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How to segment your contact list to gain impactful revenue?
5 min read
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by Alena Parfisenko
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On average, a regular person receives over 100 emails in their inbox. How do you think how many of those emails will be read? Especially if you think a potential customer has their worries, preferences, circumstances, and other interaction factors. At the same time, on every $1 an email marketer spends, they get $36 in return. So how exactly do they ensure such a successful email strategy? The answer is - segmentation.
Can you relate to this?
As a new fashion brand email marketer, you enter a fresh market with many opportunities. After interacting with your potential customers through emails, you notice a difference in consumers' buying patterns. That’s where you decide to segment your email lists actively.
However, when you try to divide your audience into coherent groups correctly, you notice that you don’t understand by which criteria you should segment them. There are minimal email segmentation examples online. Furthermore, your client's data is insufficient for RFM or cohort analysis to have a quality ground for email segmentation.
Thus, you need firm examples of how segmentation should work to have a strong email marketing result.
Why should you segment email lists?
Customers want their email correspondence to be always on time and relevant to their interests.
Sending the appropriate messages to the correct recipients at the proper times will enhance your email results. It can start all with contact segmentation into smaller groups. Emails don't always fit into a neat little box. Some recipients on your list may find an email interesting, while others may require something entirely different.
If they feel your communications aren't relevant, the recipients may put them in spam box ro just unsubscribe from you. That will lead to a rapid decrease in your email marketing analytics, following up with the decline in revenue and spending more time constructing “appealing emails.”
Furthermore, for those who are new to email marketing or may have little experience in it, they may simply find no relevant use cases of effective segmentation. It is especially true for the majority of businesses, as they have to test their emails multiple times before understanding the right segmentation lists. Even more, marketers may find no relevant resources for adapting RFM and cohort segmentation.
Thus, begin segmenting your contact lists today, and you can achieve results similar to the ones demonstrated below.
- 56% of people who unsubscribed from a nonprofit firm or company list did so because the content wasn't relevant.
- The average open rate for campaigns with more personalized content addressed to 35 subscribers, or fewer was an astounding 55%.
- Readers who receive segmented emails are 50% more likely to click on an email's link.
The primary email segmentation criteria
Behavior
Behavior
Regular customers
Create a section for frequent users that includes email recipients that frequent your website or make purchases from you. These are the people who regularly open and respond to your emails. Consider these to be your VIP customers, and send them exclusive offers and discounts as such. You can make your software better by polling them.
Traffic type
It is essential always to know where your customers are coming from in advertisements, organic traffic, social media, or any other relevant source. That way, you can provide any applicable offers or sales to these users.
Order value on average
Consumers who spend more money or use your service more frequently are likely to interact with you differently than customers who use it less frequently. To customize your communications, create segments for these two different groups. Show all the features and benefits lower-volume consumers already enjoy or could acquire by upgrading targeted nurturing campaigns. However, provide valuable, devoted clients with more significant incentives if you want to keep their business.
Email Format Users
Email Format Users
Engaged users
Analyze the email program's metrics to determine which users are the most active and engaged. Make a segment of these recipients who are the most interested, and send any upcoming email communications to them first. With each send, you'll not only gain greater insight into the impact of your material, but you'll also help your reputation as a reliable sender.
Level of interest
Increase recipient engagement by segmenting the people who read your emails and those who open and click on your calls to action. By doing so, you'll be able to tell who was attracted to your subject line, who scrolled past your content, and who took action.
User reaction
Think about enabling email replies from your recipients. Customers of Twilio SendGrid can remove the "do not reply" address from their messages, allowing the recipients to respond to the email message simply. That can help you get valuable feedback regarding the emails you send by establishing a two-way dialogue in your correspondence.
Demographics
Demographics
Location
Regardless of whether your recipients live in various states or nations, it's critical to understand their locations. That enables you to adjust your content for a pertinent message based on location. You wouldn't want to, for instance, send a promotional email for the Fourth of July to a group of Canadian recipients.
Time
Keep track of the times your receivers interact with and open your emails so that you may plan them to arrive at the top of their inbox or just before that moment.
Age and gender
Although it might not always make sense, gender segmentation is a quick yet practical approach to delivering customized content. Just be aware that you might need to request that respondents to a poll disclose their gender.
Asking new users their age or a range of ages may make sense depending on your product or service. If you're unsure whether to ask your recipients their gender or age, do an A/B test on a sample of them to see how they react. Open up the question to everyone on your list if the response is positive.
Industry and occupation
You can adapt the message to how each recipient will most likely utilize your goods after you know their occupation. That works exceptionally well for communications sent between businesses. Segmenting by profession aids in enhancing the relevancy of your message and developing innovative messaging, regardless of whether the recipient is an accountant at a giant firm or a creative director at a small agency.
All in all
Email segmentation is one of the critical factors that can significantly improve your revenue generation, while you can prioritize your time on other essential tasks as an email marketer.