Recently by Julie Ricchuito

Marketers may say all customers were not created equal, and customer segmentation makes it possible to understand and embrace the fact that it's human nature to be different. You may never know which customer segment will be the most valuable to your business until you've tried to match your marketing and customer experience efforts with the needs of your customer types.

This anecdote can help you understand why you need to identify the right way to engage with each customer segment.   

Part 1: Understand Types of Engagement and Common Gaps in Data

Remember back to elementary school, how differently your classmates reacted to the teacher when questions were posed- It's likely that there were some kids who raised their hands, some who just wanted to shout out the answers and couldn't wait to be called on, and some that knew the answer but wouldn't raise their hand- but would offer it up if they were called upon.

Now flash forward a few decades: All those kids are grown up, and they're your customers.

You can probably imagine how those kids who used to just shout out the answer are the ones that always want to let everyone know when they had an amazing experience at a company, or when they feel wronged.

These people make great customers when everything is going great because they'll tell everyone about how much they love your company.

However, when they have a bad experience, they might tell their friends, post a review on Yelp or social sites, or raise the issue directly with the company's customer service department. Or they might do all three. 

Picture those kids who raised their hands but waited patiently for the teacher to call on them- All grown up, they represent customers who will readily give your company valuable feedback, and will go through the appropriate channels you provide to give their praise or make you aware of their concerns.  It's important to make the 'hand raiser' customer type feel as though your company is 'making it easy' to give feedback and takes customer opinions seriously.

If you don't, a truly negative experience with a company can push the 'hand-raiser' customer type towards other outlets, such as posting an inflammatory comment on a social media site, or submitting a lengthy description about where your company went wrong on Yelp.

Now take the students who wouldn't raise their hand, but would answer when called on- Imagine how they react socially to having positive or negative experiences with a company. They probably still don't like to be 'hand-raisers' and volunteer feedback, even if they've had a poor customer experience at a company. 

But, they represent a promising customer segment because if 'called upon' directly, they will engage with your company and give feedback and tell you exactly what they like and dislike about your brand.  If you don't engage directly with this customer type to get feedback on their experience, they're the most likely to stay silent and you'll never know what they think of you.

Even if they have a terrible experience, they're likely to react passively; they won't reach out and ask you to address their issue, but may never return to be a patron or customer of your business. 

After considering those three types of customers, you can imagine that it's easiest to get the most data from the answer-shouting bunch, and you may feel like you know much less about those that need to be 'called upon'.

However, don't let this discourage you- you can begin to create your customer segments using the plethora of data that you already thanks to the answer-shouting bunch.

Make the hand-raisers feel like you're focused on being attentive to their needs- Make direct appeals for feedback in email campaigns, and don't be afraid to be direct when asking them to try your new menu items or check out a new location you've opened. For the customer type that needs to be called upon, you can use incentive-based campaigns to elicit more information from them over time.

Once you factor in the best ways to solicit information from the three different levels of engagement, you're ready to start segmenting further. 

Part 2: Gather Additional Data to Develop More Accurate, Multi-faceted Segments 

As you begin to collect more customer contact information and additional data on who these people are, you will start to see some trends and consistencies across your customer data set.  Perhaps a lot of people found out about you on Facebook. Maybe many of them came to your website last month. Perhaps the most loyal customers often fill out surveys for you. Whatever the case, identifying these segments and maintaining them can mean a huge growth in your sales and strength of your customer relationships. 

Once you create segments, you can send targeted and custom messaging that relates to what that segment cares about. They will appreciate the tailored messaging and you will benefit from them coming and giving you more of their business. 

As a marketer, you may know a lot about one person- they like the cheese dip appetizer, come 1-3 times per week, usually redeems coupons during the dinner service- while, you may know much less about another person- say, just that they usually redeem coupons during the dinner service. 

If you usually send out special offers to 'usually redeems coupons during the dinner service', you should keep doing that to promote continual engagement. 

However, to continually improve your segmentation, it will be important for you to continue to learn more about your customers- such as maybe dividing that segment of 'usually redeems coupons during the dinner service' into 2 groups-those who come 0-1 times per week, and those who come 1-3 times per week.

So, you may need to get some more information from customers to create that second segmentation. To get that information from those 'wait to be called on' people, you may want to add-on another offer. Perhaps you offer a 'buy one, get one' coupon if you fill out a survey on your dining habits, that is targeted only to those individuals who 'wait to be called upon' so that you can show them that you value the opportunity to learn more about them.

Thus, the "creating context of engagement" can help you understand what you need to give customers so that they give you more information on themselves in return.

