Rhys Jackson - Audience Segmentation Strategy
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Transcript of Rhys Jackson - Audience Segmentation Strategy
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W H Y M A R K E T E R S N E E D A G R E AT A . S . S .
R H Y S J A C K S O N
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I ’ M R H Y S JAC K S O N
• Head of Data and Insight @ RocketMill
• Technical SEO• JavaScript Developer
@ R H Y S _ S E A R C H
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I ’ M R H Y S
• Head of Data and Insight @ RocketMill
• Technical SEO• JavaScript Developer• Bassist
@ R H Y S _ S E A R C H
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I ’ M R H Y S
• Head of Data and Insight @ RocketMill
• Technical SEO• JavaScript Developer• Bassist• Professional Cat enthusiast
@ R H Y S _ S E A R C H
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W H AT I S A . S . S ?
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A. S . S ?
@ R H Y S _ S E A R C H
No.
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AUDIENCE SEGMENTATION
STRATEGY
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“The process of dividing people into homogenous subgroups”
@ R H Y S _ S E A R C H
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… B A S E D U P O N C R I T E R I O N S U C H A S :
• Product usage• Demographics• Psychographics• Communication
behaviours• Media use
@ R H Y S _ S E A R C H
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WHAT’S THE BIG DEAL?
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M A K E YO U R B U D G E T G O F U RT H E R
Spend more time targeting the right people, at the right time, with the right content.
@ R H Y S _ S E A R C H
Ready to buyResearchingDisengaged
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W E C A N L E A R N F R O M E M A I L M A R K E T I N G
In 2015, MailChimp found that segmented campaigns achieved:• +14.25% Opens• + 59.05% Clicks• -7.41% Unsubscribes
http://mailchimp.com/resources/research/effects-of-list-segmentation-on-email-marketing-stats/
@ R H Y S _ S E A R C H
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T H E M A R K E T E R ’ S G U I D E T O A U D I E N C E
S E G M E N TAT I O N
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T I P # 1B E WA R E O F AV E RAG E S !
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B E WA R E O F AV E RAG E S !
This does not describe your ‘average visit’:
@ R H Y S _ S E A R C H
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B E WA R E O F AV E RAG E S !
Try Bounced vs. Non-Bounce Sessions instead:
@ R H Y S _ S E A R C H
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B E WA R E O F AV E RAG E S !
Bounced vs. Non-Bounce Sessions:
@ R H Y S _ S E A R C H
Yes
No
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B E WA R E O F AV E RAG E S !
Converting Users vs. Non-Converting Users
@ R H Y S _ S E A R C H
Low Value
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B E WA R E O F AV E RAG E S !
Converting Users vs. Non-Converting Users
@ R H Y S _ S E A R C H
Low ValueProspects
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B E WA R E O F AV E RAG E S !
Converting Users vs. Non-Converting Users
@ R H Y S _ S E A R C H
Low ValueProspectsValued Customers
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T I P # 2T H E PA R E T O P R I N C I P L E
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T H E PA R E T O P R I N C I P L E ( 8 0 - 2 0 R U L E )
@ R H Y S _ S E A R C H
80% of revenue comes from 20% of customersWhat if we were to grow the 20%?
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0-0.2 0.2-0.4 0.4-0.6 0.6-0.8 0.8-1-10%
0%
10%
20%
30%
40%
50%
60%
5.3%9.8%
15.0%21.5%
48.3%
Distribution of Total Revenue by PercentileClient #1
Percentile
Prop
ortio
n of
Tot
al R
even
ueD O E S I T H O L D T R U E ?
@ R H Y S _ S E A R C H
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0-0.2 0.2-0.4 0.4-0.6 0.6-0.8 0.8-1-10%
0%
10%
20%
30%
40%
50%
60%
5.3%9.8%
15.0%21.5%
48.3%
Distribution of Total Revenue by PercentileClient #1
Percentile
Prop
ortio
n of
Tot
al R
even
ueD O E S I T H O L D T R U E ?
@ R H Y S _ S E A R C H
Almost 50% of total revenue generated by 20% of transactions
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D O E S I T H O L D T R U E ?
