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All Customers Are Equal, But Some Customers Are More Equal Than Others

All Customers Are Equal, But Some Customers Are More Equal Than Others

Over the years marketers have realized that there is no single customer for their products. Long gone is the idea of “one size fits all” marketing. Marketers are spending more time focusing on finding ways to target customers with specialized messages. The key to finding the right customers is segmentation.

What It Is

Segmentation involves dividing customers into similar groups based on characteristics relevant to marketing. It allows the savvy marketer to develop more targeted and impactful marketing messages and tactics.

Why It Matters

A recent report from SAS Canada suggests that 73% Canadian customers expect customized offers in exchange for providing personal information such as age, email address, income, etc. More than this, 60% of Canadians say they want to receive personalized marketing offers and deals, and half of Canadians say they are more likely to buy from a company that personalizes their marketing. This offers a new opportunity for marketers to reach customers in a personalized and customized way. Segmentation is important for both marketers and customers.

How It Can Help

Email marketers are increasingly making email database segmentation a priority in 2012. According to MarketingSherpa’s 2012 Email Marketing Benchmark Report, 52% of marketers believe they need to improve their email database segmentation. A further 32% say that segmenting their email database is one of their organization’s top objectives in the next 12 months. But it’s worth the effort.

Check out some of the benefits to segmentation from the Lyris Annual Email Optimizer Report:

  • 39% of marketers who segmented their email lists experienced higher open rates
  • 28% experienced lower unsubscribe rates
  • 24% experience better deliverability and greater revenue
  • 15% experienced greater customer acquisition

What’s In It For Me?

Theresa Wabler, director of marketing at Parago, notes that segmentation means “promotions will become more targeted, ensuring that they speak directly to a brand’s loyal base of customers, or a particular demographic that is poised for growth.” By doing it well, segmentation has the ability to increase revenue, ROI, customer acquisition, and customer loyalty.

CiG partner and story spinner, Kevin Klein has spent 20 years and counting developing solutions for some of the most prolific marketers in Canada. His out of the box approach to problem solving is well versed in the practical and tactical. Kevin will always make time for an Anthony Bourdain, Farley Mowat or Bob Hunter anecdote. Just ask.


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