The True Value of Data List Segmentation
First and foremost, what is data list segmentation? Segmentation is a process of dividing and classifying a data list by different characteristics. This process can be applicable to both a B2B and B2C environment based on sector specific criteria. Both will be covered in this post. Contacts on a segmented list all share a common characteristic. These characteristics are what make a contact an ideal customer for a business. Companies that segment their marketing lists and use these in their marketing messages see much higher engagement rates. This is not entirely surprising as segmentation allows you to be more targeted and share relevant information of interest.
Through providing direct marketing services for many years, we see the benefits that segmentation brings first hand. Segmenting can be used across a variety of marketing channels to great effect. This is especially true if you operate in a niche or restricted market. Furthermore, in some cases your ideal customer may not be readily available to data owners and so through segmentation, can be accurately profiled.
In this post, we give you some of the most effective methods that you can use to segment your lists. Furthermore, we state precisely how this helps increase the success of your marketing campaigns. There are countless segments that can be utilised in marketing. In this post, we look into a few of the most effective segments that show to work consistently at a high level.
There is no denying that segmenting your lists will perform at a much higher rate than a generic mass mailer. It will also reduce the number of opt-outs than a normal list. This is because it is highly targeted and more likely to be of interest to the specific records.
One of the most common methods of segmentation is through demographics. The majority of companies in the UK have an ideal target market. These are people that will benefit the most from their products/services. Through data and segmentation, you are able to refine a list so that it contains your ideal demographics.
Depending on the data list in question or the data company you are speaking with, you will be able to specifically target individuals that match your criteria. This can be specific ages, affluence, genders, religions etc. There are multiple factors that are taken into account, depending on what you are looking for and what is available. Demographic segments allow for much higher targeting, preventing your marketing from being broadcast to individuals who will have little to no interest in what you offer. This will not only be more successful, but also a more cost effective option, all the while allowing you to gather an intelligent, responsive and targeted ongoing marketing data pool.
For B2B marketing campaigns, a similar process is available. Data owners are able to segment business lists on factors including but not limited to; industry, legal structure, turnover, employee number etc. This will ensure you market to your ideal industry and company. Segmentation is key for B2B marketing campaigns. If you send out a mass mailer to any company, it will be more expensive. Furthermore a lot of the companies won’t find it relevant to their business (unless you offer a product/service that is very widely applicable).
Depending on the data set in question, it will also be possible to target a business’ senior decision maker. This will ensure the marketing goes to the person with the overall purchasing decision for the business. Alternatively you will also be able to target multiple personas within a given organisation. This allows you to deliver the same message to all relevant individuals in a personal and relevant way to their position. For example, the core message will be the same but presented differently to a financial director than an office manager. Their wants for a product will be vastly different. The FD will be concerned with cost and saving money while the OM will be interested in time and efficiency etc.
In another post, we cover lead nurturing and how it benefits your business. A key part of lead nurturing is marketing to highly accurate, segmented data. Through email marketing and reporting analytics, marketing companies are able to determine who opened/clicked your email. It is then possible to extract these records into a new database to further market to. Multiple studies from companies and findings from our own email campaigns show that these databases perform at a much higher rate. Through this methodology you are able to share more targeted information, so for example, you can identify that they have had a look at your case studies. Why not send them related information? This will help you position your brand in a strong position but also keep them engaged.
The data is not only segmented, but also highly accurate containing records that have already shown an initial interest. The more you know about your audience, the better your content can be as you have more understanding of their interests. Providing new content consistently down the line helps create trust and familiarity with your business. When the person/business is in a position to buy, it is more likely that they will come to you as a result of the emails and content they have received from yourself.
You can also segment on the basis of how the prospect has previously interacted with your business. If they have not bought from you before or buy from you regularly, you can tailor your marketing messages to suit this. This will ensure they receive relevant content that is applicable to their situation. If they have not bought from you before, your content should inform them about your company, making them more confident in the business. You can reward frequent buyers with offers in their emails.
Data also allows you to target specific regions. This can be as broad or specific as you choose. For example, you can target specific postcodes, towns, counties, regions etc. If you are a smaller company and do not offer a UK wide service, geographic segmentation is a highly effective tool that will be more responsive for your marketing campaigns. You can concentrate your efforts in your local area.
When talking to a data company, they will ascertain your target areas. They will then run a data count to see how many records they have available in your area. This will also include details of the contact methods available which can help determine the type of campaign you undertake.
The Correct Data List
Segmentation would not be possible without a high quality data list. The more information or ‘fields’ a record has, the more targeted the segment can be. Segmenting means that you are able to market to the right person who will have more interest in your company and your products. It helps maximise the effectiveness of data and marketing channels. Therefore, it is crucial that before you go with any one supplier, you research different data suppliers. Different companies have different data lists available with exclusive lists available in some cases.
In order for a campaign to be as successful as possible, you need to be using the correct data. It must be highly accurate and cleansed regularly to ensure the highest response rates.
Segmentation results in more successful marketing campaigns. There is more engagement and the marketing is more personal to the recipient. This leads to higher conversions and sales for your business. However, it is crucial that you research into the available data sets on the market. Also take time to identify your target market to ensure maximum success. This step can be undertaken by companies like Impact. We can assist in helping identify the right target audience based on your current client/prospect database.
One key mistake that many business owners make is to assume that one email will bring in huge returns. This is not the case. Trust and familiarity builds over time, so emailing on a consistent basis is the best tactic for achieving the highest returns.
Impact Marketing own and manage a number of exclusive business and consumer data lists. Our in house data experts and bureau mean we can specifically segment a list to perform at its highest for your business. Add in our in house email marketing service and we are able to offer a complete package for your company.
Get in touch today and a member of the team will be happy to advise further on the data we have available and how we can segment it for your business.