A Guide to Email Segmentation

guide to email segmentation - social definition

The Art of NOT Being Spammy

We have already shared an article on the differences between Email Blasts and Email Segmentation. In that article you will read that we concluded that: “…while email blasts have their place, email segmentation is generally considered a more effective and personalised approach.”

In this guide to email segmentation we take a much deeper dive into email segmentation, what it is, why it matters, the segments you might consider, what goals you might set and a look at how you could proceed with a few email segmentation examples.

First, a Definition; What is Email Segmentation?

A guide to email segmentation should really begin with a definition of what email segmentation is. Email segmentation is the process of categorising an email list into smaller groups based on specific criteria, such as demographics, interests, behaviour, or purchase history.

This technique enables a more targeted and personalised approach to email marketing, as each group, or segment, receives messages that are more relevant and tailored to their unique characteristics. For instance, let’s say you have a fruit store, and you want to promote your products to your subscribers who are interested in fruits. By segmenting your email list, you can create a group of “people who like fruit” and further categorise them based on the types of fruits they prefer. This way, you can send them emails that showcase the fruits they like and highlight new products that might interest them.

Email list segmentation can help increase engagement and conversion rates, as well as build stronger relationships with your subscribers.

It’s a good idea to use segmentation whenever possible, even for smaller email lists, as it can boost engagement and revenue from email marketing. The segmentation process can be carried out either manually or through automated tools.

Are There Any Benefits with Email Segmentation?

Let’s delve into the numerous advantages of email segmentation and discover why it’s a potent weapon in the arsenal of email marketers;

Improved Open and Click-through Rates.

Segmenting your email list and sending personalised messages to specific groups of subscribers not only increases the chances of your emails being opened and engaged with but also has a positive impact on your search engine optimisation (SEO) efforts.

By tailoring your email content to the interests and needs of different segments of your audience, you can create more relevant and targeted content, which can translate into better engagement metrics and improved website traffic. In turn, this can boost your website’s SEO rankings, resulting in even greater business success.

Increased Conversion Rates.

When you segment your email list and send personalised messages to specific groups of subscribers, you not only increase the chances of your emails being opened and engaged with but also open new sales opportunities.

By crafting focused calls-to-action that are tailored to the interests and needs of each segment, you can significantly increase the chances of your subscribers taking the desired action and making a purchase.

With more relevant and targeted content, your subscribers are more likely to see the value in your products or services, resulting in increased conversion rates and ultimately, greater business success.

Reduced Email Fatigue.

Segmenting your email list not only helps to avoid email fatigue among your subscribers but also increases the likelihood of them engaging with your emails.

By sending fewer, highly targeted emails that are tailored to the interests and needs of each segment, you can reduce the chances of overwhelming your subscribers with irrelevant content. This not only results in a more positive subscriber experience but also increases the chances of your emails being opened and acted upon, leading to greater.

Improved Customer Retention.

Segmenting your email list and sending personalised messages that resonate with your subscribers can help to foster stronger relationships with your customers and improve customer retention.

By demonstrating a deep understanding of their interests and needs, you can create a sense of community and build trust with your subscribers. This not only leads to higher customer loyalty but also increases the chances of them recommending your business to others. With stronger relationships and improved customer retention, your business can thrive and grow over time. As we have explored in our other articles, building, and serving a community is a critical aspect of this process.

Better ROI on Email Marketing.

Segmenting your email list and delivering personalised messages that resonate with your subscribers can result in a better return on investment for your email marketing efforts.

By targeting specific segments with more relevant messaging, you can again, increase the chances of your subscribers taking the desired action and making a purchase. This not only drives more conversions and revenue for your business but also reduces the overall cost per acquisition, resulting in a higher return on investment.

With increased engagement, stronger relationships, and improved customer retention, the benefits of email segmentation all contribute to a better overall ROI and greater business success.

Do You Have Any Email Segmentation Statistics That Back This Up?

Yes we do! We’ll demonstrate how email segmentation makes a difference using some data from Mailchimp. If you know Mailchimp (if you’re in business or you do any kind of marketing you most definitely will), you’ll know that they send a lot of emails on behalf of businesses of all shapes and sizes, so they have some interesting statistics;

  • When it comes to open rates, segmented email campaigns gain over 14% more opens than non-segmented campaigns.
  • For unique opens – over 9% increase over non-segmented campaigns.
  • For click-thru (which we all want!), almost 55% higher click-thru rate than non-segmented campaigns.
  • Almost 1% less bounces from emails sent.
  • 3.33% less reports of email abuse
  • Finally, over 7% lower unsubscribe rates than non-segmented campaigns.

Do you need any more evidence. Segmented email campaigns perform better on every level than non-segmented campaigns. It’s not just Mailchimps say so either, we see similar results on just about any platform we run campaigns on for our clients. If you couple these statistics with those around choice of email subject, inbox snippet and of course, great content, can you go wrong?

Now for Different Types of Email Segmentation

So, you thought that email segmentation was simple, just break you’re your lists into types of people and their interests. Well, you could keep it that simple, but you could also take that next important step and think about different types of segmentation. There are generally four types of segmentation; Demographic, Psychographic, Behavioural and Geographic. Let’s look at each in more detail:

Demographic segmentation is an effective way to divide your email list based on factors such as age, gender, location, income, or education level, among others.

This type of segmentation can be particularly useful for businesses that offer products or services that are tailored to specific demographics. For instance, a clothing retailer may segment their email list by gender to send targeted messages to men and women. Likewise, a university might segment their email list by education level to send targeted messages to graduates about master’s level courses.

By leveraging demographic data, businesses can tailor their email messages to better align with their subscribers’ interests and needs, increasing the chances of engagement and conversion. For example, a skincare brand may segment their email list based on age to offer personalised product recommendations for different age groups.

