Unlocking Growth: How User Segmentation Increases Conversions From 2% to 7%
Background
Sally is revolutionising travel with AI-driven itineraries. Using image recognition and GenAI, we help travellers explore off-the-beaten-path areas in a quick, fun, and visual way. Our app crafts personalised trips in seconds, learning from user interactions before, during, and after their journeys to continuously improve recommendations.
Challenge
Following our MVP launch, we faced a low conversion rate of less than 2% and needed to identify areas for improvement.
Action
I analysed user metrics and discovered an overlooked but high-performing segment: dog owners looking for pet-friendly trips. Conducting additional user research, A/B testing, and customer interviews confirmed the potential of this segment. We pivoted to focus on dog owners by optimising the product experience, updating our marketing messaging to highlight pet-friendly features, and tailoring in-app content to this audience.
The impact
This targeted strategy increased our conversion rate to over 7%, significantly accelerating our growth plan. We gathered more user feedback than anticipated, enabling rapid iteration and product enhancement. Additionally, focusing on this niche market improved user retention and reduced churn, strengthening overall business performance.