process as simple and seamless as possible, presenting serial

abandoners with highly relevant opportunities to complete the path to purchase is key in decreasing

shopping cart abandon.

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DATA POINTS TO COLLECT WHAT TO EXPECT YOUR FINDINGS

Abandonment Rate High percentage of incomplete purchases

Time on Site Short durations

Page Views Minimal views per visit

Login Frequency Moderate frequency

DATA POINTS TO COLLECT WHAT TO DO YOUR FINDINGS

Abandoned Items Follow up with emails reminding abandoners of the items they left behind.

Socially Shared ItemsEncourage abandoners to complete the path to purchase by sending them exclusive discounts and offers toward desired items.

Social ConnectionsHighlight items previously purchased and review by members of users’ individual social circles to increase likelihood of conversion.

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MULTI-CHANNEL CONSUMERS

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DEFINING CHARACTERISTICS This growing segment of users visits your website on desktop, returns to buy via mobile and leaves you

reviews using their tablets. Multi-channel consumers are constantly connected, interacting with your brand

across a series of devices and touchpoints along the path to conversion, sometimes simultaneously.

WHY THIS SEGMENT MATTERS

Over 20% of consumers ages 18-49 visit websites from 4 different devices each week, and 36% of US organizations interact with consumers across 5 or more channels.

(Experian)

KEY OPPORTUNITIES Meet multi-channel consumers wherever they are by enabling unified, real-time user experiences

across preferred devices. Connect the dots across channels in a cohesive and purpose-driven manner

to encourage valuable actions on-the-go.

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DATA POINTS TO COLLECT WHAT TO EXPECT YOUR FINDINGS

Check-Ins Frequent check-ins at various locations

Event-Based SharesHigh volume of shares prompted by mobile apps; i.e. chips won via Zynga poker or miles run via the Nike+ Running app

Social Login PreferencesLarge share of total logins captured by networks with a majority of mobile users, such as Instagram and Pinterest

Mobile vs. Desktop Activity: Email opens, shares, ad clicks, checkout, etc.

A fairly even mixture of mobile vs. desktop actions, with a possible inclination toward mobile activity

DATA POINTS TO COLLECT WHAT TO DO YOUR FINDINGS

Check-InsReach consumers in real-time by text messaging exclusive offers when they check-in to your store, or information about a location in their current area.

Media PreferencesExpand connectivity beyond mobile and desktop channels and find ways to incorporate other devices, like the TV, based on customers’ favorite shows, music artists, etc.

Drop-Off Points Per DeviceOnce you discover the points at which consumers are switching or leaving devices, you can optimize the user experience accordingly.

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MULTI-CHANNEL CONSUMER SUCCESS STORYDick’s Sporting Goods identifies and engages multi-channel shoppers with its personalized, virtual Gift

Lockers. Users can login socially to their gift lockers on any device and add desired items to their lockers

not just by browsing online, but by taking mobile photos of items in store or scanning catalogue QR codes.

They can also share their gift lockers directly with their social networks.

Tying all activity to a single user

identity enables Dick’s Sporting

Goods to create seamlessly

tailored experiences across

devices, as well as spot and

address channel preferences

and trends.

PASSIVE USERS

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DEFINING CHARACTERISTICS At first glance, passive users exhibit all the qualities of your best customers - they login, browse your site

and even checkout on a fairly regular basis. However, if you take a deeper dive into your customer data,

you will discover that they are totally and completely unengaged with your brand - a dangerous pitfall in

today’s connected and highly competitive marketplace.

WHY THIS SEGMENT MATTERS

Consumers that engage with a brand online spend 20-40% more with that company.

(Inc)

KEY OPPORTUNITIES The key to engaging passive users is to provide them with such relevant and timely user experiences that

they can’t help but interact! Show members of this silent segment that you value their relationships and

want to connect closer with personalized messaging and communications.

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DATA POINTS TO COLLECT WHAT TO EXPECT YOUR FINDINGS

Login Frequency Consistent logins over time

Time On Site Average

Page Views Average

Purchase History Repeat purchases

Number of Comments / Reviews Minimal to none

Number of Social Shares Minimal to none

Social Media Activity Minimal posting

DATA POINTS TO COLLECT WHAT TO DO YOUR FINDINGS

Relationship Status / Life EventsSend special emails offering specific content or discounts in honor of events like an engagement.

Offer Redemption and Purchase History

Prompt passive users to share these meaningful events with their social networks as they occur.

InterestsTailor content and product recommendations to users’ expressed social interests to increase chances of engagement.

Social ConnectionsHighlight actions taken and content created by individual social circles to encourage participation and similar actions.

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OPPORTUNISTS

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DEFINING CHARACTERISTICS Not to be confused with serial abandoners, opportunists do abandon frequently - but only when they find

a better deal elsewhere. As the saying goes, opportunists go where “the getting’s good,” showing little

loyalty when presented with a more customized user experience or free shipping.