This post is the first of a four-part series co-written by Privy and On The Spot Systems to share some of the easiest and smartest ways to get new customers and turn them into repeat customers. 

In the daily grind of the business world sometimes it's easy to take certain 'best practices' for granted, so we've written a series of articles to review some of the key value-adding benefits of connecting online promotions, guest segments and guest satisfaction surveys within food service and restaurant businesses.

They will cover four steps: 

1. The Power of an Email Address

Every restaurant wants customer email addresses - but why?  Naturally, to reach out to consumers to inspire them to come visit your restaurant more frequently. 

The truth is, people don't want to hear from your restaurant unless you have something relevant to say. 

So, it's up to restaurants to understand what each individual customer appreciates so the messaging can be tailored to them. If your restaurant is able to do this successfully, you'll notice a un-take in your foot-traffic from customers returning more frequently.

But how do you collect email addresses and understand what each person behind the email address wants to hear?

2. Promotions Earn Email Addresses

Here's the short answer: offer a promotion in exchange for an email address and track where that person redeems the promotion.  People now do research online before they choose where to eat - that's why restaurants have websites, Facebook pages, Twitter accounts and more.  Use these platforms to your advantage!  Use them to collect consumer contact information so you can own relationships with customers and get them to come back when you want, not only when they simply feel like it.

3. Surveys Earn Email Addresses

Are you already running mobile surveys to understand how your customers enjoyed (or didn't enjoy) your in-store experience? It's the same as a comment card, except for the 21st century.

Take the opportunity to ask customers for their email address within your mobile survey so you can both learn how to improve your in-store experience and collect information on a customer including the context of which location they visited, what meals they like to eat out, and what they liked or didn't like about your food.

4. You Must Track!

It's important that you track this information so you can begin to link important details about your customers, such as their contact information, what menu items they like, and which location they prefer to visit most frequently. This will enable you to effectively manage Step 2: Create strong customer segments.

If you don't have the most advanced customer tracking across all of your web properties and POS systems, don't worry!  There are other ways to segment your customers accurately and effectively.

5. Easy Tracking Tips

First, don't be overwhelmed by all the ways you could track customers; in reality there are only two ways you need to consider segmenting your audience of customers. One way is demographically - age, gender, zip code, etc. The other is contextually - are they a repeat customer? A first time visitor? Did someone refer them?

Do they follow you on social media or do they glance at your website from time to time?  Did they come on a whim or did they decide to visit because of an offer they received? The common denominator between all of these attributes is that your customers can answer these questions for you, even if your analytics tracking capabilities can't. 

Feeling overwhelmed? Try starting out by choosing just one demographic attribute and one contextual attribute. For example, say you want to segment customers based on their location for demographics, and based on if they are a repeat customer from a contextual standpoint. Many advanced mobile survey tools can automatically pinpoint the gps location of the respondent and the store location being critiqued, so you don't have to worry about that aspect.

And, if your POS analytics capabilities aren't set up to track metrics like repeat customers, that's okay. To make sure your data is completely fool-proof, don't be afraid to do the obvious- just ask! Simply build questions like 'How often do you visit our restaurant?' into your mobile customer satisfaction survey and email club signup form.

Once you collect contact information from various sources and build context around those customers, you will be able to create smart segments.

For more articles by Julie Ricchuito, please click here.

Users have demonstrated that they prefer mobile for their communications because they see it as a two way street where they can both self-select and receive individualized content.

But many brands and companies are still harboring the "If the experts say mobile helps drive sales then we'll use mobile to drive sales".

That's the kind of strategy that banks get 'dinged' for in TV commercials all the time. All jokes aside, even if banks get a bad reputation for not caring enough for their customers, they sure have done exactly what their customers have asked for by allowing mobile deposits through their banking apps- and it's really paid off.

Consumers are embracing mobile devices for the ease and convenience they bring to everyday activities, such as using smartphones and tablets to deposit more than $40 billion into their accounts by snapping a picture of a check, according to Mitek, a provider of mobile imaging services that enable the mobile deposit features of banking apps. And, you know that when personal finance management via mobile apps is entrusted by millions that you've hit the jackpot for proving that there is enormous potential for consumers to trust mobile for every activity and interaction.

Now, you have to stop and ask yourself, how did the banks realize this point of convenience would be so admirably appreciated by consumers? Even more so, imagine what barriers would have been difficult for banks to overcome to reach such an innovative idea. For one, coming up with an innovative idea like mobile check deposits isn't something the bank would HAVE to improve upon- the fact that banks have already invested in ATM and branch locations throughout their geographic footprint means that there was not a gap in the services. The idea of going to the bank to deposit your checks had been working fine for literally hundreds of years. Today, it's now just another thing we expect from our banks- proven by the high adoption rate and the billions of dollars in deposits that have been entrusted in the care of mobile banking apps. 

