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Harnessing the web 2014 segmentation for better email marketing

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How segmentation can improve the effectiveness and efficiency of member marketing for nonprofit organisations

Text of Harnessing the web 2014 segmentation for better email marketing

  • 1. Banish Email Overload howsegmentation can improve response,retention and reputationSteve Thomas7th October 2014

2. What is Segmentation? Classification of the population intosubgroups such that the subgroups are: Distinguishable Identifiable Manageable Fit for purpose 3. Why Segment? Appreciation of motivations Communication Tone of voice Increased returns Facilitates Different Marketing Strategies Product segmentation Identification of look alikes Individual Area 4. One size doesnt fit all 5. How to segment?RecencyFrequencyValue 6. RecencyCreating segmentsFrequencyValue 7. Creating segments9843 1627RecencyFrequencyValue 8. Profiling 9. Look alike logicUniverseYour DatabaseYour SectorMembership 10. Profile variables Income Housing Tenure Spending Power Education Occupation Social Grade Age Children Household Size Property Type Urbanicity Retail Accessibility 11. Example profiles - AgeTotalSketch AttributesSupporters Regional Base Penetration IndexCounts % Counts % % 0 100 200Age Example 1Rank 91-100 (High) 933 16.8% 23092 11.2% 4.04 150 Rank 81-90 1012 18.2% 19816 9.6% 5.11 190 Rank 71-80 852 15.3% 20846 10.1% 4.09 152 Rank 61-70 697 12.5% 20417 9.9% 3.41 127 Rank 51-60 643 11.6% 23081 11.2% 2.79 104Rank 41-50 459 8.3% 22491 10.9% 2.04 76 Rank 31-40 316 5.7% 22152 10.7% 1.43 53 Rank 21-30 202 3.6% 17995 8.7% 1.12 42 Rank 11-20 201 3.6% 19192 9.3% 1.05 39 Rank 1-10 (Low) 245 4.4% 17650 8.5% 1.39 52 TOTAL 5560 206732 2.69Age Example 2Rank 91-100 (High) 601 14.5% 23382 11.1% 2.57 130 Rank 81-90 662 15.9% 21810 10.4% 3.04 154 Rank 71-80 465 11.2% 18343 8.7% 2.54 128 Rank 61-70 557 13.4% 23014 10.9% 2.42 123 Rank 51-60 493 11.9% 22896 10.9% 2.15 109 Rank 41-50 375 9.0% 20015 9.5% 1.87 95 Rank 31-40 387 9.3% 22721 10.8% 1.70 86 Rank 21-30 270 6.5% 22811 10.8% 1.18 60 Rank 11-20 171 4.1% 17574 8.4% 0.97 49 Rank 1-10 (Low) 174 4.2% 17887 8.5% 0.97 49 TOTAL 4155 210453 1.97Age Example 3Rank 91-100 (High) 20 2.3% 10642 8.7% 0.19 27 Rank 81-90 14 1.6% 11145 9.1% 0.13 18 Rank 71-80 37 4.3% 10021 8.2% 0.37 53 Rank 61-70 133 15.6% 12234 10.0% 1.09 156 Rank 51-60 144 16.9% 12409 10.1% 1.16 167 Rank 41-50 124 14.5% 11515 9.4% 1.08 155 Rank 31-40 139 16.3% 14290 11.6% 0.97 140 Rank 21-30 94 11.0% 14826 12.1% 0.63 91 Rank 11-20 69 8.1% 12608 10.3% 0.55 79 Rank 1-10 (Low) 80 9.4% 13232 10.8% 0.60 87 TOTAL 854 122922 Sample 12. Comparative profile - EducationTotalSketch Attributes Members Regional Base Penetration IndexCounts % Counts % % 0 100 200Education Group ARank 91-100 (High) 1574 28.3% 43382 21.0% 3.63 135 Rank 81-90 1369 24.6% 43322 21.0% 3.16 117 Rank 71-80 871 15.7% 30229 14.6% 2.88 107 Rank 61-70 550 9.9% 23148 11.2% 2.38 88 Rank 51-60 337 6.1% 17701 8.6% 1.90 71 Rank 41-50 333 6.0% 15203 7.4% 2.19 81 Rank 31-40 240 4.3% 14452 7.0% 1.66 62 Rank 21-30 194 3.5% 13006 6.3% 1.49 55 Rank 11-20 60 1.1% 4479 2.2% 1.34 50 Rank 1-10 (Low) 32 0.6% 1810 0.9% 1.77 66 TOTAL 5560206732 2.69Education Group BRank 91-100 (High) 219 5.3% 24697 11.7% 0.89 45 Rank 81-90 805 19.4% 51462 24.5% 1.56 79 Rank 71-80 778 18.7% 36515 17.4% 2.13 108 Rank 61-70 656 15.8% 25427 12.1% 2.58 131 Rank 51-60 499 12.0% 19525 9.3% 2.56 129 Rank 41-50 444 10.7% 18293 8.7% 2.43 123 Rank 31-40 444 10.7% 17905 8.5% 2.48 126 Rank 21-30 244 5.9% 10397 4.9% 2.35 119 Rank 11-20 52 1.3% 4788 2.3% 1.09 55 Rank 1-10 (Low) 14 0.3% 1444 0.7% 0.97 49 TOTAL 4155210453 1.97Education Group CRank 91-100 (High) 39 4.6% 6970 5.7% 0.56 81 Rank 81-90 110 12.9% 21007 17.1% 0.52 75 Rank 71-80 119 13.9% 17795 14.5% 0.67 96Rank 61-70 120 14.1% 13430 10.9% 0.89 129 Rank 51-60 94 11.0% 12150 9.9% 0.77 111 Rank 41-50 88 10.3% 10279 8.4% 0.86 123 Rank 31-40 103 12.1% 12694 10.3% 0.81 117 Rank 21-30 61 7.1% 9076 7.4% 0.67 97Rank 11-20 65 7.6% 10093 8.2% 0.64 93 Rank 1-10 (Low) 55 6.4% 9428 7.7% 0.58 84 TOTAL 854122922 Sample 13. TotalSketch ModelBest fit modelMembers Base Penetration Z-Score IndexCounts % Counts % % 