In this article, we would like to present three examples of customer segmentation in the retail industry using Salesforce Marketing Cloud (SFMC). We got our inspiration from best practices in the industry and tried to incorporate the latest trends in customer segmentation for retail in our article.
Before we jump into actual scenarios, we will make a quick stop at your data model in Salesforce Marketing Cloud (SFMC). Data models vary from business to business and from industry to industry, so it is quite hard to find a one-size-fits-all ultimate solution. However, to make this article as hands-on as possible, below you can find a common retail data model for Salesforce Marketing Cloud that can be used as an inspiration to develop your own data model.
This data model is presented by different data extensions for SFMC:
Your data extensions might look like this within Email Studio:
Once your data is set up, we can move on to the actual segmentation scenarios that can be done using this data model.
It is possible to segment the data in SFMC in multiple ways. For instance, using filters, SQL, or add-ons like DESelect. In our examples below, we show you both how to segment in Salesforce Marketing Cloud by either writing SQL queries or using drag-and-drop segmentation in DESelect.
If you would like to learn more about segmentation in SFMC using SQL check out our introductory guide to SQL here.
Our first segmentation scenario breaks down how to notify a subscriber about a new product.
For instance, a contact receives a newsletter for a certain type of product. Let’s imagine that he is subscribed to updates for a certain brand of sneakers. So how can he be notified that a new pair has just dropped?
For this segmentation scenario, you need three data extensions (DEs) in SFMC. You need to use Contacts DE, Subscriptions DE and Products DE.
Here you can see an example of the segmentation process done in DESelect. The app allows you to preview the result of the segmentation which gives you an opportunity to check if the segment was done correctly.
Now, we are going to recreate this segmentation scenario using SQL in SFMC, following the steps below (an example of the SQL query can be found lower):
Below you can find an example of an SQL query, where we used the Contacts DE, Subscriptions DE, and Products DE. You may use this as a reference while creating your own segment in Salesforce Marketing Cloud.
Using this scenario, we would like to notify contacts who are subscribers about a new store that is opening in their area. In order to do this, you would need to use three data extensions: Contacts, Stores and Subscribers.
In the example below, you can observe how to create a segment using DESelect, where you can already preview your segment:
Now we are going to break down the segmentation process using SQL in Salesforce Marketing Cloud (SFMC) for this scenario:
As a result, you will receive a list of contacts who are subscribers that have opted in for your communication and live in the same neighborhood where a new store is going to open.
Below you can find an example of a SQL query, where the Contacts DE, Subscriptions DE, and Stores DE were used. This query can be used as a point of reference while creating a segment in SFMC.
In this scenario, you would like to target inactive customers, who haven’t made a new purchase in the last 90 days. Re-engagement emails are a good method to re-activate inactive customers and to improve retention rates. Studies show that increasing customer retention rates by 5% increases profits by 25% to 95%.
In order to implement this scenario, you would need two data extensions (DEs): Contacts and Orders.
In this GIF you can see how to create a segment using DESelect. The app allows you to preview your segment, so you can be 100% sure that you didn’t make any mistakes during the segmentation process.
Here is the SQL reference to recreate this scenario in SFMC:
Below, you can find an SQL query example of that segment that you can use as a reference for your selection in SFMC.
It is essential to understand your customers and be able to suggest the correct product at the right time. Consequently, it is important to segment your audience in order to execute targeted campaigns that can improve your conversions. In this article, we laid out 3 effective segmentation strategies for retail that can be used in Salesforce Marketing Cloud (SFMC). We tried to make them as practical as possible, so you can easily apply them in your own SFMC environment using either DESelect or SQL.
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