Moving on from the previous post, it is important now to turn some of this theory into practice and take a look at implementation.

Once you have chosen your segments you need to consider the different methods available for using these segments. Some of the methods available for implementing segmentation include:

• Create separate content for each segment when you are segmenting on a strongly differentiated area (e.g. one type of email for males, a different version for females). The content can be based on user profiles, behaviours, engagement levels, customer status (e.g. regular spenders, VIP members) or email metrics.
• Create segments based on areas within a generic creative. This gives the option to include information you feel necessary for all recipients to receive, as well as targeting them with products that are specific to their own taste/interest.
• Date triggered programmes provide you with a great opportunity to contact and reward customers on a certain date (e.g. gym membership expiry, birthdays), whilst simultaneously reminding customers of your brand and reinforcing the benefits at a time when they are most responsive and likely to purchase.
• Different segments can benefit from different frequencies of email communication, based on their point in the customer lifecycle for that product or service. You could increase email frequency at the point when they are likely to buy, and reduce when they are less likely to buy.

The amount of segmentation achievable using any of these methods can allow for very sophisticated targeting. The methods also give the option to include multiple stipulations when defining the areas of your database you would like to include.

Below is an example of a segmented campaign approach implemented by "American Holidays". We can't see what metric was used to segment, however it's clear that the campaign is differentiated according to a target reader - e.g. family holidays, city breaks, cruises, adventure, beach etc.

Segmentation Summary

Segmentation is neither as scary nor as difficult as it sounds. By dividing your database into smaller chunks, people who may share a certain characteristic can be grouped as a separate audience and targeted with the appropriate content. You can win them over to your product or service through focused, targeted and personalised communications which will result in the formation of better relationships, and an improved response to the campaign.

-= David

CRM Principal

Source: Digital Marketing Association - Whitepaper "A Guide to Data Analysis and Segmentation"