How to Segment your Email List for Better ROI on Marketing Campaigns

We are in the age of personalized content – and email marketing is no different. To better engage your audience (and increase ROI) with your email marketing campaigns, let’s consider email segmentation.

Email segmentation is the difference between speaking directly to your customer or sending content that resonates only partially. In our evolving digital world, content is becoming increasingly more personalized. As a result, customers expect more than a traditional mass sales email to draw them in with your business.

This is where email segmentation comes in. Let’s learn more!

What is Email Segmentation?

Just like every customer is unique in your store, so are your email subscribers. Email marketing tools have so many more customization options and capabilities. Segmenting lists is one of the most powerful techniques to target your audience, increase campaign engagement, and drive revenues.

Email segmentation is the practice of sorting email lists based on various details that receive unique email marketing campaigns. For example, customers who have purchased children’s clothing would receive content specific to that detail. Whereas customers who have purchased women’s accessories would receive sales emails directly to their inbox specific to that detail.

Most email marketing platforms allow users to dig into the analytics and data of past campaigns. Marketers can also use other data (such as website analytics) to segment their email lists further. Email segmentation involves sorting your existing subscribers together based on any criteria that you define. Some customers may fall into multiple email segmentation lists depending on your selected segmentation criteria.

Email Segmentation Statistics

If you are considering reasons why you should segment your email list – look no further than these numbers.

According to Mailchimp, segmented campaigns receive 14.37% more opens
Segmented email campaigns also see about 65% more clicks
Marketers who use segmented email lists may see a revenue increase of up to 760% (Hubspot)

Ways to Segment your Email List

Demographics

One of the simplest ways to segment your email list is using the demographics of your subscribers. Information like age, gender, position, income level, and geographic location are all fairly easy to gather and utilize for segmentation.

The more information that is gathered at the outset of your email subscription or opt-in, the easier segmenting your list by demographic data is! However, be conscious not to ask for too much information upfront as it could cause your potential lead to opt-out of subscribing to emails from your company.

Audience Feedback or Preferences

At the time of sign-up for emails, more companies are asking for their audience to be upfront with the content they’d prefer to receive. Often this is phrased as “content you are interested in” on the subscription box. Examples may include educational content, sales, and promotional offers, exclusive events, digital events, and more.

Giving your customers the option to decide which content suits them is one of the easiest (and most transparent) ways to gather user data for email segmentation.

Email Engagement (Hot, Warm, Cold)

Another obvious (but incredibly effective) way to segment your list is to take a look at past engagement over time with your email campaigns. The more that a customer interacts with your content, the more you can assume that they will be excited to receive more information from you.

On the flip side, those who interact less frequently may be less favorable to receiving increased email communications. You may also opt to send your more engaged customers specific sales codes or promotions as a reward for their loyalty to your campaigns and brand.

Purchasing History

This is becoming more common with major retailers and with the rise of online shopping. Segmenting your email list based on purchasing history can be a great way to automate post-purchase touchpoints with your customer. The most frequently used technique with this segmentation is requesting a review a few weeks after purchase. You can also segment your email list to send reminders when you believe the customer may need to repurchase a product (like makeup or food).

Position in the Sales Funnel

The position in sales funnel is a great way to meet your customer where they are ready. Varying your communications with your customers based on their interaction with your sales funnel can be an effective technique to push them along the buying journey.

For example, a customer has made it to your shop and added items to the cart.

However, the customer left the cart full before the purchase and did not complete the transaction. An email a few days after this interaction may be a great way to remind them that they were ready to purchase your product – or you can invite them to interact with a live agent to learn more about the product if they’re unsure.

Ready to get started with Email Segmentation?

These are a few great ways to segment your email list without having to take too much time or effort. Monitoring and maintaining your email list’s organization is a key to the success of your total digital marketing plan. Don’t overlook the power of personalized communication when you have the capability to set it up!

To read more about Email Marketing Strategy, check out Email Marketing Strategy and Tips for Successful Campaigns article.

How to Segment your Email List for Better ROI on Marketing Campaigns

How to Segment your Email List for Better ROI on Marketing Campaigns

Table of Contents

What is Email Segmentation?

Email Segmentation Statistics