If you are still using a one-size-fits-all marketing strategy to connect with your customers and attract new leads, it’s time for a fresh direction. Unless your business operates in a market with limited choice, it is hardly effective in giving your brand the leverage and growth it needs. It’s time brands let go of universal approaches and turn towards marketing based on target audience segmentation.
Brands that aim to expand their horizons and increase their return on marketing spend need to prioritize understanding their target customers, categorizing them into sub-audiences, and catering to different groups individually. Here’s how Speedeon helped a national home improvement retailer strategize its marketing efforts with segmentation and audience-based marketing.
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Why Is One-Size-Fits-All Marketing Becoming Redundant?
The idea of using the same marketing approach to reach out to all your customers may sound simple and cost-effective. However, with the market getting crowded with more and more brands every day, today’s customers are bombarded with more choices than ever before. In such circumstances, standing out in a massive pool of competitors is extremely difficult.
With a one-size-fits-all marketing approach, you fire bullets without an aim, desperately hoping they reach at least some targets. Such marketing strategies are cheap in the short run compared to personalized marketing efforts. However, they cost more in the long run. Your ROI on such efforts will likely be lower as you target both relevant and irrelevant consumers with such a strategy.
Our client, a national home improvement retailer, was very familiar with marketing their products to new movers. However, the problem was that they had a one-size-fits-all marketing strategy, targeting all new movers in the area. Their broad mailing list included those who weren’t a good match for the nearly 30 product brands featured in the message. The brand hadn’t thought of personalization and has been sending the same message to everyone, including their current loyalty program members.
All this pointed out that the business was in dire need of a segmentation strategy.
What Is Target Audience Segmentation?
Audience segmentation is where you identify subgroups within your target based on distinct and shared features. This strategy helps brands identify and focus on the best groups to target. You can categorize your brand’s audiences under demographic, geographic, psychographic, and behavioral segmentation to have a more nuanced understanding of your clientele.
We understand that target audience segmentation and personalized marketing campaigns are a significant investment, especially when compared to sending out the same message or using the same technique for all recipients. However, they are more likely to reach the right customers, and with an optimized message, both of which contribute to a higher ROI.
Also, you can gain an in-depth understanding of your customers and their pain points. So, in the long run, market segmentation is a cost-effective and worthy investment on your part.
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The Problem in Question: New Mover Who?
Our client in the home services industry, was targeting a prime audience for growth. After all, people who move into new homes, whether it’s rented or owned properties, usually require supplies for renovations, repairs, or remodeling tasks.
However, not all movers are alike, and their preferences, wealth, spending habits, and needs differ. Moreover, not all movers will be at the same stage in their journey at the same time. Sending the same message to everyone resulted in lower engagement and response rates as some segments found it irrelevant and impersonal.
As we dove deeper, we also found that the retailer was only targeting people after their move. Our market research showed that marketers should also target pre-movers. These consumers are looking for home renovation supplies to do last-minute fixes and improve their current property’s condition before putting it up for sale. They are also researching finishes and colors to use in their new home, immediately after getting the keys.
Dissecting the Audience for Better Targeting and Customization
With the root cause of the issue crystal clear, the Speedeon team got down to doing what they do best. We started by expanding the retailer’s target audience by including homeowners preparing to move using our daily updated pre-mover data.
Thereafter, we narrowed the mover audience by selecting consumers within a limited radius of each location to cut down wasted spend. As our final move, we applied demographic segmentation to categorize the audiences. We separated homeowners from renters and residents based on their dwelling type. This helped us send customized marketing messages and curated offers for each group to improve the appeal and relevance.
Maximized Efficiency of Audience-Based Marketing
Speedeon’s effort to level up the retailer’s original mover strategy with target audience segmentation improved the brand’s performance significantly. The response rate rose by 28%, and the strongest came from those less than 3 miles from a location.
The direct mail ROI increased by 2.9% as our targeting efforts were hyper-focused instead of being wide and generic. There was also an 18% capture rate of offer redeemers joining the loyalty program. This proved that our segmentation and customized offers were highly effective. The results helped the brand redirect its focus from its original mover marketing strategy and put its funds to better use.
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Win Your Audiences with Better Data
Speedeon has helped brands in different industries, including everyone from insurance to D2C, with client acquisition using our data-driven strategies. From identifying ideal prospects, to fueling personalized campaigns, our solutions can take your company to the next level.
Do you want a better strategy to target your customers more effectively? Get in touch with us, so that we can collaborate on personalized solutions for your brand!