@ R H Y S _ S E A R C H
0-0.2 0.2-0.4 0.4-0.6 0.6-0.8 0.8-1-10%
0%
10%
20%
30%
40%
50%
60%
5.5%12.5% 14.1%
21.0%
47.0%
Distribution of Total Revenue by PercentileClient #2
Percentile
Prop
ortio
n of
Tot
al R
even
ue
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D O E S I T H O L D T R U E ?
@ R H Y S _ S E A R C H
0-0.2 0.2-0.4 0.4-0.6 0.6-0.8 0.8-10%
10%
20%
30%
40%
50%
60%
3.0%7.8%
13.6%21.4%
54.2%
Distribution of Total Revenue by PercentileClient #3
Percentile
Prop
ortio
n of
Tot
al R
even
ue
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T H E 8 0 - 2 0 R U L E
@ R H Y S _ S E A R C H
20% of customers generate 80% of the
revenue
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T H E 8 0 - 2 0 R U L E
@ R H Y S _ S E A R C H
20% of customers generate 80% of the
revenue50%
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YO U R M I L E AG E M AY D I F F E R …
Try it out yourself!I’ve made a tool using Google Sheets and the Google Analytics API
• Easy to use• Easy to get
results
@ R H Y S _ S E A R C H
Download everything in this talk here: rocketmill.co.uk/brightonseo2016
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VA LU E S E G M E N TAT I O N
Use the output of the tool to create value segments in Google AnalyticsCombine with demographics data = WIN.
@ R H Y S _ S E A R C H
Low Val Low/Med Val Med/High Val High Val
Age
Gender
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T I P # 3FAC E BO O K A U D I E N C E S
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FAC E BO O K A U D I E N C E S
Upload 1,000+ customer email addresses, and let Facebook do the hard work for you.
@ R H Y S _ S E A R C H
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Step #1 - Create custom audience
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Step #2 - Analyse custom audience
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FAC E BO O K A U D I E N C E S
@ R H Y S _ S E A R C H
Find the sweet spot where your audience is over-represented vs. the average (Facebook) population.
Vs.
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FAC E BO O K A U D I E N C E S
@ R H Y S _ S E A R C H
Facebook has access to information you can’t find in Google Analytics.
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@ R H Y S _ S E A R C H
Compile information into rich, detailed personas that genuinely inform marketing
strategy.
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FAC E BO O K LO O KA L I K E A U D I E N C E S
@ R H Y S _ S E A R C H
Use your custom Facebook audience to identify similar users who are not already customers.
Facebook ads are a cost-effective method of seeding content to thousands of highly targeted individuals.
Don’t expect conversion – aim to get users engaged with your brand.
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FAC E BO O K LO O KA L I K E A U D I E N C E S
@ R H Y S _ S E A R C H
Audience Lookalike Audience
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FAC E BO O K LO O KA L I K E A U D I E N C E S
@ R H Y S _ S E A R C H
Audience Lookalike Audience
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T I P # 4DATA I S E V E RY W H E R E ,
U S E I T
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O P E N DATA
Data is not limited to what you can record about your own usersA wealth of third-party data is available to use effectively and ethically to enhance your marketing
@ R H Y S _ S E A R C H
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O P E N DATA E X A M P L E
A UCL study sponsored by the Office of National Statistics to cluster postcodes using publicly available national census data.
The study identified 72 distinct groups (audiences) within the UK population, each with their own defining characteristics.
@ R H Y S _ S E A R C H
The data, methodology, code and results are all open source and can be explored here: http://www.opengeodemographics.com/
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C LU S T E R 1 C 1 – “ E S TA B L I S H E D R U RA L”
• 1.5% of UK population• Median age 44 This Subgroup has a higher proportion of people aged 45 and over compared with the parent Group, it has a higher proportion of households with non-dependent children, and of persons providing unpaid care. Households are more likely to live in a caravan than with the parent Group. Part-time working is more prevalent. and those in employment are more likely to be employed in the mining and financial services related industries than with the parent Group.
@ R H Y S _ S E A R C H
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C LU S T E R 1 C 1 – E S TA B L I S H E D R U RA L
• 1.5% of UK population• Median age 44 This Subgroup has a higher proportion of people aged 45 and over compared with the parent Group, it has a higher proportion of households with non-dependent children, and of persons providing unpaid care. Households are more likely to live in a caravan than with the parent Group. Part-time working is more prevalent. and those in employment are more likely to be employed in the mining and financial services related industries than with the parent Group.
