A Story of Two Sweaters: Why Segmentation Alone Isn’t Sufficient

Each retailer is aware of that buyer segmentation makes campaigns more practical. Whenever you classify prospects in response to their pursuits and needs, it’s a lot simpler to ship content material that speaks to them personally, making a connection that builds long-term loyalty.

On paper, segmentation appears like a simple strategy to flip subscribers into delighted prospects. However segmentation does have its limits. Whenever you’re coping with one-time purchasers, market segments don’t inform you what prospects will buy subsequent. They don’t make correct predictions and may’t inform you why prospects buy sure gadgets collectively.

To know these points of your prospects’ preferences, you’ve received to look past segmentation, and implement superior strategies.

The Sweater Experiment

Think about you’re a clothes retailer and wish to promote two new crimson sweaters this season – a males’s and a ladies’s. You’ve received an e mail checklist of 25,000 males and 25,000 ladies. Do you section your subsequent e mail marketing campaign? If that’s the case, how?

At first look, the reply might sound apparent: When you don’t section your checklist, and as an alternative ship a promo for the ladies’s sweater to all 50,000 subscribers, hypothetically you may solely get about 50 % opens, 50 % clicks, and 50 % purchases. When you ship a promo for the ladies’s sweater solely to feminine subscribers, then again, you’ll get a big enhance: a possible 100 % opens, clicks, and purchases.

Whereas this may seem like a serious enchancment, it comes with dangers. A few of your male subscribers may’ve been involved in shopping for the ladies’s sweater for his or her girlfriends and sisters, however you’ve missed your likelihood to promote to them. And what about your feminine subscribers who already purchased that sweater? You despatched an unengaging e mail to them, when you might’ve proven a brand new merchandise they may even have been involved in.

For all these causes, segmentation alone isn’t sufficient for efficient e mail personalization.

Stepping Past Segmentation

As our sweater situation demonstrates, the core limitation of segmentation is that its enhancements are sometimes simply smoke and mirrors. A metric like a “50 % carry in clicks” sounds concrete and comforting – however it doesn’t inform you something about missed alternatives for much more profitable cross-sells and upsells, or about which merchandise your prospects may wish to purchase subsequent.

Segmentation has its benefits, after all. It’s useful for personalizing emails, which protects your emails from getting despatched to spam. Electronic mail content material aligned with every subscriber’s pursuits additionally helps safeguard in opposition to unsubscribes, decreasing subscriber churn.

However to actually join along with your prospects, you’ve received to look past segments. Even inside a given buyer section, every buyer is on their very own private journey, interacting along with your model throughout a novel sequence of touchpoints — e mail included. Which means to actually join along with your prospects the place they’re, you’ve received to start out mapping these journeys and addressing every stage with tailor-made content material.

Whenever you perceive the place every buyer is on their particular person journey, and which merchandise will meet them the place they’re, you’ll be capable to predict what a buyer desires even earlier than they comprehend it themselves. And by guiding prospects by means of a personalised collection of product discoveries, you possibly can cause them to new areas of curiosity that may considerably increase your margins, whereas driving stronger buyer loyalty.

Supply hyperlink

Be Sociable, Share!