Imagine you're a clothing retailer with customers ranging from teens to seniors. Sending the same email to everyone won't cut it.
Teenagers prefer trendy clothes, while seniors may lean towards stylish but comfortable options. How do you send relevant emails to both for a more targeted approach?
The answer is simple—email segmentation.
It’s all about sending the right message to the right people. In this guide, we’ll explore email segmentation, why it matters, and how it can transform your email marketing campaigns for higher conversions and revenue.
Let’s dig in.
What Is Email Segmentation?
Email segmentation involves dividing your email list into smaller, more targeted groups based on specific criteria.
These criteria can include:
demographics,
purchase history,
engagement levels,
interests, and more.
By doing this, you can send more personalized and relevant emails to each group, improving engagement rates and ultimately driving higher conversions.
Email Segmentation and Personalization: How Are They Different?
Here’s a brief comparison of email segmentation and personalization, entailing how they differ from each other.
Aspect | Email Segmentation | Email Personalization |
Definition | Dividing your email list into smaller, targeted groups | Tailoring email content to individual recipients |
Basis | Based on shared characteristics like demographics, behavior, or preferences | Based on unique data about each recipient (name, past behavior) |
Goal | To send relevant content to specific groups | To create a one-to-one experience with personalized content |
Example | Segmenting customers by age group to send age-appropriate promotions | Using a recipient's name in the email greeting |
Complexity | Generally less complex, involves creating groups | More complex, requires dynamic content and data integration |
Tools | Email marketing platforms with segmentation features | Advanced email marketing tools with personalization capabilities |
Why Email Segmentation Matters? Key Benefits
Email segmentation is crucial for effective email marketing. Here’s why it matters and the key benefits it offers.
Better engagement 🧲
When your emails are targeted to the right people, they’re more likely to engage with your compelling call to action. This leads to higher click-through rates and increases the chances that they will connect with content that matches their interests and needs.
Higher conversions 📈
You improve the chances of converting leads into customers by delivering targeted emails that aligns with a recipient’s stage in the buyer's journey or their specific preferences.
Increased ROI 💰
Segmentation helps you use your marketing resources more efficiently by focusing on high-potential segments. This targeted approach often results in better returns on your email marketing investment.
Reduced unsubscribe rates 📉
Sending relevant content to well-defined segments reduces the likelihood of recipients feeling overwhelmed or receiving irrelevant emails, which can decrease unsubscribe rates.
Improved email deliverability 📬
Even if people don’t hit the unsubscribe button after receiving irrelevant emails, their inbox might start marking your emails as spam. That’s where segmented lists come in handy—they help keep your emails landing in the right place.
5 Effective Ways to Segment Your Email List
Let’s get into the nitty-gritty of segmenting your email list, so you can fully make use of your email marketing efforts and speak directly to your audience’s unique needs.
1. Demographic information ♀️
Demographic data includes the personal characteristics of your customers, such as age, gender, occupation, and income. These basic segments allow you to categorize customers without delving into their purchase history or behavior.
However, demographic segmentation is still valuable. For instance, a fitness center would benefit from segmenting by age when promoting a new youth membership program.
2. Geographic location 📍
Geographic segmentation lets you segment your audience based on where they live—whether by language, country, city, zip code, or even time zone.
For instance, if your company sells winter gear, you might focus on customers in colder regions like the Northeast. Additionally, if you’re a service provider with different teams handling various areas, geographic segmentation helps them tailor their outreach to local prospects more effectively.
3. Purchase history 🛍️
Purchase history segmentation involves grouping your audience based on their past buying behavior. This includes:
⚡️Previous purchases: Track what items or services customers have bought before.
⚡️ Purchase frequency: How often do they make a purchase? Are they frequent buyers or occasional ones?
⚡️ Average order value: Do they typically spend a lot or a little with each purchase?
⚡️ Recency of purchase: When was their last purchase? Are they recent customers or long-time ones?
For example, if you run an online bookstore, you might send tailored recommendations for new releases to frequent buyers or special offers to customers who haven't shopped in a while. This approach ensures your emails are relevant and engaging based on their shopping habits.
4. Behavioral data 🧑💻
Behavioral segmentation sorts your audience based on their interactions with your brand. This includes:
⚡️ Purchase behavior: How do customers buy? Do they make impulse buys or plan their purchases?
⚡️ Engagement level: How often do they interact with your emails or website? Are they active or passive users?
⚡️ Product usage: How do they use your products or services? Are they regular users or occasional ones?
