Chapter 15Measurement and SegmentationSegment Your Customers and Measure Your Results, Accurately and Consistently

In many traditional marketing approaches, measurement and segmentation are two separate topics. I believe that that is a legacy of the past, when segmentation was based on limited data and was very static, and when measurement was done only on a campaign-by-campaign basis, with the results often lagging the campaign by weeks and months.

Both of these practices are central to Return on Experience × Engagement (ROE2), but they need to be looked at in a different light and considered together. Measurement and segmentation in ROE2 are directly connected. As we measure the impact of our marketing efforts and spend, we should be automatically feeding those learnings into whom we market to next, and how we market to them. As we saw in Part Two, many of the key drivers of business outcomes correlate not to simple demographic or transactional attributes as in the past. They come from the emotional and experience side of the equation. We need to expand the aperture of what data we are capturing and leverage this data in both measurement and segmentation.

ROE2 is all about an objective measure that can guide a brand to determine how much to invest in driving experience and/or engagement with the customer. Here we delve into the details of measurement and segmentation and provide strategies for making them an integrated part of all your marketing, not an afterthought.

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