MarketHype Segments Tool System User Guide
- June 1, 2024
- MarketHype
Table of Contents
MarketHype Segments Tool System
Product Information
Specifications
- Product Name: MarketHype Segmentation Tool
- Manufacturer: MarketHype Sweden AB
- Year of Production: 2024
- Functionality: Marketing events and experiences, customer data correlation, insights generation, sales increase
- Data Security: Verified and stored in a secure cloud solution with GDPR compliance
Product Usage Instructions
Introduction to Segmentation
Segmentation in the MarketHype system is like hitting the bullseye in darts
– targeting specific customer groups for better results. Instead of generic
outreach, focus on tailored communication for higher engagement.
Common Challenges in the Experience Industry
Identify your business challenges related to sales, customer loyalty, and
visitor engagement. Segment your customers to address these challenges
effectively.
Segmentation: The Concept
Segmentation involves dividing your target groups into smaller segments based
on specific criteria. MarketHype offers 4 types of segments for detailed
analysis.
Segmentation: The Goal
Segmentation helps you understand your guests and visitors better, enabling
smarter decisions that lead to increased profitability. By segmenting your
audience, you can tailor your strategies for maximum impact.
FAQ
-
Q: Why is segmentation important?
A: Segmentation allows businesses to target specific customer groups, leading to higher engagement and increased sales. It helps in understanding customer behavior for better decision-making. -
Q: How many types of segments does MarketHype offer?
A: MarketHype provides 4 types of segments for detailed analysis and targeting of customer groups.
About MarketHype
This guide was produced in 2024 by MarketHype Sweden AB.
MarketHype is your system for marketing your events and experiences. We
efficiently correlate your customer data, provide valuable insights and use
the latest technology to quickly increase your sales. All data is verified and
stored in a secure cloud solution, with built-in functions for proper GDPR
management.
Introduction
Pinpoint accuracy – not scatter gun
- Bull’s eye! The dart you threw with focus and precision hits the bullseye on the dartboard. 50 points straight into your account – with a single dart. That feels pretty good, doesn’t it? Especially when you had previously seen your opponent throw their three darts without much thought for a total of 19 points.
- But what does darts have to do with segmentation? Well, metaphorically, segmentation is usually explained as hitting the bullseye instead of shooting the darts in all directions. Instead of sending three newsletters to your entire customer base with a resultant click-through rate of 19 percent, send one very good newsletter to a selected target group fir a click-through rate of 50 percent.
- Segmentation allows you to reach more (potential) customers. But where to start? What data can you use to create segments? This packed guide will teach you all about segmentation and why you should think in terms of target groups. We also offer challenges to turn into opportunities, a proposal for setting up a workshop in 10 steps and six specific tips on what to do when the segmentation is complete.
- So, let’s increase those open rates, engagement rates and sales numbers. Let’s bind customers closer to you and achieve greater customer loyalty. Everything starts with segments. Let’s go!
Common challenges in the experience industry
It’s all about the money
- “… it’s all about the dum dum dum dee dum dum!”
- Yes, in the end it’s generally about money. No matter what challenge your business is facing, you must make money. More specifically, it may be that your business needs to…
- … sell shortly before the experience.
- … sell some time before the experience.
- … reward your most loyal guests and customers.
- … get sales leads by talking to people who have never visited you before.
- … get customers to buy similar products, based on previous purchases.
- … get more visitors on weekdays.
- … sell low interest products.
- … understand your guests and customer journeys.
What are your challenges?
Do any of these points resonate with you? Or are you struggling with something
completely different? Identify your company’s challenges. When you have
identified them, it’s time to start digging into your current position, to get
to know your customers more closely and to segment them. In this way, you can
turn challenges into opportunities (and increase your sales).
Segmentation: The concept
What exactly is segmentation?
- Are you a concert organizer who wants to understand the genre distribution among your guests? Perhaps you are a ski resort that wants to understand the buying behaviour of those who usually book hotels or cabins. Do you want to know which customers usually buy additional products? Then segmentation is your best friend.
- Segmenting your (potential) customers means dividing them into smaller groups. You examine your customer database to find patterns in, for example, demographics, geography and psychographics. It is, in short, customer analysis. You then use your identified segments – or target groups, as they’re also known – as a basis e.g. planning your restaurant offering, preparing channel strategies and designing newsletters.
There are 4 types of segments:
- Demographic segments – e.g. age, gender, income, occupation & education.
- Geographic segments – e.g. region, city, country & climate.
- Psychographic segments – e.g. values, attitudes & lifestyles.
- Behaviour segment – e.g. purchasing habits & brand loyalty.
Why should you segment?
As mentioned, segmentation means analysis of your target groups and
dividing them into smaller groups. But why should your work be based on
segmentation? The short answer is that you should better understand your
guests and visitors, in order to make smarter decisions with increased
profitability as a result. You will find a slightly longer answer on the next
page.
Remember! People move, grow older and find new interests. Having said that, it is not enough to analyze and segment your customer base just once. Be sure to regularly review your target groups, their characteristics and how they are evolving.
6 reasons: This is why you should segment your customers.
-
Deeper customer understanding
You gain a greater understanding of who your customers are, but also how products and services can be designed to better meet customer needs and preferences. -
Effective marketing & increased profitability
Tailored messaging and marketing strategies increase the likelihood that customers will engage with your brand and convert. -
Strengthens customer loyalty
Customers are more loyal to brands that understand their actual needs and provide personalized experiences. -
Optimized distribution of resources
By prioritizing segments with the greatest potential for growth and profitability, you can allocate your resources more effectively. -
Competitive advantage
By adapting your experiences to your guests, you differentiate your brand from your competitors. This gives you a huge competitive advantage. -
Maximized ROI
If you implement activities based on the segments most likely to convert, you can maximize your return on investment (ROI).
