Any company planning to build a successful business sooner or later will have to properly craft the email list (and the entire customer base in general, but more on that another time).
You’d better realize the importance of keeping a clean contacts list at the dawn of the company’s history, and all your customers should be added to a single database. Thus you can attract further purchases.
So, if you’d like to work with the email list as a professional, end-to-end customer analysis is a must-have. To build fruitful relationships with your buyers and get the most out of advertising, you can divide customers into categories and choose individual influence methods for each group.
Here comes the nerd
Yep, I can’t do without bragging about clever words.
Segmentation! It’s when you divide the whole email list into separate categories on some criteria.
For example, you can separate them by:
- purchasing volume (retail/wholesale)
- retention (single time buyers, loyal buyers)
- the geographical location (regions, districts, cities, etc)
- email reliability (using free online verification by Proofy;)
- goods and services they buy
- Marginality for your business
It’s not an obvious email trend that segmentation is necessary to work effectively with the email base and save marketing costs. Dividing the list into groups by categories, you can apply an individual approach to each and every segment, thus increase your email deliverability and open rate. If you do everything right, you can achieve the best return on advertising at the lowest cost.
You can google this phrase and find like 1 billion super-advanced methods, like demographic, psychographic, %sometging else%graphic segmentation and so on. Though please allow me to save your and mine time, and simply tell you about the principles to understand.
The easiest way is to divide customers into 3 groups:
- Teacher’s pets
The customers who often use your services, buy your products and bring the greatest profit. Pls forgive my mad Paint skills and imagine it’s a wallet, not a book.
Those who buy periodically and each time they need to be convinced to do it.
- And flunks
Problematic customers. They can bring some good revenue later, but there’s much more trouble with them compared with the previous two groups. You shouldn’t write off such customers, but you need to consider they require an individual approach.
Teacher’s pets need a special, respectful and at the same time trusting approach. You should encourage them to buy again, for example, by offering them a loyalty program, regularly inform them about the promotions, congratulate them on their birthday and in every possible way maintain their interest.
Wholesomes and flunks – up to you, but never count them out just. Do not forget that each group has customers, who are potentially ready to move to another group, and you can influence this through proper segmentation.
Once you have identified the main segments according to the specified criteria, it would be nice to determine the profile of the consumer reaction to your product. That is, to make an analysis and description of each segment. People from the same segment should treat the product equally in terms of the advantages found in it, react equally to advertising and to the cost of the product. Then such segmentation can be considered as successful.
Maintaining your emails list
What steps to take to segment your customers:
- Make a list of all the clients. The most convenient format is an electronic database. Filter the list based on how much profit the client brings to you. Starting with the largest and ending with small.
- Classify customers according to the main characteristics, depending on your needs. For example, geographically, by sex, age, interests etc.
- Divide all customers into demographic groups, because often the demand for certain products is determined by the place of residence, age, and level of education.
- Divide customers by region. Identify an area, city, or entire country, depending on the product you offer. Consider the population density and the area climate.
- Examine the customer’s purchase history. Segment people depending on the frequency and characteristics of the goods consumed.
- Also, you can distribute customers into segments, depending on the benefits of certain products that you consider the most important for them.
- Analyze which segments bring you the most profit and invest marketing funds in them accordingly. If the value of the segment is low, do not spend a lot of money on it.
- As I said before – google, google, google!
I hope that using this information you will increase your conversions and average check. Wish you success and good luck!
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