Segmenting your email marketing list is an easy to implement best practice that will raise your open and click through rates. And of course, more opens and click throughs will create a higher percentage of converting users. When you target content to relevant users, the email is more pertinent and of a higher value to the user. Not segmenting your list leads to lower open and click through rates and higher unsubscribe rates.
Why should we segment? Simply put, because people are different. People who purchase your product are not all the same. The people who make up your email marketing list are in different stages of their customer decision journey. For example, the email sent during the exploratory or active evaluation phases should be drastically different from the email sent after a customer has purchased. Defining these stages in the CDJ and aligning email to bring value to the consumer or potential consumer’s life will increase future open rates and lower unsubscribes. Additionally, people do not all have the same interests, live in the same area, and their emails might have been acquired from different sources.
Segmentation increases open and click through rates, gives your email relevance to the consumer, lowers unsubscribes, increases leads, and increases customer retention. Your deliverability with your ESP (email service provider) will also increase.
MailChimp’s report on the effects of list segmentation sampled “about 2,000 MailChimp users who sent about 11,000 segmented campaigns to almost 9 million recipients.” Then they compared the segment’s performance against the same customers who were sent non-segmented campaigns.
MailChimp data: February 1, 2016
The results are crystal clear. Segmenting email marketing lists raises open and click through rates. The engagement of these segments was higher in each category.
We know we should segment but what are some segmentation strategies? How do we divide any other type of marketing? Age? Sex? Location? What about just converted, converts often, rarely converts, or has never converted? How about segmentation by cart abandonment?
Here are a few examples.
Segment by age group: Content meant for seniors probably isn’t appealing to teenagers.
Segment by location: Is there a heat wave in one part of the country? Are you hosting events in a specific area? What about adjusting webinar times to be most accessible for people in specific time zones?
Segment by repeat customers: Someone has converted 10 times, maybe they should be sent a coupon or just a thank you email deepening that bond with the consumer.
Someone has abandoned their cart 3 times, maybe a small discount will help them finally place that order.
Segmentation, subject line, cadence, and content strategy are all critical components for your email marketing success.