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Why Segmenting Your Database Matters to Your Customers

May 3, 2018

Your CRM is stocked with prospects, or maybe you have a hearty email list. Great, but can you separate/segment based on prospects? No? Oh, we have work to do – here’s why.

What Happens When You DON’T Segment Your Database?

As consumers, we’re flooded with marketing pitches nearly every second of every day: emails, commercials, billboards, clothing logos, banner ads, and more. And because consumers are bombarded with marketing and advertising, we know when we’re being sold to.

So if your organization sends out a general marketing newsletter, consumers know you know nothing about them; you’re just marketing a generalized message to the masses. If your customers believe they’re nothing more than an email address and you’re not speaking their language or addressing their needs, you’re not their solution – you have no value.

For example, your company is a grocery chain. You see yourself as the grocery store for everyone and stock processed and natural foods equally. You have one email database you send your weekly flyer to, but discounts and prime space are dedicated to processed food companies because the deals are better. So if consumers shop only for natural products, what is the benefit to them of staying subscribed and tuned in to a company that doesn’t concentrate on my needs? There is no benefit.

segmenting your database

This sounds dramatic, but with the volume of marketing platforms and tools, like HubSpot, that dominate the marketing sphere, organizations are catching on to the importance of database segmentation and personalized messaging for consumers. In 2018, there’s no viable excuse for not having a segmented database.

What Happens When You DO Segment Your Database?

Back to the grocery store. You’re a grocery store chain, but you have two list segments – one for processed foods and one for natural foods, and each newsletter is tailored to the customers’ food preference and includes recipes and tips to make their meal prep easier.

Can you imagine the email open rates and engagement for that grocery store? Can you imagine how valued and appreciated the customers would feel knowing that their grocery store cares about their dietary needs and goes the extra mile to make their lives easier? It’s the first step to strengthening customer loyalty and opening the door for customers to become evangelists – to tell their friends about the enjoyable experience of shopping with you.

Don’t take my word for it. According to a 2017 survey by Mail Chimp, segmented email campaigns have a 14.32% higher open rate than non-segmented campaigns. Above that, the click-through rate is 100.95% higher in segmented email campaigns than non-segmented campaigns.

How Do You Start?

If you have a sizeable database, it’s not an easy undertaking – please don’t consider it a one-day activity. Refining your database does require groundwork and continued maintenance. However, the payoff of creating segmented content that resonates most closely with your prospects is a no-brainer.

Begin by segmenting your database by earned data you already have, such as geography, job title (if you’re a B2B company), product or service of interest, etc. Study the opportunities you have to segment your database.

If you find you don’t have enough data to allow for list segmentation (maybe you just have contacts’ email), so the first time, contact your database and ask them questions to help your company provide information tied to their needs. If a prospect is interested in your offerings and trusts you, there will be limited resistance in getting insight to serve their needs better.

Have you already segmented your database? Have you experienced successes you’d like to brag about? Leave your experiences in the comments below!

Topics: email marketing

Courtney Stallings
Written by Courtney Stallings

Courtney writes and edits content for Leading Results and their clients. She has been described as a Grammar Nazi and enjoys crafting writing with excellent spelling, punctuation, and grammar.

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