Advanced Segmentation Strategies. Kristin Esteghlalian

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1 Advanced Segmentation Strategies Kristin Esteghlalian

2 Relevance is the marketing Holy Grail The primary goal when creating a targeted, relevant marketing campaign should be to: Consolidate customer data to create a complete marketing profile of each fan or customer Leverage this data to create segmented, personalized messages and offers that are unique to each fan and customer

3 Marketing Relevance Common marketing challenges in the Sports and Entertainment Industry: Concern with customers and fans missing important event announcements! Data limitations! Other challenges? Resistance from senior management, promoters, etc.!

4 Marketing Relevance The majority of marketers aren t doing enough to make their campaigns relevant to consumers 66% of U.S. consumers say they receive too much marketing Only 7% of U.S. consumers agree the marketing they receive is relevant Source: Forrester Research, Inc.

5 Marketing Relevance

6 Marketing Relevance Engaging audiences in more relevant communications can increase net profits 18 times more than broadcast mailings Source: Jupiter Research Inc.. Source: Campaigner; Driving ROI Through Relevance

7 Impact on Engagement and Deliverability

8 Impact on Engagement and Deliverability All aspects of user engagement are used to determine inbox placement Subscriber Inaction is as important as Action

9 Impact on Engagement and Deliverability Priority Inbox separates important messages based on a variety of signals: Messages opened Messages replied to and how often Keywords opened most frequently Inbox includes a view of only messages sent by a sender in their contact list

10 Impact on Engagement and Deliverability Focus on relevance is as important as ever Customize messages with information that fans want to receive Four out of ten subscribers flag irrelevant messages as spam Encourage engagement and interaction Include content that encourages recipients to click or reply Quick polls, feedback requests, contests or other calls-toaction that have a low barrier to entry

11 Create a Centralized Marketing Database The better you know your audience, the easier it is to provide content they want to receive FanOne consolidates and captures a 360 degree profile of each customer or fan in the database: Demographics Preferences Past purchase history Online digital behavior Web pages visited Responded marketing campaigns

12 Create a Centralized Marketing Database Size isn t everything! Use forms, surveys, subscription management to grow the depth of data

13 Create a Centralized Marketing Database Create a permissions-based mailing list 76% of consumers delete unsolicited Allow customers and fans to centrally manage interests, preferences

14 From Segmentation to Personalization Segment fans to personalize communications The better segmented the list, the more the message will speak to and resonate with your fans Over time, fan retention and sales revenue will increase Four degrees of personalization exist within marketing organizations: 1. Mass ing - one message sent to all subscribers 2. Name-based personalization 3. Segmentation-based personalization - one message sent to a full target segment

15 From Segmentation to Personalization Four degrees of personalization exist within marketing organizations: 4. One-to-One personalization content is conversational, and relevant to the individual customer based on the customer s profile

16 From Segmentation to Personalization With FanOne technology, create a single message with personalized offers, messaging, images and calls-to-action for each recipient

17 From Segmentation to Personalization

18 From Segmentation to Personalization

19 From Segmentation to Personalization Accor Hotels The world s fourth largest hotel group increased online revenue by $200 million 35% of newsletter subscribers were directly influenced to book a room from the personalized communications received Sephora The beauty chain doubled response rates after switching to personalized-content direct mail Source: Neolane; Part I: Getting Personal with Your Customers Fighting Marketing Fatigue

20 Strategic Marketing Recommendations With the power of a centralized database, marketers can develop targeted segmentation strategies: Personalize communications based on past purchase data and preferences Leverage campaign response rates to identify inactive subscribers for Win-Back campaigns

21 Strategic Marketing Recommendations With the power of a centralized database, marketers can develop targeted segmentation strategies: Build loyalty and generate engagement through lead nurturing campaigns Deliver offers to which the customer is most likely to respond Segment subscribers based on engagement and behavior; how often they re interacting with campaigns

22 Personalize Communications Leverage customer data to prioritize content Send monthly newsletters to all subscribers, highlighting the most important content at the top for each recipient Segment and send individual event s throughout the month based on profile data

23 Personalize Communications Monthly newsletters

24 Personalize Communications Targeted event-specific announcements

25 Win-Back Inactive Subscribers Inactive fans can have a negative impact on engagement, deliverability and revenue over time Inactive subscribers are more likely to flag continued communications as spam Sender reputation is negatively affected by disproportionately low response rates, or no response over time

26 Win-Back Inactive Subscribers Segment on response rates (opens, click-throughs and conversions) to identify inactive subscribers Engage to confirm interest for future communications and update preferences ( frequency, types of s, special interests, etc.)

