5 Reasons Why Marketing Campaigns Need Sharp Segmentation

by Naveed A. Writer

Enrich Segments for Deep Targeting and Peak Campaign Performance

[Free Takeaway Inside – Strategy Deck for Affluent Customer Acquisition for Banking]

One of the first steps in campaign management is defining the goal along with the segment you want to target. But do we really get our segmentation right? And, how can we measure and assess that?

Though there is no real direct metric to evaluate this, tracking the response rates of the campaigns might be effective. If the segments are right, it means that your campaigns have reached the relevant audience and are gaining responses.

On the other hand, if your response rate falls flat despite having great content, it may be time to define and sharpen your customer segments.

The Need for Sharper Segmentation

Segmentation enables organizations to make better use of their marketing budget and demonstrate a better knowledge of customers’ needs and wants.

However, most marketers don’t go beyond the basics when it comes to segmentation and consider employing rudimentary segmentation techniques such as demographics like age and gender to group their segments.

While this offers a great starting point, it’s vital to go beyond this and enrich segments using behavioural and psychographic attributes.

Here’s a free eye-opening strategy deck for banking marketers to target your affluent audience with relevant customer segments for your customer acquisition campaigns. 

How Can Sharper Segmentation Benefit Your Business?

Since segmentation involves numbers and data, it is primarily seen from a functional perspective using statistical and analytical models. However, creativity is as important as analytics and segmentation ought to involve a holistic approach. After all, you need to really visualize your customer behaviours and see how well you can use your data to arrive at ideal segments for targeting.

Here are some ways how sharper segmentation can add more value to campaign management:

1.      It helps achieve Marketing Velocity

Breaking down a large customer base into manageable chunks makes it easier to identify your target audience and launch campaigns that cater to the most relevant people using the most relevant channel at the most relevant time.

2.      It gets you Better Response and Greater Conversions

At the heart of your marketing campaign creation and campaign management initiatives, is earning more response and conversions. Several studies have showed that segmentation leads to positive results in email campaigns including better open rates, response and more revenue.

3.      It helps you Build Rapport with your Customers

Segmentation helps to know your customers at a granular level and helps deliver a personalized experience to each of them. As more and more consumers today prefer personalized experiences and are even ready to pay a premium in exchange, it pays to go a step further to target appropriate segments and launch hyper-personalization marketing campaigns.

4.      It Helps Speed Up Purchase

Not only does personalization keep prospects on the hook or help to retain customers, it also drives impulse buys. When you convince your customers that you know them better and address their pain points, you can influence customers sitting on the fence and gently nudge them towards making a decision.

5.      It Improves your Value Proposition

A great value proposition can make all the difference in your campaigns. With segmentation you can establish your value proposition effectively by addressing your target customer, meet their needs and promote your value over your competition. As a result, you can attract more viable prospects and customers.

One of our banking clients wanted help to run campaigns with a goal to drive revenues from credit card usage and target consumers with low credit card usage. Though initially they wanted to run their campaign across the entire customer-base that did not actively use credit cards, we suggested that the client refine targeting by adding a few more segments to be more relevant. As a result of our recommendation, we defined segments sharply and ran a 4-wave campaign targeting each segment using appropriate channels. As opposed to a mere 2% response rate that was expected when running the campaigns without sharper segmentation, the client was able to activate 52k customers at an average response rate of 31% with zero additional investment and a sharper segmentation approach. 

The need for sharper customer segmentation arises from the fact that you cannot expect everybody to react or respond to your marketing campaigns the same way. Each individual has different needs and customers purchase for different reasons.

Thus, it makes more sense to tailor your campaigns to one or more smaller segments and adapt your communication to make it more relevant to the distinct needs of your audience.

Are you using a sharper segmentation approach in your marketing campaigns? How’s it working out for you? We would love to hear from you. Write to us at

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About Naveed A. Freshman   Writer

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Joined APSense since, February 6th, 2020, From SFO, United States.

Created on Jul 12th 2021 01:00. Viewed 841 times.


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