How emotional segmentation can boost your marketing ROI
December 13, 2018
Feelings exist to drive behaviours. This is why emotional marketing is so effective at capturing consumer attention. Story-telling evokes strong emotions that draw people to your brand. Like any relationship, that initial attraction is important but that’s not what will keep them long term.
Many businesses attempt to improve the customer experience through personalised communications. Who receives what is often automated through segmented marketing lists where contacts are grouped, often by demographic or buying behaviours.
Knowing your audience is key to any successful campaign. Knowing the age, gender or purchase preferences don’t tell you anything about the customer’s experience in your business. The real value lies in knowing how your customers feel.
Why do feelings matter to my marketing?
Marketing is defined as ‘the action or business of promoting and selling products or services’. Customer feelings are a hugely overlooked resource in marketing strategy. Not only can they empower you to improve your business at a practical level but they can also be used to inform your marketing activities. Having a solid understanding of what motivates your customer puts you in a better position to sell to them.
Emotional segmentation of your contact lists provides a number of benefits over traditional marketing segmentation methods. It allows you to craft marketing messages in accordance with how your customer feels.
This is extremely useful when building and maintaining valuable customer relationships. It allows you to nurture the positive feelings in happy customers to create brand advocates. Brand advocates champion your business, increasing spend per head and boosting customer referrals.
Emotional segmentation also helps you manage the negative. It could help you appease unhappy customers, reducing the likelihood of bad reviews or giving you an opportunity to change their mind. It also ensures you don’t send marketing material that would antagonise unhappy customers.
Saying the right things to the right people will make your marketing more effective, securing you a better return on investment. It will help you save time, money and effort by targeting the people who want to hear from you most. Knowing your audience is key to any good campaign. Knowing how they feel garners even better results.
How do you know how your customers feel?
The easiest and most effective way is to ask.
Gone are the days of hovering with a clipboard or bribing customers for feedback with the promise of prizes. Technology has made it quicker and easier to collect customer insight than ever before.
The One Question is a feelings-led SaaS platform that removes any guesswork from the customer experience. It invites your customers to respond to a single question survey: ‘How do you feel about xxxx’. The answer tells you everything you need to know about your business, whether you’ve made their day or missed the mark.
(Picture of survey)
A simple and novel response mechanism of clickable smiley faces secures fill in rates of up to xx%. This means you hear from the normally-silent majority. You know how they feel and you gain actionable insight to grow your business.
The One Question is the only system to utilise the Customer Happiness Score ®, which unlike CSAT and NPS, can help you promote positive feelings throughout your organisation. It’s a new means to measure and manage customer happiness in your business.
Feedback collected through app and landing page surveys must be verified by email to ensure it’s genuine. When customers verify emails they can select a tick box noting they are happy to receive emails from you, ensuring your communications are GDPR compliant. This allows you to grow a huge email list organically.
Your growing email list has the benefit of already being segmented by happiness reflected by the customer’s emoji choice. The customer has self-selected their own segmentation group, ranging from ‘Actively Happy’ to ‘Actively Unhappy’. Going forward you can choose to include or exclude these customers in your campaigns. This ensures you secure a better return on investment on your marketing efforts.
What will emotional segmentation allow me to do?
Emotional segmentation gives you more autonomy over your marketing strategy. It allows you to focus on reaching the right customers and those like them to contribute to the growth of your business.
Optimising your marketing in this way will drive revenue, improve customer retention and help you reach prospective new customers.
Personalise your marketing messages
Customers are individuals and that’s how they need to be spoken to. A ‘one size fits all’ cookie cutter communications don’t cut it anymore. They turn customers off. How your customers feel dictates how you should be speaking to them.
Happy customers might love the bubbly tone of your latest promotional email. The language, imagery and content might persuade them to come back and eagerly part with some more hard earned cash. ‘Actively Unhappy’ ones, however, are unlikely to feel the same. If you send blanket emails to all your contacts you risk antagonising unhappy customers further.
Striking the right tone in your communications can strengthen customer relationships. Emotional segmentation allows you to customise your content to appeal to your audience. So, whether you’re reaching out to your biggest fans, or encouraging the unimpressed to give you a second chance, you can personalise your message to achieve better marketing results.
Save time, money and effort
Knowing how happy your customers are means you don’t waste time, money or effort advertising to people who aren’t interested or are ‘Actively Unhappy’ with your business. Direct mail is expensive and takes time, so eliminate unhappy customers from your mailing lists and focus on happy customers who will be more receptive to your call to actions.
Build and protect your online reputation
Happy customers are more engaged and that means they’ll be on board for helping you bolster your online reputation. Emotional segmentation gives you that knowledge and allows you to use it to cultivate your online reputation.
BrightLocal found that 70% of customers will leave a review for a business when asked. All you need to do is thank them for their feedback and ask them to share it publicly. Simply send them a link to your preferred review page.
If 70% of all the people you ask leave a review as requested, your business will storm up those review site rankings. This will strengthen your online persona and create valuable social proof to support your other marketing efforts.
