When flipping through the mail or browsing our email inboxes, most of us have become all too familiar with impersonal marketing materials, which have little or no relevance to us. But what if we received information, say, from our bank, that spoke to our current interest in refinancing our home or getting a line of credit to pay for our kids’ college education?
To increase the profitability of marketing efforts, and avoid losing current and future customers, financial institutions are increasingly taking advantage of sophisticated segmentation to more effectively reach target audiences.
Getting real value from segmentation
As a starting point, businesses can use data mining to separate customers into customized groups based on demographics, attitudes, buying behavior, and more. However, this approach is rarely enough to ensure you align the right message with the right people, at the right time. To increase marketing effectiveness and boost potential ROI, companies should develop a predictive analytics program to target messages with more precision.
In a recent article for the ABA Banking Journal, Beyond the Arc CEO, Steven J. Ramirez discussed effective ways to segment and reach out to customers in the most profitable way possible. If financial institutions want to build stronger customer relationships, they need to offer customers the most relevant products and services. In doing so, even mass mailings can help make each customer feel like the message was tailored directly to them.
In his article, Steven suggests two particularly effective approaches that can yield successful results:
1) Value-based segmentation: Which customers are most valuable?
2) Vulnerability segmentation: Which customers are most likely to leave?
To learn more about how you can grow your company through more profitable marketing using customer segmentation and data science, check out the full ABA article.