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Direct Marketing Knows The Power Of Segmentation

February 28, 2019, Michael Concannon

Direct Marketing Knows The Power Of Segmentation

Consider proper segmentation as if it were a superpower. And any good direct marketing professional knows how to wield that power.

As a recent in-depth study by Mailchimp shows, segmenting your lists results in dramatically increased open and click rates, as well as lower unsubscribe rates. This isn’t news to any marketer today; knowing your audience is no longer an option in the competitive world of marketing.

However, as the number of marketing emails increase week by week, many marketers such as Malinda Wilkinson, CMO of Salesfusion, have turned back to direct mail to stand out.

“We are over-exposed in the digital world, but it is rare these days to get anything interesting in the mail,” she said

Without email spam folders to flag your every mistake, is it still important to segment your lists when you’re using direct mail?

Absolutely.

While turning to direct mail may sound like a return to ‘simpler’ marketing times, it has become far more nuanced as consumers have become less tolerant of spam and generalized marketing.

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Get your data clean

Whether it’s online or in an envelope, successful campaign personalization and 1:1 engagement depends on clean, accurate marketing data.

Just as any decent marketer does with email lists, direct mail customer data can – and should – be segmented to create lists for more personalized campaigns. This allows for tailored messaging to prime audiences and helps target specific pain points, needs, wants, and priorities for groups of leads.

Segmentation can be based on various factors that may require additional steps. Try segmenting your audience in different ways to see what is most effective for your marketing efforts.

Five types of segmentation

The five main audience segmentation methods include:

  1. Geographic segmentation
  2. Demographic segmentation
  3. Firmographic segmentation (B2B)
  4. Psychographic segmentation
  5. Sales stage segmentation

Firmographics can be broken down into general industries, geographic location, size of customer base, status and structure, and profits and sales information. Whether you’re targeting individuals or companies, consumers and B2B buyers in today’s world both want and expect personalization. Don’t let them down.

Raise your response rates

By segmenting your target audience using these characteristics, you can ensure your marketing efforts are reaching the right audience and maximizing your ROI.

Irrelevant content generates an 83% lower response rate in an average marketing campaign, as noted in a Constellation Research study.

Many marketers are overwhelmed by the volume of complex data that needs to be segmented to achieve optimal campaign targeting. Without quality data and proper segmentation, treating each customer as an individual becomes nearly impossible.

Staying ahead of the competition in today’s world can be a challenge, but knowing your direct marketing options can keep you ahead of the game.

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