@ R H Y S _ S E A R C H
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C LU S T E R 1 C 1 – E S TA B L I S H E D R U RA L
• 1.5% of UK population• Median age 44 This Subgroup has a higher proportion of people aged 45 and over compared with the parent Group, it has a higher proportion of households with non-dependent children, and of persons providing unpaid care. Households are more likely to live in a caravan than with the parent Group. Part-time working is more prevalent. and those in employment are more likely to be employed in the mining and financial services related industries than with the parent Group.
@ R H Y S _ S E A R C H
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C LU S T E R 1 C 1 – E S TA B L I S H E D R U RA L
• 1.5% of UK population• Median age 44 This Subgroup has a higher proportion of people aged 45 and over compared with the parent Group, it has a higher proportion of households with non-dependent children, and of persons providing unpaid care. Households are more likely to live in a caravan than with the parent Group. Part-time working is more prevalent. and those in employment are more likely to be employed in the mining and financial services related industries than with the parent Group.
@ R H Y S _ S E A R C H
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C LU S T E R 1 C 1 – E S TA B L I S H E D R U RA L
• 1.5% of UK population• Median age 44 This Subgroup has a higher proportion of people aged 45 and over compared with the parent Group, it has a higher proportion of households with non-dependent children, and of persons providing unpaid care. Households are more likely to live in a caravan than with the parent Group. Part-time working is more prevalent. and those in employment are more likely to be employed in the mining and financial services related industries than with the parent Group.
@ R H Y S _ S E A R C H
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O P E N DATA E X A M P L E
@ R H Y S _ S E A R C H
1a1
1a4
1b3
1c3
2a3
2c1
2d1
3a1
3b2
3c2
3d3
4a3
4c1
5a1
5b1
6a1
6a4
6b3
7a2
7b2
7c2
7d2
8a1
8b2
8c3
8d3
0%
1%
2%
3%
4%
5%
Distribution of Population by Cluster
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A P P LY I N G T H E DATA
@ R H Y S _ S E A R C H
Customer Postcodes
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W H AT I S R ?
@ R H Y S _ S E A R C H
• Open-source programming language for statistical computing
• Often used with R Studio, a graphical interface to the R programming language
• Huge community support• Used across multiple disciplines
Programming Language
Graphical Interface
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A P P LY I N G T H E DATA
@ R H Y S _ S E A R C H
1a1
1a4
1b3
1c3
2a3
2c1
2d1
3a1
3b2
3c2
3d3
4a3
4c1
5a1
5b1
6a1
6a4
6b3
7a2
7b2
7c2
7d2
8a1
8b2
8c3
8d3
0%
1%
2%
3%
4%
5%
6%
Distribution of Population by Cluster
National Distribution
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A P P LY I N G T H E DATA
@ R H Y S _ S E A R C H
1a1
1a4
1b3
1c3
2a3
2c1
2d1
3a1
3b2
3c2
3d3
4a3
4c1
5a1
5b1
6a1
6a4
6b3
7a2
7b2
7c2
7d2
8a1
8b2
8c3
8d3
0%
1%
2%
3%
4%
5%
6%5a2
6b2
Distribution of Population by ClusterCustomers have a high bias towards clusters 5a2 and 6b2
Client DistributionNational Distribution
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F I N D I N G S
@ R H Y S _ S E A R C H
We identified two distinct demographics that would strongly identify with the client’s brand.
Plotted geographically, patterns emerge.
Cluster 5a2Cluster 6b2
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S O W H AT ?
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S O W H AT ?
Combine:• Behavioural data from Google Analytics• Social data from Facebook Audiences• Publicly available open data
To construct highly detailed personas…
@ R H Y S _ S E A R C H
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…Use these highly detailed personas to...
@ R H Y S _ S E A R C H
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Spend more time targeting the right people, at the right time, with the right content.
@ R H Y S _ S E A R C H
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T H A N K YO U F O R L I S T E N I N G !
@ R H Y S _ S E A R C H
Download everything in this talk here: rocketmill.co.uk/brightonseo2016
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