Avoid These Segmentation Errors for Max List ROI

List segmentation is key in targeted direct marketing, and the secret to success is as much a matter of strategic mindset as technical expertise. A recent MarketingProfs article by Mitch Markel, a partner in Benenson Strategy Group, identifies some of the common strategic errors. First, marketers need to be aware that segmentation models can slip into an ROI rut. Use of obvious profiling parameters and assumptions is one reason. Certainly, demographics (or firmographics), stated needs, and past purchase behavior are essential in grouping for likely response and lifetime value, but people don't make decisions solely based on these factors. Markel urges research that also looks at fears, values, motivations and other psychographics in order to segment customers or prospects not just as lookalikes but also as "thinkalikes." Markel cites the examples of car buyers grouped by whether they value safety over performance, and food purchasers sorted for whether they stress healthy lifestyle or convenience. Past success is another reason segmentation can get stuck in a rut. Because segmentation requires an upfront investment, marketers tend to want to stick with proven targeting once the segmentation study is completed. But today's hyper-personalized, digital environment has accelerated the pace of change in markets, perhaps shifting customer expectations and preferences away from an existing segmentation model. Markel advises an annual "look under the hood" of the segmentation engine to see if segments are still valid or need appending/updating. One outcome of segmentation based on existing customers or surveys of people marketers assume are the right targets is blindness to potential audiences that Markel calls "ghost segments." Markel suggests a periodic look at non-customers for conversion potential as one way to capture these "ghosts." And, of course, if a new product or service is in the works, research should ask whether it will attract new groups differing from the existing customer profile. Another reason ghost segments are common is that marketers, overwhelmed by the task of sifting "big data," fall back on whatever data sets are handy. Markel suggests that it would be better to bring in big data at the tail end of segmentation. He advises analysts to start by creating segments using primary research, add existing customer "big data" to target segments more efficiently, and then plug segments into a data management platform for insights on other products, services, interests, and media that may correlate. Finally, Markel stresses that a segmentation study will fail to live up to its ROI potential unless it informs the whole organization. Customer and prospect insights have relevance for multiple departments and teams, from sales to customer service to finance. Markel suggests creating 360-degree customer personas and promoting them throughout the organization via workshops and periodic team updates on results. For more, see https://www.acculist.com/avoid-segmentation-missteps-to-boost-list-roi/

Demographics Fuel Pet-Owner Spending, Marketing

Direct mail and e-mail lists and data services targeting pet owners are one of AccuList USA's high-demand markets, and we expect trends in pet ownership to grow that marketing interest--and the competition that makes quality data and targeting even more essential. A recent post for The Marketing Insider highlights the demographic trends that are making pet owners such attractive targets: "Americans now own 305 million cats and dogs, an increase of 85 million over the past 10 years. The 50+ demographic is responsible for 60% of that growth. With 50+ population expected to grow twice as rapidly as the 18-49 segment over the next 10 years, brands that include 50+ pet owners in their marketing strategies will improve their odds of maximizing revenue growth," asserts columnist Mark Bradbury. Bradbury makes the point that marketers hoping to cash in on the older pet-owning market will need to adjust their buyer profiles given that 50+ pet owners are mainly empty-nesters (80%), retired (one-in-three), and three times more likely than younger pet owners to be divorced, widowed or separated--leaving more time and disposable income to devote to pet members of the family. Bradbury points to statistical proof that older owners are on a pet-spending splurge: People 50+ spent over $15.6 billion on their pets in the last year, more than all of the other generations combined, according to PetBusinessProfessor.com. The opportunity to market pet-pampering products is expanding, but so is the competition. Bradbury suggests several tactics that put the focus squarely on the growing Baby Boomer pet market, including messaging that celebrates a pet-centric Boomer lifestyle. Multi-channel campaigning is a must for this market. In addition to digital marketing via online, social and e-mail, Boomers are also still heavy users, and responders, of direct mail, magazines and television, Bradbury points out. "Synergistic cross-media marketing plans" are required to maximize reach at every stage in the purchase funnel, he advises. Plus, though Boomers like to spend to dote on their pets, they also want to spend wisely and are attracted to savings opportunities. Direct marketers will want to include discounts or loyalty reward programs to win brand fans. For a link to more pet marketing suggestions, see http://www.acculistusa.com/demographic-trends-drive-growth-in-pet-owner-spending/

Data-Rich Segmentation Revs Nonprofit Mail Results

Effective data use is key to nonprofit direct mail success, yet some fundraisers question the need for a more sophisticated data approach, of course. So we'll pass along a recent NonProfitPRO blog post by Chris Pritcher, of Merkle's Quantitative Marketing Group, which challenges overly narrow views of donor data. Too often, using data to understand the donor base is limited to one of two categories, Pritcher notes: 1) RFM (recency, frequency, monetary) data and giving history, or 2) donor demographics and behavioral measures, ranging from factors such as wealth or related interests/purchases to applying behavior-lifestyle systems such as Prizm. Whether the data is first-party or third-party sourced, each approach has its limitations. RFM often silos data from a single channel, for example, even though donors live in a multi-channel world. RFM also focuses mainly on short-term financial action, ignoring donors, especially Millennials, whose giving is maximized through an interactive, long-term relationship. Meanwhile, though donor demographics can help avoid low-opportunity lists and segments, demographics in isolation may be too general for effective response targeting. Wealth data indicates who has money but not who is willing to give that money to a specific cause, as Pritcher points out. Pritcher urges fundraisers to embrace "multi-dimensional segmentation" over the either/or data approach above. Nonprofits can analyze donor actions (both financial and non-financial) along with data such as demographics, wealth, donations to other organizations, etc., to create more actionable segments. For some basic tips for multidimensional segmentation success, see our complete post at http://www.acculistusa.com/fundraising-mail-benefits-from-data-rich-list-segmentation/

