Use Case: Custom Segments

Written by Natasha Janic on July 25, 2019

What are Custom Segments?

There are seemingly infinite channels through which customers can interact with your brand. There are also infinite ways in which you can filter that data to create personalized experiences for your customers.

Custom Segments enable you to group customers based on demographic, transactional or behavioral attributes that are not native to the Hatch platform. Your Custom Segments can then be used as part of the Audience of an offer.

What problem does it solve?

Marketers have data points coming from every direction, but often times, the marketing tools available only allow them to use data points that are native to that tool to deliver communications, ignoring a lot of important external data points about their customers.

Hatch understands that there are a lot things that matter about your customers that should be leveraged to create a better experience. Custom Segments allows you to use all sorts of data in combination with the data you’re collecting through Hatch to deliver even more personalized experiences.

How can you use Custom Segments?

Typically, the client will use an external data analytics or BI tool to query member data and extract Membership IDs to be included in a Custom Segment. These can be an aggregate of data points from other sources, or non-native data attributes that you have stored in Hatch’s Custom Data field. If it’s in Custom Data, Hatch can ETL that data to your BI platform or data analytics tool when you’re ready to create your segments.

Once the Membership IDs are extracted from your external tool, that Membership list can be uploaded to create a Custom Segment either directly through Hatch’s APIs or through Hatch HQ. At this time, the custom segment can be used within an Audience for an offer. Audiences enable ‘ANY’ or ‘ALL’ criteria for Custom Segments, meaning that customers can be part of any of your selected segments, or you can require that they are part of all of the selected segments.

Custom Segments should not be used for customer data that is native in the Hatch platform such as transaction details, behavioral events and top level Membership attributes. Those criteria should be set up within the Audience portion of an Offer.

What do Custom Segments look like in practice?

Assumptions:

  • Hatch is connected to your POS and BI tool
  • You are a national retailer with locations in a variety of markets
  • You are a retailer with a mobile app filtering Membership Offers by Visible Status (filtering by Visible Status ensures that members only see the offers available to them based on the offer criteria)

Let’s say you’re a retailer that wants to increase sales in your urban locations by 5% this quarter. In order to do so, you’ve created a list of Audiences who you believe will help you achieve that outcome. One of these Audiences includes current customers who commute to urban areas for work. You want to create Audiences across your different urban markets, but for this example, we’ll focus on the Chicago market.

You have a list of customer work addresses and are saving the zip code of these addresses in Hatch Custom Data as the attribute “work_zipcode.” You can ETL this data to your BI tool and create a segment of customers whose offices are in the “606__” zip code area and extract the Membership IDs associated with those zip codes.

In Hatch, you can create a Custom Segment called “Urban Workers_Chi” and upload a .csv of the Membership IDs who work in Chicago from your analysis within your BI tool. This segment is now ready to be used in an Offer.

create-segment

upload-segment

When you create an offer and reach the Audience section, you can now choose to use just this segment, or combine it with another segment with the ‘ANY’ and ‘ALL’ functions.

segment-constraints

Through Custom Segments, you can deliver an offer like, “Need a break from your desk? Stop by this week and receive 50 bonus points!” By calling the API with the visible status filter, only members who have the 606__ zip code will be able to see this offer.

This is just one of many ways you can leverage your entire data set within the Hatch platform to create highly targeted experiences for your customers.

Access our Custom Segments technical guide and documentation here.