Growth Marketing Lesson: Application of User Segmentation and Automation

Any ace marketer in the world would back the importance of accurate user segmentations. This is the process of creating buckets and distinctions of your users based on behaviour and characteristics. This process further helps them better target products and ensure retention. 

To discover some insight into the art of user segmentation, MoEngage held a mixer with Tobias Lüder, CRM Manager, Delivery Hero; Ada Dubrawska, Associate Product Manager (Growth), Clue; Christian Eckhardt, CEO & Co-founder, Customlytics; Jon Genovard, CRM Manager, Blacklane; and Natalie Fitch, CRM Manager-Retention & Engagement, Babbel.

Here are some of the significant takeaways from the conversion:

Let’s Talk Unusual Segment

Marketers often create not-so-brag-worthy campaign segments. Here are some of the most absurd elements that might or might not work: 

• Targeting people who only surfed the applications but never ordered, and give them a discount to push for orders.   
• Create segments by Star Sign ( or sun-sign). For example, connecting consumers to advisors (or drivers in a ride-share app) based on the sunshine they share. 
• The use of a weather API integration encourages food orders during a sandstorm or conditions that do not allow outdoor dining. 
• A common mistake is creating a segment exactly like your user persona. This persona is a reference for a start and not an iron-clad outcome. 
• The mobile provider Airtel, in India, used an absurd combination. They targeted users due for a pre-paid internet renewal and also followed Game Of Thrones; a week before the season launch.  

Segments And Variable

If we narrow the lens of user segmentation, the number of permutations and combinations are many. As a result, it’s often problematic for marketers to decide the right kind of segmentation with so many variables at play. 

A simple way to declutter this process is by starting at the broader segments with simple parameters and then branching out the user data into more quantifiable data. The first step could be something as simple as “users who have an email ID.” 

Once you make this first step, it’s easier to find co-relations and create smaller and functional segmentations.

If you are running a premium product that is of higher spending, you can use the model of a golden customer. In such a case, over eighty per cent of the revenue will come from only twenty per cent of the consumers. Thus, spending criteria can easily segment the top customer.

Many marketers are so highly driven by retention that they tend to ignore the high-paying consumer. It’s critical always to give more attention to these power consumers for sustenance. 

The Groundwork For CRM Managers

The best way to set up effective customer resource management is by thinking from the consumer’s perspective and not the company. 

The most important foundation is the correct data. Ensure that the tracking setup is accurate and effective. It’s a massive disadvantage to the business if you misread the data and do not segment users correctly. 

The ideal groundwork for CRM is a chronological approach. Retention starts on the first step, that is, onboarding, and flows in a natural progression of the consumer journey. One must also pay close attention to the Opt-in and Opt-out points of any campaign. 

Lastly, you must use data wisely. For example, if you are a food-delivery application, never ask people for a birthday; that is not something you need. Instead, use data that matters like season count or last order date.  

Improvement in Efficiency 

The most critical aspect to running effective marketing is the need for constant improvement. However, there are a few ways to keep these in check. 

The best route is to conduct control groups often and conduct A-B testing. However, it’s also essential to define the purpose of the campaign; some are intended for profit while others are just activations.  

One must also look at efficiency in the workflow. Consider a combination of both leading and lagging matrices. Only counting a win will not lead to progress. The ultimate aim, however, is a flat retention curve. 

One of the simplest ways to improve efficiency is automation. Without automation, the team will inevitably spend numerous hours on sends and analytics.

Test Push-Notification Efficiency

Push notifications could be one of the most hard-to-understand matrices and the most abused tool for marketers. It’s essential to test its efficiency and optimize it often. Here are a few pointers: 

• Provide push notifications based on current events.  
• Have “messaged control,” send notifications only with relevant information and not to seek attention.
• Pay attention to testing the “click rate” between personalized messages and random notifications.    

• Remember that 10% of users will not get your push notification because of in-app deactivations. So that data is also essential. 

How To Ensure Privacy

While user segmentation is solely based on data, this could raise a series of privacy concerns. So, here are a few ways marketers can keep a tab on privacy:

• Only save and procure the data needed for your analytics and relevant to user experience.  
• Keep an account of data types and number actions for the CRM and do not track macro data. 
• Utilize a back-end trigger of data as often as possible to avoid any misuse.   
• Ensure your push notifications follow “Ethical messaging.” This means the brand must consider that others could also see this push-notification at a workplace and not lead to repercussions. 

• Treat all data as sensitive data.  
• It helps to own a robust verification framework for all members of the team. 
• Read and re-read the General Data Protection Regulation guidelines, and take steps to reinforce them as often as possible.   

• Provide the user with the right to delete data, and the process should happen in less than three days from the request.  
• Using the first name for notifications and messaging is unnecessary and could only lead to safety concerns over time. 

Final Thoughts, 

Lastly, the core company and the marketing limbs must all remain on the same page. Getting the perfect user segmentation is redundant if you cannot feel this data back to the product teams. 

This feedback is possible by hosting open communications channels within the establishment, organizing monthly brainstorms, and ensuring all limbs (even support and social media) are part of tracking and feedback.