Category: customer journey

CRM Strategy

5 Segmentation Pitfalls and How to Avoid Them

Segmentation is key to delivering 1:1 experiences to consumers. However, poor segmentation practices can cause your segmentation efforts to fail. In this article, we identify five segmentation pitfalls and how to avoid them.

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1.Relying on Static Segmentation

Consumer shopping behavior is constantly evolving. For instance, we’ve seen consumers shift to purchasing in larger quantities, trying new brands, and increasing online orders due to COVID-19.  Therefore, if you’re relying on static segmentation, you’ll always be playing catch up. Static segmentation gives you a dated understanding of your customers and prevents you from marketing to them effectively. To meet consumers’ evolving needs, adopt a dynamic segmentation.

Dynamic segmentation uses real-time consumer data to continuously update consumer segments that shrink or expand as individuals move in and out of the segments. For example, with dynamic segmentation, a beauty brand might discover that its traditional beauty enthusiast segment is starting to split into “Korean beauty” or “indie beauty” cohorts based on a deeper understanding of behaviors, context, and needs.

When using dynamic segmentation, look for shifts in size, behavior, and engagement.  Analyze customers based on their movement among segments and track how customers move from one segment to another over time. If you notice a change in consumer behavior, see if your current messaging still resonates with each segment, or you need to rework your approach.

Leverage dynamic segmentation tools with propensity modeling and machine learning capabilities to enable you to predict consumer behavior and identify which traits are most productive in converting, driving repeat purchase, and consumer engagement.  Revisit your segmentation strategy periodically.

2. Going Too Granular

With consumers demanding 1:1 experiences, granular segmentation based on attributes such as lifestyle, propensity to purchase, and psychographic data can help you deliver personalized experiences. However, breaking your audience into smaller and smaller segments can sometimes lead to groupings that will be of little to no use to you. For example, segmenting an audience based on whether they’re shy or easy going when you’re selling apparel won’t help you better understand your audience’s needs.

While segmentation offers nearly endless possibilities for how you can look at your audience, don’t segment yourself to death. When segmenting your audience, each segment you discover is substantial enough to generate revenue and be profitable.

So, it’s crucial you understand your audience’s purchasing power and propensity to pay premium prices. The segment should be suitably different from other segments. Ask yourself if this segment will respond differently to marketing content. The segment should be reachable and targetable.

Use a segmentation tool that allows you to discover the most statistically significant differences among segments automatically.

3. Using Poor Quality Data

Segmenting your audience using inaccurate and outdated data is a quick way to get erroneous segmentation results and fail in your marketing. In fact, 95% of organizations see negative impacts from poor data quality, resulting in wasted resources and additional costs. Remember P&G’s marketing blunder with Gillette? Gillette accidentally sent razors to women and older men when intended for 18-year-old men.

Avoid segmentation related marketing mistakes by first reviewing your customer data to determine common errors within your database and implement a data quality strategy based on your insight. Leverage data enrichment tools to fill up data gaps, verify customer details and correct inaccurate information in your database. Use an enrichment tool that can give you access to granular information, such as the number of people in a household and their socio-economic situation.

Invest in tools that validate the accuracy of your data in real-time, clean information like list imports, and have an intuitive engine that prompts for data clarification. To consistently keep your data accurate, make data cleansing a regular process, and choose a data enrichment solution that can rapidly enrich, process, and analyze information. Also, develop practices around data remediation and data monitoring to maintain quality over time.

The guide to advanced customer segmentation

4. Forgetting the Customer Journey

Not incorporating your customer journey into your segmentation strategy is another pitfall you should avoid. Customer journey stage based segmentation enables you to know where in the buying process your customer is, identify touch points where they drop off and how to engage them with personalized offers and contextual messages. About, 33% of consumers are receptive to targeted ads that are contextually relevant to the site they are browsing.

To win with this strategy, map your customer journey across all physical and digital touchpoints. Ensure customer journeys are connected to all the different data sources and apply machine learning to spot common and uncommon patterns.

Consider leveraging a CDP with customer journey orchestration capabilities to provide simple journey configuration and deliver personalization at scale. Look for a solution that supports affinity-driven journeys, predictive modeling, and journey analytics.

5. Clinging to Basic Segmentation Strategies

In a world where consumers demand hyper-personalized experiences, mainly looking at attributes such as demographics, geographic and socio-economic data to segment consumer groups won’t help you deliver targeted messaging and communications.

Improve your segmentation strategy by leveraging predictive segmentation. This segmentation method leverages machine learning to group customers by their likelihood or propensity to exhibit a future behavior such as the probability that they will visit your store in the next 30 days, or churn from your subscription service. Thereby enabling you to understand each customer and how to market to them proactively. When using predictive segmentation, choose a predictive segmentation tool that leverages behavioral insights, builds goal-driven segments, and analyzes data to make recommendations that help you find and grow your target audience.

Your segmentation should also include some form of life events such as a new home, a birthday, or a job switch. This will help you understand customer intent and create strong messaging most likely apt to appeal to each customer’s situation.

About 50% of marketers consider life events as a new sales opportunity, while 70% state that life events provide a reason to engage with customers. Collect customer life events data through multiple channels- in real-time and enhance this with third party data to better inform retention campaigns. Make sure you have customer consent when collecting live event data.