What do you need to create segments?
- To segment your customers, you need data-driven processes, and you need access to various kinds of customer data. Remember the four segment types? They provide examples of the data you can use in your segmentation. For example, the demographic data tells you the visitor’s age, while the geographic data tells you where they live. Psychographic data provides lifestyle and behavioural data and provides insights into how often the customer visits you.
- Step 1 is thus to adopt a data-driven approach. Step 2 is to use some type of customer data platform (CDP). (It’s not a requirement to use one, but it will make your life a lot easier. We promise.) A customer data platform collects, manages and visualizes customer data from multiple sources to provide a coherent view of customer interactions, characteristics and behaviours. Examples of such sources are sales data, visitor data and data from social media.
Get started
Workshop in 10 steps
You now know what segmentation is, why you should do this work, and the
prerequisites, right? It has therefore now – finally! – ‘s time to get
started. In this chapter, we give you a 10-step workshop plan that you and
your colleagues can use to segment your customers. Ready? Let’s workshop!
-
Define the workshop’s goals and purpose
Clearly define the purpose of the workshop. Is it to gain a better understanding of your customer base, identify target segments or refine existing segments? Clear goals will ensure that everyone who takes part in the workshop is working towards the same goal. -
Analyze relevant data
Collect your existing customer data – and then analyze. Going through data from, for example, completed events, customer surveys and marketing activities, provides lot of customer insights. -
Identify key segments
Can you identify any patterns and similarities in the customers as you review the data? Look for things like interests, demographics, buying behaviours and what motivates visitors to click, interact and purchase. Use the information to create preliminary segments. -
Discuss more!
Collect feedback regarding the segments from the workshop participants. Encourage discussion, brainstorming, ideas, thoughts and suggestions. Consider the feedback from different perspectives, such as sales, customer service and product development. -
Prioritize segments
Evaluate the segments and the potential value of each segment. Which segments have the greatest growth potential? Which ones can be the most profitable? Prioritize the segments that are most valuable and relevant to your business and your business goals. -
Develop segment profiles
Once you’ve mapped out which segments you want to use, develop profiles for each segment (a.k.a. personas). How old are they? What are their jobs? What do they do in their spare time? What media do they consume? Include as many details as possible. This will help you better understand and relate to each segment. -
Develop strategies for your marketing
You must now develop customized marketing strategies for each prioritized segment. Consider questions such as how you can best reach and engage the segments, and which channels you will use in your marketing. You may also consider things like pricing, campaigns and customer experience. -
Develop an action plan
How should the marketing strategies be implemented? Write that down in an action plan. Identify the required resources, deadlines and responsible team members.
The workshop is complete!
What happens now? Start acting based on your set plans and strategies.
What about steps 9 and 10? Look at them again in a couple of weeks, when everything is up and running.
-
Monitor and measure
Keep an eye on your segments and marketing strategies and how everything is progressing. Does something need to be adjusted? Measure and analyze continuously to find areas for improvement. -
Review, update, repeat!
Review and update your customer segments regularly, based on new data, trends, customer feedback and other insights. As mentioned previously, people find new interests and move to new cities, which means that segmentation is not a one- time job – it’s an ongoing process. If some time has passed since the workshop was held, you can start again from step 1. Good luck!
Next step
Be personal, relevant & clear
What do you do when the segments, the strategies for each segment and the
division of responsibilities are ready? Taking a power nap? You absolutely
can, but when the nap is over, it’s time to roll up your sleeves again – and
begin the operational work. Advertising must be produced, newsletters written,
and SMS messages composed.
Here are 6 tips to keep in mind when you create emails (but you can easily
translate the tips into your Instagram posts, SMS messages and LinkedIn posts
too).
-
Use personal subject lines
Personal and relevant subject headings – based on the characteristics, interests and behaviour of the segment profiles – arouse the curiosity of recipients. Which greatly increase the chance that your email will be opened.
Psst! Use an emoji to your advantage in your subject heading, and feel free to supplement the heading with a preview text that increases curiosity. -
Make your communication relevant
If the subject line is interesting enough, your recipient will open the email. How do you then ensure that the recipient’s interest
is maintained?
The answer is: relevance. Continue to base the content of the email on your segment profiles and consider what the recipient wants to read, as well how they want it presented. Use your data to impress the recipient with the relevance of your message and presentation. -
Create clear CTAs
Gone are the days of fluffy emails. As there is a great number of emails in circulation today, your emails must be short and concise, and you should write clear CTAs (Call To Action) that convert. Adapt the CTAs of the email based on the actual needs of the identified profiles. Find the key to what motivates them and encourage action by being accurate. -
Be visually appealing
It’s not just texts that encourage action. Visual elements – colours, patterns, images, animations and icons – are just as important. Animated material attracts the eye and is something you should use, but finding a balance between still images, GIFs and other graphic details is best. -
Don’t forget mobile phones!
Since most people open their emails on their mobile phones today, you must adapt the content of your emails for mobile phones. One tip is to look at the historical percentage distribution. How many have opened the mailings on mobile
or desktop? Do the different segments diverge? -
Consider the timing
Your email can be as good as it gets (maybe even go down in history). But, if you don’t send it at the right time, it can go badly wrong. Maybe it won’t even be opened. For this reason, make sure to keep track of when your mailings are most likely to be opened, by reviewing the statistics of previous mailings.
markethype.io/en/whitepapers/all- whitepapers
We’re here to help.
We are passionate about marketing in the experience industry, and we want to
help you maximize the impact of your marketing efforts. Read more and contact
us on our website: markethype.io