Product Segmentation for Ecommerce: Tackling Efficiency and Scale

Growing Ecommerce – The Retail Growth Podcast

Wondering about the hidden potential of product segmentation in ecommerce? Join as we peel back the layers on this fascinating topic. We'll discuss the tension between efficiency and scale, and explore how product segmentation can help you navigate these opposing forces. Discover the relevance of the 1970s BCG Matrix in today's ecommerce world, learn about the role of algorithms in solving the fascinating "multi-armed bandit" problem, and get insights into Google's Shopping Graph and Audience Graph.
We'll dissect the intricacies of the modified BCG matrix ("heroes and zombies"), weighing its pros and cons. Get ready to see how a multi-dimensional approach, which considers a balance of performance data and off-channel data like margin, can offer potential benefits. We'll debate the limitations of two-dimensional models and the potential of AI in understanding multi-dimensional spaces. As we reach the end of our journey, we'll reflect on the challenging economic climate and its impact on marketing effectiveness. Let's challenge traditional best practices and consider the vast possibilities of product segmentation together. This episode promises to change the way you look at product segmentation!

Chapters

1. Product Segmentation for Ecommerce: Tackling Efficiency and Scale (00:00:00)

2. Product Segmentation in Ecommerce (00:00:09)

3. Segmentation Strategies and Limitations (00:14:28)

4. Economic Climate and Marketing Effectiveness (00:28:58)