Holiday marketing segmentation

Market Segmentation – Holiday Marketing Campaign

The holiday season is just around the corner. And, while the world is busy making a list of gifts to buy for their friends and family, marketers like you and I all around the world are busy ensuring our holiday campaigns hit the bull’s eye. But for that to happen we need to prepare before launching our most awaited marketing campaign.

As the holiday season approaches, there’s a shift in the buying behaviour of shoppers and research says it is quite a bit different than the rest of the year.

Holiday shoppers are

  • Typically not shopping for themselves
  • Cost-conscious
  • Fickle with low brand loyalty

Giving us ample of opportunity to remarket, holiday shoppers make their next purchase surprisingly early

  • Second purchase within next 30 days – 38.7%
  • Following offseason – 42.4%
  • Following holiday season – 7.2%
  • 365+ days – 11.7%

Although loyalty of holiday shoppers is low, these stats clearly show you can work your magic if you strategize well. And to help you with a successful marketing campaign here’s what you need to know.

HOLIDAY SHOPPER CLASSIFICATION

The Coupon Queen

Description – Your average 40+ mother who prefers in-store shopping spending the least amount of money on herself.

Target – Opts-in to SMS to receive online vouchers and coupons. Also, subscribes to e-newsletters to know about promotions.

Millenial Shopper

Description – An average 25+ millennial who gives in to impulse buying.

Target – Uses smartphones and other devices to browse and shop.

Tech Embracer

Description – An average 30+ in-store mobile shopper who enjoys both, traditional and the new way of shopping.

Target – Prefers to browse, compare and shop on mobile. Opts-in to SMS from favourite brands.

Single Male

Description – 35+ bachelor who wouldn’t want to bother standing in queues and also would spend on himself and even others.

Target – He’ll be more likely to purchase via computer than a mobile device.

Zillenial

Description – Falling under the age bracket of 17-20, they consider shopping as a social activity and a chance to hang out with friends.

Target – Brand loyal, they are the ones who would like to buy for themselves be it electronics, clothes, food. Use social media and prefer images than words. Also, they would check for reviews and authenticity before buying.

Hipster

Description – Recent college graduates under the age bracket of 21-30, tech-savvy with sufficient income to spend but would spend more on experiences than products.

Target – prefer shopping online and enjoy receiving coupons, deals, discounts via SMS and/or email.

Millenial Parents

Description – Often working, avid blog readers, brand loyal, millennial parents would spend less on themselves.

Target – Indulge in in-store discounts, enjoy comparison shopping and are open to using alternative delivery options.

You don’t fully know your user yet as there’s more

New User

People who have recently started interacting with your brand.

Survey says, 73% of users plan to try out new stores.

Returning User

People who interacted with your brand last holiday season.

Survey says you can expect 7.2% of such users.

Regular User

People who interact with your brand throughout the year.

Survey says, 76% of holiday purchases will be made with brands consumers are familiar with.

NICHE SEGMENTATION

Now that you have a fair idea of the categories your holiday-shopping customers fall in based on different attributes of age, purchase behaviour, buyer persona and more you can choose any two interlinking categories that will help you create a further reasonable segment.

For example, interlinking age and purchase behaviour you can create further customer segmentation with their basic characteristics and the channel of communication they prefer.

 

NEW USER  CHARACTERISTICS   MESSAGING  OFFERS  CHANNEL  TRIGGER
 GEN Z  Impatient  Quirky hashtags  Reasonable   discounts  In-app   message,

 SMS, on-site   notification

 Immediately after   purchase
 HIPSTER  Indecisive  Catchy copy   offering how to’s  Discounts on   trending items  In-app     message,

 SMS, on-site   notification

 A day or two after   purchase
 MILLENIAL  PARENTS  Apprehensive  To-the-point   content  Heavy discounts  In-app   message,

 SMS, on-site   notification

 A week or fortnight   after purchase

 

 RETURNING   USER  CHARACTERISTICS   MESSAGING  OFFERS  CHANNEL   TRIGGER
 GEN Z  Doubtful  Personalized in   a quirky way  Competitive   discounts  SMS  4 weeks before the   holiday season (twice   a week)
 HIPSTER  Conscious  Personalized   and reassuring  Up-selling/cross-   selling  SMS,   Email   2 weeks before the   holiday season

 (twice a week)

 MILLENIAL   PARENTS  Aware  Tailored and   informative  Heavily discounted   irresistible offer  SMS,   Email   8 weeks before the   holiday season

 (twice a week)

 

 REGULAR   USER  CHARACTERISTICS   MESSAGING  OFFERS CHANNEL TRIGGER
 GEN Z  Excited  Personalized   with an   excited tone  Promotions of   new arrivals &   favourites  SMS, Push   notification  5 weeks before the   holiday season (at   least twice a week)
 HIPSTER  Assertive  Friendly &   informative  Up-selling/ cross-   selling, targeting   the favourites  In-app   notification,

 SMS, Push   notification

 5 weeks before the   holiday season

 (at least twice a   week)

 MILLENIAL   PARENTS  Confident  Customized   with a   familiar tone  Heavy discounts   with the additional   services  In-app   message, SMS,   Push   notification,   Email  8 weeks before the   holiday season

 (at least thrice a   week)

 

SEGMENTATION BENEFITS

Now that you can easily micro-segment your holiday shoppers based on their choices and their communication channel, time to know the benefits:

  • Personalized and relevant messaging increases engagement
  • A deeper understanding of preferences adds to the end goal
  • Identifying what’s trending in which segment
  • Easily identify the profit potential of each segment
  • Increase in customer loyalty
  • Increase in customer retention
  • Improved customer engagement
  • Enhanced customer experience

Mapping your user journey helps you add the points you missed in your last campaign and implementing those in the new ones adds to the growth. It’s the process of segmenting and targeting at various customer stages and touchpoints while engaging with your brand.

Using the right communication medium you can design and implement a strategy based campaign offering customers what they desire at the right time.

 

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Pallavi Jaisinghani

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