Macro-segmentation refers to the division of online traffic into groups of visitors who differ from each other in one or two characteristics, such as location, gender, traffic source, or a specific browsing pattern. Macro-segments should be easily identifiable, measurable, and large enough to be relevant.
Purpose of Macro-Segmentation
By breaking up online traffic into multiple discrete chunks, delivering relevant experiences to shoppers is more manageable. For example, macro-segmentation can identify and separate new users from returning users, so you can tailor your homepage merchandising accordingly. Another common application is showing prices based on the location of users.
Ultimately, it ensures that your customers get at least a basic experience of customization and provides you with a strong foundation for more sophisticated personalization.
Macro-Segmentation Vs. Micro-Segmentation
As the name implies, macro-segmentation is always broader in scope than micro-segmentation, which focuses on a much smaller user base. While micro-segmentation offers more customization in messaging, content, and user journey, it requires more resources to implement. With macro-segmentation, you get an easier and faster way to modify the customer experience based on simple filters for your audience.
At the end of the day, compared without it or a one-size-fits-all approach, you will significantly improve the eCommerce experience and gain numerous benefits even with the small amount of customization that macro-segmentation offers.
How Is It Different from Personalization?
Macro-segmentation provides results based on statistics, not individual traits or live session actions. That means you run the risk of showing the same products and content to users on very different shopping journeys as long as they fit the general parameters of the macro-segments.
Hyper-personalization, on the other hand, looks at the granular information generated by each shopper in real-time. Because it considers the end-to-end user journey, hyper-personalization can customize the shopping experience down to the minute details, acknowledging every user’s unique taste and style, as well as current inspiration.