Segmentation: Even you can do it!

 

Whether you’re a veteran e-mail marketer or just learning the ropes, you have likely heard that segmentation tactics can deliver better results for your e-mail program because it allows you to send more targeted and relevant messages. With this more relevant messaging, you can expect to see a higher return on your e-mail investment. In fact, segmented campaigns have been shown to deliver two to five times the ROI (return on investment) of typical broadcast campaigns. The bonus ROI is reduced list churn and fewer spam complaints.

 

Sounds great, right? So why is it that, according to a recent survey, only 25 percent of marketers use segmentation at least once a month?  I would say it’s even LESS when it comes to nightclubs, bar, and lounge marketing.  Why not 100 percent of marketers? Why not more often? In this article we’ll work to break down the barriers and reveal the secrets to successful e-mail segmentation.

 

The Challenges of Segmentation

Marketers cite many reasons for why they haven’t yet adopted segmentation:

·         Limited creative resources (70 percent)

·         Lack of data (50 percent)

·         Lack of time to plan (50 percent)

 

I’ve also heard these objections from marketers who are still in the mode of sending single-event broadcast campaigns:

·         “I don’t know how to do it, and there’s no time to learn.”

·         “I know I should be doing it, but I don’t have the extra money in my budget to pay for an add-on data program to integrate collected data.”

·         “I’m getting decent results now with broadcast e-mail. Why should I mess with success?”

 

Segmentation: It Doesn’t Have to Be Complicated

Perhaps you assume that moving toward e-mail segmentation means overhauling your entire e-mail program or buying a high-priced recommendation engine so that each customer can get his or her own personalized message.

 

Truth is, you can begin to see positive results from segmentation with just a few changes. Start small and use incremental steps to achieve greater success.

 

Let’s look at the three main challenges listed above. For each one, there’s a relatively simple solution that can get you started with segmentation right away.

·         Limited creative resources: You don’t have to create a completely new message for each segment. Instead, break the message down into components and use a dynamic content template that will change the components automatically according to the segment.

·         Lack of data: You already have some basic data you can use to begin segmenting… your email addresses. Why not send an email to your list offering some kind of incentive in an effort for them to give you the data you need like “What’s your favorite type of music?”

·         No time to plan: Set aside one day each month and call it “segmentation day.” Look at your promotional plans and events and consider how to generate a different story for one or two additional segments. In this meeting, decide how you will identify those segments. Knowing what data you will need (browsing, profile, or transactional) takes the last-minute guesswork out of segmentation planning.

 

Overcome these barriers, and try segmentation. I guarantee once you try it and win, you’ll keep playing. Because then you are playing with the house’s money, not your own.

 

Case Studies: Incorporating Profile/Behavior Data

The Opium Group: This group of nightclubs in Miami has implemented relatively simple segmentation strategies; using data most e-mail marketers have access to, in order to achieve dramatic lifts in ROI.

 

In the past, The Opium Group, as with most companies, experienced flat performance in its broadcast campaigns and did not have a reservoir of sophisticated data to create segments.

So, the company created segments by matching e-mail subscribers with the music preference they clicked on when they sent an email to their list asking what type of music they liked, and tailored messages to reflect that activity.

 

Result: They realized a 300 percent lift in conversion, using data that was native in the e-mail platform and required no external integration.

 

Takeaway: Create relevant segments using the information you collect from subscribers’ e-mail activity. Every e-mail marketer has easy access to this data, and it works surprisingly well for many.

 

If you’re segmenting, you need a great Email Service Provider

Make sure your email service provider has built-in features to segment lists.  Take some time to become familiar with the how-to section on segmentation.

 

In the meantime, please click the “Post a Comment” link at the end of this column and pass along your questions about getting started with segmenting or your own experiences for possible use in a future column. Please let me know:

·         How is segmentation working for you?

·         If you aren’t doing it, why not?

·         What’s your one wish to make segmentation easier?

 

I look forward to your input.

 

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