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4 Simple Segmentation Mistakes to Avoid

“Consider your audiences… It is important that, at a minimum, you think of your goals as objectives that are relevant to each one of those groups.”
– Eric Thiegs, Chief Revenue Officer, National Gift Card

Segmentation came into the business vernacular in the mid 20th century because of an exponential increase in overall market size due to improved transportation systems, leading to larger supply chains. Large scale production meant manufacturers could mass produce varying products at differing prices points, therefore appealing to varying segments of the population based on things like demographics, for example. With the technological penetration of the last half century, there is an increase in segmentation across business processes-marketing, sales, channel- and also a shift into even more targeted segments within these processes.  Targeting your segments can increase profits by:

  • Communicating and better understanding your specific audiences.
  • Determining profit potential of your specific audiences.
  • Making data driven strategic decisions.

“Anticipated, personal, and relevant messaging always does better than unsolicited junk.”
Seth Godin, Author and Entrepreneur

However, profitability never comes easy! These are four general mistakes to avoid when defining your audiences:

  1. Using disorganized or inconsistent data. Sales and channel data come in voluminous amounts, especially while using a pro platform. Over time, your data accumulates, and it becomes tedious determining which program metrics matter most and which data best measures your performance and goals. Lacking consistently defined metrics will lead to inconsistent results. With segmentation, organization is directly proportional to efficiency. Furthermore, it’s difficult to reuse or locate inconsistent data, or the system you use may flat out reject it.
  2. Not aligning segments with your overall program and business goals. Segments or audiences should be created purposefully and be aligned with your program priorities. Simply put, this is a strategic decision and not an arbitrary one. Be aware of the cause and effect relationships of the moving parts in your sales channels and define then properly to reap the benefits.  Keep in mind that previous success is not necessarily an indicator for future success therefore keep your audiences dynamic and consistent with your goals.
  3. Discounting engagement times. As previously stated, segmentation isn’t utile without appropriate data and then identifying your target audiences using this information. Actionable insights only come from touch points where segments engage with your promotion or program. So, if you’re not catching your groups at times when they are online and taking quantifiable actions, data tracking is limited and segmentation will not work.
  4. Segments created with little or no data. Segments created with no data are not much more than educated guesses. This puts your program in peril of being influenced by assumptions instead of your numbers, which can lead to erroneous correlations, unmeasurable results, and estimations.

Fix these mistakes, and you’ll be on your way to having a highly successful channel incentive program. Target your specific, relevant audiences and leverage your data to maximize the impact of your sales, marketing, and channel programs now.

WorkStride’s channel incentive software provides industry-leading promo building and segmentation tools that allow you to target promotions and communications to specific audiences based on program data. Schedule a demo to see it in action!

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