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The Benefits of Targeted Messaging

Posted by John Joseph on February 20th, 2013

TargetIn addition to my responsibilities at Harland Clarke Digital, I teach a MBA Marketing class at a local university. One of the messages I like to focus on are the benefits of target marketing. To emphasize this point, I look at Harland Clarke Digital’s financial institution clients (banks and credit unions).

In Q4 2012, our financial institution clients sent over 7M emails. We look at standard performance metrics (acceptance, open, and click-thru rates) from a variety of perspectives — the day the emails were sent, time of day, types of messages (i.e. newsletters vs. promotions), and deployment sizes. The deployment sizes yield some very interesting results. Specifically, we looked at these emails based upon deployment ranges of:

  • < 1,000,
  • 1,000 – 10,000,
  • and > 10,000

Take a look at the performance metrics in the following chart:

Deployment Size Metrics
Smaller deployments perform much better than larger deployments. Why is that? Is it because clients are sending small batches of the same email? Absolutely not.

It’s because clients are targeting specific subsets of their mailing lists with targeted messages. Clients who send targeted messages have 2 to 3 times the engagement than clients who send one messages to large groups. As a matter of fact, that 7.9% click through rate for deployments less than 1,000 is 50% higher than the average click through rate for FIs (according to a report recently published by eMarketer.)

By segregating your database into any of a number of variables (demographic, psychographic, behavioral, etc.) and sending relevant messages to the targeted groups, you will substantially increase your email metrics and drive the types of behaviors you want from your email efforts.

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