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Nowadays, consumers want content and communication catered to their needs. For example, segmentation and micro-segmentation. Segmentation is a universal approach where marketers assess subscribers on a larger scale based on general demographics or tendencies gleaned from large-scale analytics. While this is somewhat effective, it’s not personalized. Micro-segmentation segments even further but with more in-depth information and minor behaviors. Thus, by applying segmentation, for example, marketers can take a more targeted approach en masse and increase the relevance, engagement, and success of their campaigns.
What is Micro-Segmentation?
Micro-segmentation entails subdividing your audience into very tiny segments at times, based on very specific actions, habits, wants, and lifecycle stages. Where demographic segmentation may rely on larger swaths of statistical gathering, micro-segmentation relies on analytics-driven arenas rich in data reporting to allow marketers to project to subscribers at a one-to-one level. Using an Email Warm-Up Service alongside micro-segmentation ensures that these highly personalized messages are actually delivered, maximizing the impact of such targeted outreach. This one-to-one approach significantly enhances the success of campaigns, as subscribers are given information generated explicitly for their finer details of interests as opposed to blunter ones.
What Are the Limitations of Segmentation?
Segmentation in general gives marketers a higher level of strategy than people operating without segmentation. However, general segmentation efforts fall into more broad categories age, geographic location, sex and expected wants and needs related to purchases. While they can partially guide successful marketing efforts, they fall short of offering great, generalized content that could have benefited from more segmented specifics. Micro-segmentation solves these shortcomings by relying on specific, analytics-driven information that speaks to interests that have already been determined through real-time interaction efforts.
Where Does Data Come From? An Example of How Micro-Segmentation Works.
The major source of micro-segmentation comes from behavioral data. For example, marketers seeking to micro-segment their audiences can use data points such as clicks received, requested products, searches, abandonment of carts, content likes or dislikes, and frequency of engagement to determine what works or does not. Thus, these finite actions can assess past and present awareness efforts to create smaller audience segments primed for micro-targeted messaging to specific actions. When a subscriber gets something that’s based on something they’ve done or shown interest in before they’re more likely to engage.
Automation as a Factor in Scaling Micro Segmentation
Micro-segmentation is best when it’s scalable and somewhat automated. Marketing automation software allows marketers to keep track of different micro-segments easily, tackling triggered sends based on what they’re doing and real-time subscriber behavior and interests. Without automated micro-segmentation, it’s nearly impossible to effectively send highly targeted emails at scale but with it, marketers can give the subscriber exactly what they want, when they want it, automatically, without any extra work. Automated micro-segmentation improves campaign response rates, personalization levels, and ROI of both money and effort.
Greater Personalization Throughout the Customer Journey Because of Micro-Segmentation
Micro-segmentation allows for greater personalization throughout the entire customer journey because you’re able to talk to someone about exactly what they want at precise points in their journeys. If you’re onboarding someone new, trying to help them through the consideration stages or looking to present add-on products for retention, micro-segmentation helps marketers target the right people at all the right times. When the entire journey is personalized because of micro-segmentation, subscribers become accustomed to receiving relevant information, fostering better relationships, improved customer satisfaction, and customer lifetime value.
Enhanced Cross Selling and Upselling Opportunities Because of Micro-Segmentation
Micro-segmentation improves cross selling and upselling opportunities. If a subscriber shows interest in certain products or purchased products that apply to other products offered in the same domain, there’s no better opportunity to market ancillary products or more expensive upgrades. Offering targeted insights based on what customers have done increases the likelihood of additional purchases on top of what may have already been purchased today. Targeted cross selling and upselling enhance the customer experience yet offer tremendous revenue opportunity on a single transaction/customer.
Micro-Segmentation Lowers Churn and Increases Retention
It’s even more accessible and effective to identify subscribers who may churn or disengage through micro-segmentation. When marketers get down to the nitty-gritty of how their subscribers interact with them, they can acknowledge the first signs of disengaging even sooner and implement targeted win-back or re-engagement campaigns before it becomes too late. This type of segmentation for targeted retention efforts decreases churn in the first place and increases loyalty and long-term value from your subscriber base over time.
Campaign Effectiveness of Micro-Segmentation Can Be Measured Easily
Whenever any brand’s marketers find a new trick that brings better results, they hit the ground running. Measuring effectiveness comes easily to micro-segmented campaigns. Marketers can analyze open rates, conversion rates, click-through rates, customer lifetime value, and even ROI across the board to assess how much better if at all micro-segmented campaigns outperform segmented (but not micro-segmented) strategies. Such statistics lead to dollar amounts that can help make the case for increased investment in future micro-segmentation campaigns.
Overcome Common Concerns About Micro-Segmentation
Despite the benefits of micro-segmentation, there are some concerns along the way that might give some marketers pause about this effort. For example, many will see that micro-segmenting an entire database can be time-intensive and resource-heavy when it comes to data collection. Without proper tools and nuances in segmentation, it can get overwhelming. Tackling some of this data overload can occur with hiring a data segmentation expert or using high-level automation solutions. Furthermore, clarity around your ultimate segmentation goal and training your people on what’s expected will diminish ambiguity that causes ineffective micro-segmentation.
