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Posts Tagged ‘segmentation’

Selling and Marketing to Senior Citizens When Your Team is Very Different From the Customer

April 26th, 2018
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“Nobody reads direct mail letters anymore.” “Everybody has the latest iPhone now.” “I would never read that.”

Let’s unpack these sentences. What they are really saying is:

  • “Nobody (I know) reads direct mail anymore.”
  • “Everybody (I follow on Instagram) has the latest iPhone now.”
  • “I would never read that (but I’m not the ideal customer for the product).”

We humans, we’re a self-centered lot. And we think other people are much more like us than they really are. Psychologists call this false-consensus bias. And it is a significant challenge for the CMO or other sales or marketing leader in charge of a team that is very different from them.

I discussed this topic with Denis Mrkva, general manager of Aetna’s HealthSpire subsidiary, right before I interviewed him about a landing page optimization effort that increased leads 638% for a call center. Denis’ ideal customer is interested in Medicare Advantage. So his fairly young team is selling to senior citizens.

We also discussed hiring and creating the right culture, how senior citizens use digital channels, and how Denis’ team helps his customers navigate the digital environment. You can watch the video below or jump to the full transcript.


Customer-first sales and marketing

In discussing the customer, Denis had some good advice:

“Put them and their needs first — and listen. And try to understand not only their needs for the product they want to buy, but their lifestyle, the important things in their life.”  — Denis Mrkva

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Customer Satisfaction Segmentation: Customer expectations extend beyond the end users of your products

January 26th, 2018
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When measuring customer satisfaction after the purchase of your products, it’s all too easy to think of the process in a linear fashion:

  • I produce marketing and advertising that sets an expectation for my product
  • A customer then buys and uses my product
  • I will then ask that customer if they are satisfied with the product

However, while reading Customer Expectations: 7 Types All Exceptional Researchers Must Understand by Scott Smith, Ph.D., as part of my studies in the University of Florida/MECLABS Institute Communicating Value and Web Conversion graduate certificate program, there was a line from Dr. Smith that really stood out to me: “The product purchaser, influencer and user may have each been a different type of individual, each having different expectations.”

Notice he doesn’t just say a different individual, but a different type of individual. The key lesson here is that you should not only segment your marketing but segment your customer satisfaction measurement as well.

And while many B2B marketers will see how this is instantly applicable to them, it likely applies to many B2C and nonprofit marketers as well.

Let’s take a look at each type of customer, with an example for each type of marketer.

                                                                                Photo courtesy Flickr CC Village9991

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Customer-Centric Marketing: 5 more takeaways on consumer behavior from researchers and strategists [Part II]

June 17th, 2016
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MarketingSherpa Summit 2017 will be here before you know it, and our team is hard at work planning the agenda, with a special emphasis on customer-centric strategies and approaches.

As we select our keynotes, the team has conducted in-depth research and gained some interesting takeaways from both academic and marketing practitioners.  We highlighted the first five takeaways earlier this week, and we have five more thought-proving insights again for you today.

 

Takeaway #6. Build habit forming products

Many of the products we use in our daily routine have influenced our routines.

Nir Eyal, author of best-selling book Hooked: How to Build Habit-Forming Products, has identified a design pattern in habit forming products. He describes this design pattern, “the hook,” as “an experience designed to connect the users’ problems to your solution with enough frequency to form a habit.”

The hook is comprised of cycle of triggers, actions, rewards and investments. The triggers can be internal or external, but must evoke motivation to act.

For instance, customers need to anticipate the reward for their action or they will not engage. The more involved a customer becomes with a product, the more likely he or she will develop a loyalty to the product.

Nir explains, “Products that create successive cycles through the hook help customers’ preferences, tastes, and habits develop.”

This engagement is what makes these products better, it’s not necessarily the quality of the products.

 

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Customer-centric Marketing: 5 takeaways on consumer behavior from researchers and strategists [Part I]

June 14th, 2016
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At MarketingSherpa, we’re in the planning phase for MarketingSherpa Summit 2017. With the interest of our customers’ experience at the core of our every decision, we conduct extensive research to select the most thought-provoking and applicable keynote sessions for our attendees.

During our research phase, we have identified 10 key takeaways from leading experts (both academics and practitioners) in marketing. That’s a lot of key takeaways, so we’re breaking it up into two digestible bites. Read on today for insights around customer centricity, empathetic marketing and “less is more.”