⚡️ Customer journey stage: Where are they in the buying process? Are they new visitors, repeat customers, or loyal advocates?
For instance, if you run a fitness app, you might send workout tips and promotions to active users while offering re-engagement incentives to those who haven’t used the app in a while.
5. Psychographic data 🧗♀️
Psychographics segmentation focuses on the psychological aspects of your audience, such as:
⚡️ Interests and hobbies: What are their passions? Do they enjoy outdoor activities or tech gadgets?
⚡️ Values and beliefs: What do they care about? Are they environmentally conscious or health-focused?
⚡️ Lifestyle choices: How do they live their lives? Are they adventurous or prefer a more laid-back approach?
⚡️ Personality traits: What are their attitudes or preferences? Are they innovative or traditional?
For example, a travel agency might tailor its email campaigns to adventure seekers with offers on extreme sports packages while sending luxury travel deals to those who value comfort and exclusivity.
10 Email Segmentation Strategies for Winning Email Marketing Campaigns
To truly elevate your email marketing game, you need more than the basics. Advanced segmentation strategies can significantly boost your campaigns' effectiveness. Let’s explore these strategies to ensure your emails hit the mark every time.
1. Greet your new subscribers with welcome emails
Imagine you’ve just subscribed to a newsletter for a brand you’re excited about. You receive an email that says, "Hey there, welcome to our community! We're thrilled to have you. Here’s a little something to get you started…" It feels great, right? It’s personal, friendly, and makes you feel valued.
Incorporate this strategy into your email marketing by creating a segment of new subscribers and crafting a warm, inviting welcome email that thanks them for joining and gives them a taste of what they can expect.
You can include special offers, helpful information, or simply a friendly message. This approach helps to build trust and sets a positive precedent for future interactions.
Plus, don’t forget to add enticing Call-to-Action (CTA) buttons so users can interact with certain features and tutorials of your product—just like the welcome email example below.
Source: BBC
2. Treat your loyal customers to exclusive deals & discounts
To create a segment of loyal customers and send them exclusive deals, start by analyzing your data to identify those who frequently purchase, have been with you for a long time, or show high lifetime value. These loyal customers are perfect candidates for special treatment.
Celebrate their special occasions, such as the anniversary of their first purchase or their membership with your brand. Send them a personalized email acknowledging their loyalty and offering a special discount or gift.
If you have a rewards program, recognize and reward customers when they reach new milestones. For example, when they hit a certain number of purchases, send a thank-you email with a discount code.
Source: Famously You
3. Segment your B2B and B2C customers separately
When it comes to email marketing, treating your B2B and B2C customers the same way just doesn’t cut it. These two groups have different needs, interests, and decision-making processes, so why should they get the same emails?
For B2B customers, focus on content that highlights ROI, industry insights, and solutions to their business challenges. They’re looking for detailed, value-driven content that helps them make informed decisions. Think white papers, case studies, and product demos.
On the other hand, B2C customers are often drawn to more personal, engaging content. They’re interested in promotions, new products, and experiences that make them feel good about your brand. Think eye-catching offers, exclusive discounts, and exciting updates.
It’s a minor tweak that can make a big difference in how your emails are received and acted upon.
4. Re-engage inactive customers
Let’s talk about those customers who haven’t interacted with your emails in a while. You know the ones—those who signed up, maybe bought something once or twice, but now seem to have fallen off the radar.
Re-engaging inactive customers is a crucial part of email segmentation.
First, identify these inactive customers. Maybe they haven’t opened your emails in the last six months or made a purchase in a year. Segment them into a separate list.
Now, craft a re-engagement campaign. The key is to remind your customers why they signed up in the first place and reignite their interest in your brand. Start with a friendly email acknowledging their absence and offering something enticing to draw them back.
For example, "Hey there! We’ve missed you! Here’s a special 20% discount just for you to welcome you back."
Or, ask for feedback, "We noticed you haven’t been around lately. Is there something we could do better? Let us know, and enjoy a free gift on your next purchase."
Re-engagement emails can be a mix of incentives, updates on what they’ve missed, or even a heartfelt "We Miss You" message. The goal is to show them they’re valued and that you’re excited to have them back.
Source: Duolingo
5. Send abandoned cart emails
By sending abandoned cart emails, you’re effectively segmenting your audience based on their behavior and giving them the gentle push they need to come back and complete their purchase.
All you have to do is craft an engaging email with incentives like a discount or free shipping to sweeten the deal.
Here’s an email example that creates a sense of urgency with its clever email copy and nudges customers one last time to complete their purchase.
