Why intelligent customer segmentation leads to better marketing results
The right message, to the right customer, at the right time
Each of your customers is different – but how do you create effective marketing communications for them and still deliver a healthy ROI?
1:1 marketing is only really for companies with very few customers or very deep pockets. Hence the need for a marketing oriented segmentation that groups customers into homogenous and discreet cohorts, each with their own marketing plans
Segmentation starts with looking at what you know about them – and most importantly, how they behave.
You could segment your data by age, gender or geography, but it doesn’t mean that a 42-year-old woman in London will behave the same way as another in Scotland – there will be many other factors to consider that influence their buying behaviour.
Reaching into your complete pool of available data to understand behaviour requires an experienced and expert eye which is what The Insight House offers.
Differentiating customers
To make the segmentation a practical tool it needs to be developed with the end user in mind – it’s not just a matter of statistical knowhow; it requires a human touch. TIH have pioneered a two-step approach to creating customer segments that first pushes the individual data attributes to their polar extremes, separating out the real differences and then knits the data back into clearer more distinct segments.
The litmus test is whether each segment can clearly have a different marketing strategy; if the answer is yes then the segments are actionable.
From this, we can really start to tailor marketing strategies and communication plans that are tuned into them, because you will be able to show that you know about them – this valuable insight makes your marketing relevant, timely and with a higher deliverable ROI.
It’s not just about sales
We look at all interactions, from engagement, to communication, and feedback. We bring the data together providing a full picture to start customer profiling and segmentation.
The right message at the right time
What you say and when you say it contributes to a more effective campaign.
You need to know what is relevant for each type of customer at this moment in their life stage and at that point in their relationship with you.
By having insight into your data, you will send communications that are relevant, accurate, timely and encourage your audience towards the action you desire.
Equally, the data will also highlight customers where marketing should be scaled back to – because they won’t bring as much value.
Identify buying motivation
People buy the same product for different reasons. We work with clients to create communications plans that enable them to talk to each customer segment differently based on the data insights.
Identify why they buy or use the product, and tailor communications to address this, answer their questions, share useful information (product benefits, credentials or testimonials etc) and keep it relevant.
By looking at your data from a customer-centric perspective, you can elevate your strategies to deliver effective communications and engagement that build the relationship and endorse you to them as a brand.