You’ve Got Permission, Now Be Relevant: How to Use Segmentation, Targeting, and Personalization to Deliver Relevant Email
Cont'd from page 1
Why Must You Act Now?
Your future email success depends on your ability to be relevant now. Today. This Moment.
Email is crossing a critical threshold in its evolution as a marketing channel—one that other mediums such as television, radio, print, and direct mail have already crossed. While the strengths and weaknesses of those "mature" channels are understood, the full potential of email is just now becoming clear. The key, regardless of the type of email communication (e.g., newsletter, promotion, customer service, etc.), is relevance. As email matures, the game will look increasingly similar to other channels: "noise" levels and competition will increase. Those who connect with their customers through relevant, timely messages will come out on top in email.
Defining Segmentation, Personalization, and Targeting
Depending on the context, the terms segmentation, targeting and personalization can mean different things. Before getting too far into the strategies associated with them, it’s important to define them in the context of email marketing: Segmentation is the process of dividing customers, or potential customers, into distinct groups ("segments") that have similar needs that can be satisfied by delivering similar value propositions. Targeting is the process of delivering relevant messages to segments in a manner that best matches your organizations value propositions to the unique needs of a segment. Personalization is the process of tailoring specific elements of targeted messages to individuals within a segment.
Example: Let's consider a fictitious company Northern Trail
Outfitters. Northern Trail Outfitters is a specialty retailer focused on outdoor enthusiasts. Unique customer segments may include kayakers, hikers and mountain bikers. Northern Trial Outfitters could target these segments by creating unique content on kayaking, hiking and mountain biking. Messages could then be personalized by providing information on local store information or local events related to each outdoor activity.
Economics of Email: Different than Other Marketing Channels
The high cost associated with most marketing channels creates a natural barrier against poor marketing practices. Unless the program yields a decent conversion rate, it is impossible to generate a profit. This is not the case with email. The low cost of email makes it possible to turn profit even if conversion rates are terrible. Consider the following example:
Spammer sends 100,000 unsolicited emails which costs approximately $200 (and a couple hours work) to send. 10 people convert for an average of $100 a piece.
The spammer just made $800 profit on a 0.01% conversion rate! This equates to a 400% Return on Investment. These are the types of numbers that make SPAM work from an economic standpoint.
Get the Complete Whitepaper Here (PDF)
|
