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Increase Revenue 8% Overnight With Hyper segmentation

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Eric Vardon
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80% of consumers are more likely to purchase from brands that offer personalized experiences. 

It makes sense.

Who wants to feel like a number in a database?

However, you don’t achieve that level of trust by blasting everyone with the same promotion.

Each customer is different. Very different.

Think about their interests, values, demographics, psychographic, etc. 

Providing them content, offers, and value that’s tailored to all of these little things makes you memorable.

It builds trust, empathy, and shows you care.

Compare this to what some companies do (non-personalized campaigns) and it’s a night and day difference.

You’ll also be rewarded with loyal customers, more sales, and enhanced campaign performance. 

It all begins with hyper segments. A.K.A very small group of customers that are organized based on their unique behaviours.

Let’s talk more about what these are and see real-life examples to learn from next.

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What are hyper segments?

Let me give you a quick refresher.

Hypersegmenting is the process of breaking down audiences into small groups.

How are they divided?

Through behaviours, traits, and demographics.

This information can be used to send targeted offers and campaigns which yield higher conversion rates, click-throughs, and blow KPIs out of the water.

To further clarify, look at these hypersegmentation examples:

Hypersegmentation marketing examples

These are practical real-world examples of how organizations use hyper segmenting to personalize campaigns and discover winning marketing strategies.

Royal Canadian Mint

The Royal Canadian Mint creates and distributes all of Canada’s coins.

And, yes, us Canadians do call our dollar coins Loonies!

There’s also a lot of people that are passionate about collecting coins (especially discontinued ones). So much, in fact, that the Mint decided that it wanted to understand the behavior of these consumers to create up-sells and cross-sell strategies.

Here how they did it…

First, they looked through their existing customer base like a detective. The Mint searched for segments and patterns they could easily identify This most notably included customers most likely to purchase new coin designs.

The second step was developing a model to find customers who were most likely to spend more in the future. They combined historical and live data to find customers most likely to spend $1,000 on coins on a 12-month horizon.

Make sure to read our article on getting started with predictive analytics to learn more about this process.

The Mint then spent time organizing the highest performing segments and creating messages that would resonate with them on a deep level.

All of this research resulted in 140,000 new customers being added to their database. They also became better at predicting customer behavior and collected 15% more prospects for major coin purchases.

BustedTees

The t-shirt brand BustTees had customers all over the world. Do you?

If so, you know that such a wide audience can cause confusion. You can’t send promotions to everyone and get good results. 

Instead, narrowing down each group and providing them customized products maximizes sales.

That’s why BustedTees wanted to streamline their top revenue generator–email marketing.

The plan was simple: segment users based on time zones and open times to increase their email marketing reach and performance.

This began by first segmenting their large subscriber list by time zones. That was great. But, General Manager Adam Schwartz said “Despite this achievement, we recognized that we were still falling short of our personalization goal … we were still treating every subscriber in a given time zone the exact same.”

So, they also tested the best time to send the email based on open time. 10:00 am to 1:00 pm was the sweet spot.

Using these factors to hyper segment their audience helped BustedTees:

  • Increase email revenue by 8% overnight
  • Increase response rate by 17%
  • Increase CTR by 11%.
  • Increase site engagement by 7.6%

Air New Zealand’s travel emails

Travel is a tough industry.

It’s very competitive and moves faster than a cheetah.

That’s why Air New Zealand searched high and low to find a way to connect deeper with their customers.

The answer?

Segmenting.

The airline company leveraged personalization software to customize pre-flight and post-flight arrival emails to passengers. 

The subject line, imagery, suggestions, weather, and content were all tailored to the individual customer’s journey. 

This provided recipients with the most value to enjoy their trip and prevented them from having to perform this research themselves. 

The airline provided a link to an in-house program that offered further information to customers, too. That resulted in more data to personalize their email marketing.

So, what did all of this do? Firstly, pre-flight emails achieved an impressive 69% open rate and 38% CTR. Post-arrivals were very similar, coming in at 62% and 40% respectively.

They received thousands of social comments and tags which helped create a viral effect, as well.

Conclusion

We’re not far off from offering individual experiences to each customer.

But, for now, we need to hyper segment.

This is the breaking down of our audiences by behaviors and traits so we can deliver them personalized and delightful experiences.

It can take loads of time and tons of elbow grease, though. You have to dig through analytics, perform tests, and have the patience of a saint.

Or, you could try Morphio today for free. Our marketing security software runs in the background to find the most (or least) profitable customer profiles. Use these to improve targeting and campaign performance without all of the headaches.

Eric Vardon Profile image

Eric Vardon

CEO, Co-Founder @ Morphio

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