Plus, another study conducted by Quicken found that 15% of those surveyed say they prefer to check their financial accounts on a smartphone or tablet and that number is only going to grow in the next five to ten years, according to Barry Saik, vice president and general manager at Quicken. Additionally, more than 50% of users check their financial account balances on their smartphone monthly.

What are the implications for your brand or business? When you think about mobile, challenge yourself not to think inside the box (re-designing your current desktop web assets for mobile) but allow yourself time to think bigger. 

Are there any areas of your business that perform customer facing functions that would be easier and more fun to do on mobile? Our clients have unanimously agreed that old paper and desktop web and email surveys are not quite as engaging, so they've moved their customer feedback program to our system to give their customers a refreshingly simple mobile experience for giving feedback. Since the ability to feel that one's opinion has been heard and is appreciated improves customer loyalty, it's a double win for you! Your other win for customer loyalty is adapting user experience to be simple and snazzy on mobile, but more on that in a little bit.  

When it's easy to do on the go, people will do it. In the graph to the left from Google's Our Mobile Planet you can see than an overwhelming majority of US smartphone users say that they use the internet on their smartphone to pass time while waiting (around 70%) and to answer questions quickly (around 60%) and that behavior doesn't really change at all between the 18-year old and 49-year old users.

Ultimately, it's important to keep in mind what consumers really expect. The percentage of smartphone users that expect websites to be as easy to use as on a computer is already over 60% and it continues to grow. Consumers expect your web experience to be seamless on mobile- even if you think it's an unreasonable expectation from the brand's perspective. It takes a serious investment of time and resources to be mobile friendly but it's worth it! 

In fact, it may be what's standing between you and increasing your sales. First impressions are everything with mobile: 44 percent of online shoppers said they would never return to sites that are not mobile friendly, according to a new report from Kentico Software. 

"The most surprising finding was the difference in the trust placed in self-selected content such as reviews and natural search versus digital push communications such as banner ads and text messages," said Tracy Stokes, principal analyst at Forrester, Boston.

A new report from Forrester Research on digital push communications showed that less than 15% of U.S. consumers trust text messages from marketers and information on mobile applications. This is important- make sure that you offer options for your customers to connect with you- allow them to have several interactions with your brand via channels of their choice to build their trust. And, above all, find ways to allow your customers to initiate and choose the timing of communication and engagement with your mobile brand assets. 

The moral of the story: If you make everything your customers need and want to access seamless on mobile, they'll choose to visit your content again and again. And, you'll become the brand that they're checking out when they're on the go and passing time browsing the web on their smartphone.

Not sure where to start in becoming mobile friendly? Ask your customers! Consider using mobile surveys (like ours here at On The Spot Systems) on your website that are smartphone and tablet friendly and extremely easy for consumers to use.

Ask your customers visiting your website on their smartphones and tablets (you can target showing the mobile experience survey using browser detection) Ask them if they think the experience is mobile friendly, what pages or sections of your site need the most attention to be user-friendly, and what they need to be improved before they consider using your site on mobile frequently.

Then, you'll have a starting point where you can begin your rollout of redesigned mobile web properties with user-experience in mind. Need help? We're here to coach you on delivering your customers the best user experience possible across every device- mobile and otherwise! 

Consumers don't get why brands will spend  lots of money to talk at them with smartphone ads, but yet spend no real money on customer service.  Why talk if you don't listen?

Most days it can be hard for a working professional to take off the "business" hat and approach stats from a true consumer approach. To the unsuspecting American, it sounds great that companies are spending more and more on digital marketing budgets to enhance the user experience, save paper, and increase the focus on continuous innovation in the mobile space.

According to an article written by Mark Walsh for Media Post, Annual digital marketing budgets, on average, amounted to 2.5% of a company's revenue in 2012 and will grow 9% this year. The majority of companies spend between 10% and 50% of their marketing budget on digital efforts, with an average of 25%.

From a consumer perspective, you see all that money being spent and think, "Wow, this 'going mobile' thing sounds pretty good for the economy, and certainly a sign of a stronger marketplace than a year ago!" And, from the consumer facing side of these stats, it's true- the more "screens" that we have to interact with, the more "screens" that marketers need to be present, and prominent.

Back to the marketing professional's point of view, it is stressful trying to put your best foot forward when suddenly you have two paths to walk down at the same time. Public or private, large or a startup, independent or franchised, businesses are all faced with the challenge of how to approach the mobile opportunities ahead.

