If you had an extra $5,000 in your marketing budget where would you put it?
Would you buy more traffic? Hire a PR firm, or a conversion rate optimization specialist? What if you didn’t do any of that? What if you spent that extra five grand on your customers?
But not on all of your customers.
If you had more than 5,000 customers they would get less then $1 each.
You need to figure out who’s worth spending money on, and who’s not.
It’s more complex than it looks. Which is where segmentation comes in.
Each segment responds differently to marketing messages, offers, calls to action, etc. The ideal thing to do would be to first identify which segments to target by looking at your sales and CRM data.
- Which segments are most valuable?
- Which segments buy more often?
- What’s the life time value of each segment?
Once you know that it becomes easier to know where to spend.
So why is spending on conversion optimization any different?
You should also segment and test by your most valuable customers. Design tests and hypothesis around them.