What B2B Marketers Can Do Better With Better Data

AccuList USA is dedicated to providing clean, up-to-date, targeted data for business-to-business direct marketing, and we urge any B2B marketer who still hesitates to invest in higher quality data and segmentation to read the recent CMO.com post by Ed King, founder and CEO of the Openprise data automation firm. King lists five ways high-quality data will make the B2B marketer's job easier and more effective. First, better data allows the addition of demographic scoring to the usual activity-based scoring for better targeting; for example, marketers won't prioritize a lead from online activity when demographic factors on the company or individual show it does not really meet buyer targeting. Second, with more accurate data about prospects and customers in terms of individual and company profiles, marketers can personalize communications and engagement for better conversion and reduced attrition throughout the sales funnel. Third, B2B marketers can better use account-based targeting as opposed to individual lead targeting, including improved use of automation platforms. Fourth, since all leads are not created equal, better data allows for optimized, speedier lead qualification and conversion--providing different treatment of net new leads versus leads from existing accounts, for example. Fifth, marketers can simplify their marketing technology investments, such as predictive, web or social bolt-ons with data cleansing mechanisms because of poor quality data from CRM or automation platforms. By improving source data, existing technology is more efficient and new technology investments can focus on other key needs, such as analytics or workflow. For detailed explanations and examples, read the full article at http://www.cmo.com/articles/2015/12/18/how-would-perfect-data-change-your-job.html

Marketers Miss Personalization Edge of Social Data

Marketers are missing out on key opportunities to use social media data for multichannel personalization, reports Adweek magazine's SocialTimes blog, citing the "2016 Yesmail Channel Report." This is despite the fact that personalization has proven its value in response and conversion across channels. For example, marketers often fail to gather e-mail addresses, one of the most basic contact points, through social media. According to the report, 45% of marketers don't collect e-mail addresses on social media, and 70% don't collect e-mail from their own mobile apps. (Of course, an amazing 17% don't even collect e-mail via their own websites!) Even companies who build e-mail databases fail to then use freely collected social data points, such as demographic and location information, to effectively personalize e-mail communications. In fact, only 42% say they customize e-mail campaigns with the recipient's name, so it's no surprise that only 36% modify copy and just 34% alter images to personalize e-mail content. The problem stretches across channels: Only 50% say they modify any marketing materials based on easily collected demographic data from social channels, and just 36% use social media data, such as brand page likes, for personalized targeting. See the full article at http://www.adweek.com/socialtimes/report-retailers-missing-cross-channel-personalization-opportunity/632710

How to Use Direct Mail to Rev Trade Show Marketing

With direct mail accounting for 30% of trade show attendees' ad spending, snail mail is still essential to show marketing even in this increasingly digital world, points out Charles Dugan in a recent Trade Show News Network post. Based on his experience as owner of a trade show display firm, Dugan offers some good tips on direct mail tactics. Starting with the basics, he advises planning at least two campaigns: an early awareness mailing to get planners to put the show on their calendars and then a follow-up mailing closer to the show with exciting materials and attendance incentives. Then cut costs and boost response with targeting, both geographic and demographic. Use available mailing list data to personalize, ranging from gender all the way to ethnicity or specific hobbies. Offer incentives for attendance, with the inclusion of complementary tickets for example. Take advantage of direct mail's unique physicality to make a dimensional package that's fun and enticing, boosting open rates and response. And integrate snail mail with digital, via QR codes for example. QR codes can be used to promote access to exciting website materials, including videos, or something as simple as an online RSVP. For more, see the article at http://www.tsnn.com/news-blogs/why-direct-mail-should-still-be-your-trade-show-marketing-plans

Is Your Marketing Hobbled by These Data Missteps?

Make sure your "data-driven" marketing isn't undermined by data mishandling. A recent Adweek article outlined five of the most common blunders. At the top of the list is failing to take advantage of the deeper demographics being culled in this big-data era. Going beyond age and gender can reap big returns. An example from the article: The Neustar Global Media Intelligence Report for 2013 found retail marketers that targeted campaigns according to attributes like home value and brand of car earned a 500% performance lift over non-targeted campaigns. Second, marketers can focus on the wrong metrics, choosing "vanity metrics," such as Facebook fans, instead of behavioral data linked to conversions, such as navigational paths and brand preferences. A third data misstep is focusing on shiny new digital data without integrating offline inputs (such as retail stores), creating a false picture of marketing's multichannel ROI. Fourth, marketers can get stuck looking at past data to the neglect of predictive modeling and forward planning. A forward-thinking success story from the article: American Express used predictive analysis and behavioral data to identify at-risk customers, for a 740% increase in attrition-combating efficacy. Finally, organizations can fail to invest in crucial data management and analysis skills, and surveys of executives find a majority admitting as much. Do you recognize areas for improvement in your own organization? For the complete article, with links to relevant studies, see http://www.adweek.com/brandshare/5-ways-marketers-are-mishandling-data-156449