Dangers of unsegmented marketing

The core reason for customer segmentation is to send customers better messages that they'll take action on.

Without segmentation, you could be sending vague, watered-down, or even the wrong messages.

Yesterday I received a fine example of one from our internet provider (ISP).

The letter was a sales pitch to get me to signup for their internet, voice, and TV package for the low low price of... (pages of a sales pitch)

We're already a customer though.

We already have their internet package.

In fact, we're paying more money for less services than what they're pitching.

To make it worse, there's the legalese at the end saying this offer it only for new customers.

Lets count the mistakes in this unsegmented broadcast.

  1. They sent a current customer offer that is invalid.

  2. They showed that I'm overpaying for the service I have already.

  3. They wasted time by making the envelope look exactly the same as my bill they send me already, forcing me to open it.

I'm not upset at all.

This is what every large company does and is typical marketing blunders. Just like email spam, they only continue doing it because it works just well enough to make them money.

Your store can't do that though. Unlike them, you don't have millions of customers you can annoy in the hopes of making a quick buck.

But that's the risk with sending unsegmented offers. You can destroy the goodwill of your customers overnight.

It doesn't have to be difficult to start segmenting either.

Start sending two copies of your marketing messages (email, letters, etc):

  1. One version for your customers that acknowledges their status as a customer.
  2. One version for your non-customers that is the same pitches you already send.

I do that and it's just me here doing the marketing, development, support, emptying the trash, and everything else. I write at least 4-5 new marketing materials per week and segmenting takes maybe an extra 30 minutes per week.

It's such a better experience for customers. And it pays too.

Try segmenting for 4 months and see what happens to your store. Worst case, you go back to what you're doing now.

I've tried to segmenting as easy and automatic as possible in Repeat Customer Insights.

Instead of requiring you to learn more about creating customer segments, it automatically creates over a 100 segments for you automatically.

It includes a 14-day trial so you can see how it works for you before paying.

Eric Davis

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Topics: Customer analysis Customer segmenting

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