The Importance of Targeted Messaging

Imagine you received a “Happy Birthday” card in June that didn’t include your name, your age, or didn’t take into consideration that you were born in November?  Even though the card sender knows you have a birthday this year, clearly they didn’t value your relationship enough to get it right.

Targeted messaging is how companies avoid the awkwardness of miscommunication and hit the right customer, with the right message at the right time, every time. No matter what service or product a company supplies, the likelihood of one message resonating with everyone is very slim. Targeting the right audience is a cheaper, more efficient, more effective way of doing business.

So how do you do it right? First, define the overall goal for the campaign.  Next, segment customers into clearly defined groups based on psychographic, rather than demographic, characteristics.  While psychographic information is harder to obtain, it’s much more important to know if your customer is eco-conscious than what their gender is, for example.  There are many techniques for segmenting your customer base, so if you don’t have a marketing analyst that knows how to perform cluster analyses or understands neural networks, I’d recommend investing in one.

Once you’ve placed your customers into various groups, determine exactly what you want to communicate to each audience, how you can reach them and who you are trying to reach.

Creating a smaller, targeted audience and sending them relevant messages will essentially drive the type of reaction and action you are hoping to receive. Thus you begin to create an interaction and relationship with them.

Targeted messaging is beneficial for any company and any industry and it is increasingly becoming popular among electric companies. In a case study conducted by DST, a mid-size electric company began to target its audience by sending targeted markets different newsletters. Different classes of customers also received different inserts. The implementation of this specific targeted campaign alone saved the company about $190,000 per year.

It’s not easy getting your customers to pay attention to you.  Targeted messaging allows you to get the most out of every engagement opportunity you have with your customers.



Sources for this blog:

Special thanks to Jennifer Gradl for help with this entry

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