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SEGMENTATION – WHY IT SHOULD BE A PART OF YOUR PLAN

Segmentation should be a part of any financial company’s marketing plan. This strategy allows you to divide your broad target audience into smaller sections of consumers that have showcased common needs. After all, you can’t expect that everyone in a large group will have the same expectations, so you shouldn’t be selling to everyone in the same way.

Once you’ve properly segmented your target market, you’ll have a much clearer idea of how to promote your offerings to those populations, as you’ll know which products and services would be most relevant to them.

ENHANCE YOUR MARKETING EFFORTS WITH SEGMENTATION

Whenever you segment a target audience, you’ll be breaking that market down into smaller, manageable sections so you can boost sales, improve customer service, and make your promotional efforts more efficient.

Generally, businesses can segment their market based on things like demographics, geographical location, psychographics, and behavioral data. But banks can also segment their market into non-customers, low to high value customers, and former customers, as a few examples.

  • Non-customers are individuals who are currently using other banks, but they could also include young consumers who have yet to open their first bank account. You can connect with this market segment by providing special introductory offers and finding ways to differentiate yourself from your competition. If you can prove that you’re able to provide more value than other financial companies, you might convince customers to make the switch, as well as establish long-term relationships with new banking customers.
  • Low value customers might include those with a lower income and a reduced need for financial products and services. However, this segment could also include individuals who are spreading their savings across multiple banks. These customers would need to be convinced that they should invest all of their funds with your company, as well as grow their small savings into larger investments.
  • Individuals who are considered medium to high value consumers could include those who have significant investments with your competitors. You could try attracting these consumers with special deals, but you’ll need to work harder to differentiate yourself and prove your value.
  • Former customers could include those who have switched to another bank and closed their account with you, those who are no longer using banks to invest their money, or those who have become inactive with an existing account. It’s a challenge to re-engage this audience, but if they switched because they were dissatisfied, you might be able to get them back by offering a change in the way you do business.

Once you have a clearer picture of the various market segments that you’re dealing with, you can promote your standard banking services, high-end savings options, investment opportunities, loan options, and commercial products and services to the appropriate populations. Doing so will allow you to use your resources cost-effectively, as you’ll be targeting the customers that would actually be interested in what you have to offer.

DON’T NEGLECT THE BENEFITS OF EMAIL SEGMENTATION

Email marketing is an effective way to engage with your pre-determined segments and really let the personality of your organization shine. When done correctly, the ROI for this type of marketing could be greater than that of other direct response marketing options.

By combining an effective email marketing strategy with market segmentation, you can connect with customers in a way that will generate more sales. A MailChimp analysis showed that email campaigns that were segmented had a 14% higher open rate than email campaigns that were non-segmented. This is because email segmentation allows you to send relevant messages to the many different types of customers within your broad target audience.

You can segment your emails by gender, age, location, language, and past banking behavior, as a few examples. Make subject lines interesting to entice people to open your emails. But to help ensure click-throughs, include short paragraphs and bullet points to make the content easy to digest. You can even use images to illustrate your message in an engaging way.

MAKE THINGS EASIER WITH MARKETING AUTOMATION

Marketing automation is the use of software to streamline your marketing processes, including customer segmentation. It can also help you send the right message to the right customer at the right time. Just think, your emails can be segmented then automated to help move potential customer through the funnel in a more efficient and streamlined way.

In addition to improving your online and offline marketing efforts, automation can help you save time, avoid errors, reduce costs, analyze and tweak campaigns, and schedule social media posts so they’re shared at the most opportune moments.

More importantly, market automation software could give you the tools necessary to connect with your customers at the best point in the customer journey or sales funnel. Your lead list could also become more targeted, and you could have an easier time achieving more sales while decreasing your lead conversion time.

PUTTING SEGMENTATION INTO PRACTICE

In the end, segmentation is all about learning more about your customers and then offering them exactly what they need to enhance their banking experience. After all, a brand new customer would have different requirements than someone who has been banking with you for several years or someone who’s only interested in a loan or mortgage.

If you have any trouble with applying segmentation strategies to your financial business, contact us today for a free consultation.