Download how marketing automation is improving marketers` ability to segment

HOW MARKETING AUTOMATION IS IMPROVING MARKETERS’
ABILITY TO SEGMENT AND TARGET
A key benefit for marketers moving from email marketing to marketing automation is the ability to improve
segmentation and targeting. By segmentation we mean the classification of audiences into unique addressable
groups, allowing us to increase the relevance, impact and customer value of our marketing communications.
The foundational requirements of a good segmentation strategy are that group membership must be unique
(i.e., have unique attributes common to the group and different from other groups), that group members
respond similarly to marketing stimuli and that segments are targetable.
TARGETING & SEGMENTATION STRATEGY
ADVANCED TARGETING TECHNIQUES
Once segments are defined, we utilize a marketing automation
database or media targeting strategy to communicate the right
message to the right people, at the right times. Testing to determine
the efficacy of the segmentation strategy and creative execution of
our communications is a vital step toward achieving the desired
results.
Once the segments are defined, we use data to facilitate more
advanced targeting to determine whom to address with marketing.
A few of these techniques include:
There are three basic types of segmentation to consider when
developing your targeting strategy:
•
ATTITUDINAL SEGMENTATION. This focuses on the
psychographics of targets in common life situations. (military,
single mothers, empty-nesters, CEOs, office managers)
•
BEHAVIORAL SEGMENTATION. This focuses on explicit
actions taken, or behaviors observed during the buying
cycle stages of the targets, such as website content selection,
downloads, navigational paths and visit frequency or duration.
Reductive and attitudinal segmentations tend to rely upon more
historical information, while behavioral segmentation tends to rely
on more recent data. The nature of your business will dictate how
sophisticated your segmentation should be. It could be as basic as
defining a primary, secondary and tertiary customer or prospect.
RFM. Scoring of customers based upon recency, frequency
and monetary attributes.
•
DECILE ANALYSIS. Identification of customer clusters to
understand which to focus on.
REDUCTIVE SEGMENTATION. This focuses on the
demographics or geographic data for the targets. (age, income,
gender, geographic region or industry vertical)
•
•
•
SHARE OF WALLET. Cross analysis of customer’s current
degree of loyalty/spend to a company with their potential value.
•
CLUSTER ANALYSIS. Use of data to create groups that are
similar in some ways, yet different from the other groups.
Based on the segmentation of targets, specific positioning is created
to define how we want each group to perceive the brand. Specific
messages and images are developed for each group so that our
communications have maximum relevance. Marketing tactics are
developed and mapped back to each segment. Marketing automation
helps us to review and reassess results in the light of real response and
post-execution behavioral data. This is often a daily exercise and is the
driving force behind continued optimization of effective digital media
campaigns and marketing automation programs.
Contact Tom Fornoff at 512.532.2912 or tfornoff@archermalmo.com
How Marketing Automation is Improving Marketers’ Ability... (cont’d)
THE POWER OF SEGMENTATION
When we take this a step further and adapt content or offers to the refined insights
into a customer’s needs, we are tapping into the powerful potential of segmentation.
Segmentation within the context of a multi-channel communication program
can guarantee effectiveness given the empirical feedback-based improvement in
communication to your audience. When marketing automation is an integral part
of our campaigns, we can make immediate adjustments to the contact strategy, the
content being delivered or the offer itself by analyzing activity and correlating this data
to the segments.
While most businesses have adopted some form of segmentation, and some have
even proceeded to subsegment, many have yet to maximize the significant value of
segmentation that is tapped only when marketing automation facilitates constant
scrutiny and optimization.
Contact Tom Fornoff at Archer
Malmo to find out how to
effectively segment and target
your audience: 512.532.2912 or
tfornoff@archermalmo.com
About Archer Malmo
Archer Malmo, with offices in
Memphis, Tennessee, and Austin,
Texas, provides brand development,
advertising, public relations and
digital marketing services for national
brands across a variety of categories.
The agency’s combination of discipline
specialists, strategic orientation,
creativity and culture yields strong
client relationships and positive
business results. Founded in 1952,
the company has 200 employees,
has been recognized by Advertising
Age and PR News as a “Best Place to
Work,” was listed on the 2013, 2014
and 2015 “Inc. 5000”, was named a
2016 B2B Top Shop by Chief Marketer,
and is one of the Agency Post’s top
ten agencies for startups.
For more information on Archer
Malmo, visit archermalmo.com
or call Tom Fornoff at 512.532.2912
Contact Tom Fornoff at 512.532.2912 or tfornoff@archermalmo.com