Introduction

Rather than send messages out to your full customer database each time you are running a campaign, it is much more effective to segment your customer database and send targeted messages to each group. You can segment your customer base any way you wish, demographics, location data, preferences, website activity or previous purchases.  The idea is that you are sending targeted messages to each segment which will increase the likelihood of them responding and redeeming your offers.

SMS is a perfect vehicle for sending targeted messages to your customer segments due to its instant delivery and 98% read rate. I’ll say that again, 98% read rate, this outstrips all other forms of marketing and leaves channels like email marketing trailing in its wake.

Try Sendmode’s easy-to-use Bulk SMS service with our unique Customer Segmentation SMS solution. Click on the image below to start a no-obligation free trial.

What is SMS Segmentation?

SMS segmentation is the process of dividing your target audience into smaller, more specific groups based on certain criteria or characteristics. This is for the purpose of sending more targeted and personalized marketing campaigns which are more relevant to them.

Personalizing SMS Marketing campaigns to your customers preferences are widely known to improve engagement, increase brand loyalty increase conversion rates, and enhance customer satisfaction.  If you would like to know more about how personalization can increase response rates for your SMS Marketing campaigns you can check out our article on the subject here.  https://www.sendmode.co.uk/personalized-sms-marketing-why-its-essential-for-your-business

Best Practices for SMS Segmentation

You can divide up your customer base in lots of different ways, here are a number of typical ways you might wish to segment them.

1. Demographics:
   • All CRM systems will carry information about your customers which you have collected over time such as Age, Gender, Occupation, Income Level. You can send tailor your offers to different groups based on criteria for example ‘Hi [NAME], Our latest range of laptops is perfect for doing business on the go, check them out here [WEBLINK]. Ohh and we’ve given all [OCCUPATION], 20% off’.
2. Geographic Location:
   • If you know a group of customers are close to a certain store, maybe you could send them a time based offer for that store ‘Hi [NAME],  Until 5 p.m. only at [ADDRESS], we have 20% off all winter sports items’]
3. Behavioural Data:
   • Behavioural data is another excellent way to segment your audience as they are telling you what their preferences are through their past purchases, website activity or browsing history. For Example, ‘Hi [NAME], we know how much you love [PRODUCT RANGE], here is a 20% voucher for the latest release of [PRODUCT]. Click here to redeem, [WEBLINK], Thanks’
4. Interests and Preferences:
   • We are all creatures of habit and tend to like and buy the same or similar things time and again. You will know what your customers have previously purchased, and this provides valuable insights into what they might like to purchase in the future. Consider a segment for Soccer fans, each year the new strip comes out and as they have previously purchase you can segment and send a targeted message such as ‘Hi [NAME], New home and away strips are now in stock and we are giving 30% off to our loyal customers this week. Click on the [WEBLINK] to redeem’.
5. Timing:
   • Some customers may have specified what is the best time of day to reach them with offers. This is invaluable as its gives you the best chance of reaching the customers when they are possibly nearby and can respond to your offers.
   • While we are on the point of timing, even if your customers have not given you this information, do not send SMS Marketing messages at inappropriate times such as before 10:30 a.m. or after 8 p.m.  You will simply annoy your customers, and they will start opting out of your service.
6. Engagement Level:
   • You will know from your sales records who your active vs. inactive customers are. This allows you to tailor an offer to try to re-engage some of your inactive customers and reintroduce them to your great service. Remember that SMS is a great way to do this as it has a 98% open and read rate.

Create as many customer segments as you need with Sendmode’s SMS Service. Click on the image below for a free trial.

Further Examples of Effective Segmentation

Let’s say you run a clothing store. You may segment your audience as follows.

• Segment A: Customers who recently purchased winter sports gear. Send a message about the latest arrivals for winter.
• Segment B: Loyal customers with high purchase frequency. Send exclusive offers or VIP special opening hours or an invitation only event.
• Segment C. Customers who have lapsed. Send an exclusive offer to re-engage with your brand. Make sure the offer is a good one and worth their while coming back into the fold.  Use remarketing techniques to re-engage with these customers. We have written an article specifically about this. If you would like to read more please visit https://www.sendmode.co.uk/sms-remarketing-strategies-best-practices

By carefully considering how to segment your audience, you and your business can really maximize the effectiveness of your SMS marketing efforts. And don’t forget to personalize the message. Note how we have ‘Hi [NAME],’ at the start of all the examples above.

Conclusion

Segmenting your customer base into smaller groups will provide an opportunity for you to send more targeted and relevant SMS Marketing messages to them. This will increase engagement, retention and ultimately response and redeem rates.

Why not try Sendmode’s easy-to-use SMS service, segment your customer base and start seeing responses in minutes. Click the image below to start a no-obligation free trial.