 Segment Right

Segmentation implementation is filled with pitfalls that can break your business. In addition to the solution presented above, improve your segmentation strategy by basing your segmentation on qualitative and quantitative research. This will help you to learn how consumers think, shop, and use your products. Additionally, set clear segmentation goals and identify opportunities for action after segmentation.

 

The post 5 Segmentation Pitfalls and How to Avoid Them appeared first on Post Funnel.

Content Marketing

Why You Need to Use Video Marketing

Video delivers the experience that most customers prefer, which makes it a must-have for marketing.

Authenticity, storytelling, engagement. These are all terms that marketers now attempt to incorporate into their campaign strategies to really connect with and motivate audiences.

All those are attainable with good video content. That is what makes it your secret weapon for engaging your audience.

Hand someone a whitepaper, and you have to pay them to read it. But everyone enjoys a good story. If you can bring that story to life by showing it through video rather than merely telling it, so much the better.

Become the best CRMer you can:
CRM Hack: measuring the right marketing campaign KPIs
How To: use loyalty data to power retention and reactivation
See how brands take their email deliverability to the max
Get inspired: great sports betting campaigns to follow

That’s why video use keeps growing among marketers who recognize its effectiveness.

When you put out content that engages, you’re directing your audience toward the first step of the customer journey.

According to Wyzowl’s 2020 State of Video Marketing Survey, 66% of us identify video as our medium of choice to learn about something. That’s far ahead of the second most popular category – articles, posts, or text on a site – that is the choice of 18%.

In anticipation of this year, 86% of people said they would like brands to serve more video content. Among these, 36% prefer to see explainer videos, and 14% would like product demos. Customers find good videos more relatable and are more apt to share them than other forms of content.

As Vidyard, one of the video services available to businesses, reported, “Campaigns incorporating video routinely have higher engagement than campaigns with static assets and video-based assets have proved to be easier for customers to digest and share.”

More marketers have gotten on board

That’s why over the past few years, more marketers have come to recognize its power to engage their audiences and deliver more effective branding impact. They realize that video marketing has shifted from a possible addition to a central component of a comprehensive marketing strategy.

Seeing its ROI certainly contributes to the adoption. Back in 2015, only 33% of marketers believed they were getting a positive ROI from video, according to Wyzowl. By 2019, 88% were on board for the ROI. This is not just about general awareness.

In fact, 80% attribute increased sales to marketing video content. On the consumer end, 84% report that watching a brand’s video is what made them decide to buy what it’s selling.

Why isn’t everyone using video leads?

As using video content in marketing delivers such obvious benefits in terms of engagement, driving more traffic to your site, and even increasing conversions and sales, the question is what’s keeping everyone from adopting it?

The answer emerges from those who explain what made them take the leap. Close to half of those who only began to use video in 2019 said they did so then because the technology is now in place for quick and easy video content creation, according to Wyzowl.

It’s possible the other half was hesitating about adopting a medium that calls for having a story to tell. Businesses often make the mistake of thinking their brand doesn’t lend itself to an interesting story.

How to show – not just tell – your brand story

Every business has its own unique stories to tell. You  don’t have to limit yourself to what you sell; you can bring out your one-of-a-kind nature with a feature on your people, your culture, or even the customers you serve.

Here are four different angles for marketing videos that convey authenticity and establish a connection with your audience that were produced with Wistia’s service:

Tell your product’s story

Niche Modern, a lighting fixture fabricator, uses video to show the creativity and craftsmanship that goes into each hand-blown glass lighting pendant. The video opens with “Every handmade product tells a story. This is ours.”

Demonstrate your product in action

Wipster is a video review and approval platform that removes the tediousness of annotating frames. Rollo Wenlock, Wipster’s founder not only talks about the features but brings in dancers, music, annotations, and suggested cuts, making the most of video’s capabilities  to show what his product can do in just 30 seconds.

Tell your people’s story

David Delmar, Founder and Executive Director of Resilient Coders, introduced Soapbox to his students to allow them to showcase their work and who they are with the split screen feature: “You get a sense for who each student is as a person and as a potential colleague, something a faceless GitHub profile could never do,” Delmar observed.

Tell your customers’ story

Stephanie Capouch, Senior Director of Corporate Marketing at Conga, used Soapbox to launch her company’s podcast, Agents of Change. She explained that while most companies that feature client stories give themselves the starring role, they decided to take a different approach:

“The role Conga plays may come up, but that’s not our end goal. It’s really about them, the work that they’re doing, and their story.”

Customer marketing challenges and opportunities

Using video to track the customer journey

For marketers who think that engagement is nice but doesn’t necessarily translate into conversions, there are integration tools to track your audience through every stage of the funnel.  Vidyard outlined how that can work in How 5 Videos Drove $6M in Revenue for One Construction Tech Company:

Though the first video and the teasers are not gated to extend reach as much as possible, the ones beyond that are to enable the business to track the customers. In the case discussed, the gating allowed information taken in through Marketo forms to be paired with Vidyard’s viewing data.

The integration is key to being able “to apply a lead score for MQLs in Marketo based on length of video and percentage viewed.” They also would follow up on the top leads through a Marketo and Salesforce integration to follow up with a Salesforce campaign. That would then be tracked within Salesforce.

Now a number of companies offer various levels of marketing integration that allows businesses to derive meaningful analytics on their audience’s video consumption. As the base price of some of these is free, there really is no reason for any business not to capitalize on the engagement potential of marketing videos.

The post Why You Need to Use Video Marketing appeared first on Post Funnel.

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