Clear the Marketing Clutter: Data-Driven Segmentation for Accurate Target Marketing
It Relies on an Omni-Channel Presence
According to the "Rightnow Customer Experience Impact Report," 89 percent of customers have stopped doing business with a company after one poor experience. This means that once companies have the right data, they must then use it to exceed customer expectations when they interact with the brand. This is where omni-channel marketing plays an integral role. Customers demand a seamless marketing experience regardless of the tool they use—be it a smartphone, tablet, notebook or desktop. And to take that a step further, they expect consistency from online to offline communications, including social media channels, websites, text-based communications, direct mail and even a brand's call center.
However, achieving such consistency can be challenging for organizations. In a recent CMO Club and Visual IQ report, 85 percent of CMOs said their efforts at implementing an omnichannel marketing strategy are challenged by a lack of access to data and inadequate tools/technology. By embracing data-driven segmentation to uncover actionable customer data, companies can then be armed with the information needed to create a marketing experience tailored to each customer, whether in the B-to-B or B-to-C arena. In addition, companies can more effectively measure marketing success and determine ROI. This is critical considering that the same report revealed that 82 percent of CMOs believe the inability to measure cross-channel performance is a major obstacle to implementing effective omnichannel marketing in the first place.
It Positively Impacts Conversion
Conversion rates are a key measurement of cross-channel performance, and we've known for years that segmentation greatly impacts conversion success. According to an old Jupiter Research report (2006), customer segmentation conversion rates (whether via direct mail or email) improved 355 percent, leading to increased revenues of up to 781 percent, when segmented based on customer data such as customer spend, brand interaction, and customer life cycle management. Yet a majority of marketers still do no customer segmentation at all, simply relying on the "one size fits all" mass email approach, which most savvy consumers are likely to delete before reading. In the end, that lack of targeted segmentation not only creates lost sales, it may actually be damaging to the brand.