Audience Segmentation For Better Personalized Marketing – It’s Worth The Effort
Marketing is all about the buyer’s journey; reaching the right people at the right time so they will take a desired action with your business. The difficult part of this challenge is knowing where different audience members are in their journeys so they can be sent the right messaging. Sometimes, marketers can get a pretty good idea of where an audience member is based on prior interactions they have had with the company. At other times, it can be difficult to gauge the current stage of their journey. One way to work with this imperfect information is to segment audiences.
Audience segmentation is a practical way to both organize a customer base and to align it with marketing efforts for improved results.
Audience Segmentation Aligns Messaging With Buyer Needs
The most successful marketing campaigns are personalized to the customer. Simple approaches send the same marketing message to every single audience member, every time, but this approach ignores the fact that customers all have different needs and wants which can change at any given point in time. A more effective approach is to send targeted messages to specific audiences. To that do, you’ll need to segment your audience into different groups.
Audiences can be segmented based on just about any criteria you can imagine: income, location, purchase history, age, occupation, etc. Sometimes that criteria stays the same; sometimes it changes as the customer’s point in the buyer’s journey changes.
Audience segmentation allows you to create smaller, more manageable customer groups so you can tailor your messaging to that specific group. This yields better results, whether that is email opens, click-throughs, or sales because the message resonates more effectively with that particular audience. Instead of wasting resources trying to reach everyone for everything, you target your resources and attention to only those who are most likely to act on your message.
Let’s say you are a baker and you send a mass email to your customer base offering a special on bakery bread. That special would only be interesting to the customers who want your bread. Those who come to you for brownies or cakes or sweet rolls might trash that message without even opening it. As a result, your open rate plummets and you might decide that bread-based offers are ineffective at drawing in customers. But, if you segmented your audience based on past purchases, you could send the bread buyers your bread-based offers and the cake buyers your cake- and sweets-based offers.
In theory, this type of audience segmentation should result in higher open rates, sales, or conversions per campaign because you are delivering content that is highly relevant to those buyers. This type of segmentation is a core component of personalized marketing.
More Work But Greater Payoff
Yes, audience segmentation takes more work than mass marketing. You’ll need to segment audiences, keep those databases up to date, and create messages specific to your different segments, but the payoff is worth it if you can personalize your messages to your audience. Personalized marketing has a higher conversion rate than non-personalized messaging but you’ll also gain the goodwill of your customers. Instead of spamming them with irrelevant content, again and again, they will only receive content that is valuable to them. This helps build brand awareness and customer loyalty.
Watch for our next post on this subject, Audience Segmentation: How To Do It to learn how to segment your audiences.