The Seg-O-Matic … It slices, it dices, it improves your response and blows up your ROI.
Alright, I know I sound like a bad '70's, Ron Popeil infomercial. But, hey ... that cat knew how to sell!
Seriously, folks ... segmentation is all about slicing and dicing. Here's an example:
We have a client who is rolling out a new interest checking account. Like many other smaller institutions, they previously only offered Free Checking and are now expanding their product line with the hopes of acquiring more checking, increasing retention and increasing services per household.
In the span of a 10 minute conversation, we had 7 target segments:
- Members who qualify for new product - Move them into it
- Members who qualify by balance but missing ancillary product - Motivate them to open more services to step into the new checking (this segment could have been more than a dozen individual segments is we focused on exactly what they were missing)
- Those who are close in average balance - Increase balances/retention
- Members who have required balance in deposits but no checking - New checking/retention
- Non-checking with loans - New checking, focus on convenience of online banking
- Non-checking without loans - New checking
- Acquisition - Self explanatory (this could also be countless segments, but this SEG-focused institution has access to a very targeted list)
So there you have it, an instant strategy for product roll out by simply considering who the product affects, what each segment needs and what those needs have to offer to your objectives.
This client has fewer than 8,000 members, so it would have been easy to create a postcard to sound the trumpets and proudly proclaims the coming of "The Greatest Checking Account in the History of the World." (Could you hear the echo when you read that?!?!)
We could have printed 8,000 pieces, used "Dear Member" as the salutation, mailed them out, sat back and counted new accounts. But our clients (and your members/customers) deserve better than that.
Segmentation goes far beyond the "haves" and "have nots." Consider your target's needs, how they use you and how you want them to use you.
The more targeted you get, the more personal you get. The more personal you are, the better you can:
- Speak to specific needs
- Focus on specific calls to action
- Address different objectives in one campaign
The goal is to get as one-to-one as possible. In our example, there were only about 50 members who qualify for the account today. They could easily be called at home in a few hours.
Once you've sliced and diced and analyzed your segments, you'll have a better feel for what tactics you can use to communicate with each. Does your culture fit an external call effort? Can you trust your team to send personal letters? Can you create a process that looks more personal but still takes the responsibility off the front line staff? Should you?
I believe that everything can be prioritized. Once you have a feel for the quantities in each segment and how those segments like to use your institution, you can use this list as a guide:
Hierarchy of External Conversations
- Personal phone call
- Personal letter from relationship manager
- Postcard direct mail/email specific to the segment
- Mass media
But Wait … There’s More!
How much would you pay to increase your response rates?
But wait ... there's more!
Not only does the Seg-O-Matic give you personalized conversations and more meaningful calls to action ... it also allows for better campaign tracking. Yes, my friends, you get it all ... a one-to-one conversation, more objectives met, the power to know which segments respond and which you need to tweak. Now how much would you pay?
But hurry, this strategy is not sold in stores. It's available to you only for a limited time. Call today!
We bring these marketing philosophies to credit unions and community banks nationwide, and would love to bring them to your institution too. Contact us to see how.
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