Posted in Marketing | 4-min read
Divide and conquer—err—market to?
In the world of digital marketing, we’re driven by key performance indicators (KPIs), such as engagement with our audience or customers through impressions, open rates, click-through rates, and conversions. In our experience, nothing has proven to be a better catalyst for hitting these KPIs than list segmentation.
List segmentation is absolutely key to sending your most targeted and relevant messaging possible—and it leads to big-time results. According to eMarketer, 39% of email marketers who practice list segmentation get better open rates, 28% see lower opt-out and unsubscribe rates, and 24% see better email deliverability, increased sales leads, and greater revenue. However, Campaign Monitor found in their 2018 Email Marketing Industry Report, 63% of marketers say less than half of their emails are segmented.
Since every audience is different, there’s no single way to segment a list, but here are five quick ideas that have been effective for many brands we’ve worked with. Use one, some, or all of these ideas to start sending more personalized messages and boost your success rates in no time!
1. Gather Customer Data From the Get-Go
Want to start segmenting? First, you need to gather some information about your subscribers! This signup form from Catbird asks for a lot of info right out of the gate. While we don’t normally advocate putting this many fields on an email signup form, Catbird does a smart thing by only requiring the email address. That way, each new subscriber gets to choose whether or not they want to share information like their location and birthday during the signup process. It’s a win-win — consumers stay happy and in control of their experience, and Catbird gets the opportunity to find out more about their audience from the start.
2. Say Happy Birthday!
A personalized birthday message is the bare minimum in the email marketing game these days, so if you can get a hold of the data, it’s a great way to start segmenting your subscribers. This sort of message gives people a nice, warm-and-fuzzy impression of your brand. Plus, birthday emails can lift conversion rates by 60% over non-birthday email messages with the same offer (ClickZ), making them an incredibly effective marketing tactic.
This doesn't just apply to birthdays, either. Any sort of date-based segment, like signup anniversary or last visit to your brick-and-mortar store—can serve as a helpful way to break up your audience and deliver relevant messaging.
3. Use Segments that Make Sense for Your Brand
Here’s a fantastic example of really brand-specific segments. The marketers at Bob’s Red Mill serve content to their subscribers based on dietary preferences — in this case, gluten-free versus non-gluten-free. The special attention to detail makes customers feel incredibly valued and shows you’re paying attention to their individual needs.
4. Segment by Location
Another piece of information you can find out pretty easily, either at signup or early on in your relationship with subscribers, is their location. In this email, Madewell provides a map so subscribers know there's a brick-and-mortar store nearby. That way, they can shop whichever way they prefer and are much more likely to buy because of it!
5. Keep the Customer Lifecycle in Mind
More advanced marketers will segment based on where customers are in the buying cycle. In this example from the Dallas Symphony, the general message is the same, but the team used dynamic content so the headers and the special offer would change depending on whether someone was a student, a non-student, or had already purchased tickets. It’s the ultimate in personalization, and it truly works. Personalized emails deliver 6x higher transaction rates (Experian).
Relevancy is everything in email marketing.
Consistently delivering a tailored message to the right group of subscribers is one of the best ways to make your email marketing as relevant as possible. So find creative ways to segment, and segment as much as possible to see your best results yet.