SMS Audience Segmentation 101: How to Use Customer Data to Create Targeted Campaigns

Mike Smith • Nov 03, 2022

SMS audience segmentation is a powerful way to reach your target audience and increase conversions. By dividing your audience into segments based on customer data, you can create targeted SMS campaigns that are more likely to be successful. This blog post will discuss SMS audience segmentation 101, including what it is, the benefits, and how to use customer data to create targeted campaigns.


SMS audience segmentation divides your audience into smaller groups based on specific characteristics or behavior. This allows you to create targeted SMS campaigns tailored to the specific needs and interests of each segment. This can lead to more effective campaigns and a higher return on investment.


Following the tips and strategies outlined in this blog post, you'll be able to create targeted SMS campaigns that reach the right audience, at the right time, with the right message. 


Understanding the Basics of SMS Audience Segmentation



Audience segmentation divides a larger audience into smaller groups based on specific characteristics or behavior. This allows businesses to create targeted marketing campaigns tailored to each group's specific needs and interests.


Benefits:

  • Increased efficiency: By targeting specific segments, businesses can reach the right audience with the right message, leading to higher conversions and a better return on investment.
  • Improved customer engagement: By tailoring messages to specific segments, businesses can create more personalized and relevant communications, leading to improved engagement and customer loyalty.
  • Better use of resources: SMS audience segmentation allows businesses to focus on the most promising segments rather than wasting time and money on ineffective campaigns.


Common customer data used for SMS audience segmentation:


  • Demographics: Age, gender, location, income, education level, etc.
  • Purchase history: Products or services purchased, frequency of purchases, etc.
  • Behavioral data: Shopping habits, engagement with previous SMS campaigns, website activity, etc.
  • Interests and preferences: Sports, hobbies, interests, etc.


Creating Segments for SMS Audience Segmentation


To create segments, businesses need to gather customer data and use it to create groups of people with similar characteristics or behavior. This data can be collected through surveys, website analytics, purchase history, or other means. Once the data is collected, it can be analyzed to identify patterns and create segments.


Tips for creating effective segments:


  • Start with broad segments and narrow them down as necessary
  • Use a combination of data points rather than relying on a single data point
  • Test different segments to see which performs best
  • Regularly review and update your segments to reflect changes in customer behavior or demographics


Different types of segments:


  • Demographic segments: Age, gender, location, etc.
  • Behavioral segments: Shopping habits, website activity, etc.
  • Interest-based segments: Sports, hobbies, etc.
  • Lifetime value segments: High-value customers, repeat customers, etc.


Sending Targeted SMS Campaigns


Once segments have been created, businesses can use this information to send targeted SMS campaigns to each group. This can be done using customer data to create targeted messaging and calls to action. Additionally, businesses can use SMS marketing software to automate sending targeted messages to different segments.


Tips for creating effective targeted SMS campaigns:


  • Use customer data to create targeted messaging and calls to action
  • Test different messages and calls to action with each segment
  • Use personalization to make the messages feel more relevant to the recipient
  • Use a sense of urgency to encourage the recipient to take action


Targeted SMS campaigns:


  • A campaign targeting new customers with a special offer to encourage them to make a first purchase
  • A campaign targeting repeat customers with a special offer to encourage them to make a repeat purchase
  • A campaign targeting high-value customers with a VIP offer or special event invitation
  • A campaign targeting customers who haven't purchased in a while, with a special offer to win them back


Measuring the Effectiveness of SMS Audience Segmentation


Measuring the effectiveness of SMS audience segmentation involves tracking key metrics such as open rates, click-through rates, conversion rates, and ROI. These metrics can determine which segments are performing well and which need improvement. Additionally, businesses can use A/B testing to compare the performance of different segments.


Key metrics to track:

  • Open rates: The percentage of recipients who opened the SMS message
  • Click-through rates: The percentage of recipients who clicked on a link within the SMS message
  • Conversion rates: The percentage of recipients who completed a desired action, such as making a purchase or signing up for a service
  • ROI: The return on investment of the SMS audience segmentation campaign


How to use data to improve future SMS audience segmentation efforts:


  • Use data from previous campaigns to identify which segments performed well and which need improvement
  • Use A/B testing to compare the performance of different segments
  • Use data to adjust targeting and messaging for future campaigns
  • Use data to identify new segments that may be worth targeting



In Conclusion


This blog post covered SMS audience segmentation 101, including what it is, the benefits, and how to use customer data to create targeted campaigns. We discussed how to create segments, send targeted SMS campaigns, measure the effectiveness of SMS audience segmentation, and use data to improve future SMS audience segmentation efforts. By following the tips outlined in this blog post, you'll be able to create targeted SMS campaigns that reach the right audience, at the right time, with the right message.


Summary of key takeaways:


  • SMS audience segmentation is the process of dividing your audience into smaller groups based on specific characteristics or behavior.
  • By targeting specific segments, businesses can reach the right audience with the right message, leading to higher conversions and a better return on investment.
  • SMS audience segmentation allows businesses to focus their resources on the most promising segments rather than wasting time and money on ineffective campaigns.
  • Businesses can use customer data to create segments and track key metrics to measure the effectiveness of SMS audience segmentation.
  • Use data to improve targeting and messaging for future campaigns.


Now that you better understand SMS audience segmentation, it's time to start implementing it in your SMS marketing strategy. Remember, SMS audience segmentation is a powerful tool that can help you reach more customers and boost your sales.


Additional resources for further reading or tips:


By following these tips and reading additional resources, you'll be able to create SMS marketing campaigns that will help you to reach more customers, improve engagement, and boost your sales.


About Radiance Commerce


Want to take your SMS marketing efforts to the next level? Look no further than the Radiance Commerce platform! Our audience segmentation tools allow you to easily segment your audience based on customer data, such as demographics, purchase history, and behavior. 


This allows you to create targeted, personalized campaigns more likely to resonate with your audience, resulting in higher open rates, click-through rates, and conversion rates. Plus, with our easy-to-use platform, you'll be able to execute your audience segmentation and personalization efforts with ease. 


Don't miss out on the many benefits of targeted, personalized SMS marketing. Contact Radiance Commerce today to learn more about how we can help your business succeed!


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