Data is the new oil; Data is the new gold; Data is the new currency! We have been hearing such quotes about data for years, yet we often see businesses unable to maximize the potential of it.
One of the key aspects for data to work for you is by making sense of it, it’s like a jigsaw puzzle where you need to be able to find the right combinations & connect the pieces to create the picture. Every business owner captures its customer data in one form or another, but the game-changer is when you know how to utilize it. Internet giants like Google and Facebook are great examples of how to maximize the potential of data.
The first question that comes to mind of business owners, CEOs, and the key decision-makers of an organization; yes, we have the data, what’s next, how do we leverage it to better our Performance Marketing Strategy? The answer is as simple as it gets or as complicated as you want to make it. The answer is SEGMENTATION!
What is Segmentation:
Think of data segmentation as organizing your emails in specific folders to be able to find them or act on them accordingly, You organize them based on rules that make sense to you, such as who has sent, or the subject, and so on... Similarly, you have to organize your data, in the best way possible, keeping in mind what you offer and how you would want to utilize the data you have captured. Segmentation is an integral part of your marketing journey; I’ve mentioned how it is critical in your retargeting strategy in my previous article.
What not to do:
As I mentioned segmentation is the most critical aspect in the journey of data utilization, segmenting your data in the right manner is half the game won! But what I’ve noticed is how organizations, and I mean BIG ORGANIZATIONS are unable to segment their data. Below are 3 examples that I have personally experienced.
Scenario #1 – Over Targeting
About 6-7 weeks back I visited the website of one of the biggest tech companies in the region, I spent about 3-4 minutes and visited 2 pages. Since then the brand has been showing ads of everything they offer, everywhere where I go digitally; Heck even on Tik Tok (Don’t judge me, it’s a stress-buster in between work or a few minutes watch before going to bed 😉). And in these 6-7 weeks, I haven't visited their website nor engaged with any of their ads on social media, yet they continue to deliver ads and drain their marketing budgets.
While this type of targeting by attaching pixels based on website visits or Social engagement is a great way to retarget potential customers, but you have to segment these audience right, to get a higher conversion rate. You cannot just target every user with equal weightage, the weightage of a website visitor who has visited your product page and spent X minutes is more valuable than a visitor who only saw your home page and bounced away.
The better way: Segment this type of audience based on their action, frequency of visit, time spent, re-engagement on ads or website, and accordingly keep a frequency cap, budget cap, and expiry on the ads!
Scenario #2 – Upselling the same product
In this scenario, I want to touch upon how a few brands try to sell you the same product/service that you have already subscribed to from THEM! I have been receiving promotional emails from one of the oldest and biggest global banks; it’s the bank that I remember as a child where you put the money into a machine (CDM – Cash Deposit Machine) instead of giving it to a teller and the machine does all the magic. So, these promotional emails I’m receiving are pitching me their credit card, its benefits, its cash bank offers, interest advantages, and asking me to “Apply Now” for additional benefits. Wow, that’s a great pitch, but the funny thing is I already have the same card & been actively using it for over a year now, and additionally got a supplementary card too for my partner.
The better way: Upselling is an important aspect for any business, but if the above bank would have better segmented me and rather than upselling the same product, they could have pitched an add-on service such as insurance, loans, or even encourage me for a referral.
Scenario #3 – Banging the wall
From one bank to another. This is my experience with one of the largest banks in the region, so I had their card for 4-5 years and used it extensively, then about 8-9 months ago due to some dispute it was blocked and the dispute is still on. But they have not put me in the “Do Not Market” list rather every 2nd – 3rd day I get an SMS from them talking about their latest offer on the usage of the credit card, I even got a couple of calls to upsell on my card including an insurance cover/shield. Now my question here is you are a huge bank, and you know I’m already aggravated due to the dispute, yet you are marketing to me, it is banging the wall with your head in hopes of it opening up.
The better way: It's highly critical for organizations big or small to have all their data points connected, and not work in silos. Someone who has been blacklisted (I'm not blacklisted its just a dispute 😊) the compliance team should also be marked as "Do Not Market" for the sales / Marketing teams data. this is not a dispute about a refund, where the offer might be able to lure the user.
Just like oil or gold, unless you refine them and use them in the right manner, they will be useless. So, ensure you refine your data and segment them right before you start marketing to them.
If you need ideas or help in understanding how you can segment and better utilize your data, let’s connect and Collaborate! 🤝