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/

Power Holiday E-mail With Segmentation, Offers

E-commerce and multi-channel retailers are beginning their holiday e-mail campaigns. What strategies will make for optimum results? From decades as data brokers and e-mail support providers, we can attest that targeting and smart segmentation are essential to holiday e-mail success. Of course, the house list can single out the active buyers and segment by basics such as location (no ice to Eskimos) and gender. But more sophisticated segmentation looks at purchase history in terms of product interest, in-store vs. web store, abandoned carts, purchase frequency, etc. For example, to maximize customer value, you can segment by average purchase (separating high-priced buyers from discount buyers) and send targeted e-mails with offers slightly over average order value. You can also reward and stimulate more sales from the most loyal buyers, segmented by purchase frequency or referrals etc., by e-mailing them unique holiday specials and freebies. The holiday season is also a great time to revive inactive customers, such as the previous year's holiday buyers who haven't been active since. Send them special offers to woo them back to the brand. Prior-holiday gift card buyers are a good sub-segment for a reminder e-mail about this convenient option. You can also target the most recent opt-ins who haven't converted to buyers with offers and creative most likely inspire clicks. And don't neglect to match your e-mail list to Facebook, YouTube or third-party newsletters to extend your reach via those vehicles! Although rented e-mail lists will not have the same intimate customer knowledge, you can still select by location, gender, age, product interest, and more. Holiday e-mails have to grab attention in crowded inboxes, and that means you need to get creative with offers that drive opens and clicks, too. Constant Contact recently surveyed its small business clients and gathered 30 successful holiday e-mail ideas that may help inspire your marketing. For a link to all 30 ideas, go to our full post at http://www.acculistusa.com/power-up-holiday-e-mail-with-segmentation-offers/

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/