The Role of E-mail in Micro-segmentation

Marketers have long practiced segmentation by creating print catalogues and newsletters as a method of targeting groups of customers for specific offers.

The segmentation process is commonplace. The RFM (Recency, Frequency and Monetary) values are used to analyze customers’ needs for marketing purposes, or a customer file model is used to evaluate and score his or her behavior from best to worst. Should the ‘best’ customer segments be mailed more frequently? Could the most ‘loyal’ customers be rewarded with a special offer? Is there any segment of customers that can be encouraged to ‘spend more’?

Sometimes, it may be difficult to establish reliable segments using RFM analysis. In addition, the incremental cost of doing this might never be recovered through the targeted message or offer.

Nowadays, consumers are becoming more and more comfortable with targeted advertising and personalized content. The age of e-mail marketing is coming and the practice of effective micro-segmentation has proved to be important.

It is essential for a company to get its marketing database organized and the information integrated. Whether customer A visited the website’s pricing page; whether customer B is a Twitter follower… Only knowing almost everything about customers, can the company provide useful, timely emails and helpful Web content that will significantly improve customers’ conversion ratios.

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Small, segmented sends are more engaging than large, untargeted sends. The smaller the group, the more focused and relevant the message can be. Moreover, a great sender reputation among customers will also be improved.

For example, if marketers write an e-mail to David on their list, and they have a very comprehensive understanding of who David is and what he is looking for at that moment, then marketers will be able to make compelling copy that truly speaks to all those Davids.

And if marketers stick to this practice, over time, those Davids will start to realize that every time they get an email, they know the content will be interesting to them. If you think about all the e-mails you receive as a buyer, aren’t the ones you open time and time again the ones whose content always seems to appeal to you?

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4 thoughts on “The Role of E-mail in Micro-segmentation

  1. Hi All,

    Good post.Thank you for sharing.

    To get better targeting for business,the most important step is to do segmenting for your targeted customers.As the contrasts of mass and one-to-one marketing illustrate,segements become more heterogeneous as they increast in size as well as focusing on potential customers who have similar needs of nature.RFM(Recency,Frequency and Monetary) is a great approach to helping companies to identify clients’ want,needs and thoughts.Then companies can promote targeted advertising and personlized content based on customers’ need more efficiently and effectively.Creating print catalogues and newsletters as a method of targeting customers for specific offers is what companies such as Coles is doing.Aslo customer satisfaction is thought to be the first step in a long-term relationship,which means CRM(customer relationship managment) should be driven smoothly to support companies’ targeting programs after segmenting.It is a huge cost to do relative research and set database to serve specific customers,thus the companies need to combine their resourse and capabilities to make decisions on which strategies are the best choices for the companies long-term development.

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  2. It is so true…the ones that appeal and the ones that don’t even get a look in.

    I received a really great example of targeted marketing after a purchase from Witchery Clothing.

    I purchased a pair of black pants from their Doncaster store on a Saturday and by Monday I had a received a “Thank you for shopping at Doncaster” email, with suggestions on how to wear the pants and what other items of clothing would go well with them. Giving me a complete look/style for me. Did it make me want to go back to their store…YES. Did it make me want to have a quick look on their website for more suitable items…YES.

    Hitting the right note and making it personalised will ensure people will action the message and therefore be compelled ot buy if not only going back to that particular business time and time again.

    Liked by 1 person

  3. Great article on explaining the need for target marketing in generating an effective marketing program.
    Got me thinking about the emails I receive from Coles and how much I appreciate them letting me know what products are on specials, that I purchase frequently. Also they send me emails on special promotions on Flybuy points on the frequent purchases from Coles, which encourage me to shop with Coles and their associated stores in order to get the best benefits. I think its a great marketing strategy by Coles by segmenting me as a shopper who is enticed by loyalty points and specializing emails that appeal to my shopping behavior.

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  4. Hi All, I really enjoy the blog.

    This made me reflect about all the e-mails that I received from different shops. I think that the e-mail is a good way to promote and position a brand in a specific segment, and also is easy and cheap for the company.

    However, I am not sure how effective this could be and how long is going to last, because at the end it is very annoying for the customers receive e-mails with advertising from every shop that they visit. I receive almost every day e-mails with discounts and good deals from different shops such as Coles, Kikki.K, Ikea, Booking, Woolworths, Jet Star and others, but the true is that I don’t read it, and I get tired of all these e-mails in my inbox.

    Moreover, the amount of advertising that people is receiving via e-mail is that high, that in some countries there are legislations about the use of contact details for advertising purposes, when the client should allow the company to use the contact details to send these e-mails with promotions.

    Therefore, we can conclude that marketers every day have new challenges to find out how to approach its clients.

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