Marketers Led Astray by Myopic Data Segmentation

Data segmentation is essential to today's personalized marketing, but it can also lead marketers astray if myopically focused. A recent Target Marketing magazine article by Matt Diehl, digital content writer for the Persio multichannel retailing platform, points out how segmentation based narrowly on recent purchase can go wrong, delivering misguided online ads and e-mails that erode customer response. As examples, Diehl cites promotions based on online purchases selected as gifts (that golf club bought for Uncle Bob doesn't mean non-golfer Susie wants to be bombarded by golf gear ads), promotions based on online purchases later returned in-store (if you didn't keep the gaming system, you don't need the accessories), and promotions remarketing one-time, big-ticket purchases (people rarely buy multiple HD TVs or dishwashers in a short time span). The solution is to develop a segmentation strategy based on multiple factors, adding demographics, location, interests, loyalty, and response behavior to purchase history. Data gathering for segmentation also needs to include both online and offline behavior. Finally, data targeting needs to incorporate sensible marketing triggers; rather than remarketing a big-ticket purchase, focus on complementary items, for example. For the complete article, read http://www.targetmarketingmag.com/article/when-data-segmentation-goes-wrong/