The Power of Segmentation for Marketing Campaigns

When a group of customers are fully segmented and when they are targeted by a lot of smaller campaigns, the accumulated uplift of this will be way better when compared to a spray and pay campaign.

Segmentation and the Importance of It

Malcolm makes the idea of segmentation very clear. He shows how it is in the world of food, in the fact that companies have moved drastically away from the idea of pleasing everyone. They have instead tried to create a different derivative of the same product so that they can cater something to everyone’s taste and consumer group. By doing this they have therefore managed to enlarge the market share of the brand overall. It’s true for customer marketing as well. If you want to find out why then keep on reading.

Personal Value

Data has been collected by over 30 million customers from across 2,000 campaigns. It has been delivered to target groups that range from having one customer per group to well over 100,000.  When you look at the results, you will soon see that it is very clear that the customer marketing campaigns and segmentation does live up to its promise. The smaller the target group is, the bigger the uplift will be. When you look at the uplift, you will soon see that it is way less when you have bigger groups. This could mean that small target groups that have around 150 customers per campaign, that these dominate the bigger groups.

Small Groups

Smaller groups have a much higher volatility level. This means that the sample sizes are way smaller. The results of the study have shown that the smaller the group happens to be, the bigger the range of outcomes. This is the expected results. Small groups tend to suffer from a higher variance regardless of the subject. Marketers can expect way better results when they have smaller groups, and that’s just the way that it works. The best results are achieved this way and you also have a much more coherent group as well.

Smaller Customer Segments

So when you look at things overall, you will soon see that the message is very clear. As you begin to target much smaller customer segments, the uplift that you can expect to gain, grows. Each customer will generate more uplift when compared to the average, or if they were part of a bigger group. When you have a group of customers who are segmented and targeted by smaller campaigns, this accumulates and you may even find that it pays off for you more than the spray and pay campaign. Of course, if you use this to your advantage then you’ll soon find that you are able to benefit more overall and this can really work in your favour. If you still need help with your campaign, then remember that there are tons of marketing companies out there that can give you the support you need without any issues.