 

Takeaway #1. Customer centricity does not mean doing exactly what the customers want

Dr. Peter Fader, Professor of Marketing at University of Pennsylvania and Co-director of the Wharton Customer Analytics Institute, explains that while performing at the level of meeting or exceeding customers’ expectations is a component of customer centricity, it should not be a blanketed approach for all customers.

According to Fader, truly customer-centric organizations do not treat all customers the same because they do not provide equal value to the company. Most of us are aware that we should identify different segments of customers. Fader establishes that while segmentation itself is not a new idea, how it is conducted has evolved from simple demographics to customer lifetime value. He suggests companies organize themselves around different customer segments rather than different products. Then, organizations can deliver products appropriate to their segments of customers.

In summation, to truly become customer centric, companies need to identify and invest in the right customers.

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How Microsoft Store Turned Its Receipts Into a Personalized Customer Touchpoint

September 18th, 2015
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Personalized marketing is a customer-centric trend that’s been on the rise, but it’s one of those trends that can seem unattainable.

After all, creating a truly personalized, one-on-one experience between your brand and your customer takes a drastic toll on time, resources and manpower. Or at least that’s what you would think at first glance.

Enter Microsoft Store.

Shawna Dahlin, Senior Email Marketing Manager, Microsoft Store, sat down with Selena Blue, Manager of Editorial Content, MECLABS, at MarketingSherpa Email Summit 2015 to discuss how she and her team made the seemingly unattainable achievable. Shawna created a more personalized email campaign by using data the brand already had available about relevant customer experiences.

To begin, Shawna wanted to change Microsoft Store’s email marketing strategy to make it more personalized, but she lacked the IT resources she needed. To meet this challenge, she developed a plan that would personalize the brand’s email strategy without utilizing IT.

Shawna accomplished this by collecting data that Microsoft Store already had on its consumer base and testing Microsoft Store’s email sends based on this data. Overall, this effort resulted in a:

  • 500% increase in CTR for segmented emails
  • 300% increase in open rate for segmented emails
  • 1,200% overall revenue increase in three years
  • 600% increase in revenue per email (for lifecycle)

Learn how, by implementing this data-centric approach, Shawna was able to transform an email send that almost every consumer receives — the receipt — into a successful first touchpoint.

 

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Email Marketing: How to utilize your consumer data without being creepy

August 11th, 2015
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Have you ever been at a social event and a person, unknown to you, eagerly greets you by name? Recall the creepy feeling you got in that situation.

It leaves you thinking — who is this person and how do they know this personal information?

Thanks to the Internet, marketers have the ability to collect and use an absurd amount of personal consumer data. As marketers, we’ve used this data to guide consumers to ideal products and services without them even knowing. Well, let me revise that last statement — we used to do this without consumers knowing.

 

Avoid This: Personalization                                                                                             

As personalization has become a buzzword over the last few years, efforts to connect with consumers have gone haywire. Every day, I receive emails from companies who promote products similar to those I’ve pinned on Pinterest and address me by my name, or at least attempt to:

The Adverse Effects of Email Personalization

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The Benefits of Combining Content Marketing and Segmentation: MarketingSherpa Email Summit 2015 replay

July 17th, 2015
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One of the most talked-about marketing trends at the moment may also be one of the most effective. According to Demand Metric, content marketing generates three times as many leads as traditional outbound marketing while costing 62% less.

At MarketingSherpa Email Summit 2015, Courtney Eckerle, Manager of Editorial Content, MarketingSherpa, sat down with Stephen Bruner, Marketing Manager, Precor, to discuss the value of content marketing and segmentation as well as the benefits of implementing a strategy using both of these marketing methods.

Precor is the second largest fitness equipment manufacturer in the U.S. and third in the world. Its clients are primarily fitness clubs and consumers. The company focuses on helping each of these consumer segments find the best products for their needs.

Watch the video excerpt from the MarketingSherpa Media Center to learn more about the relationship between content marketing and segmentation:

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Email Summit 2015 According to Twitter: Your peers share their key takeaways from Day 1 on engaging, empowering and serving customers

February 25th, 2015
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If you haven’t noticed, #SherpaEmail has taken over Twitter.

Well, maybe not in a break-the-Internet scale of Kim Kardashian, but your marketing peers have been tweeting their hearts out with all the good information they’ve learned at MarketingSherpa Email Summit 2015.

