Segmented, targeted, and personalized emails generate 58% of total business revenue, according to one study. This same study shows that 77% of email ROI comes from segmented, targeted, and action-triggered email marketing campaigns.
These big numbers show the importance of proper email segmentation and targeting in your marketing strategy. Why? Because segmentation and targeting is really about understanding the customers on your list.
And the more you understand about your customer, the more relevant your email marketing content can become. The more relevant you are, the better chance you have of generating interest, conversions, and ROI.
Seems simple enough, right?
Data Collection is Key
Segmentation and targeting can be based on anything like age, gender, demographics, purchase data, interests, etc., pretty much any data point you have access to. Therefore, collecting customer data is extremely crucial, and the more data you have, the easier campaign and segmentation planning becomes.
A study conducted by MailChimp revealed that their segmented user email lists based on data like location and job title has helped increase open rates by almost 19%, and click-through rates by almost 22% – compared to non-segmented sends. This invariably has helped making this collected data relevant, and of pristine importance.
How to Segment Your List
Email list segmentation is done through observing the data that you’ve collected. Here are some data points you can observe and utilize in your strategy:
Age can be a huge deciding factor. A 16-year-old wouldn’t want to see products that are meant for a 60-year-old.
A man likely wouldn’t want to see emails by a makeup brand in his inbox
Knowing what is popular according to demographic data in a particular place can help boost sales.
Sending emails with light summer outfits to a cold region like Alaska won’t increase ROI. Knowing the geolocation can help you target your customer better.
Knowing the buying patterns; the time purchase is made, the total amount of the purchase, how frequently a purchase is made, etc. can help in target boosting.
Providing product suggestions based on the last purchase can really help.
Can you determine what interests and drives a person to get something better?
Why Should You Segment Your List
It may seem obvious from what we’ve said before. But here are some other thoughts as well:
- It reduces inbox clutter because you promote the right products/services to the right subscribers at the right time.
- It increases relevancy. The more relevant an email is, the more likely it will get clicked, opened and read.
- It helps your brand gain credibility as good segmentation proves that you are not sending random information but are actually concerned with the information you send.
- Personalizing content can grab attention and increase ROI. Emails sent wishing happy birthdays, anniversaries, cart abandonments, “We miss you” emails, and others use this personalization in effective ways.
- 77% of email ROI comes from the segmented, targeted, and action-triggered campaigns.
- Sending segmented emails increases open rates by almost 19%, and click-through rates by almost 22% compared to non-segmented sends.
- With effective segmentation, there are higher chances that your customers will receive relevant emails with information that they actually want.
- Email segmentation reduces inbox clutter, increases relevance, and helps your brand gain credibility.
- Personalizing the content can help grab attention and increase ROI.