Tuesday, 6 September 2016

Digital Marketing Segmentation | Who to segment?

Mandarin, orange segments

With all these conversations about digital segmentation it is probably likely that marketers are in a bit of a rush to get back to their desks and segment the heck out of their customer databases. But hang on for a minute. The fundamental purpose of segmenting is to find that portion of your audience that is actually stable, addressable and unique enough to warrant reward with preferential treatment.

Confused? You shouldn’t be. Let us take that statement and analyze it. There are three key factors we need to look at:

Stable
Is the segment you have identified stable enough? What this means is that if you have segmented well, that particular segment should remain consistent for the foreseeable future. With all the rapid changes that social media creates in user behavior, it is clearly not likely that any user behavior will remain the same forever. But at least for the foreseeable future, your segment should be viable.

Addressable
There is no point in defining a segment, even a stable one, if there is now way that you can reach out to and communicate with that segment! The second most important consideration for a usable segmentation strategy is to figure out addressable segments. Do the members of the segment exhibit preference for one channel of communication over the other? If so, what about that channel appeals to them? Immediacy? Frequency? Figure this out and you will be set to communicate to them.

Unique enough to warrant reward
Is your segment all about figuring out your most valuable customers? Or is it people who have the potential to be your most valuable customers? Basically are they unique (and important enough) to warrant rewarding them with preferential treatment? This is really important. If you are going to spend time, effort and money in trying to reach out to and communicate with a particular segment, they better be worth it! Targeting the “unconvertables” is not only an exercise in futility – it is a misuse of the segmentation process itself!

In the next post, we will take a look at the step-by-step process involved in setting up the right goals to help you segment meaningfully.


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