With Day 2 of Summit underway, we wanted to share some key nuggets your peers found valuable on Day 1. (I might have smuggled a few of my own in too.) Check out some key takeaways from each of yesterday’s insightful sessions.

 

Humanizing Your Email Program: How to transcend the digital revolution by using the essential ability to communicate person-to-person

Flint McGlaughlin, Managing Director and CEO, MECLABS Institute

Flint revealed four fundamental principles that guide effective communication and provided examples of how these principles can be used to transform your entire email program.

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Email Marketing: List segmentation tips using social media and online behavior

February 17th, 2015
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Unless you are executing batch-and-blast email campaigns (and I sincerely hope that you aren’t), your email strategy probably involves some level of personalization or at least getting relevant email content to the right person. In order to achieve either of those goals, the starting point is your email subscriber list and having that list segmented so you can pick and choose who in your database receives each email send.

Lists can be segmented many different ways, and obviously the more record fields you have on each person in your list, the easier it is to segment based on criteria such as geographical location, job title, industry and possibly even transaction history.

To provide a few ideas of how your peers are segmenting their lists for email campaigns, here are three examples taken from MarketingSherpa Newsletter case studies. Hopefully you will discover insights that are inspirational or maybe even something you can immediately apply to your own email efforts.

 

Tip #1. Utilize behavioral data for segmentation

This tip comes from an article titled, “Segmentation: How a small office supply ecommerce site boosted revenue 25% by sending more emails,” covering JAM Paper & Envelope, a New York City-based brick-and-mortar that added ecommerce in 2007. Andrew Jacobs, Director of Ecommerce, JAM Paper, said, “Essentially, we come up with one email a week, or every two weeks, or even a month if we didn’t have time, and we would send it out. We would just cross our fingers and hope for the best,” referring to the company’s initial batch-and-blast approach to email.

JAM Paper’s campaigns included a “lapsed purchase” send to anyone who hadn’t bought anything for 17 months, but the team decided segment beyond just a certain timeframe and began taking individual behavior into account for the campaign.

This meant looking at each customer’s buying behavior. Some bought monthly, or even weekly, while others bought only once a year. The team calculated the average time between orders for each customer and began sending the “lapsed purchase” email once each person passed their individual threshold. This tactic yielded a 45% conversion rate — the highest among all of JAM Paper’s email campaigns.

 

Tip #2. Mine social media for customer segmentation data

In the case study, “Email Marketing Segmentation: Clothing brand uses social behavioral data to drive a 141% increase in revenue,” Johnny Cupcakes, a mid-sized apparel retailer, linked its customer database to social media engagement of its individual customers, analyzing 19 million public social expressions.

These posts led to insights on data points such as:

  • Gender
  • Customer interests
  • Brand preferences
  • Media habits

Gender was seen as the key data point to uncover from the effort and was actually taken directly from social media profiles if that information was available. One of the insights into customer interests was that a lot of Johnny Cupcakes’ customers were sports fans.

The team decided to test these insights by promoting a baseball-themed shirt to the sports fan segment of its list.

Men on the list were sent an email featuring a male model and a shirt cut for men:

Men's shirt

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Email Marketing: Stop building lists and start building assets

June 17th, 2014
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At MarketingSherpa Email Summit 2014, Allison Banko, Reporter, MECLABS, captured an interview with speaker Jeff Rohrs, Vice President of Marketing Insights, ExactTarget, who shared a concept that should appeal to your inner entrepreneur.

If something doesn’t make money, then it doesn’t make sense.

I say this because, according to Jeff, email marketers are often underappreciated (and underpaid) because they don’t effectively connect the dots for executives on the true ROI of their marketing efforts.

“I think email marketers tend to be underappreciated in their organizations,” Jeff explained, “and I think part of that is the language we choose to communicate the value we bring to executives.”

 

Jeff’s proposed solution is to change the conversation by adjust the way marketers view what they contribute.

In sum, stop telling people you build email lists and start telling them you’re building proprietary assets that are exclusive to your company. One additional point Jeff shared was how social media is experiencing growing pains due to increasing pressure from executives to see clear ROI from social media.

“The executives are beginning to demand more from those channels and email marketers understand that because they’ve fought those battles,” Jeff explained.

Ultimately, Jeff delivered the bigger idea that your organizational marketing goals should supersede the channels you use to deliver them. As a result, hopefully marketers will be able to tear down the silos that emerge from those channels in the process.

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