Segmentation Good, Over-Segmentation Bad

Share this content:

Almost human

So how much segmentation is too much?

“That's a loaded question,” says Chad Pollitt, author, professor and partner/VP for audience at the Native Advertising Institute.

“Generally speaking, as a marketer, you have to keep persona segments on the low end.”  That should be anywhere from one to five; three being ideal, Pollitt says. “With the personas, you craft specific content strategically targeted to those buyer types.”

So far, so good. It sounds like marketing hasn't changed. But then Pollitt dropped the bomb.

“Today, with artificial intelligence, machine learning algorithms, natural language processing and a host of other technologies, we're able to delve into big data.” Pollitt explains. Now it is possible to craft many “micro-segments," relying on AI to do the heavy lifting.

Over time, AI will filter those segments, discarding down to only the most effective ones. “Maybe machine learning determines that only 20 segments are valuable,” Pollitt says. But AI can also overlook LTV—Lifetime Value—of some segments, slices of the market that, while smaller, may generate more value through repeated sales over time.

People will craft the ads that reach those market segments in a language that resonates with those personas, Pollitt notes. IBM's Watson is perhaps the most well-known AI platform, but there is also Salesforce's Einstein. Other platforms beckon.

Pollitt offers Experian Hitwise as an example. Tapping into just a portion of all the clicks at the ISP level, Hitwise uses the data to craft 200 “eerily accurate” personas, right down to showing photos of homes, neighborhoods and TV preferences of “persona families,” just to illustrate the data.

“Introductory marketing jobs are being taken over by AI,” Pollitt says. Algorithms can handle work flows of e-mails and social, predicting which consumers will open and respond to e-mail pitches, and even cranking out personalized messages after comparing them against segment data.

“As long as the outcome and the KPIs reach the expectations of the boss, they are going to keep using it (the technology).” Pollitt says.

And the technology is only going to get better…

Page 2 of 2

Sign up to our newsletters

Company of the Week

PAN Communications is an award-winning integrated marketing and public relations agency for B2B technology and healthcare brands. PAN's data-driven approach allows the firm to specialize in public relations, social media, content and influencer marketing, and data and analytics. PAN partners with brands to create unique, integrated campaigns that captivate audiences.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above