0 100 200SegmentsSegment 6 997 9.4 18688 1.8 5.3 5.33 510 >200Segment 11 1221 11.5 30654 3.0 4.0 3.98 381 >200Segment 2 420 3.9 13293 1.3 3.2 3.16 302 >200Segment 7 653 6.1 22626 2.2 2.9 2.89 276 >200Segment 15 903 8.5 35231 3.5 2.6 2.56 245 >200Segment 3 363 3.4 14471 1.4 2.5 2.51 240 >200Segment 14 784 7.4 33303 3.3 2.4 2.35 225 >200Segment 9 884 8.3 51180 5.0 1.7 1.73 165 Segment 10 185 1.7 12422 1.2 1.5 1.49 142 Segment 1 616 5.8 42881 4.2 1.4 1.44 137 Segment 13 291 2.7 23724 2.3 1.2 1.23 117 Segment 4 729 6.8 64449 6.3 1.1 1.13 108 Segment 8 1051 9.9 111886 11.0 0.9 0.94 90 Segment 0 1273 12.0 266869 26.2 0.5 0.48 46 Segment 5 262 2.5 94111 9.2 0.3 0.28 27 Segment 12 117 1.1 181701 17.9 0.1 0.06 6 Total 10643 1,017,489 1.05 14. Where are they?New areas may have adifferent socio-dem.profile to the existingdonorbaseDifferent motivationsrequire differentcommunication strategiesMissing all the towns! 15. Implications for marketing Support activity for the current profile Post Code initiatives More effective targeting Promote to new audiences Different ways to reach members May require new approaches & materials Message by prospect type Product development Regeneration 16. Segmentation by analysingbehaviour 17. The Kings Fund Charity established in 1897 with the aim ofhelping Londons voluntary hospitals.Today its mission has developed to: the promotion of health and thealleviation of sickness for the benefit of thepublic by working with and for healthcareorganisations 18. What do they do? Provide guidance and information : Produce reports Online resource including extensive library Events Developing Influencing policy makers Parliamentary and stakeholder engagement Generate additional income Venue hire 19. Background C. 30k active records held on Integra Email is the key direct media to audience Key information: Job title Organisation Most purchase behaviour Email preferences 20. Marketing issues Perception that email isfree and easy Assuming what peopleinitially signed up to iswhat they really want Lack of confidence as tounderstanding theengagement level ofaudience 21. The Challenge The targeting had been intuitive to anextent There was no way to assess performance ofcustomers Dependent on email but were we getting thetargeting right? Potential that some people getting toomuch, others too little or very inconsistentcommunications Unsubscribing and blacklisting 22. The solutionCategorisation ofbehaviour into 3dimensions: Recency Engagement Quality 23. The solution segmentation criteria Recency how long since latest activity? 1 month; 3 months; 6months Engagement richness of activity Email opens; clicks; subscriptions; events; Quality ladder of known indicators job title; key event attendance; influence 24. The solution 8 segments 25. The solution a customerjourneysuper close7 on holiday7 on sabbaticalkeen but stuckactivistsfirst bitersSegment 2PotentialsZeros Segment 1Segment 4Segment 3Segment 6Segment 5Segment 766492213311139763301351188457250Segment 0 26. The solution understanding shiftingProbabilities of being present in each segment next monthdepending on presence this month7 0.1 0.6 1.1 2.1 3.3 9.4 11.7 89.96 80 6.75 86.1 5.9 3.44 0 96.7 4.5 2.43 0.4 0.4 2.3 93.62 0.1 2.4 90.8 2.11 96.6 5.7 20 99.4 0.20 1 2 3 4 5 6 7 27. The solution moves and blockssuper close7 on holiday7 on sabbaticalkeen but stuckactivistsfirst bitersSegment 2PotentialsZeros Segment 1Segment 4Segment 3Segment 6Segment 5Segment 766492213311139763301351188457250Segment 0 28. The BenefitsTargeting: Make targeting more appropriate to audience Avoid scattergun Protect against unnecessary unsubscribe Makes internal expectations realisticReporting Health checks Really know theaudience are the amount of good people growing Gaining warning signs of decline in quality Have confidence when audience healthy 29. Implications for marketing strategy1. Reaching out to new, lapsing andpreviously undeveloped contacts2. Making better use of communicationsspend and achieving better relationships3. New ways to achieve better results4. Enriching relationships with key influencers 30. Banish Email Overload howsegmentation can improve response,retention and reputationAny [email protected]

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