4 Reasons Why You Should be Segmenting your Email Marketing Lists

Slicing data is called segmentation

 

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Email Marketing Segmentation

Slicing and dicing data is called segmentation

Are you creating accurate segments for your email marketing strategies?

Our jobs as email marketers are often busy and hectic as we hope to continually improve on our latest email campaign results.

We’re well versed in understanding call to actions, testing campaign, including unsubscribe options and following general email marketing best practices.

But marketers often forget one of the more simpler tasks that should be included with each send: segmentation.

In this post, we give you four reasons to segment your email marketing lists to improve campaign performance.

Many marketers don’t segment their database either on data information such as person type, or on demographic information.

It’s not hard to segment your data, if you’re using the right tools, and we know from experience that segmented and targeted messages see a higher reaction and engagement than batch and blast messages that are generic for everyone.

Four Reasons to Segment Your Email Marketing Lists

Segmenting your contact list can have a number of benefits to campaign performance.  In this section, we will outline the top four reasons that we think segmentation is a worthwhile activity for marketers.

1. There is no ‘one size fits all’ customer

As a consumer yourself, you’ll understand that individual customers need different forms of messaging or communications. Often companies will send our mass marketing campaigns to what they think is their ideal audience, and see no responses or a very low uptake on the offer.

Treat Your Customers as Individuals Whitepaper

With segmentation, we can start to teat out consumers like individuals, so that they feel as though they’re receiving a personalised experience from enquiry through to sale.

Here’s an example in action. Let’s say you have a bike shop. If a prospective customer walked through the door and wanted to find more about your range of helmets, you wouldn’t show them the latest biking gloves would you?

It’s the same for email marketing. Your blanket campaign won’t be as effective as sending a targeted campaign based on their specific needs.

If you haven’t already, create buyer personas.

A buyer persona is a fictional representation of a typical customer.

Back to the bike shop example. Your buyer personas may consist of a professional racer, a weekend biker and a beginner. Each of these people will require a different service and product offers.

Segmentation allows you to send content based on their needs. So you will able to send the latest helmet offers to customer A, and the latest glove selection to customer B.

2. Consumers are at different stages of the marketing funnel

The contacts that make up your email marketing list will all be at different stages of the marketing funnel.

Some may have recently discovered your brand, others may have been receiving campaigns from you for months but aren’t ready to purchase yet.

This means the contacts will require different types of content depending on their stage in the funnel.

Let’s go back to our bike shop example.

Customer A cycles on the weekend as a hobby, and has no knowledge of the latest biking trends.

Customer B is a seasoned professional; he is a repeat purchaser and has previously redeemed offers from your marketing campaigns.

Customer B is more likely to purchase from you than Customer A.

Your email to Customer B should cater to his position in the sales cycle, rather than a blanket email which will cover Customer A’s needs as well, such as news and updates from the industry.

Email marketing segmentation gets better results

Sit back and have a coffee as your segments improve your results!

3. Segmenting data helps your sending reputation

Think about how you react to personalised or highly targeted campaigns – you’re probably more likely to engage and react to this type of message than a blanket send.

Over time your contacts will understand that the messages you send are relevant and personalised to their details, and will naturally begin to react positively to your campaigns.

This positive engagement helps your sending reputation and encourages contacts to share your email and become brand advocates.  Sender reputation can influence your email deliverability rates which contributes to campaign performance.

4. Segmentation achieves better results

As discussed above, we know that targeted emails results in higher open rates and higher click through rates. As your emails become more segmented your conversion rates increase too. Here are some great stats that show how great segmentation is:

  • Jupiter Research found that relevant emails drive 18 times more revenue than basic broadcast emails
  • Lead generation emails generate an 8% click through rate compared to a general email send which generates a click through rate of around 3%
  • Lyris’ Annual Email Optimizer report found that 39% of marketers who segmented their lists achieved higher open rates
  • 28% of marketers using segmentation experience lower unsubscribe rates
  • 24% experience better delivery

Conclusion

Take time to build targeted and relevant content that is precise and interesting to your target audiences.

Without relevant information, your segmentation won’t resonate with the audience and may fall flat.

Segment your email marketing lists and you can expect to see your performance improve drastically.

As consumers become more accustomed to multiple targeted messages the key to standing out lies in producing effective segmented messages relevant for them.

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