For a fifth of companies, digital has already been incorporated into each function within marketing broadly, with budgets no longer broken out separately. The Gartner study also made a point to indicate that digital marketing spend is becoming more difficult to estimate as digital and traditional techniques merge. "We expect this trend to continue growth as areas such as second-screen TV, social TV and QR codes integrate with traditional channels," stated the report. This is already apparent considering Macy's new engagement campaign, which has rolled out with mobile touch-points with a traditional media twist.

According to a Mobile Commerce Daily article written by Lauren Johnson in March, Macy's is using a combination of QR codes, SMS and mobile Web as part of its partnership with NBC's "Fashion Star" television show to not only give consumers a chance to enter a sweepstakes, but also build up the retailer's mobile database.

The sweepstakes is part of a bigger campaign from Macy's to connect with TV viewers via their mobile devices this year. "The mobile strategy should be consistent with their overall digital marketing strategy," said Marci Troutman, CEO of SiteMinis, Atlanta. "Access to a brand's portal through mobile simply improves the amount of consumer engagement time on the site and allows for better conversion with real time marketing and sales opportunities," she said.

Why, then, is their store feedback survey so arcane?

Users have demonstrated that they prefer mobile for their communications- but they see it as a two way street, where as many businesses are still seeing it as a one-way communication vehicle- talking at their audience, but not remotely prepared to open the conversation up completely.

What does Macy's mobile campaign really say to consumers? Well, it says buy from us and leave us alone. That's the kind of strategy that insurance agencies get "dinged" for in TV commercials all the time.

The obvious response most could argue on behalf of Macy's would be, well, the technology must not quite be there yet for surveys to be totally mobile, so it must be an expensive investment and require a long transition project.

However, that doesn't mean that's true. For example, systems like ours here at On The Spot are built to run mobile surveys- with user experience as the focus. Surveys like ours cost around $2/day and can be accessed via SMS text, QR codes and mobile web. In fact, two in five companies say they are realizing savings from digital marketing compared to traditional methods(,) according to Gartner.

Sure, many consumers may not yet realize how readily accessible this technology is to businesses, but soon they will, and they will realize where their retailers place their digital budgets- and more importantly, where they don't.

According to Gartner, "Reinvesting savings into digital marketing activities is a smart move. And it's a relatively new activity in a corporate culture where technology has primarily been used in recent years to cut costs." So, the test is where you will put your cost savings to good use. The question is, will you fill an existing void in your mobile strategy mix, or continue to spend your budget on strictly sales campaigns?

This new digitally enlightened consumer is now able to see right through a company's social media façade. They still agree that Facebook is a nice tool for people to share their thoughts, but everyone is now wiser about its actual capabilities for connection within the company hierarchy.

About a third (34%) of businesses went outside for help in managing their presence on Facebook, Twitter and other social sites. So, it's not really enough to tell people to share their opinions on Facebook- they know it's not going to get to someone in operations who actually could fix the mislabeled sale items that same day. There's no chance for the company to make any actionable use of the data they receive through Facebook.

Macy's would be able to get away with ignoring the location-specific importance of their customers' opinions if they had not already proven in another campaign this past year that they have the means to be location-specific and relevant to consumers at the store level when they want consumers to buy something.

According to Johnson's Mobile Commerce Daily article, the retailer enhanced its iPhone app with Black Friday-specific features that were based on a consumer's local store. Via the app, consumers were able to find Black Friday specials, create shopping lists and pinpoint where a special can be found in a local store.

So, let's assume for a minute that Macy's just isn't aware that their customer engagement strategies lack, well, engagement. Let's assume with a sub-par customer feedback strategy, Macy's is also stuck with minimal insight from real consumers and doesn't "see" that their mobile strategy really comes off as being a one-sided approach to customer engagement.

Think about your own company for a moment- do you emphasize customer loyalty? Do you think a company can get too "big" to care about loyalty?

Hopefully, you'd disagree with the latter statement, since this is one area where we all know there is a payout for "buying in" to a strong loyalty strategy.

According to Ms. Troutman in her statement in Mobile Commerce Daily, "Loyalty programs are a valid and significant method of increasing the average ticket and shop frequency. The use of mobile in this process with all of the unique benefits will improve customer engagement(,)", she continued. "The key is how a brand harmonizes loyalty with offers."

That's about as clear and simple as it can get, but I challenge you to really dwell on that last sentence as you think about the decisions you make about using mobile in your everyday arsenal of customer communication and loyalty programs.

When it comes to mobile, the determining factor that will either elevate or depreciate a brand's overall digital image, is how well the brand is able to harmonize their loyalty reinforcement efforts along with their sales promotion offers.