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Say good-bye to generic marketing
For most marketing professionals, creating segmented lists isn't a novelty, it's commonplace. However, the growth in data as a resource for more targeted marketing campaigns has resulted in new ways to utilize segmentation on extremely detailed levels. According to CMO.com, this practice is called micro-targeting, and the purpose of this practice is to develop marketing messages that is highly relevant to unique groups of customers.
Use proper data by clarifying the end result
The only issue with creating high-powered segmented lists is data quality. While it's entirely possible to collect a massive amount of data in today's digitally-oriented business world, there are still lingering questions over the accuracy - or even the value - of a vast ocean of consumer information. Few companies have deployed best practices and incorporate hygiene software such as address correction.
Another key element of using customer data to perform in-depth segmentation is clarifying the desired end result of using the information beforehand, explained CMO. Otherwise, businesses may find themselves in the sticky situation of only focusing on the data that fits their preconceived objectives. For instance, using information drawn from social networks, website activity, geo-location, transactions and direct feedback can run the risk of creating correlations where they may not actually exist.
Accordingly, it's important to recognize the goal ahead of time. For instance, segmentation based on social network data can be used to inform brand marketing, which is wholly different than using this information for lead generation purposes. Developing a brand image obviously is a long-term investment and can't be expected to provide a clear return on investment within a week.
Before micro-targeting, find the right person
After taking the objective into consideration, such as lead generation or nurturing, it's important for companies to identify a specific problem within the particular audience they're trying to reach. According to Business 2 Community, 44% of companies use buyer personas to create highly targeted marketing campaigns. One example of this is trying to reach executives within organizations. Members of the C suite are traditionally very difficult to reach because they have multiple layers of staff to intercept communications. One of the main tasks of the executive assistant is to filter out nonessential communications, whether it's direct mail, phone calls or email.
A guaranteed strategy to miss out on connecting with these individuals is having the wrong contact information on marketing messages. This makes address verification software and other data cleansing tools an essential part of any direct mail campaign. Regardless of the depth of information a company has about a specific customer, a misspelled name or address almost ensures the message won't hit the target.
According to WhatTheyThink!, data analytics and micro-targeting should be a standard practice in most marketing departments. Citing research from data capture service provider Formstack, the website indicated companies that personalize their marketing messages can experience a rise of nearly 20 percent in sales. However, it can be a difficult task. Micro-targeting is about knowing what message will the most relevant based on the customer's preferences and past behaviors, but also their current needs. Accordingly, the data needs to be robust and accurate.
