EP. 81- SEGMENTATION Secrets You DON’T KNOW! l Jay’s Scoop

Welcome to do this, not that, the podcast for marketers. You'll walk away from each episode with actionable tips you can test immediately.

You'll hear from the best minds in marketing who will share tactics, quick wins, and pitfalls to avoid. Also, dig into life, pop culture, and the chaos that is our everyday. I'm Jay Schwedelson. Let's do this, not that.

All right, we are here, and today we're going to be talking about segmentation. Now, you may say to yourself, oh, I know all about segmentation. We do it all the time.

But I'm going to break down basic segmentation and things that you absolutely should already be doing.

But then what I call super segmentation, because there are things that you can do to segment that can totally transform the performance of all of your marketing campaigns, whether you're a business marketer or a consumer marketer.

And what got me going on segmentation, I was listening to a podcast this week, and I listened to I can't even tell you how many marketing podcasts every single week. I'm always trying to learn stuff. And one of these podcasts was about segmentation, and it had this stat.

It said something like, by doing segmentation in your marketing programs, it can increase your ROI by 200%. And I was like, okay, what do I do with that? I can't take it.

When you listen to some of these podcasts or webinars or whatever, and I don't care what the topic is, and they give you a generic stat, and there's nothing that you could do tactically behind it, you're like, why? So what? So that's not what I'm going to do. I'm going to share with you very specific things that you could do in segmentation for first basic.

And then we're going to get to super segmentation and stuff that you really may want to try that you probably haven't. So first off, what is segmentation? What is it? Basically, it's this.

Segmentation and marketing involves dividing your database into smaller groups based on shared characteristics like demographics, behavior. Maybe it's firmographics. It could be people are golfers. It could be the company size in a business database.

It could be the grouping of people in a certain industry. It be could. It could be the grouping of people of a certain age on the consumer side. That is how we're segmenting.

There's all sorts of different segmentation.

Now, one form of segmentation that you absolutely must be already doing, and I would categorize this in the basic Segmentation bucket is in the world of email is emailing to people that aren't opening the first send. So when you send out an email campaign, this is so basic.

And if you're not doing it, you probably want to stop listening and put something in place to do this like immediately. All right, when you send out your email campaign, let's say you get a 35% open rate. 35% out.

Out of you send out 100,000 emails, 35,000 people open it. 65,000 people don't.

You better be sending an email to the 65,000 people who didn't open up that first email in the next two to three days trying to get them to open. That is super basic.

And there's a stat that I do think most marketers are ignoring that I think is a no brainer that you must be doing for email newsletters specifically, you should not be sending out your email newsletter just one time, right? You send out your email newsletter, let's say you send it out on a Friday. Business, consumer, I don't care.

All right, you send it out, you get a 40% open rate. Great. What about the other 60% who didn't open it? What you want to do? And here's the stat from the last six months.

If you send out your newsletter a second time to non openers within 72 hours of that original send, we see the overall open rate increase for the entire newsletter send for those two that week increased by over 30%. So you must send out your newsletter a second time. Your newsletter takes a lot of effort to make and you don't want to just send it out once.

It's ridiculous. People opted in for your newsletter. They want the information, they just missed it.

And when you do that newsletter send to people who didn't open the first one, you must use a subject line that directly speaks to the fact that they missed the first one. So you send it out on Friday with your regular subject line, whatever you're sending out, business, consumer, doesn't matter.

And then on Sunday you send out an email with the same newsletter, exact same newsletter, but the subject line will say something like you missed it, exclamation point. Or it might say, did our last email get lost in your inbox? You want to make sure that that subject line addresses the fact that they missed it.

And they're like, oh yeah, I did miss it. I do like this newsletter. I'm going to check it out. So to me that's basic segmentation. Sending to non openers.

Other basic stuff is What I described earlier, demographic income, homeownership. On the business side, it might be their job function, it could be the size of their company, enterprise, mid market. That's very basic segmentation.

But let's get into what I would call super segmentation. These are things you might not be doing. A lot of marketers, business and consumer, try to market to their databases and call them VIPs.

But the reality of it is you're really not carving out who your VIPs truly are. And if you do, business and consumer, game changer in terms of performance. So let's first talk about business carving out your super VIPs.

If you isolate out, let's say you use webinars, right? Webinars are one of the big content plays that you do and you have people that attend your webinars. Here's a stat that's going to blow your mind.

All right, that we just came through after six months of analysis. People that stay for at least half of the webinar convert to customers three times greater than those who only stay for the beginning part.

So if somebody stays more than half of the webinar that they attend. So we're looking at webinar attendees specifically, if they stay for more than half the webinar versus not staying for more than half the webinar.

So the people who did stay longer convert to customers at a 3X. That is wild. So why does that matter?

In terms of segmentation, if you go back to all of your data, all right, and you look at all the different webinars and then you pull out the people who attended for the longest period of time, because a lot of people bail. They don't always stay for the whole thing.

But the people who stayed for the longest period of time at the webinars that you're putting on, you carve them out as a set segment and you email to them specifically. Maybe it's a one off emails that your salespeople start to email to, but you carve them off specifically and you talk to them in a very specific way.

These are truly your VIP prospects, right? These are people that are really interested. So webinar attendees are not just a bucket. There's buckets within the buckets.

