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What All Email Marketers Want: Precise Email Segmentation
By Julie Graham / June 21, 2016

BlueHornet Introduces Advanced & Precise Email Segmentation with NexGen Commerce Segments

It’s no surprise that 45 years after business creation, world-renowned coffee brewer Starbucks continues to drive double-digit yearly growth numbers. Most recently at the end of Q2 2016 store revenue rose 7 percent, making it the sixth quarter of consistent growth for the well-known coffee roaster. Well done Starbucks!

So how do they do it? And why should us marketers care?

Starbucks owes much of its success to their loyalty rewards program that leverages precise and sophisticated list segmentation when reaching out to their customers. The Starbucks phone app started as a standard simple punch card, allowing customers to claim a free drink after purchasing 10 beverages. By watching their loyalty data closely, they were able to gain key insights on their customer base – far beyond simple money savings for customers.

In the past few years, Starbucks has continued to add ‘convenience’ features for their customers— that being the ability to order ahead and grab and go without having to pay in-store at the actual time of order (genius). Now 20% of all Starbucks sales occur via the app and pre-payment process. Through its loyalty program, Starbucks is able to track customers throughout their coffee purchase journey and provide products to them in a fast and easy way—a move that keeps both in-store lines moving faster and overhead costs lower.

Since its initial launch, the Starbucks loyalty program now boasts over 12 million active members, 900,000 of which recently joined in the first quarter of 2016. While many companies continue to put more dollars towards traditional online display ads, Starbucks took the road less traveled by focusing on cross-channel marketing technology capabilities to engage customers in both social media and mobile apps, both of which can be powerful sources of relevant data. This forward-thinking move ensured Starbucks’ success – even beyond achieving consistent and growing profits. Starbucks won Fortune’s ranking as the world’s fifth most admired brand in 2015. Wow. Talk about the power of segmentation!

Advanced Email Segmentation (“Hyper-Targeting”) Benefits More than Starbucks

Starbucks isn’t the only intriguing example in the precision email segmentation story.

Lyris found that 39 percent of marketers who segmented their email lists won higher open rates, and the Direct Marketing Association revealed that segmented and targeted emails generate 58% of all revenue. Additionally, these segmented emails deliver more than seven times more revenue than those derived from batch-and-blast sends.  Did you hear that? 7 times more money! (yes please!)

Precision Email Segmentation Made Easy

By now you surely understand the power segmentation and personalization can have on a brands success – but where does a marketer start? What platforms do and don’t offer such sophisticated capabilities? Is precise segmentation hard to understand and implement? Not to worry – we’re here to help! BlueHornet relishes in slicing and dicing our clients’ audiences in ways that result in higher revenue and greater engagement rates. (email geek alert)

That’s why we’re beyond excited to announce that we’ve developed excitingly new technology that will help create advanced segments in natural language, with real time counts on and in whatever quirky breakdown a marketer wants.

Introducing (drum roll please . . . ) NexGen Commerce Segments!

This powerful but simple tool allows BlueHornet clients to create an infinite number of customer personas based on demographic profiles and behavior.

To make it easy for marketers who may not necessarily be html experts, our developers have embedded sophisticated code into simple interfaces. It allows marketers to drag and drop attributes like action, date, frequency, channel, state, product ID, order value, quantity, product brand and type and more to create a simple sentence like:

NGCS example

 

The NexGen Commerce Segments drag-and-drop segmentation tool can help:

  • Companies with complex product catalogs add many traits to each product. It helps online retail stores segment by 12 different custom product attributes including category, type, SKU, class, size, brand, color, manufacturer and more. Specific identifiers make it easy for brands to change products and offers based on customer and/or segment behaviors, prior purchases and more.
  • Users easily target micro customer bases by location and cross reference with purchase history. For instance, an exclusive shoe manufacturer uses it to target individual store audiences across states and within cities. When certain weather conditions arise, including the appropriate footwear and content for the geographic location the recipient is opening their email in increases click-through rates and overall program sales.
  • Businesses with loyalty programs earn more revenue when they collect in-depth information on every loyal subscriber. With BlueHornet’s NexGen Commerce Segments, a well-known athletic apparel retailer offered carefully crafted, one-to-one discounts based on a 100-point loyalty score.
  • Businesses move inventory. Print companies use NexGen Commerce Segments to move its excess inventory of long sleeve, small sweatshirts with yellow and pink hoods. Offering their best prices to devoted customers helped them recoup investment in an otherwise under-performing product line.
  • Distribution costs dramatically decrease. With NexGen Commerce Segments, event product companies manage to sell out available inventory of tickets at different pricing levels as availability changed.

Clearly, email segmentation can reduce costs and increase revenue. NexGen Commerce Segments handles your most complicated queries while ensuring ease-of-use by leveraging natural language processing. Tailoring the platform to a marketer’s workflow and internal organization ends up guaranteeing the simplicity of an efficient launch.

BlueHornet designed NexGen Commerce Segments for the way marketers work and think.

Ready to see how NexGen Commerce Segments can deliver relevant, timely offers and content that results in higher revenue per email, click-through rates and engagement for your brand’s email marketing programs? Contact us for a demo today!

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