Embracing Inclusive Market Segmentation: Inclusion, Not Exclusion, Drives Success

By Braden Salas

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Marketing Coordinator

Market segmentation is a powerful strategic tool in the ever-evolving marketing landscape. The main goal of segmentation is to target the right audience with the right message for specific campaigns. Knowing where to start can be challenging, especially if you have a diverse customer or marketing file.

When working with clients on retention or reactivation campaigns, we stress having an inclusive mindset when building segments. What does an inclusive mindset entail? It’s about identifying the main groups of customers you have, including their needs and interests, to tailor messaging, imagery, and promotion accordingly. An exclusive mindset would send out a single piece of direct mail to everyone or leave customers out of a campaign instead of finding ways to connect.

In this blog post, we speak on this mindset of inclusive marketing and include some tips on building appropriate marketing segments.

Defining Inclusivity

Inclusive marketing recognizes diversity in terms of demographics and financial differences, but also in RFM data (Recency, Frequency, and Monetary value). Tailoring creative based on gender, income, and household type are all important, but you should be considering the last time each customer purchased, how much they spend on average, and how often they buy. Combined, this provides deeper, more meaningful insights into customer diversity.

Inclusive Mindset in Action

Take this example: A women’s apparel retailer is planning to deploy a direct mail piece to customers promoting their latest line. Excluding males and lapsed customers who haven’t purchased in 24+ months would be easy. For different reasons, both groups are less likely to respond to the same creative as the main target market.

An inclusive mindset thinks, “How can we alter the creative or promotion to increase these otherwise excluded groups’ chances of responding?”

On top of the original creative to your main audience, send different versions to mails and to those lapsed customers. For the males, send them a gift guide, talking about how these products can make the perfect gift for an upcoming holiday. For the lapsed customers, talk about how you improved the quality of your products and customer service since they last purchased, or give them free shipping to return.

Understanding and acknowledging this comprehensive picture of customer diversity strengthens connections, identifies new markets, and drives more effective campaigns, ensuring all customers feel valued and understood.

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Times Where Exclusion is Necessary

Inclusive marketing aims to include all customers, but certain data must be responsibly excluded for compliance and practicality reasons. Prison populations, deceased individuals, and minors should never be in your marketing campaign. Other groups might be necessary to comply with changing privacy or industry-specific regulations depending on your industry.

Before a major acquisition mailing, and periodically with your customer file, we always recommend a Data Hygiene pass. This service ensures clean, clutter-free datasets that comply with regulations. Timely data hygiene and thoughtful segmentation refine niche campaigns and ensure a return on investment.

Identifying and Catering to the Right Customers

Businesses can create highly targeted marketing strategies by dividing their customer base into distinct segments based on demographics, psychographics, or behavior. These strategies address the intended audience’s specific needs, desires, and pain points, increasing the chances of customer engagement and conversions.

Executing Niche Marketing Campaigns

One major benefit of inclusive market segmentation is the ability to implement niche marketing campaigns that cater to subsets of the overall customer base. Companies can efficiently allocate resources and focus efforts on the most receptive audiences, maximizing the return on investment.

Inclusivity should be maintained even when executing niche marketing campaigns. Effective communication and transparency are crucial in ensuring customers feel valued and included as part of the overall customer community.

Creating Inclusive Marketing Segments

  1. Identifying Ideal Customers: Market segmentation starts by understanding the diverse customer base and selecting the most promising segments that align with a company’s offerings and objectives.
  2. Customizing Marketing Messages: Tailoring messages that cater to the specific needs, preferences, and pain points of each customer segment, fosters deeper connections, and builds long-term loyalty.
  3. Offering Relevant Products/Services: Market segmentation insights enable businesses to develop products or services that directly address the unique needs of each segment, encouraging purchase decisions and establishing a competitive advantage.
  4. Enhancing Customer Experience: Identifying the distinct buying journeys and touchpoints of different segments allows for seamless, personalized interactions, increasing satisfaction, and promoting repeat purchases.

Unlock the Power of Inclusive Market Segmentation with LaunchpadASAP.com

Platforms like LaunchPad by LiftEngine streamline the market segmentation process to harness the power of inclusive marketing. LaunchPad simplifies creating and managing segmented campaigns with an equitable marketing strategy tailored to your diverse customer base.

Are you ready to elevate your marketing efforts with inclusive market segmentation? Start your journey by booking a demo with Launchpad today and propel your marketing to new heights. Your next successful campaign starts with us!

About LiftEngine

Since 2005, LiftEngine's primary mission has been to help clients better understand and connect with their most responsive prospects and customers, online or offline. Our expertise is behind the marketing campaigns of 400+ clients.

Behind LiftEngine is LiftBase, our proprietary addressable consumer database. Comprised of 250 million US consumers, 140 million US households, and 1,000+ enhanced data elements, LiftBase powers our audience development services and industry-leading products, PortalLink and LaunchPad.

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Published on Aug. 24, 2023, Last Updated on Mar. 28, 2024