How (and Why) to Define A Segment

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There’s a lot of buzz about segmentation…simply put, you parse your contact base into segments with common needs so you can address those needs with some degree of personalization. The first thing to do is create intelligent segments. This isn’t hard to do; you just need to take a clear-eyed look at your prospects and make a few decisions.

Look first for prospects with identifiable common problems or needs that your product or service addresses effectively. Good segments contain members who are as similar as possible to each other inside the group, and as different as possible from other groups. The more vivid the contrast between them, the easier it will be to define appropriate marketing tactics and content. Other desirable segment characteristics include:

  • Well-defined needs, preferably in strategically painful areas
  • Size—the segment should be large enough and potentially productive enough to justify the effort
  • The willingness to pay for a solution. Look for a shared purchase procedure, and the habit of dedicating budget to solve the problems your solution addresses
  • Reachable through marketing tools
  • Shared reaction to marketing outreach; this makes it easier to test communications and track results

Interested in learning more about putting segmentation to work as part of your marketing strategy? Check out this short video about segmentation or contact us for a one-on-one Act-On Software demo!

Has segmentation helped your organization improve your marketing effectiveness? Tell us about it by leaving a comment below!  

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  • http://www.mybusinessintegrated.com Chris Kiersch

    I really enjoy these quick learning nuggets, many times I will be watching a video and it triggers a thought about something I overlooked on a previous campaign. This segmenting overview made me realize that we should go ahead and send a very successful update your profile campaign to the people that didn’t open the email. We still have 30 $10 Starbucks gift cards left, and that’s what I will use on the subject line. Maybe some of the recipient’s didn’t open because they thought the gift cards were gone. I will let you know what happens:)
    Cheers, Chris

  • http://www.lumina.com Nick Kretz

    Thanks for the concise material on segmentation. I find segmentation a breeze within act-on. With your tips on defining segments, I plan to review our historical data to see what segments will have the highest payoff in terms of trial conversion and purchase rates. Thanks!