Yep! Great idea. Let’s take the rest of the day off.
If only data segmentation was that easy. In this foolish example, two marketers think using purchase history alone will lead to new sales. A successful marketing campaign may use purchase history as a component, but it’s not a successful marketing strategy on its own. Most one-sided things don’t end well (conversations, relationships) and personalized marketing is no different.
To highlight the problems and missed opportunities caused by poor data segmentation, here are three user stories based on purchase history and the solution to fix them. All of these scenarios occur regularly and represent fixable issues for any retailer.
Problem 1: I Get Ads for Gifts I Bought other People
Can you imagine getting marketed or retargeted for all the gifts you bought online this holiday season? Golf balls, sky diving lessons, women’s hiking boots — and you don’t even golf, jump out of planes or like the outdoors. Too bad. That doesn’t matter to a company who only segments by purchase history. To them, you bought this product so you must be the one who likes it. Here come the emails and banner ads!
If you buy from one retailer all the time, or you have a store credit card, they may be able to recognize a change in your buying habits. But even if they do, their technology probably won’t act on it automatically. The truth is you’ll be getting ads that don’t interest you until their marketing schedule runs its course. A major waste for you and the retailer.
Problem 2: I Returned My Online Purchase In-Store but Keep Receiving Ads for It
You’ve been waiting for a new game system to come out and viewed the product page 20 times over the past month. When it finally went on sale, you bought it online and paid for overnight shipping. After a few days, however, you were unimpressed and returned it to the closest brick-and-mortar for a full refund. It turns out your brand loyalty to your old system was deeper than you realized.
Matt Diehl is the Digital Content Writer for Persio, a multichannel marketing and decisioning SaaS platform used by leading retailers such as EXPRESS, JoAnn Fabrics and Stage Stores. Persio delivers custom, personalized campaigns across email, messaging, app and web to increase customer lifetime value. Matt has over seven years of professional content experience and has been with Persio since March 2015.