How to use Segmentation, Targeting and Positioning (STP) to develop marketing strategies
Today, Segmentation, Targeting and Positioning (STP) is a familiar strategic approach in Modern Marketing. It is one of the most commonly applied marketing models in practice. In our poll asking about the most popular marketing model it is the second most popular, only beaten by the venerable SWOT / TOWs matrix. This popularity is relatively recent since previously, marketing approaches were based more around products rather than customers. In the 1950s, for example, the main marketing strategy was 'product differentiation'.
The STP model is useful when creating marketing communications plans since it helps marketers to prioritise propositions and then develop and deliver personalised and relevant messages to engage with different audiences.This is an audience rather than product focused approach to communications which helps deliver more relevant messages to commercially appealing audiences.…
Practical guidance on putting together an account list that gets results
ABM starts with a clear picture of who to target. Sounds simple enough. But with account-based marketing (ABM) being such a new thing for so many marketers, getting the right focus list is often not as easy as it first sounds.
I’ve found with so many clients, they end up getting steamrolled by the ‘Who should we target’ question.
When you keep hearing the same query time after time, you realise there’s clearly an education piece that’s needed. So here we are!
It’s worth pointing out at this stage that this guidance is based on best practice gathered from being involved in a number of ABM deployments. There are no hard and fast rules to any of this, so feel free to tweak depending on the individual circumstances of your business. Anyway, now we’ve got that out of the way, let’s begin.
How to target your customers at the very moment they want your products
Does your data tell you when and why your customers are most in need of your products and services? Can it deliver that insight right at the time the need arises? We explain how marketers can use data and insight to target home movers, ensuring they reach them at the time they’re most likely to engage.
Marketers are always looking for better ways to acquire prospects, retain and engage their existing customers. Each year, UK companies lose over 20 per cent of their customers, according to our research with nearly 200 of the UK’s leading marketers.
The research also highlights the fact that 45 per cent of UK marketers say replacing these losses with new customers is their biggest challenge. For the remaining 55 per…
How well do businesses really know their customers?
As consumer expectations for relevant content and offers grow as they experience top retailers such as Amazon, companies need to focus even more on customer experience through relevant communications.
When completing our Managing Digital Marketing in 2015 research we were interested to see how well companies do understand their customers since many respondents said that improving use of CRM and applying Big Data concepts was a priority for this year.
We asked businesses which of the classic segmentation and targeting techniques they used to target their customers using online marketing, for example targeted emails or web-based personalisation.
The results show that, overall businesses are long way from the 360 degree customer view and personalised customer lifecycle marketing that many have discussed for a long time.
As marketers we see a lot of examples about how we should improve…
Customers have similar traits but are not all alike and should not be spoken to with a single message in the same manner and tone. This was initially looked at in an earlier article ‘Talk to your customers or talk to your customer?’, but once the need to communicate with and not at all your customers is understood, providing different messages/offer/content using surface level details is a tempting approach, for example splitting the message by gender and/or age group.
This approach assumes that the surface level details represent the best groups of customers which will not always be the case. Looking at the sand in the first image at first glance all the grains seems to be identical with some obvious differences becoming apparent when a more detailed…
A briefing on the new Experian UK Mosaic customer profiling
I recently attended the re-launch of Experian’s UK 2014 Mosaic Segmentation. I thought it would be useful to share a summary which I hope will be useful for marketers, who have been working with it and those who are new to what I have found is a fabulous segmentation tool.
If you don't know it, Mosaic is a consumer classification tool that benchmarks the UK population on over 450 data variables. According to Experian,
"Mosaic is our most comprehensive cross-channel consumer classification, built for today’s hyper-connected world. Using new data and analytical methods, organisations get deeper insights on consumer lifestyles and behaviour to help you make more informed marketing decisions".
They go on to explain that they see Mosaic as more than a socio-demographic segmentation and they believe it is even more relevant today than when first created over 30 years ago.…
Review the quality of your audience segments with this checklist
This blog post first appeared in the Arts Marketing Association’s, Journal of Arts Marketing, and we are now sharing it with Smartinsight's readers. For more free resources, case studies, research and toolkits to promote art, culture and heritage visit culturalhive website.
In an ideal world we would treat everyone as an individual and tailor and promote our offer accordingly. But this is impractical. Treating everyone as an homogenous mass however is ineffective - one size does not fit all. Segmentation provides us with a happy medium.
Segmentation is a fantastic way of reaching different people with different messages and can vastly improve how you cater for people. It means you can be strategic about audience growth and development of audience relationships.
Get it right and segmentation should provide true market insight that will lead to tangible results in audience development,…
Match personas, content changes and stages of the buying cycle to help you nurture your leads
In my last post, Personalisation 101- How to increase customer engagement and conversion rates, I introduced the main types of personalisation available to make your site more customer-focused. In this post I'll expand on this by recommending approaches to segmenting your audience and making sure that your website’s personalisation directly meets your overall business objectives. I will show how to:
Use business objectives to define measurable actions
Identify the weaknesses in your website
Create personas for your core audience types
Use a Digital Relevancy Map to plot specific actions to personas and buying stages
Create a wireframe to translate this knowledge onto your webpages
Test and measure personalisation.
Making actions meet your business objectives
The first step is to lay the foundations for personalisation. To make a business case for personalisation you need a clear map of what personalisation…
We're now in a constantly changing digital landscape
Did you see this Comscore report about "Digital Omnivores"? I think it's really useful for marketers. Not because the information is revolutionary in any way, but because it's offering some seriously hard facts that can be taken to management to support business cases, marketing planning and ideas generation for marketing. It may help to have this in light of your own analytics, maybe it can help inform decisions that you're thinking of making, or even realise that you need to make.
Increased WiFi availability and mobile broadband adoption in countries like the U.S., Australia and the U.K. are driving connectivity. Mobile phones already drive digital traffic around the world, while tablets are gaining steam. Tablets traditionally required a WiFi connection to access the Internet, whereas now they're increasingly driving traffic using mobile broadband access…
Using segmentation to make your social media marketing relevant
We've mentioned the value of Forrester's technographics ladder before. It's a useful tool. Aimia, a Canadian company who specialise in loyalty management, have created a segmentation model that analyses the behavioral drivers of trust and control to identify six social media persona types – these are no shows, newcomers, onlookers, cliquers, mix-n-minglers and sparks. It's the behaviour angle which makes this worth a proper look.
“Today’s approach to social media measurement – racing to rack up the most ‘likes,’ retweets, followers and recommendations – is the wrong approach. Marketers must define success not by social media activity, but rather by customer value and engagement,” Doug Rozen, Aimia senior VP, lead author of the report
Naturally, Aimia argues that there's single social media channel can deliver a complete picture of customer behaviour, specific social media personas are identifiable which, if engaged directly, can reap benefits for…