Segmentation and Targeting

Why is segmentation and targeting so important?

Check out these anonymous case studies



Imagine how frustrating it is when every email I open features a product that

  > Doesn't come in my size
  > Doesn't work on my hardware platform
  > Doesn't depart from my city

Why would I even keep opening those?


In this case study,

   the company was spending all their marketing dollars

      on all their customers

         featuring one particular merchandise category

            because that category represented 90% of their revenues

But segmentation revealed these insights:

  > Those 90% of revenues came from only 2% of customers

  > Retention was OK amongst those 2% of customers

  > But retention amongst the other 98% of customers was failing

  > And there was virtually no acquisition into that 1 merchandise category

Without segmentation,

this company had no idea that most of their marketing budget was wasted.


You may treat all your segments the same, but they're NOT treating you the same!


When does geography matter?

  > Multichannel retailers with local store news or regional offer testing

  > Internet-only etailers with climate specific merchandise

  > One-hour flash sales where time zone affects response


In this case study, the email database did not collect or store zip code.

So the company couldn't leverage email for any of the above benefits.


We mapped the zip data from the multichannel database to the email database

and discovered zip code on the majority of the email list.

Now, emails support store news, direct mail, stores near you, and more.

That data mapping also enabled purchase history to be leveraged for relevance.



How can marketers collect data for segmentation & targeting?

  > The customer's explicit preferences using interactive forms

  > The customer's historical purchase patterns

  > The customer's historical click patterns


Effective ways to solicit explicit preferences:

  > Sweepstakes forms with required fields for name, zip, preferences

  > Interactive promotions with required fields

  > Rewards progams with required fields

  > Email Links that let the customer tell you the message is off-base

  > ...Programs I can help you launch on spec, on time, and on budget