Segmenting your data 9th December 2011 By Louise Stephens in Strategy What is data segmentation? Whilst every business is different, treating each customer based on their preferences will help you communicate smarter with them and help generate more revenue. Have you ever played within a sports team and thought things aren’t going quite to plan? I play for a football club with many different players who have different abilities. Trying to get the right formula to succeed can be a problematic task. Segmenting your data is like putting the right players in the right position according to ability and preference; it helps your marketing run smoother and become successful. So how do I segment? If you are collecting personal data such as birthdays, location, purchasing decisions, why not use it to your advantage and provide your customers tailored information, services and products that are bespoke to them? You can segment by: • Geographical location • Last purchase by date • Age • Gender • Type of purchase or service request • Pretty much anything else that you hold data on If you segment your contacts based on how they interact with your organisation you begin to build a profile of each individual customer. Ask yourself; where do they live, when do they read their emails, what are they clicking on and what they are purchasing or enquiring about? A profile of a customer will allow you target your campaigns individually and we know that when a customer feels like an organisation is listening to them they will come back time and time again. Take a look at how River Island segment their data from the start from this great example from the Direct Marketing Association (www.dma.org.uk/toolkit/campaigns-we-river-island Not only did they take their gathered data and produce an insightful campaign, based on their customer’s preferences, but it also gave them a clearer picture on how each customer buys from them. Developed and used correctly, segmentation is a key tool within your integrated sales and marketing plan and help you achieve your business goals. Have you segmented your data list? What results have they yielded?