Why is customer segmentation so important and how do you do it right?
We always like to stress the importance of assigning your customers and recipients to meaningful groups before you launch your SMS campaign. Customer segmentation is one of the basic requirements for the success of marketing campaigns of all kinds – whether they include sending out SMS or not. In this blog post we would like to show you why you should pay attention to a meaningful customer segmentation and how you go about this task.
Why is customer segmentation so important?
The finer and more detailed your customer segmentation, the more appropriate and relevant messages you can send to your customers. This not only strengthens customer loyalty towards your products and your company, but also leads to a higher CTR. In a way, you create a win-win situation for you and your customers – your customers receive appropriate and desired information, and you yourself benefit from more effective marketing campaigns.
Customer segmentation and personalization go hand in hand. It is only possible to create personalized experiences for customers if you know your target groups well and have thoroughly subdivided them.
The effort is rewarded: 80% of consumers are more likely to make a purchase when brands offer personalized experiences (source: Epsilon).
Especially when you send SMS campaigns, this personalized experience is particularly important – because SMS create a very personal approach to your customers to begin with. Use the resulting potential and offer your customers the best possible experience.
How to succeed in customer segmentation
You can go about your classification in various ways – there are different methods for customer segmentation. However, the important thing to remember with all variations is: Base your decisions on data from your market and/or customer analysis, and be prepared to adjust the classification if experience shows that there is room for improvement. Adjustments are the nuts and bolts of your customer segmentation, because your customers change in their needs and wants.
Let’s look at one way to meaningfully assign your customers to specific groups.
In addition to age and gender, other demographic aspects also play a role in your customer segmentation. Preferences, hobbies, interests and specific information on purchase intentions are crucial details that really complete a customer profile.
It is often a good idea to first classify customers according to general information, such as age, gender or languages, and then to divide the respective groups according to more individual information. Here too, however, it must be clear: If a classification makes sense differs, depending on the company and the product.
Actually sending SMS
If you want to send SMS automatically or have them sent via an SMS gateway, you usually have numerous options to choose from in order to configure certain parameters individually. For example, you can select one or more preset groups that will receive an SMS with specific content at a certain time.
This can be newsletters, special offers, sweepstakes as well as surveys. You also have the option of sending personalized and time-delayed bulk SMS.
It is advisable to keep your SMS campaign dynamic. To do this, check the timeliness of your customer information at regular intervals. Have they recently become interested in baby fashion? Have their access times changed (due to a job change, for example) or has their shopping behavior been completely restructured and do they need to be placed in a different group altogether? Adjust your customer segmentation results as necessary.
Plan your sending times so that the SMS actually reaches your customer at the right moment. Unlike emails or letters, SMS are almost always opened and read immediately – but they are also more quickly perceived as a nuisance if they arrive at the wrong time.
Especially via two-way messaging you have a wonderful feedback option. In the case of surveys, voting, competitions or similar that you organize via SMS, you can receive a direct response from the customer via inbound SMS. Based on this, you can in turn better assess the activity of the customer.
Also, track how often and when your target groups redeem discounts that you had previously announced via SMS and analyze how customers interact with your content.
You can use tools from your SMS service provider to statistically analyze SMS campaigns. Learn more about the reachability of your customers – but also about your own cost allocation. After all, every marketing budget needs to be planned adequately.
All this data, whether direct feedback or information on user behavior, can be used to further improve communication with your customers.
All the best
Header picture by AndreyPopov via iStock.com