Customer Segmentation, Segment your customers & reach them with SMS & email
Reading Time: 3 minutes

Do you know who your customers are and which of them are the best? In fact, information like gender, occupation and the ability to combine segments can help your business in many ways and creates a tremendous amount of flexibility over the SMSs and emails you send.

What Is Customer Segmentation?

Market or Customer Segmentation is a way to group your contact/customer list into categories and address them with more targeted tools and content. Actually, these distinct segments are based on customers’ similar characteristics and attributes. As a result, segmenting a market enables you to develop a deeper understanding of your customers.

You can create target segments using Routee to send specific messages for each group and reach out to them via SMS or Email.

Why does it matter?

Identifying the right group of customers is key for any marketing campaign to succeed. In essence, segmentation guides you as to how to reach your customers through advertising and promotions, helps you to target the right people, to produce relevant and valuable messages and highlights what changes you can make in order to meet a customer’s needs as well. Finally, choosing the right segment of the market is important to achieving increased sales and profitability.

Benefits of Segmentation

• Groups your customers by factors
• Allows your sales organization to pursue higher percentage opportunities
• Identifies your most and least profitable customers
• Focuses on the most valuable customers

• Builds loyal relationships with customers
• Improves customer service
• Uses your resources wisely
• Improves products to meet customer needs

Customer Segmentation, Segment your customers & reach them with SMS & email

Segmentation Schemes

You can segment people based on larger differentiating factors including:

Demographics: tangible, measurable information about individuals or groups of individuals, such as:

1. Age and gender
2. Occupation
3. Location
4. Income level
5. Education level
6. Racial/Ethnic identity
7. Marital status and children

Lifestyle variables: information focuses on those intangible characteristics that make people unique.

1. Psychographics
2. Life stage/ life roles
3. Political beliefs
4. Hobbies
5. Interests
6. Entertainment activities
7. Cultural practices

Customer Segmentation, Segment your customers & reach them with SMS & email

Type of Customer or User

1. New customer
2. Frequent customer
3. Potential customer

Interest level: Who is more engaged? Who is opening your message and who is also clicking on your CTAs?
Customer information/insight: How much are they spending, what do they like more?
Activity: How often are your recipients logging in, buying?
Engagement: Who is opening all emails/SMS, just some, or none?
Recent Activities: Last purchase and recent web activity.

Customer Segmentation, Segment your customers & reach them with SMS & email

But, what are the advantages of SMS and Email?

SMS communication

• Works without an Internet connection
• Can offer easy geographical targeting per country, given the country code of each number
• Provides secure delivery of messages
• 98% of text messages are read
• Text messages are read, on average, within 5 seconds
• The average click-through rate (CTR) of URLs included in SMS messages is 36%

Email communication

• Works great for long-form content
• Gives the opportunity for creative content (images, motion etc)
• Can bring traffic to your website
• It’s a cheaper solution than SMS
• When it comes to purchases made as a result of receiving a marketing message, email has the highest conversion rate (66%), when compared to social, direct mail and more

Given the benefits of segmentation nevertheless, the ideal “solution” comes from combining both tools (SMS & email) so as to benefit from the advantages that each of them provides. Nobody can argue that one of your main objectives still remains to effectively communicate and promote your business, so why choose between SMS and email?

Visit Routee and start maximizing your SMS and email delivery and engagement quickly and easily. The results will surprise you!