27 Win-Back Inactive Subscribers Name The frequency of s were decreased to inactive subscribers over time After one year of inactivity, subscribers were sent a compelling win-back message with a discount offer for an item of the subscriber s choosing One week later, inactive subscribers received a re-permission specifying a date when they would stop receiving s without their permission Non-responders were removed from the list

28 Win-Back Inactive Subscribers Name

29 Win-Back Inactive Subscribers

30 Lead Nurturing Segment content based on unique customer profiles, so the messaging resonates with each recipient Nurture prospects with relevant content to: Keep prospects engaged Move potential buyers through consideration to a sale Lead nurturing is most effective when triggered by prospects activity or behavior

31 Lead Nurturing Microsoft implemented a lifecycle nurturing campaign to improve relationships with Office 2010 purchasers Customers were segmented so the only s received focused on the new product

32 Lead Nurturing After the first month, Microsoft leveraged behavioral data to deliver personalized content based on interest Results: Open rates 50% higher than industry average s segmented by a specific type of software achieved 9 times higher open rates and 22 times higher click-through rates than general s

33 Offer Based Segmentation Use data to deliver timely and relevant offers or calls-to-action: Surveys Send renewal intent surveys to non-converting season ticket holders to understand their renewal plans VIP Treatment Use demographic data, past purchases and interests/preferences to identify and invite high-value customers to private events Concessions, merchandise or loyalty rewards Increase per caps by targeting offers based on seat location, favorite player, loyalty status

34 Offer Based Segmentation 5 billion s each month to over 115 million subscribers in 45 countries and 500 markets Customer data is leveraged to target local offers Demographic data is segmented down from general metro areas, by zip code, to deliver offers available near subscriber s homes and places frequently visited.

35

36 Behavior-Based Segmentation Communications driven by customer behavior will see a 600% higher response rate, compared with traditional outbound campaigns Leverage behavior data from multiple sources to develop targeted, micro-segmented campaigns: interaction (i.e., opening, clicking on an offer) Visiting a page of a website Attending an event Completing a form or survey Contacting a sales rep We are seeing a 5% clickthrough on retargeting versus straight advertising at 2%. Source: Worlddata Research

37 Behavior-Based Segmentation Results: The 2 nd notice increased ticket sales by 29% and revenue 30% The 3 rd gained another 11% in additional ticket sales and 13% revenue Of over 1,800 tickets sold, 544 were attributed to the behavior-based campaign

38 Social Media Segmentation Facebook sends personalized offers Facebook Offers, a new feature, provides brand-name coupons via to members who click on brand-owned posts Twitter, Linkedin and Pinterest send personalized weekly s Twitter bypasses their own direct message inbox Source: Neolane; Social Media s Love for Marketing & Personalized Messaging

39 Social Media Segmentation

40 Reporting and Analysis Tailor communications and refine campaigns based on campaign performance

41 A Final Thought Be campaign-conscious! Remember to provide consistent messaging across all communications channels should be one element of the marketing mix. Reinforcing messages across multiple channels will boost overall campaign effectiveness

42

43

44 Impact on Engagement and Deliverability Get relevant! Remember - relevant s drive 18 times more revenue than broadcast mailings. (Jupiter Research) When shifting from batch and blast to one-to-one personalization: Conversion rates improve by 22% Customer retention rates improve by 60% Source: Campaigner; Driving ROI Through Relevance Source: Aberdeen Marketing: Get personal with your customers

45 Marketing Segmentation The majority of marketers aren t doing enough to make their campaigns relevant to consumers. Response rates to campaigns and direct marketing effectiveness is declining. 66% of U.S. consumers (66%) say they receive too much marketing. Only 7% of U.S. consumers agree that the marketing they receive is relevant. Source: Forrester Research, Inc.

46 Marketing Segmentation The equation for marketing success is a 3- pronged approach Source: Campaigner; Driving ROI Through Relevance

47 Source: Campaigner; Driving ROI Through Relevance

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