There’s segmentation, and then when you bring RFM in, you get Segmentation+. The understanding of your customer database becomes supercharged. The aim is ensure you know as much about the “who”, so that when and how you send messages (whether via email, text, social media) to your customers, you achieve higher open and conversion rates.
RFM (Recency, Frequency, Monetary) will allow you to segment your customers in a new and more insightful way. You can divide your database many different ways. The key is finding one which will infuse your marketing campaigns with the most valuable amount of actionable knowledge as possible.
But that’s only half the battle.
The question is: once you know as much as possible about your customers (who they are, what they buy, how often, and when it comes to email marketing – what they read and across which channels), how do you use this information?
That is up to you.
Now might be a good time for a marketing audit.
If understanding the audience is one side of the balance sheet, then knowing what to do with this should determine all marketing strategies from now on.
Why does 86% of email go unread? Think back to the last email you received that was irrelevant to you. Did you read it to the end? Check out this Case Study on how to re-capture your audience’s attention in your own campaigns.
Creating suitable brand assets for the different segments – those with different RFM values, customers at different points in the buying cycle, and for the numerous personas – isn’t easy. Tim Roe of E-consultancy emphasizes the importance of this: “The consumer now expects to see only what they want and is becoming increasingly intolerant when that doesn’t happen.”
Hence, a marketing audit, is useful, before proceeding.
Examine the following:
People are your greatest assets. If you’ve never done anything like this before, or rather, you have, but now you are determined to go about this the right way, then you should review your team first. How adaptable are they? How strong are they when it comes to creative skills? Are they good with numbers and analysis? They need to be. An ideal combination is a team with creative, numbers and project management skills. The same should be said of any external agencies you deal with.
Software. Do you have the right software in place to manage and monitor and multi-channel email (and other channels: mobile, social, advertising) marketing campaign? Are your analytics in place? Can you successfully pull data and campaign materials from a CRM (e.g. Salesforce), based on sentiment analysis (Attentive.ly), into multi-channel email management software (e.g. MailChimp)?
Goals. Are your goals aligned with the abilities of your team? Are you assessing long, medium and short term goals effectively? Are your goals and brand values aligned?
Budget. Do you have the funds to experiment? Not just implement, but test theories. Can you invest in the short term to achieve long term goals?
Leadership. And most importantly, you need traction. In order to get traction you need internal buy-in from your team, from any agencies or other parties you need to engage with. But above all of that you need sign off and latitude from leadership in order to experiment, test and run with new strategies.
Once you know where you stand, with people (internal and external), leadership, funds, software and goals you are ready for the next step: implementation.
Attentive.ly is a social behavior platform for elite marketing teams. We help brands and organizations predict how customers and supporters will behave – even what they might do or buy – from social data. It has been used by over 100 companies and organizations to improve thousands of email marketing and social media campaigns.