How to Perform Generational Targeting in Direct Mail Marketing

Generational targeting in direct mail can be instrumental in increasing your response rates. As brains age they change, and the way we need to target people also changes. Because the majority of the buying public falls into three generations now, we will focus on Boomers, Gen X and Millennials.

Generational targeting in direct mail
Credit: Getty Images by Jasper Cole

Generational targeting in direct mail can be instrumental in increasing your response rates. As brains age they change, and the way we need to target people also changes. Because the majority of the buying public falls into three generations now, we will focus on Boomers, Gen X and Millennials.

Generational Targeting in Direct Mail

Boomers — As we age, it becomes hard to filter out distractions. This means that your direct mail should have a clear message in a big font. Do not clutter the mail piece with tons of copy and a bunch of images. Include white space around your copy and images to allow time for absorption without distraction. Because older brains filter out negative messages, you should accentuate the positive benefits of your product or service. They have time and, therefore, value more information before making a decision — unlike Gen Xers and Millennials. Make sure to respect their intelligence and include details about your product or service that are relevant to them. The more they are exposed to a message, company and brand, the more it becomes true for them. So make sure that your messaging on your mail piece matches your message on other channels.

Gen X — The first thing we need to note about Gen Xers is that they are very busy people; you will need to grab their attention quickly. Coupons are a great way to reach Gen X. They love a good deal. They love companies that do “good for society.” So when they make a purchase, they can also help out others. They like loyalty programs that help keep them on track through busy weeks and months. Keep in mind that this generation loves direct mail. Of course you need to send them mail pieces that are relevant, but you should expect good response rates from them. Because lack of time is an issue, make sure that you go with less copy and get right to the point of how your product or service can help them.

Millennials — The most important thing to know about Millennials is that they value social issues over economics. So you need to make sure that your messaging taps into that need. Another factor is innovation. This generation is always looking for the next best thing. How can your product or service fix their problems in a new way? Millennials love reviews, so make sure you provide real testimonials from customers on your direct mail pieces. They, like Gen X, are big on loyalty programs; so make sure you have a robust program.

Conclusion

Keep in mind that each generation is comprised of unique people; not everyone will respond the same way. Don’t replace your other demographic targeting and segmentation strategies. These notations should help you shape your direct mail concepts, but by no means should they become the “be-all, end-all” strategy. Are you ready to get started?

Getting Started With Email Segmentation

Creating effective email connections that drive response and revenue requires segmentation. That sounds fine in concept, as many marketers know they need to do more segmentation in order to engage subscribers and break through the clutter. However, many marketers struggle with getting access to data and developing creative approaches that match the customer lifecycle. I urge you to not be intimidated. Demand greater data integration and access from your vendors. Start testing new content and creative approaches so that you can be automated and fully functioning immediately.

Creating effective email connections that drive response and revenue requires segmentation. That sounds fine in concept, as many marketers know they need to do more segmentation in order to engage subscribers and break through the clutter. However, many marketers struggle with getting access to data and developing creative approaches that match the customer lifecycle. I urge you to not be intimidated. Demand greater data integration and access from your vendors. Start testing new content and creative approaches so that you can be automated and fully functioning immediately.

Ease into segmentation to avoid overtaxing your precious resources. Use early tests to learn about subscriber interests and understand key success metrics. Doing so will build your confidence and help you make a case for automation, data integration and creative services — all of which are essential for advanced segmentation and better results.

There are two ways to get your arms around your segmentation opportunity, both with the goal of “right message, right person, right time.”

  1. Segment by customer profile and craft messages around customer demographics, firmagraphics and behavior.
  2. Segment by customer life stage and speak to customers who are in specific life stages.

Customer profile segmentation: With profile approaches, even simple segmentation can make a big difference. Separate your file into large segments that distinguish subscribers by a factor that has significance to your business. Clickers are a good place to start. Those subscribers who have clicked on something in the past month are more likely to be engaged than those who haven’t.

You can do less storytelling with clickers. For example, a retailer may simply alert clickers that a sale continues until Friday or put in specific sale prices for pants, sweaters and scarves. A business software marketer may send clickers three of their most popular whitepapers or an invitation to participate in a LinkedIn community. In both cases, clickers need less background info and more options to get them to act, whereas nonclickers may need more guidance and education prior to taking action.

Why burden clickers with info they don’t need and that gets in the way of their actions? At the same time, don’t skimp on critical storytelling information for nonclickers, as they clearly don’t have a strong connection with your offer yet.

Other starter segments worth testing include new subscribers versus long-time subscribers, buyers, geography (e.g., north versus south) and gender.

Draw segment lines around key drivers for your business — i.e., differentiators that give you a clear path to a custom message that will make an impact. For many B-to-B marketers, the most important driver of customization is job title. For B-to-C retailers, the key data point is most recent purchase. Don’t choose geography if location has no bearing on purchase behavior. Your business is unique, but good marketers understand the key customer attributes that lead to increased sales and satisfaction. Focus there for your segmentation and you’ll be rewarded with the biggest lift.

