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How a top financial services company improved marketing ROI with better segmentation.
Creating more targeted segments leads to double-digit increase in engagement.
A large financial services company asked Radius to build segmentation for their customers and prospects that could results to more focused targeting and a better response to their marketing programs.
Typically, organizations use demographics, behaviors, and needs/attitudes as the three main avenues for building segments. None of these, however, provide the well-differentiated characteristics that explain the “why” behind actions, and make it difficult to target customers and prospects in marketing initiatives.
Radius suggested the financial services company deploy our Targetable Segmentation approach, a unique solution that creates more meaningful differentiated and identifiable targets for marketing purposes.
Here’s how it worked:
Step One: Survey Measures Attitudes, Motivations, and More
- A survey gathered a range of critical information such as brand familiarity, usage, and satisfaction
- Ratings for 40 items were collected in terms of attitudes, behaviors, and motivations related to finances, as well as financial literacy
- Triggers and influencers that impact behaviors were also measured
Step Two: Micro Segments Created Using Database
- The company’s database of customers and prospects was then integrated with the survey results, allowing more than 355 micro-targets to be identified
- From this “micro-segmentation,” six overall segments were created for marketing purposes
- This Targeted Segmentation approach allowed the company to simultaneously differentiate its audience based on both their marketable traits (attitudes, needs, behaviors) and their targetable traits (database variables).
- These targetable segments were integrated across the entire company’s database.
The financial services company now has the ability to quickly and efficiently target segments in their database with messaging and offers that speak directly to their needs. The first three direct marketing campaigns based on Targetable Segmentation showed a double-digit improvement over the previous campaigns. Significantly, functional teams throughout the organization now use these six segments to guide their planning and outreach efforts including marketing, digital, design, technology, and finance.
Targetable Segmentation is the Radius proprietary approach that ensures an optimal mix of attitudinal and behavioral insights is integrated with database information. While this approach is methodologically neutral, it almost always includes qualitative insights to enhance quantitative segment creation.
To learn more, download our report.
Want to discuss how Targetable Segmentation can add value to your targeting and marketing strategies? Contact us.