Thomas Griffin — January 9, 2020 Improving your member experience will help you retain members on your site and reduce your churn rate. Segmenting your member base is a powerful but simple way to create better experiences for your members. Member segmentation is about categorizing your customers into groups based on certain characteristics.
When you have clear groups based on different characteristics, you’ll have the ability to improve your marketing campaigns. Segmentation can help your business grow in many ways. Let’s take a closer look at how you can segment your member base and support your business activities.
Create Personalized Content and Communication
By segmenting your members, you’ll stop approaching them as a single homogenous mass. When you know who your customers are and what they need, you can create personalized content that helps them.
Your members will feel more connected to your brand and will engage more. They’ll be more receptive to email communication and will support your social media marketing by sharing your content. Personalized email communication improves email open rates by 26%. When you segment your email list, your personalized communication also raises sales revenue by 50%. Segmentation improves personalization, which has a powerful impact on your business performance.
Example of a personalized email
Increase Satisfaction and Member Loyalty
Segmentation helps you create unique experiences that satisfy different members. Personalized communication, product recommendations, and other interactions will build satisfaction.
When your members know that they’re getting better service and support from your business, they’ll prefer your brand over others. Segmentation enables you to build member loyalty to sustain your brand.
Better Marketing Efficiency
With segmentation, you won’t waste time sending irrelevant content to your members. You can segment your customers based on their activities and level of engagement. Send special events notices and offers to your most active customers to give them helpful information. You’ll also get the best response while saving time and effort. Segmentation makes it possible to carry out your marketing activities more efficiently. You’ll be able to divert your resources to tasks that need your attention, such as customer support and product innovation.
Retain New Members
A significant challenge that many membership businesses face is member attrition. By segmenting your members based on how recently they joined your site, you can send targeted emails to keep them engaged.
You can launch a drip campaign for new members with welcome emails, tutorials, and other helpful information. Acquiring new members is time-consuming and expensive. Keeping new members engaged and offering them timely support will help you retain them over time.
Focus on the Most Profitable Members
Member segmentation will allow you to identify those customers who create the most value for your business. You can focus on create marketing campaigns to deliver the best experiences for your most profitable members.
Member segmentation also helps you understand which members are leaving by tracking members with a low engagement rate. You can create special campaigns to re-engage these members to reduce the churn rate. It’s important to track and manage your site’s churn rate as acquiring new customers is more expensive than retaining the one you have.
Improved Cross-Selling and Increased Purchases
Existing customers and long-term members of your site can be more valuable than newer customers. One reason is that it’s cheaper to keep your current members happy than to find new ones.
Your existing members are also more likely to make frequent purchases and are receptive to cross-selling. Segmentation makes it possible to identify customers who are more likely to buy based on historical behavior.
You can segment customers according to their interests, demographic data and other information. Doing so will help you suggest the right product recommendations. You can also send special offers and discounts in anticipation for future buys.
Make Data-Driven Decisions
Member segmentation with the help of CRM tools and other software can help you reduce risk. With greater information about your customers, you can segment them and create targeted marketing campaigns that are more likely to work.
Segmentation can help you identify trends and behavior patterns in buying in different groups. You’ll also learn more about your members and their preferences. Such data can help you create product features that users want. You can also study your members’ responses to your campaigns and create benchmarks for future campaigns. Segmenting your members can give you powerful insights that will let you make informed decisions to grow your business.
Grow Your Membership Site with Segmentation
Segmentation is a simple but powerful way to increase engagement with your members. It also has a clear impact on your business performance.
You can segment your members using CRM and insights from your website’s analytics. Use marketing automation tools to help you create and deliver customized content. Personalization in communication and customized products matter today more than ever. People are inundated with marketing content and can choose from several of your competitors. Your ability to stand out rests on being able to build a relationship with your audience.
Trying to create personalization and building a relationship becomes meaningless unless you segment your member base. It’s an important starting point that will enable you to understand your customers. You’ll be able to cater to them more efficiently and can drive your business’s growth online.
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