Life stage segmentation: To effectively segment by life stage, first abandon the notion that every email program has to be a long-term affair. Short-term email conversations can be even more powerful, particularly because they address a specific need at the time when that need is most acute. A four-message reminder series that disrupts the messaging flow around renewal time can be much more powerful than a generic newsletter which comes like clockwork every two weeks. Why not replace the newsletter with custom messaging for all customers who are up for renewal in a particular quarter? Similarly, create custom series of two messages to 20 messages that cluster around that particular life stage.

Remember to think through the dialog of the conversation if the message series is longer than three messages so that you can intensify, cease or adapt the message stream to accommodate response. For example, stop pitching the purchase midstream if someone has already upgraded from a free trial.

Not every email program has to be long term. The goal of “right message, right person, right time” can be achieved through segmentation that focuses on a specific life stage as well as customer profile.

What are your biggest challenges when it comes to nurturing engagement via segmentation strategies? Perhaps I can address them in a future blog or learn from others handling of them.

A ‘Back-to-Business’ Email Optimization Checklist

Back to school is also back-to-business time. Set aside a few hours this final week of summer to freshen up your email program and take advantage of the silence before the rush. Here are six ways to quickly improve reader satisfaction and response rates:

Back to school is also back-to-business time. Set aside a few hours this final week of summer to freshen up your email program and take advantage of the silence before the rush. Here are six ways to quickly improve reader satisfaction and response rates:

1. Put on the proverbial tie. Just as we don suits again in September, smarten up your email look with a template minirefresh. A simpler, more streamlined template will focus subscriber attention on key content and calls to action. Gather your creative and content teams and do a quick inventory of all the changes made to your newsletter template in the past nine months. Remove those that no longer make sense. Nearly every program has them, including the following:

  • small image, link or headline additions requested by the brand, product or sales teams;
  • the multilink masthead that no longer matches the landing pages;
  • that extra banner at the bottom of your emails promoting a special event that never seemed to go away;
  • a bunch of social networking links that no one has clicked on (usually, you’ll find two or three that your subscribers actually use. Keep those and give them breathing room so they’re more appealing and inviting); and
  • extra legal or other language in the footer.

2. Insure against failure. Take a quick look at two key engagement metrics this year: unsubscribe requests and complaints (i.e., clicks on the “Report Spam” button). First, ask everyone on your team to make sure the unsubscribe link works. Then, take a look if the unsubscribe and complaint rates for your various types of messages (e.g., newsletters or promotions) are erratic, growing or steady?

If erratic, you may find certain message types or frequency caps need to change. If growing, your subscribers may be moving to a new lifestage and are now uninterested in your content, or a new source of data may be signing up subscribers ill-suited for your brand and/or content. Both of these are great segmentation opportunities.

3. Turn frequency into cadence. Back when everything reached the inbox, being present was enough to earn a brand impression. So, many marketers just broadcast often to be near the top of the inbox. People are now fatigued from inbox clutter, however, and are employing more filters as a result. Being relevant and timely trumps volume. Subscribers visit their inboxes expecting to see timely messages tailored to their interests. On the other hand, repeated reminders about last week’s sale may turn them off forever.

4. Adopt a new attitude. Gather new information about subscribers, and use it to test content or segmentation strategies. Run a few instant polls to gauge how important key demand drivers are to your subscribers. Ask for a vote on some product taglines you’re considering. To get higher participation, make it fun by featuring the results of the poll on your Facebook fan page, inviting comments that you can share. Or keep a Twitter tally of response in real time.

5. Arm yourself for the crush. Just as traffic swells on the highways and commuter trains this time of year, the email transit way also fills up as marketers promote their fall offerings and gear up for the holidays/Q4. Just like in any rush hour, the more email traffic, the higher the likelihood that your messages will wait in line or be filtered.

Make it a habit to check your sender reputation every day that you send broadcast mailings — it only takes a minute if you have access to inbox placement data. If you don’t have this data, get it from a deliverability service, demand it from your email service provider (ESP), or even check simple diagnostics such as my firm’s free email reputation service SenderScore.org or DNSstuff.com, another free email reputation service.

Sender reputation is directly tied to inbox reach, and the best senders enjoy inbox placement rates in the 95th percentile. Don’t be fooled by ESP reports of “delivered” (i.e., the inverse of your bounce rate). Even for permission-based marketers, about 20 percent of delivered email is filtered or blocked and never reaches the inbox, according to a study by my firm. You can’t earn a response if you aren’t in the inbox. Imagine the immediate boost on all your response metrics if you move your inbox placement rate up 10 or more points.

6. Make new friends. You likely already read a number of blogs or e-newsletters that cover topics relevant to your brand and important to your audience. Audit these for new, fresh voices, then regularly link to those websites in your own messages as part of a regular “view from the world” feature. Your subscribers will appreciate the additional heads up to interesting or helpful articles, and you’ll start to build a network of experts and potential referrals back to your business.

These might be tasks already on your to-do list. Do them this week and get back to business a bit stronger and ready to optimize. Let me know what you think; please share any ideas or comments below.