Educating Teams on Micro-Segmentation Best Practices
Without a knowledgeable marketing team to execute the campaign appropriately, segmentation ideas would go to waste, as micro-segmentation would not achieve its end goal. Constantly educating the team on best practices for segmentation, understanding what the data suggests, and the tools available for automation and personalized attempts will go a long way to ensure micro-segmentation is practically used. Furthermore, when teams know what micro-segmentation can and cannot do for the brand, they will be able to operate in real time and create campaigns and reports that provide the brand with more than it bargained for. Keeping teams educated and fields knowledgeable about best practices fosters an environment where business efforts will consistently grow over time through appropriate campaign experimentation.
Keeping Subscriber Privacy Intact with Non-Intrusive Actions
Micro-segmentation relies on much data regarding behavior and engagement; therefore, proper actions must be taken to avoid privacy intrusion and compliance issues. Data should only be collected with transparent efforts, from subscriber consent to GDPR and CCPA compliance; micro-segmentation should only occur when certain precautions are taken to ensure proper permissions are always in place. Positive efforts for compliance and privacy will ensure subscribers are less confused and more engaged. For example, if their privacy is respected and appropriate efforts are only made based on transparency, this will allow for long-term relationships based on trust, not fear of compliance penalties.
Applying to All Marketing Channels for Greater Effectiveness
To truly get the most out of the micro-segmentation experience, one should apply what is learned about micro-segmentation across all marketing channels. Whether the newly learned micro-segment is adapted to social media, email, content marketing, or paid outreach, applying the new findings across different channels supports cohesion and relevance at all subscriber engagement touch points. Furthermore, applying micro-segmented learning across all marketing channel facets can elevate branding efforts beyond anticipated relevance, as practically every outreach effort will become cohesive and drive home critical elements to make other efforts seem more personal at separate yet connected touch points.
Enhancing Micro-Segmentation Efforts With Predictive Analytics
Predictive analytics is another way to enhance micro-segmentation efforts. Predictive analytics helps marketers determine how subscribers will behave and what they’ll respond to in the future. By reviewing historical data, marketers can gauge what subscribers are likely to buy and how likely they will disengage or reengage with a brand. Therefore, combining predictive analytics with efforts for micro-segmentation, a marketer can ensure a subscriber gets the right message at the right time even before they show intent to drive the best response. Predictive analytics enhances campaign performance, subscriber satisfaction, and marketing efficiency.
A/B Testing Micro-Segmented Campaigns For Continuous Improvement
Micro-segmentation can be improved over time by A/B testing micro-segmented campaigns after they’re created. Campaigns sent to various micro-segments should participate in A/B testing for messaging, sender name, send time, and other personalization tactics. Over time it will become easier to see which segments respond to which efforts through A/B testing, giving marketers the insight they need to adjust their segmentation efforts for better targeting moving forward. When micro-segmented efforts are continuously improved through testing, small wins through enhanced engagement opportunities can lead to bigger returns on investment over time.
Making Micro-Segmentation Feasible With Technology
Many endeavors may feel impossible without technology help. The good news is that micro-segmentation is highly feasible with technology like automation. Many sophisticated marketing automation tools allow for tons of dynamic generation and ongoing creation of various micro-segments based on subscriber activity in real time. This means that subscribers can get personalized content about a single email campaign without marketers needing to do anything else aside from setting up the automated flows from the get-go. Therefore, using automation to handle micro-segmentation increases quality and productivity without marketers feeling overwhelmed, while also enhancing the subscriber experience every step of the way in every automated campaign.
Conclusion
Micro-segmentation empowers marketers to strategically implement highly personalized campaigns at scale and change the relevance, engagement, and overall success of marketing efforts across the board. Where segmentation existed historically from an overview perspective larger demographics making up larger groups micro-segmentation focuses on super granular insights that create a relative picture of what subscribers do and what they want to determine truly disparate groups even within a larger target market. This means that whatever is sent or done solidifies the impact of marketing efforts for the subscriber in that buy-in process, where they are now in an engaged status.
For example, indicators of what can be segmented in real time include how many times someone went to a certain page on a website and spent time there, how many times they bought one product versus another over a specific time, or how many times they opened a previous email campaign and how quickly they clicked through to links offered in said email, as opposed to waiting for third-party data to determine what’s best for this large subset of people. When marketing automation applications are used to facilitate micro-segmentation, dynamic segmentation occurs as segmented populations become fluid, and the technology can facilitate communication on the fly to thousands of micro-segments without human engagement.
Coupled with multiple channels receiving micro-segmentation, personalized campaigns are not just an email push but a branding push across every digital interaction point the subscriber engages from social media to websites to digital ads to email. Each touchpoint receives the same reliable communication so subscribers know that what they’re engaging with is relative to their status in the buyer journey, as well as their past engagements on other platforms.
For example, when a response rate is determined by engagement metrics over time (opened, clicked, converted), an organization can not only fine-tune their micro-segmentation invisibly after determination and decide what’s working and what needs to change down the road but also expect increased retention rates with customers who appreciate a fine-tuned evolution of their immediate experience.
Ultimately, with micro-segmentation, an organization can set themselves up for sustainable expectations with subscriber satisfaction and retention down the line. They feel their voice is heard, they’re loyal supporters, and intimate partners of the organization from day one as they always show up relevant and when they’re willing and able to engage with the brand.