In today’s economic climate, intense competition and instant access to information it’s tough to survive. To be a cut above the rest it is simply not enough to offer the best products at the best prices in the best locations. Marketers must do so much more than to just apply the traditional approaches to success. The simple word to differentiate and gain market share is “relationships”.
There is no better way than to use your email database to build long lasting relationships that will continuously have an impact on your ROI. (Increasing the retention rate of a customer can increase their lifetime value by at least 25%.)
However, a simple ‘blast all’ approach will not work to build these relationships. The key to offering a targeted marketing approach is to segment your database and offer communications based on the behaviour patterns and demographics of those groups. It is well documented that the closer you get to one-to-one marketing the relationship with the consumer greatly increases, therefore increasing your ROI.
Jupiter Research reported that marketers that segment their lists can achieve conversion rate increases of over 300% and uplift in revenues of over 700%. Despite this the DMA recently reported in its Email Benchmarking Survey that the majority of companies are yet to segment their lists.
Your database is the lifeblood of all your communications, the more information you learn about your customers the easier it is to segment and treat her as an individual. Our next article will cover 4 different segments covering both lifecycle and behavioural models.