Excluding ‘Actively Unhappy’ customers from your marketing campaigns can also protect your online reputation. This is particularly true of social media, where posts can become a target for unhappy customers to vent their anger. Negative reactions and comments can damage your brand so it’s best to avoid exposing ads to unhappy customers altogether.
Identify upsell/cross-sell opportunities
The One Question platform helps you analyse feedback responses to spot patterns in customer behaviour. Do your happy customers have certain traits in common? Do they rave about certain products or services in particular? If they do you’ve identified a profitable upsell and cross-sell opportunity.
This insight allows you to make personalised campaigns promoting products and services that your ‘Actively Happy’ group of customers want. Not only can you continue to build customer relationships and start conversations, but you can also push excess stock or incentivise them to upgrade packages and services.
Gain new customers
Customer acquisition is expensive. One of the cheapest and most effective ways to reach new customers is through your existing ones. If your ‘Actively Happy’ customers are already your brand advocates, it makes sense to harness those positive feelings with a customer referral programme.
Reward loyalty and engagement by giving customers something they really want in exchange for introducing their family and friends. This could be money off their next purchase, an exclusive free gift or a joint reward for both sets of customers, old and new.
Inviting ‘Actively Happy’ customers to join the referral programme creates an air of exclusivity your customers will love. Everyone enjoys being part of the ‘in’ crowd, especially when they can enjoy the benefits with their nearest and dearest. Word of mouth marketing is one of the most effective ways to reach new audiences. Incentivising your customers to talk is the equivalent of handing them a megaphone.
Run a win back campaign
Falling short of your customers’ expectations means losing their trust and their business. Both of these things are hard to regain. New Voice Media found that 51% of customers who’ve suffered a bad experience will never do business with that company again.
Emotional segmentation means you know which customers you’re at most risk of losing permanently. This knowledge can help you create a targeted win back campaign in an effort to persuade these customers to give your business a second chance.
If you’re sincere in your communications a percentage of those unhappy customers might be persuaded to return. Others may be tempted by incentives or money off promotions. Bain and Company found that increasing customer retention by just 5% can increase profits anywhere from 25% to 95%. A well targeted win-back campaign might just help you do that.
Build a loyalty club
Customers who regularly identify themselves as ‘Actively Happy’ are more likely to return to your business. A low cost, low effort way to snare these customers long-term is to create a mailing list of ‘Actively Happy’s and invite them to join your loyalty club.
People like to feel like they’re getting a good deal. This is why members-only exclusivity shows customers you value their loyalty above all else. Receiving special gifts, prizes and money off vouchers is an act of appreciation. It also incentivises customers to return in order to cash them in.
Using The One Question to create an exclusive members-only loyalty club goes further than passively waiting for them to return. It actively invites them back. The higher the perceived value of the offer, the more readily they’ll part with their cash. Creating a branded loyalty club rewards the customers who buy from your business the most, nurturing a positive customer experience.
Boost social following and engagement
It makes sense that your happiest customers are more inclined to engage with you in the real world. So, it should come as no surprise they’re also more likely to do it online too. This makes them a valuable ally when it comes to building and promoting your social media profile.
When customers validate their feedback they can opt-in to your marketing activities. This permission ensures you’re GDPR compliant. You can use their email addresses to add them to custom audiences on Facebook to help grow your online community.
Targeting your happy customers with like campaigns acts to safeguard your profile. Targeting all your contacts could pose a risk to your online reputation by inviting negative comments and reactions from unhappy customers.
As well as expanding your fanbase, ‘Actively Happy’ customers are more likely to comment and engage with your posts. Each engagement makes your post visible to your customers’ friends, effectively promoting your content for free.
You can also extend your business’ reach to prospective new customers by creating custom lookalike audiences on Facebook. This means you can promote paid content targeting Facebook and Instagram users who resemble your ‘Actively Happy’ demographic.
Add social proof to your marketing messages
Positive customer commentary can go a long way in supporting your marketing messages. Quote your happiest customers on your website, social media campaigns and on hardcopy marketing collateral. This acts as evidence and gives your marketing statements credibility.
The One Question platform contains all your customer responses, so you’ve got plenty of feedback to choose from. This means you can filter your dashboard to show ‘Actively Happy’ customer comments and select the best quotes to fit your purposes.
This kind of social proof removes the fear of the unknown for prospective customers because existing ones have already done the groundwork. They are essentially validating your business does what it promises to do.
The last word
Customer retention is crucial to a growing business. 20% of customers are the source of 80% of a company’s profits, This is why you must continue to nurture customer relationships long after their initial purchases. Your marketing efforts are crucial.
Emotional marketing segmentation helps you create brand advocates and win back unhappy customers. This offers a much higher return on investment than traditional segmentation techniques.
Understanding your customers is paramount to delivering what they want and need from your business. It pays to care how the customer feels so use those feelings to inform your marketing messages. Start growing your email list with The One Question today. Book a free demo and see how customer insight can transform your marketing efforts.