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How Dynamic Segmentation Can Improve Your Loyalty Program

How Dynamic Segmentation Can Improve Your Loyalty Program

Dynamic Segmentation is the process of identifying a group of people within your target audience who share common attributes based on real-time data and behaviors. Dynamic groups are constantly adding and subtracting members based on criteria.

Our SVP of Strategy and Design Chris Galloway recently hosted a webinar with Loyalty360 called Level Up Your Loyalty Efforts with Dynamic Segmentation and KPIs, where he explains why it's crucial to understand what dynamic segmentation is and how utilizing dynamic segmentation can benefit your business in relation to customer loyalty. Proper segmentation is the most critical step to building the right interactions, which leads to creating the trusted relationships that matter. 


How Does Dynamic Segmentation Factor Into Customer Loyalty?

Dynamic segmentation actually plays a bigger role in customer loyalty than you might think. 64% of SMB customers increased spend when enterprises personalized their recommendations. Segmentation helps brands identify key desirable customer attributes and behaviors that can be used to create different customer segments/groups. It's important to look at Zero or First Party Data as your primary sources when it comes to retention and customer loyalty.  Implementing Dynamic Segmentation in your business allows marketers to have more creative freedom when it comes to interactions between the brand and customers because you are using real-time customer data to send out relevant communications and offers. Lastly, it gives brands the option to be more creative and unique when building out strategies for building loyalty for different customer segments or clusters. 


4 Steps To Help You Get Started With Segmentation: 

1. Define your company goals

The first step is to be sure you know what your company wants to accomplish from adding segmentation. Determine the specific actions that you want the audience to take and it will help you better know what to look for when you get the data. For example if you want the audience to repurchase then you need to increase frequency, if you want to cross-sell then you should look into increasing categories purchased, or if you are hoping to reactive customers then it’s important that you increase retention rate. Having those objectives written out will help you greatly in the long run. After a little bit of time it will also help you see where your data is improving and where you need to put in more effort and energy. 


2. Analyze current data

It is always important to have initial data so that way you have something to compare your final results with. It is also important to organize your data so that way it is easy to understand and read. A great way to group your audience is by using key attributes such as demographics, preferences, and activities. Here are two questions to look at when you are analyzing your data: 

What do your best members, specific to this objective, have in common? You can use the look-alike method.

What attributes seem to “unlock” (or predict) that action you’re looking for? You can create a list of target attributes. 


3. Take advantage of the data collected to create unique messaging

Create messaging that will align with your goals and segments that you wrote out at the beginning of this process. Make sure to use defined attributes to personalize your messaging and to refine your call to action. Here is specifically where dynamic segmentation comes in, pull your target list based on real-time data for your predictive attributes. And then you should be ready to launch your campaign! 

4. Measure your results

At this point, you have launched your campaign and should be tracking your engagement and conversions using the same dynamic list. This is no different from when you track your normal KPI but now you are just narrowing it down to the dynamic segment group you have created throughout this process. You are going to measure the impacts and compare those results to the controlled group or the non-target audience. You also want to track the movement in and out of your dynamic segment to account for the changes in the overall group size from the start to finish of this campaign. 


How Dynamic Segmentation Benefits Marketers

Segmentation helps B2C marketers improve not only the targeted campaigns but also scaling your workflow and in return saving time. Using segmentation allows you to “set it and forget it” which stops you from wasting time on things that can be done automatically and opens up time for you to focus on other aspects of the campaign. You can focus more on creative aspects without having to stress over the data side the entire time. By targeting the audience based on their interest it avoids the “one size fits all” marketing technique. It makes your customers feel recognized and will more than likely resonate with them. This will also boost your paid advertising more effectively especially when they are used with the data collected from other platforms. 


Watch the full webinar recording for free to learn more about how you can actively utilize dynamic segmentation to boost your customer loyalty efforts.


Want to more details on how implementing Dynamic Segmentation can improve your customer loyalty? Reach out to us and see how we can help.  

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