Effective Customer Segmentation For Your SMS Campaigns

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In some of our earlier posts (like Best Practices For Running Effective SMS Campaigns), we discussed the technicalities and best practices needed to run successful SMS campaigns, but we also focused on how to write great content in posts like Are You Sending The Most Effective SMS Coupons?“, and Creating Great Call-To-Action Text For Your SMS Campaigns“).

We then noticed that we were missing something important: How to choose the right targets for your messages? In this post we are going to discuss how to do a successful  Market Segmentation, so you can better target your messagesincrease your ROI, and minimize opt-outs at the same time with each new campaign you make.

Use Your Current Data

Take your CRM and gather every piece of information you can: Demographics (like customer age, gender), geographic location, but above all: purchase history.

Create initial groups based on the information you have at hand, anything will work as a first step and can be later refined based on more information. Design your processes and customer journey so you can gather more information as you go, try to picture where you want to be in the future in terms of relevant information that you might need in your next campaigns.

Demographics will be a great start for creating your groups, but nothing beats the purchase history and logs of your customer’s activity and engagement. With more information about your customer activity, you will be able to create better and more accurate segments.

Gather More Data

Being smart and creative is a must when finding ways to gather new and significant data about your current or new potential customers. Creating contests, surveys, polls, or just giving away stuff in exchange for useful information might be a good investment to refine your groups and customer segments.

Imagine the best case scenario where you would have all the needed information to create marketing campaigns for your products and services, and try to come up with a roadmap that will take you there. Perhaps your CRM might need to improve, or perhaps your processes. Make it happen! Your own business will always be the best possible source of information.

Create a VIP group for Loyal Customers

Everyone likes to feel special, so make sure that you give love to your current customers by creating a specific VIP group based on their purchase history, so you can send them special offers on what they truly want.

Your CRM is key to get the right kind of information and should be able to give you the reports you need, based on products and specific information from your customers.

Building a successful loyalty program will really pay off in the end. Current customers are much more likely to do new transactions, but also the investment needed to get new customers is significantly higher than the one needed to retain your current clients.

Create a Buyer Persona

Buyer Personas are a great way to get to know your typical customers in each group. Invest some time in creating a customer profile for each one of your groups and then think about their reactions to your messages.

Try to picture if your messages will be useful to those specific customers, and how to increase their interest in your products based on specific keywords or phrases. Every persona should be a different type of customer, some will be younger, others will have better incomes, some will be parents, etc, so it really pays off in the end to get a deeper insight into all of them.

Execute, Measure, Regroup, and Loop!

Once you’ve put together your SMS campaign, launch it, and be ready to track and measure the results. Pinpoint what worked great and what didn’t. Learn from your mistakes.

It is very probable that you find that some of your groups didn’t work so great, and that’s fine, this is an on-going process. Try to spot the areas where things could be improved, and adjust your texts and your customer groups accordingly over and over to make sure you are sending the right messages to the right kind of people.

The more you can experiment and gather new data to refine your groups, the better your results will be, and as a result your ROI will improve dramatically.

— The PortaText Team.