Email Segmentation — 5 Tips for Segmenting Your Email Lists to Drive More Conversions

The evidence is overwhelming – email list segmentation is a best practice that can dramatically improve email-campaign results. In a previous NewsLever feature, we gave 5 tips for segmenting email lists to help boost return on investment. Here we expand on that advice with 5 more ways to segment your email lists.

By dividing your email list into different subgroups, you can send more targeted emails that maximize the relevance of your marketing message for each subscriber. At FulcrumTech, we’ve seen firsthand how implementing an email segmentation strategy can significantly improve our clients’ open, click-through, and conversion rates.

The positive results of email segmentation were also clearly evident in the Lyris Annual Email Optimizer Report, which showed 69% of the survey respondents segmented their email lists. Of this group of email marketers:

• 39% experienced higher open rates
• 34% reported better email relevance
• 28% saw lower opt-out/unsubscribe rates
• 24% generated higher revenues
• 24% increased sales leads
• 24% had better deliverability rates.

In addition to geography, purchase history, demographics, prospects versus clients, and behavioral data — segments we discussed in our previous feature on segmenting email lists — the following are five highly effective email segmentation methods:

1. Segment by engagement. Segmentation based on subscriber engagement is one of the most basic methods that can have a big impact on your overall campaign results. To segment based on engagement, start by determining who on your list is active versus inactive – someone who hasn’t clicked on your emails in 6 months or more. Then, design a reengagement campaign to help reignite interest in your products/services with the inactive subscribers. (Keep in mind that having a lot of inactive subscribers may have a negative impact on your email deliverability.)

   Segmenting by engagement also can help you identify your most active subscribers and likely your best customers. By designing special email offers and promotions for this group, you’ll nurture them and help keep their interest high.

2. Segment by persona. In a recent NewsLever feature on business lead generation, we talked about the importance of understanding your market and creating personas for your primary target audience. What are your most profitable buyers’ values and personality traits? And why would they choose your product/service over a competitor’s brand? Knowing this information and using it to create segments for each type of persona will help you develop relevant content that will drive open, click-through, and conversion rates. For more information about how to create personas for your subscribers, check out this recent Hubspot blog.
3. Segment by where customers shop. Businesses with physical stores, for example, can segment subscribers by the different locations they frequent with special offers specific for each location. If some subscribers purchase only from your website, then send them online-specific offers, such as free shipping.
4. Segment by website behavior. What products or services have your subscribers recently viewed at your website? There are web analytic packages available to help you answer that question. With this information, you can get a good idea about what subscribers are most interested in purchasing from your company in the future and tailor your email content and offers to each segment accordingly.
5. Segment cart and form abandoners. Whether subscribers didn’t finish filling out a sign-up form or they started shopping and left your website before completing their transaction, create a segment for this group. Perhaps there was a problem with their Internet connection or they were interrupted before completing the transaction. In any case, they were interested enough to start the process with your company, so perhaps a reminder email – or a series of emails – will give them the push they need to complete what they started. As we pointed out in a recent blog, cart-abandonment recovery provides an especially lucrative (yet often overlooked) opportunity for email marketers.

Are you effectively segmenting your email list? Do you tailor your email content and offers to best meet the needs of each of the different segments? The email- marketing experts at FulcrumTech can help your organization optimize the relevancy of your emails and maximize your email campaign results. Email us or give us a call at 215-489-9336 and get started today!