Friday, May 1, 2009

Basic segmentation - 4 key tactics

In the beginning there was list, and then came segmentation...

Now, happy days of bulk broadcasting is long dead. It is now replaced with new techniques, strategies to get response from email marketing. One apparent change in the advent of data segmentation.

Division of data into homogeneous segments for precision marketing is the main aim of segmentation. Now every email marketer knows or heard about this division by few practice it wholeheartedly.

Reason for the lack of adherence is due to the lack of time, lack of resources and lack of trained facility.

Before you segment, one thing must be certainly understood – the purpose. Once the purpose of segmentation is clear, then you can carry on by detailing the division as per your market requirement and as per the availability of the data.

Here are several criteria for email segmentation of your customer database:

Product/service based:

You can profile customers in your database as per their requirement for any product/service. Understanding the primary interest, can help you to send separate version of your email newsletter to select audience.

Title based

B2b promotion is found effective when its send to top level executives. Since you've to promote your campaign to the key influencer, you need to tailor your pitch to speak in their language. If you're targeting a IT executive, you need to give technical specification and spell out the benefits over and above the existing application.


Based on the previous purchase records, you can promote upgrades and new versions to clients. Purchase level segmentation is useful when your promoting similar products or services which was earlier purchased by the users.

Recency, Frequency and Monetary Value based segmentation of customer file can reveal finer elements of the earlier purchase. Through this you can target on the most revenue generating customer. Preferential treatment of customers can enable you to gain best response from the target markets. For instance, you can send regular offering to active purchasers and keep them involved of every new offers, discounts.

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