Source: Varley
6. Nurture leads at every funnel stage
Nurturing leads at every stage of the funnel is vital. Not all leads are the same—some are just discovering your brand, while others are close to making a purchase.
By segmenting your email list based on where your leads are in the funnel, you can tailor your emails to guide them along their journey.
For example, someone at the top of the funnel might receive educational content or a welcome series to introduce them to your brand. In contrast, a lead in the middle of the funnel could get product comparisons or case studies to help them evaluate their options.
And for those at the bottom of the funnel, it’s all about giving them that final nudge—think exclusive offers or personalized recommendations.
7. Inform customers about restocks
Letting your customers know about restocks is a great way to keep them engaged and coming back for more. With email segmentation, you can target those interested in out-of-stock items or who have previously purchased similar products.
Imagine a customer who’s been eyeing a sold-out product and would love to know when it’s back. By sending a personalized restock email, you’re not just keeping them informed but also making them feel valued and more likely to convert.
A quick, "Good news! The item you wanted is back in stock—grab it before it’s gone again!" can do wonders for both customer satisfaction and sales.
Source: Courtside
8. Don’t forget about the weather
Weather can be a game-changer when it comes to email segmentation. Think about it: your customers' needs and interests might shift based on the season or even the day's forecast.
So, why not use that to your advantage?
For instance, a chilly day might be the perfect opportunity to promote cozy sweaters or hot beverages if you're running an online store.
Or, during a heatwave, your subscribers might appreciate a cool summer sale on light clothing or beach essentials.
Source: Magic Molecule
By segmenting your email list based on location and current weather conditions, you can send targeted, relevant offers that feel timely and personal.
9. Engage users based on their browsing behavior
When someone engages with your content, such as opening emails, clicking links, and browsing your website, that signals that they're interested.
Segment these active users to send them more targeted emails that align with what they’re already exploring.
For example, if someone frequently clicks on your product updates, send them an exclusive offer or a sneak peek of your next launch.
Source: Mini Boden
Conversely, if a contact hasn’t opened your emails in a while, it’s time for a re-engagement campaign.
Focusing on these activity-based segments ensures your emails are always relevant, keeping your audience interested and driving better results.
10. Tailor your emails for desktop and mobile users
One thing you don’t want to overlook is how your emails display on different devices. Desktop and mobile users often have different experiences and expectations, so tailoring your emails accordingly is essential.
For instance, mobile users are likely skimming through their inboxes quickly, so they’ll appreciate shorter, punchier content with clear CTAs that are easy to tap.
On the other hand, desktop users might have the time to engage with more detailed content, like in-depth articles or special promotions with lots of visuals.
By segmenting your subscribers based on the device your contacts typically use, you can ensure your email looks great and resonates with them, whether they’re on a phone, tablet, or computer.
This approach is excellent for improving user experience and boosting your chances of getting that all-important click.
Final Thoughts…
In wrapping up, advanced email segmentation is your ticket to more personalized, effective marketing campaigns.
By understanding your audience and tailoring your emails to their needs, you’ll not only increase engagement but also drive higher conversions. Whether you’re segmenting by demographics, behavior, or activity, the key is to keep your emails relevant and timely.
So, take these strategies, apply them to your email marketing efforts, and watch as your results soar.
Frequently Asked Questions - FAQs
1. How does segmentation differ from personalization?
Segmentation groups contacts based on shared characteristics, while personalization tailors content to the individual, such as using their name or past purchase history in emails.
2. What are some common ways to segment an email list?
Common methods include segmenting by demographics, past purchase behavior, email engagement, geographic location, customer lifecycle stage, etc.
3. What’s the best way to start with email segmentation?
Begin by analyzing your current email list, identify key segments based on your goals, and gradually implement tailored campaigns to see what works best.
4. How to measure the success of your email segmentation strategy?
Track metrics like click-through rates, conversion rates, and unsubscribe rates to evaluate the effectiveness of your segmentation efforts.
5. How often should you update your email segments?
Regularly review and update your segments to reflect changes in customer behavior, preferences, and new data, ensuring your emails remain relevant and effective.
6. What tools can help with email segmentation?
Many email marketing platforms, such as Mailchimp, HubSpot, and ActiveCampaign, offer built-in segmentation tools to help users create and manage segments easily.
7. Can you use segmentation in both B2B and B2C email marketing?
Yes, email segmentation is effective in both B2B and B2C, though the criteria for segmentation may differ, such as by industry for B2B or shopping habits for B2C.
