Commentary

Key Areas of Segementation Opportunity

Great panel of marketers talking about segmentation. Where do they use it? What decisions do they make?

Vince from 24Hour Fitness: Primarily using segmentation at onboarding/welcome and again when the subscriber is "at risk." At risk is defined for them as someone who is not visiting the gym. Talked about the risk to 24-Hour of "waking up the sleepers" by sending emails for those who are not using the gym. While some will respond well, we are maybe reminding others that they find no value in the product. Vince says that these folks get invoices every month anyway, so that the sleepers will wake themselves up -and email is a geat way to re-engagae with the product, not just the email program.

Brad from Northwest Airlines. Also uses specific messaging for new members. Defines "new" as in first flight (paid), new to loyalty program, new to credit card. Separately, he has an interesting program around customers who are so active and loyal that they have so many points and now don't want to pay for anything. "And we love them," Brad says. He uses a DREAM database from Epsilon that taps 350+ datapoints and creates profiles around each subscriber. You don't have to pull lists, he says. You profile customers and understand counts. You can understand how trumping happens (if one customer is on more than one list) so you can sanity check it. "This is segmentation on steroids," he says.

Sal from Publisher's Clearinghouse. Primarily using segmentation around the dead wood. If they've hit the 30-60 day period and there is no activity, in terms of conversions or pageviews, then this subscriber has limited value, and gets dropped. We also care about this because our brand is important to us - we want our brand to have high value and recognition and not be diminished by overmailing.

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