Now, on the consumer side, you also want to stop grouping all your current customers into one bucket, right? You take, okay, let's market to people that have bought in the last 12 months versus people that haven't bought in the last 12 months.

No, those aren't your VIPs, right? That's not really? Segmentation. There are micro segments of VIPs that are awesome.

One of them, and this stat is also awesome, okay, is focusing on your most frequent buyers. Now, this is not the people that are spending the most money. This is not even the highest lifetime value customers that you have.

These are the people that are buying from you most frequently. And here's what we found.

We found that if you isolate out the top 5% of your most frequent buyers, the likelihood of them purchasing a new product, when you announce a new product announcement of any kind, is five times greater than any other customer segment.

It's five times greater likelihood that these people, your most frequent buyers, your top 5%, most frequent buyers, will instantly buy that new product that you put out there. These are your VIPs.

These are people that you need to handle because basically what's going on is they feel like they're in a loyalty program without even being in a loyalty program.

And so you want to handhold these people, you want to give them special stuff, you want to get them on social media, talking about your new stuff, give them special treatment because they love what you're doing. Here are a few other ones to think about that I think are super cool that I don't think most marketers are carving out.

And if you do, I think you'll see performance on the business side. Length of customer. So let's say you're able to isolate out people that are renewing with you that are buying your product or service.

Again, there's a big difference between somebody who's renewed for the first time, they're now a two time customer essentially versus somebody that's now celebrating their fifth anniversary, they're renewing for that fifth time. Isolating out people that are very long standing customers on the business side is huge because you want to make sure they feel loved.

You want to make sure that you are paying as much attention to them as the day that they started.

So looking at the people that are with you five years, six years, seven years, and carving those out specifically and talking to them in a specific way is a win. Another one on the consumer side is anybody that gives you a positive review.

If someone goes ahead and gives you a positive review, what we found is that there's an extremely high correlation that those same people that live leave reviews are also very active on social media. They're the ones posting on social media.

So what you want to think about doing is carve out the people that are giving you reviews, if you have that data, and then give them special content Give them special information and encourage them to share on social because these are the people that have the social followings and, and these are the people that can get the word out and they like what you're doing. Product reviews, direct correlation to very active on social. So those are some of the super segmentation things that I would consider.

Now, before we get to. Since you didn't ask, which you know is always bizarre and off the rails, I wanted to share that.

This podcast is exclusively presented by Marigold is my email sending platform. I love talking about Marigold because it has changed my business.

I'm a big fan of what they do and if you don't know them, you, you can go to their website. Meet marigold.com incredible email platform.

There's a stat in there that I thought was pretty wild and interesting that I'm going to do something with and we're going to dig into and it's random, but the stat I just pulled out today from, it said 84% of people think personalized birthday email offers are cool. I love that. Sometimes I get these emails on my birthday, around my birthday, and I'm like, does anybody else like these? And you know what? They work.

Since you didn't ask and for any new listeners, this is where I talk about things that have nothing to do with marketing business. I don't know what I'm talking about, but I have come to the conclusion this week. I've come to the conclusion that people are basically rude.

They, they are. Everybody's rude. I'm probably rude and I don't realize it, but people say things to me and I'm like, what is wrong with you?

So, like, this week we're out to dinner. All right. I don't know why waiters always drive me nuts. I was out to dinner, okay? And I was hungry.

Went to an Italian place, and I polished off whatever I was eating. I was hungry. What's wrong with that? I ate it all. Ate everything. So then at the end, the waiter walks by my table, okay?

And he looks down at our table, and he looks at me, and he says, everywhere at the table. We're out with another couple. And he looks at me and he goes, somebody was hungry, weren't they? And I'm like, what's wrong with you?

You're, like, basically calling me a slob at the table. Yes, I was hungry. You don't need to comment on the ability for me to eat all the food on my plate. I'm like, stop it. How do you not know?

How do you not know that? Another one, same night, my friend who we're out to dinner with, looks at me and goes, you look really tired. I'm like, screw you. Who asked? What? What.

How did. I got. I. I took a shower, I put on clothes. I go out to dinner. I think I look in the mirror. I'm like, I look fine.

And then I sit down, and my friend goes, you look really tired. I'm like, enough. Well, who you are? Or at work, someone said to me, I was on a zoom or whatever it was. And they. Somebody says, jay, smile.

Oh, don't tell me to smile. Do not tell me to smile. Who are you? Stop telling me to smile. And then the last one that's on my mind. And I don't think this is a rude thing.

I just think it's dumb. I don't know what else to call it. Everything drives me crazy, but this one really drives me crazy. Maybe this happens to you. I think it's so weird.

Somebody says to me, they're eating something, and they're, oh, this is disgusting. This tastes horrible. You have to try it. This tastes horrible. Try it. And I'm like, why would I try it if it tastes horrible? I like it's.

You've tasted it. It's horrible. We've established that. I don't need to also establish it's horrible. We need to stop the. It's horrible.

You need to try it because it doesn't make any sense. It's the dumbest thing in the world anyway. Yeah, that's what you get when you listen to this podcast. So please leave this thing, review.

It's meaningful to me. I appreciate you. You all rock. Don't tell people to smile. And if I eat all the food on my plate and you notice it, just keep on going.

Just keep on going. It's fine. All right. Thanks for being here. You did it. You made it to the end. Nice, but the party's not over.

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