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Is Customer Segmentation Useful In SMS Marketing?

Is Customer Segmentation Useful In SMS Marketing?

With personalization being the name of the game in almost everything from customer service to e-commerce, now’s the perfect time to review your SMS marketing campaigns and see if you’re implementing them with this trend that won’t be going anywhere anytime soon.

Customer Segmentation SMS Marketing

Why Should You Use Customer Segmentation Techniques?

One of the biggest mistakes you can make in SMS marketing is thinking that the same 160-character message will resonate with every person listed in your contact database. Generic and irrelevant texts will only be left unread or deleted without your subscribers reading them. The effectiveness of a text message relies on a balance between content restrictions and the relevance of the message to the recipient.

The more your communication is focused, the more your recipients will likely engage with it. So before you hit send, always apply segmentation activities first. Not only will your audience appreciate more personalized messages, but you’ll also save on costs by not sending irrelevant messages that may only lead to unsubscriptions.

Data-driven campaigns typically enjoy five to eight times higher ROI than those that are not based on data. Building real connections with your customers will also lead to higher retention and satisfaction rates. With personalized messages based on their interests and lifestyle choices, they will more likely be encouraged to stay engaged with your brand.

How To Segment Your Customers

Here are some customer segmentation practices and strategies you can implement to boost your SMS marketing. 

Gender or Age

One of the most fundamental demographic criteria is gender as each has different needs and desires. You can segment messages by modifying your offers for your female and male audience. However, this will only apply if the offer requires it.

Age is another essential demographic. Segment your audience based on their age groups or the generation they were born into and craft your message in a way that would resonate with them.

Geolocation

Location-based segmentation is very useful, especially if there are weather-related or location-specific events happening in the area you are targeting. If you’re selling winter items, you can target subscribers in areas that will experience snowstorms soon.

If you’re opening up a new store, you can geo-target subscribers via their zip codes and invite them to your event. You can even share an offer they won’t be able to resist!

If you want something more advanced, you can use technologies applied to SMS marketing strategies such as beacons. They detect the proximity of your subscriber to a particular place or a physical store, triggering a message crafted with a high degree of customization.

Engagement

From mobile app bug reporting to filling in your feedback forms, your engaged subscribers are those who actively open and click on your text messages. By nature, they’re the ones who will most likely check out your next text.

Now, defining an engaged subscriber may be different for each brand and how often you send your messages. A good rule of thumb, however, is to create your segment based on people who have clicked at least one of your texts within 2-4 weeks.

Don’t forget to re-engage with unengaged subscribers! You can opt to send your best content, new product offerings, or larger offers and benefits.

Purchase Frequency

Another way to segment your subscribers is through their purchase history. You can segment past purchasers and non-purchasers. For subscribers that have purchased from you recently, you can create effective cross-sell or upsell campaigns based on the item that they have purchased. These regular customers can be offered more frequent but more limited discounts as well.

On the other hand, customers who have not bought any items from you for some time or those who have not purchased anything at all can be persuaded with time-sensitive discounts. You can also try sending them enticing product imagery or positive reviews of your top products.

Purchase History

One e-commerce marketing trick that never gets old is analyzing your audience’s baskets. People who purchase a product from you typically end up buying other items that are more or less related to what they’ve already bought. This reveals their purchasing models and schemes.

With this analysis, you can create complementary baskets that can send these users in a certain direction. You’ll end up enjoying greater conversion probability with this method.

High-Intent

Have you got a subset of subscribers that haven’t purchased from you yet but have shown interest in your products? They’re usually the ones who engage with your brand but navigate away before completing their order. Because of this behavior, they are the ideal audience for personalized follow-ups!

Simply activate your cart abandonment text message reminders to re-engage with them. You can even personalize your follow-up content by including information and imagery of the product your subscriber is eyeing in the text to make it more appealing.

For The VIPs

It’s up to you to determine who your VIP subscribers are. Some brands have VIP programs where conditions and rewards are clearly defined from the get-go. Others are loyalty-based. Some choose to define their VIP subscribers through the behaviors and actions carried out by their audiences—total spending, number of clicks, etc.

To keep the interest of your VIP subscribers, you can give them early access to sales and bonus offers as well as previews of your new products.

Your customer segmentation strategies will ultimately depend on your campaign’s goals. With a good contact list and sufficient information about your target audience, segmentation can be a simple way to produce better SMS marketing results.

