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Use these 6 tips to segment campaigns — and increase ROI

Use these 6 tips to segment campaigns — and increase ROI

Ever wonder why telemarketers frustrate you so much? It’s not just because they always call during dinner. It’s because they’re not actually talking to you. They’re reading from a script, the same script they’ve read off countless times before. And you can tell.

Segmenting your marketing campaigns changes this and positions you as the anti-telemarketer!

List segmentation involves taking a broad group or list and creating subcategories based on common demographic, lifestyle or psychographic characteristics. By segmenting our customers into different subcategories, we can create more targeted experiences for them that result in better marketing and a better ROI from our marketing efforts.

Taking the time to segment your marketing campaign comes with a lot of powerful benefits.

1. Tighter Messaging

The first being the one we just mentioned – the ability to send highly-targeted messaging to specific segments. We understand that not all customers are interested in the same things. Segmenting our marketing campaigns allows us to send the DIYers a list of the top projects they can combat this spring and the Professional Contractors promotions on buying in bulk.

2. Better Relationship Building

Do you know that friend who always gives you the best gifts? Customer list segmentation allows you to become that friend by giving your customers exactly what they’re interested in. The result is that you’re able to create a better relationship between that customer and your brand. Over time, they’ll look for marketing from you. You become the postcard they don’t throw out, the newsletter they never miss or the email they can’t wait to receive.

3. Money & Time Saving

Of course, segmentation isn’t only about creating a better relationship with your customer (though that’s pretty great), it’s also about saving your business time and money. By segmenting your marketing campaigns, you reduce time and costs by only targeting a portion of your prospect list instead of wasting dollars sending everyone a message only some will be interested in. That’s less wasted resources and less time spent creating copy only some will want to read.

4. Better Response Rates

Do you know what happens when you send someone an offer that was crafted specifically for people like them? They act on it. They buy the product, they contact you about the service and they begin (or continue) true engagement with your brand. Do you know what happens when you send everyone an offer that was created for a generic, nameless customer? Basically nothing. Crickets.

5. How to Segment Your Prospect List

Okay, so you’re hopefully gleefully riding the segmentation train. How do you do it?

How Narrow Should You Go?

While you should create as many groups as make sense for your business, start by creating three good ones. Segmenting your audience too broadly will take away your ability to closely target that segment, while segmenting too narrowly may create redundancies and/or reduce profitability. You want to segment customers by the common characteristics shown to affect conversions. Once you get into your customer data, identifying your segments should become intuitive.

The segments you create should be unique, identifiable and different from one another. If you find that segments are beginning to overlap, then you have gone too narrow. Consider if there’s a broader category both subsets would fall into. The more specific you can make your segment, the tighter you’ll be able to market to them and the more successful your campaign will be.

6. Types of Segments to Consider:

  • Geographic: This involves segmenting your prospect list based on zip code, state, region or another geographic marker.
  • Demographic: This involves segmenting your prospect list based on age, gender, nationality or occupation.
  • Psychographic: This involves segmenting your prospect list based on personal values, hobbies, interests etc.
  • Buyer Behavior: This involves segmenting your prospect list based on buying history. For example, customers who purchased higher-dollar items or customers who routinely purchase from a single inventory category.
  • Influence Level: This involves segmenting your prospect list by their influence to your company, whether that influence is identified by potential for profit or social visibility.
  • Last Interaction: This involves segmenting your prospect list based on their last interaction with your brand.

Once you have identified your customer buckets, you can create targeted direct, segmented marketing campaigns designed to speak directly to them. And, keep track of the users in your segment over time, as people can move between segments and in and out of the segments. Customer segmentation does not remain static. Your interests change, right? So do your customers’.

Customer list segmentation allows you to send the right message to the right person at the right time in their buying cycle. The result is tighter messaging, happier customers, a better ROI and a better response. Why wouldn’t you segment your customers?

For more insight segmenting your clients and prospects for super successful campaigns, download our free Comprehensive Guide to New Leads and Better Customers.

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