KEY OPPORTUNITIES Opportunists are savvy decision

makers who wield a lot of

buying power. By building sticky,

customized user experiences

that encourage valuable

behaviors at prime points of

influence, your business can

grow opportunists into valuable

repeat customers.

TIPS FOR A STICKY USER EXPERIENCE !

Gamify your website or app to reward users points and

badges for taking valuable on-site actions

Make these virtual points and badges redeemable for real-life

rewards like free merchandise and exclusive discounts

Stimulate feelings of prestige and friendly competition by

publicly ranking participating users via leaderboards

Tailor user experiences and rewards to consumers’ individual

preferences

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DATA POINTS TO COLLECT WHAT TO EXPECT YOUR FINDINGS

Brands Liked / Followed Follows a large number of brands across social networks

Brands Mentioned Frequent brand interactions across social networks

Abandonment Rate Higher than average

Offers Claimed & Redeemed on Facebook

Higher than average

Percentage of Checkouts with Coupons / Discount Codes Used

Above average

DATA POINTS TO COLLECT WHAT TO DO YOUR FINDINGS

Social Connections

Gamify your site or app and rank users’ actions or engagement directly against their real-life social connections. Showcase their achievements via leaderboards and offer rewards for high ranking.

Check-InsReach opportunists in the moment with relevant product recommendations and discounts when they check-in to your store or at a location nearby.

Social SharesStrengthen relationships and build loyalty by matching coupons and content to the items in which opportunists have shown interest.

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Hotel and casino giant Boyd Gaming turns opportunists

into repeat customers with its B Connected Social loyalty

program. Participants can earn points by booking hotel

rooms, linking their social media accounts, sharing

promotions with friends and checking in at any Boyd

Casino. These virtual points can then be exchanged for

real-world rewards like vacations, iPads, slot dollars and

gift certificates. This gamified reward system has led to

exceptional results, including:

Over 700,000 visits to B Connected Online a

month after launch

Over 115,000 game-based actions each

month by members

Over 35,000 social media shares, resulting in

more than three social referrals per share

A 30.4% increase in social check-ins to Boyd

Gaming outlets

OPPORTUNISTS SUCCESS STORY:

BOYD GAMING

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In collecting all of this data and segmenting your user base, you will uncover unifying characteristics

of consumers driving the most value for your business. For example, your brand may discover that

users who leave reviews spend 5x more than those that don’t. Or, you may learn that your repeat

customers all seem to have an affinity for country music.

These are all actionable insights that can be strategically grouped together to create a segment that

looks like your ideal customer. These “look-alike” consumers can then be targeted across channels

to increase acquisition and conversion.

BONUS SEGMENT:

LOOK-ALIKES

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Here is a basic template with a list of data points you should consider when identifying your ideal look-alike segment:

DATA POINT YOUR NOTES

Age

Gender

Relationship Status

Education

Number of Social Connections

Mobile vs. Desktop Usage Patterns

Number/Frequency of Social Shares

Number/Frequency of Reviews

Number/Frequency of Comments

DATA POINTS YOUR NOTES

Check-ins

Favorite Brands

Favorite Celebrities

Favorite Music

Favorite Movies

Favorite Sports

Activities

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ONE LAST THING BEFORE YOU GO…To effectively activate each of these segments, your user database needs to have a seamless, bi-directional feed into all your 3rd party marketing platforms. This enables your business to maintain a single, current view of consumer identity and create targeted, cohesive experiences across campaigns.

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ADDITIONAL SEGMENTSWe’ve provided templates to map out the data you need to effectively identify and activate 6 key audience segments. While this is by no means an exhaustive list of segments, it’s a great place to start. Here are some additional segments to consider:

Big Spenders

Millennials

Bargain Hunters

Early Adopters

Previously Engaged

Content Creators

ABOUT GIGYA

Gigya's Customer Identity Management Platform helps companies build better customer relationships by turning unknown visitors into known, loyal and engaged customers. With Gigya’s technology, businesses increase registrations and identify customers across devices, consolidate data into rich customer profiles, and provide better service, products and experiences by integrating data into marketing and service applications. Gigya's platform was designed from the ground up for social identities, mobile devices, consumer privacy and modern marketing. Gigya provides developers with the APIs they need to easily build and maintain secure and scalable registration, authentication, profile management, data analytics and third-party integrations. More than 700 of the world’s leading businesses such as Fox, Forbes, and Verizon rely on Gigya to build identity-driven relationships and to provide scalable, secure Customer Identity Management. !For more details about Gigya, visit www.gigya.com. !

Gigya, the Gigya logo, and Customer Identity Management Platform are either registered trademarks or trademarks of Gigya Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.

© 2014 Gigya Incorporated. All rights reserved.