Similarly, a travel company may segment their email list based on location to offer customised travel packages for different regions.

By employing demographic segmentation, businesses can deliver more relevant content that resonates with their audience, resulting in better engagement and higher ROI.

Behavioural segmentation is a powerful email marketing strategy that involves dividing your email list based on how subscribers interact with your brand. This can include factors such as past purchases, website activity, email engagement, or social media activity.

For example, an e-commerce business may segment their email list based on past purchase history to send targeted messages promoting complementary products or special offers.

By leveraging behavioural data, businesses can deliver more relevant and personalised email messages that align with their subscribers’ preferences and interests. For instance, a fitness brand may segment their email list based on the frequency of gym visits to provide personalised workout plans and nutrition tips to subscribers who visit the gym frequently.

Similarly, a software company may segment their email list based on the features used by subscribers to offer customised tips and tutorials for maximising their product usage. By employing behavioural segmentation, businesses can deliver more targeted and effective email campaigns that drive higher engagement and conversion rates.

With more relevant and personalised content, subscribers are more likely to engage with emails, resulting in increased ROI for the business.

Psychographic segmentation involves dividing your email list based on personality traits, interests, values, or attitudes.

This type of segmentation can be particularly useful for businesses that offer products or services that appeal to specific lifestyles or interests. For instance, a fitness brand may segment their email list based on subscribers’ interests in yoga or weightlifting to send targeted messages promoting related products or services.

By leveraging psychographic data, businesses can deliver more personalised and emotionally resonant email messages that align with their subscribers’ values and attitudes. For example, a sustainable fashion brand may segment their email list based on subscribers’ eco-consciousness to send targeted messages promoting environmentally friendly clothing options.

Similarly, a subscription service for meditation may segment their email list based on subscribers’ interest in mindfulness practices to send targeted messages promoting related resources and courses.

By employing psychographic segmentation, businesses can create deeper connections with their subscribers by tapping into their values, interests, and beliefs.

With more emotionally resonant and personalised content, subscribers are more likely to engage with emails, leading to increased loyalty and higher conversion rates.

Geographic segmentation is a widely used and popular strategy in email marketing that involves dividing your email list based on geographic factors such as location, post code, city, county, or country.

This technique is particularly useful for businesses that have a physical presence in different regions or offer products or services that are tailored to specific locations. For example, a restaurant chain might use geographic segmentation to send targeted messages about promotions or new menu items to subscribers in specific cities or regions.

By targeting subscribers in specific geographic areas, businesses can drive foot traffic to their physical locations and increase sales.

In addition to location-based segmentation, geographic segmentation can also be used to target subscribers based on climate or time zone. For instance, a company that sells winter gear might target subscribers in colder climates with messaging about winter sales or product recommendations.

Overall, geographic segmentation can be a powerful tool for email marketers, helping to deliver more relevant and personalised messaging to subscribers based on their location or climate.

By combining geographic segmentation with other types of segmentation, businesses can create even more targeted and effective email campaigns that drive higher engagement, conversion rates, and ultimately, greater business success.

Can You Combine Different Segmentation Types?

While each type of segmentation can be effective on its own, combining different types of segmentation can help businesses create even more targeted and effective email campaigns.

By leveraging multiple segmentation types, businesses can create highly targeted segments that align with their subscribers’ interests, behaviours, and values. For example, a health food company may combine demographic and psychographic segmentation to create a segment of health-conscious, middle-aged women who live in urban areas and enjoy yoga. By analysing data on age, gender, location, and interests, the company can deliver highly targeted messages that resonate with this segment, such as promoting yoga retreats or plant-based meal plans.

Another example could be a travel company that combines geographic and behavioural segmentation to create a segment of subscribers who have previously booked adventure trips in South America. By targeting this segment with messages about upcoming adventure tours in South America or recommendations for similar trips, the company can drive higher engagement and sales.

Combining segmentation types can help businesses create more relevant and personalised content that resonates with their subscribers, leading to increased engagement and higher conversion rates.

By leveraging the power of multiple segmentation types, businesses can create even more targeted and effective email campaigns that drive greater business success.

Conclusion:

Let’s summarise our guide to email segmentation. Email segmentation is a powerful email marketing strategy that offers numerous benefits for businesses.

By understanding the different types of segmentation, businesses can create more targeted and effective email campaigns that resonate with their subscribers and drive conversions.

By leveraging demographic, behavioural, and psychographic segmentation, businesses can create segments that are more likely to engage with their brand and take desired actions.

Moreover, by combining different types of segmentation, businesses can create even more targeted and effective email campaigns that deliver better results. With more personalised and relevant content, subscribers are more likely to engage with emails, leading to higher open and click-through rates, improved customer retention, and ultimately, greater business success.

In conclusion, email segmentation is a powerful tool that businesses can use to enhance their email marketing efforts and achieve better ROI. By leveraging the benefits of segmentation and creating more targeted and personalised content, businesses can build stronger relationships with their subscribers and achieve their marketing goals.

Need Some Help?

Email marketing is a big subject and we hope that our guide to email segmentation has gone some way to showing you how you can be more successful. But there is a lot to take in and it can often become overwhelming, even for the more technically minded, so you may be looking for some help.

The articles published on the social:definition website are about everyday subjects that we deal with. We’ve done all the hard work, read the documents, and put everything into practice. We’ve learned a lot ourselves through continued research, our own development and practical experience. All this experience goes into the work we carry out for our clients, so, if we can help, we’d be only too happy to.

If you are looking to raise your email marketing game, need help getting started, or your email marketing isn’t delivering against your goals. You can contact us directly through the form on this page or using any of the details throughout our website.

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