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Segmentation and its effects on Direct Mail

September 22/2014

Segmenting data is a key component in any direct mail strategy. Think of is as separating the “Can Buys, from the will buys” The idea here is to focus on the will buys for each campaign. Keep your focus on the targets with the highest propensity to buy from you.

Segmenting will result in smaller more targeted campaigns vs the more generic higher volume projects used in the past. This trend will generally add more per unit costs to your campaigns, but will yield a better return on your overall investment.

There is a process called predictive analytics can help you identify your best customers and take the guess work out of identifying your best targets. This process involves reviewing customer trends and buying cycles. Group clients with similar behaviors and habits together and tailor your messaging to best communicate your offer to this group.

By having a better understanding of your customer base, predictive analytics and segmentation ultimately lower costs and improve the ROI of your direct marketing programs. It will help provide your sales force with actual leads rather than just responses.