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Why segmenting makes you lose customers (and how to shift the game)

Written by Colette on 1, October 2019

Segmenting has been a core business in CRM  strategies for years. Nowadays, it is more accurate through data but does not meet the new customer expectations. There is no way to interact with it in real time. As a result, the messages you lovingly craft are all over the place. The good news is that we can do things differently and we are giving you some new ideas here.

We are not " standard profiles "

The problem with segmentation is that we often try to classify people into groups or subgroups with at least one common criteria. For example, age, last purchases, residence. 

This is often the best we can do as marketing budgets are not endless. You may already know this, but this strategy makes the message meaningless. When you segment, you have no choice but to prepare your messages for each audience in anticipation. You decide which products to promote, which messages to send. 

As well as making production processes more complex, segmentation suffers from a paradox. [bctt tweet="By segmenting, you think you are personalizing. However, your message is related to the criteria of a target, such as the last products purchased, not to the individual." via="no"]

In other words, you think you are targeting, but your customers and prospects feel that the message is not appropriate. With good reason. In reality, you don't personalize since the message is the same for everyone. 

In the case of emails, you face massive unsubscriptions.

Your content is not relevant to the context

That's the problem with targeting. When you work by campaign, messages have to be developed in advance based on a group's criteria. For example, I have a mobile plan. My phone company is trying to get me to subscribe to an internet offer. So I would have offers on this subject. 

In the same example, I may be interested but I also want the quality of my network to improve or buy a new phone and benefit from an offer.

Will the phone company take into account my recent research to understand my need? I'm not sure. However, if it does, he is likely to find that I do not need an Internet package. 

What to do ?

Focus on individual experience first and foremost

It's a unique feeling to feel...unique. We do not expect a brand from which we buy a service or product to behave like a friend or family member. We only want her to treat us as a person in our fullest sense, with our sensibilities, our doubts, etc. If it is okay to know my birthday or civil status, it is not enough to individualize our relationship, not even to personalize it.

Create your messages according to each individual's preferences

To individualize your customer relationships, you must be able to instantly create a message adapted to the one exposed to it. For example, I open my mail in the subway after having searched unsuccessfully for gift ideas during the day. At the time of the exposition, I have found a selection of gifts available near my home. Saved !

Make your content production scalable

Segmentation, in so far as it does not reach the individual, makes budgets skyrocket. By using dynamic content creation, for example, you can automatically create individualized content that perfectly matches everyone's expectations.



Topics: CRM strategy, segmentation