Segmenting customers into groups is a staple feature amongst many online retailers. Not all of your customers are the same, so why would you treat them like they are? Customer segmentation, as a concept, is all about breaking your customer base down into different groups so that you can handle each one according to what makes them different.
One common form of segmentation on eCommerce sites is using customer groups to segment wholesale customers from retail, in order to provide them special pricing.
We’re happy to announce that we have released the customer groups feature in LemonStand Cloud.
Each customer can belong to 1 or more groups in LemonStand Cloud, which is a new improvement from V1.
We have also made it possible for you to create customer registration forms that automatically adds that customer to 1 or more groups upon registration. This is commonly used for stores that have a page for wholesale customers to register. To do this, you would use some code like below (we’ll add documentation on this soon):
<input type="hidden" name="customer_group" value="5" />
<input type="hidden" name="customer_group" value="6" />
What can you do with customer groups?
We’re going to be releasing a volume pricing feature very soon. We’ll definitely blog about this when it’s released. In short, volume pricing will allow you to set product pricing based on quantity, and restrict this to certain customer groups. Great for wholesale pricing!
Customer groups opens up LemonStand for many more features in the future:
- Restricting certain payment methods to certain customer groups (e.g. Net 30 for wholesale)
- Make certain customers tax exempt (e.g. wholesale customers aren’t charged tax)
- Display certain content only to logged in customers that belong to a certain group (e.g. display Add To Cart button only to wholesale customers)
- Create discounts specifically for certain customer groups (e.g. 50% off for VIP customers on “customer appreciation day”)
Some of these features are already in development, with others on our roadmap for future consideration.
Beyond customer groups
Customer segmentation often goes beyond customer groups. Modern day digital marketing often involves fine-grain control over customer segmentation. For example, effectiveness of email marketing campaigns can be greatly enhanced by targeting different segments with messages that are specifically tailored to be appealing and useful to those customers.
We’ve seen firsthand how retailers have had a lot of success by segmenting customers by things such as last purchase date, average order value, demographics, device type and more.
We’re looking at this area with a lot of interest, as a way to help retailers get more from their online store and grow their eCommerce business.