{"id":2092,"date":"2024-03-21T12:10:18","date_gmt":"2024-03-21T10:10:18","guid":{"rendered":"https:\/\/all4u.agency\/?p=2092"},"modified":"2025-03-14T19:17:43","modified_gmt":"2025-03-14T17:17:43","slug":"reducing-the-cost-of-sales-by-5-times-with-the-help-of-segmentation","status":"publish","type":"post","link":"https:\/\/all4u.agency\/ua\/blog\/reducing-the-cost-of-sales-by-5-times-with-the-help-of-segmentation\/","title":{"rendered":"Reducing the cost of sales by 5 times with the help of segmentation"},"content":{"rendered":"<p style=\"text-align: justify;\">This is a case study of segmentation for an online store selling medical and decorative cosmetics.<br \/>\nBut due to its effectiveness, it can certainly be applied in many other niches.<\/p>\n<p style=\"text-align: justify;\">So, we were working with a store of a Ukrainian manufacturer, which has a lot of body and face care products in its line.<br \/>\nThe products are really high quality, which is confirmed even by several collaborations with very famous Ukrainian celebrities.<\/p>\n<p style=\"text-align: justify;\">The problem was that the cost per sale (CPS) from advertising was at the level of $50-60, which did not justify itself economically.<br \/>\nEven with repeat purchases. And the then contractor could not fix it.<\/p>\n<p style=\"text-align: justify;\">&#8220;We started, of course, with an audit of the ad account and made a few changes.<br \/>\nSome interests and behaviors were reconfigured.<br \/>\nWe also added &#8220;abandoned carts&#8221; to retargeting campaigns and created audiences of users who visited certain pages of the site but did not make a purchase.<\/p>\n<p style=\"text-align: justify;\">As a result, the average cost per sale (CPS) decreased, but still remained too high in terms of profitability.<\/p>\n<p style=\"text-align: justify;\">Then the decision was made to segment the audience.<br \/>\nAccording to the store owners (who, by the way, took the most active part in discussing strategy and planning campaigns), their products are suitable for a very wide age range of consumers.<br \/>\nFrom 18-year-old girls to 60+ year old women. There are suitable products for all of them.<\/p>\n<p style=\"text-align: justify;\">But it is logical that women of different age groups are interested in different products.<br \/>\nIn addition, there was a hypothesis that the motives for the first purchase are also different.<\/p>\n<p style=\"text-align: justify;\">That is why working with a wide audience of &#8220;W18-60&#8221; did not give satisfactory results.<\/p>\n<p style=\"text-align: justify;\">Since the entire brand line is in the &#8220;middle +&#8221; price segment, it was decided to segment it by age.<br \/>\nThree segments were formed:<\/p>\n<ol>\n<li style=\"text-align: justify;\">younger 18-24 years old<\/li>\n<li style=\"text-align: justify;\">middle 25-45 years old<\/li>\n<li style=\"text-align: justify;\">older 46-60 years old<\/li>\n<\/ol>\n<p style=\"text-align: center;\"><a href=\"https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/segments.jpg\" target=\"_blank\" rel=\"noopener\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-2095 size-large\" src=\"https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/segments-1024x535.jpg\" alt=\"\" width=\"1024\" height=\"535\" srcset=\"https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/segments-1024x535.jpg 1024w, https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/segments-300x157.jpg 300w, https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/segments-768x401.jpg 768w, https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/segments.jpg 1287w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">For the first segment, the main offer was the possibility of a free online consultation with a professional cosmetologist to select the most suitable products from the store&#8217;s line.<\/p>\n<p style=\"text-align: justify;\">Representatives of the second segment already know what kind of products they need. That is why we offer a wide range of age-related products, among which every woman will find something that suits her.<br \/>\nIn addition, there are separate offers for promotional and seasonal offers, as well as gift certificates.<\/p>\n<p style=\"text-align: justify;\">To attract the third oldest segment, we chose an offer to guarantee high quality products.<\/p>\n<p style=\"text-align: justify;\">In addition, each segment was promoted through collaborations with celebrities and opinion leaders. But for each segment, we selected influencers of the appropriate age category.<br \/>\nIn addition, it was decided to test the segments in the five largest cities of Ukraine.<\/p>\n<p style=\"text-align: justify;\">Next, an advertising plan for testing all segments was created for a calendar month.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/test-report.jpg\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter wp-image-2094 size-full\" src=\"https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/test-report.jpg\" alt=\"\" width=\"1021\" height=\"677\" srcset=\"https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/test-report.jpg 1021w, https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/test-report-300x199.jpg 300w, https:\/\/all4u.agency\/wp-content\/uploads\/2024\/03\/test-report-768x509.jpg 768w\" sizes=\"(max-width: 1021px) 100vw, 1021px\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">The result fully justified the hypothesis and the correctness of the choice of segments.<br \/>\nThe average cost of a sale was $11.73, which is without taking into account repeat sales.<\/p>\n<p style=\"text-align: justify;\">The tactic was adopted for further scaling.<\/p>","protected":false},"excerpt":{"rendered":"<p>Testing cold audience segments in the promotion of an online cosmetics store<\/p>","protected":false},"author":1,"featured_media":2093,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":""},"categories":[27],"tags":[],"class_list":["post-2092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-description"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Reducing 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