With personalization being the name of the game in almost everything from customer service to e-commerce, now’s the perfect time to review your SMS marketing campaigns and see if you’re implementing them with this trend that won’t be going anywhere anytime soon.

Why Should You Use Customer Segmentation Techniques?

One of the biggest mistakes you can make in SMS marketing is thinking that the same 160-character message will resonate with every person listed in your contact database. Generic and irrelevant texts will only be left unread or deleted without your subscribers reading them. The effectiveness of a text message relies on a balance between content restrictions and the relevance of the message to the recipient.

The more your communication is focused, the more your recipients will likely engage with it. So before you hit send, always apply segmentation activities first. Not only will your audience appreciate more personalized messages, but you’ll also save on costs by not sending irrelevant messages that may only lead to unsubscriptions.

Data-driven campaigns typically enjoy five to eight times higher ROI than those that are not based on data. Building real connections with your customers will also lead to higher retention and satisfaction rates. With personalized messages based on their interests and lifestyle choices, they will more likely be encouraged to stay engaged with your brand.

Customer Segmentation in text messaging

How To Segment Your Customers

Here are some customer segmentation practices and strategies you can implement to boost your SMS marketing. 

Gender or Age

One of the most fundamental demographic criteria is gender as each has different needs and desires. You can segment messages by modifying your offers for your female and male audience. However, this will only apply if the offer requires it.

Age is another essential demographic. Segment your audience based on their age groups or the generation they were born into and craft your message in a way that would resonate with them.

Geolocation

Location-based segmentation is very useful, especially if there are weather-related or location-specific events happening in the area you are targeting. If you’re selling winter items, you can target subscribers in areas that will experience snowstorms soon.

If you’re opening up a new store, you can geo-target subscribers via their zip codes and invite them to your event. You can even share an offer they won’t be able to resist!

If you want something more advanced, you can use technologies applied to SMS marketing strategies such as beacons. They detect the proximity of your subscriber to a particular place or a physical store, triggering a message crafted with a high degree of customization.

Engagement

From mobile app bug reporting to filling in your feedback forms, your engaged subscribers are those who actively open and click on your text messages. By nature, they’re the ones who will most likely check out your next text.

Now, defining an engaged subscriber may be different for each brand and how often you send your messages. A good rule of thumb, however, is to create your segment based on people who have clicked at least one of your texts within 2-4 weeks.

Don’t forget to re-engage with unengaged subscribers! You can opt to send your best content, new product offerings, or larger offers and benefits.

Purchase Frequency

Another way to segment your subscribers is through their purchase history. You can segment past purchasers and non-purchasers. For subscribers that have purchased from you recently, you can create effective cross-sell or upsell campaigns based on the item that they have purchased. These regular customers can be offered more frequent but more limited discounts as well.

On the other hand, customers who have not bought any items from you for some time or those who have not purchased anything at all can be persuaded with time-sensitive discounts. You can also try sending them enticing product imagery or positive reviews of your top products.

Purchase History

One e-commerce marketing trick that never gets old is analyzing your audience’s baskets. People who purchase a product from you typically end up buying other items that are more or less related to what they’ve already bought. This reveals their purchasing models and schemes.

With this analysis, you can create complementary baskets that can send these users in a certain direction. You’ll end up enjoying greater conversion probability with this method.

High-Intent

Have you got a subset of subscribers that haven’t purchased from you yet but have shown interest in your products? They’re usually the ones who engage with your brand but navigate away before completing their order. Because of this behavior, they are the ideal audience for personalized follow-ups!

Simply activate your cart abandonment text message reminders to re-engage with them. You can even personalize your follow-up content by including information and imagery of the product your subscriber is eyeing in the text to make it more appealing.

For The VIPs

It’s up to you to determine who your VIP subscribers are. Some brands have VIP programs where conditions and rewards are clearly defined from the get-go. Others are loyalty-based. Some choose to define their VIP subscribers through the behaviors and actions carried out by their audiences—total spending, number of clicks, etc.

To keep the interest of your VIP subscribers, you can give them early access to sales and bonus offers as well as previews of your new products.

Your customer segmentation strategies will ultimately depend on your campaign’s goals. With a good contact list and sufficient information about your target audience, segmentation can be a simple way to produce better SMS marketing results.