List segmentation targets your email marketing communications and increases the relevancy of your messages, thus leading to higher open and click-through rates, enhanced customer loyalty and ultimately, increased sales. Some of the top advantages of list segmentation are:
- Lower opt-out rates than those marketers who send the same content to everyone on their list.
- The ability to target subscribers based on interest and frequency
- Segmentation based on location and social networks
Your segmentation can be based on:
- Potential vs. existing customers. These are very important groups to segment as they require unique content. For example, existing customers can be marketed to with VIP offers, or offers relevant to past purchases. They can also be reminded of repurchasing based on a contract renewal date. Potential customers require some “warming” up and their content will be targeted towards the benefits of purchasing from you.
- Demographics (ZIP/Postal code, gender, age, occupation). If a subscriber lives in New York City they are likely not going to be interested in flights starting from Houston, Texas. Using demographics to create targeted messages shows you are in-tune with who your customers are.
- Behavioral data. Open rate stats can be used to determine which of your subscribers are most engaged with your content. These subscribers can then be targeted with VIP offers, or further content about the type of emails they often open. It is also useful to play with the frequency of emails for your highly engaged subscribers – just be sure not to send so much that they get sick of hearing from you. This is the same with click-through rates on specific links. This data can be used to send more in-depth content about the link that was clicked on. This is a very useful tactic for “warming” up potential customers.
- Recent Subscribers. Recent subscribers should receive correspondence from you within weeks of signing up for your content. As these subscribers have stated they wish to hear from you most recently, paying special attention to them can decrease the time it takes to convert them to actual customers.
- Inactive Subscribers. Essentially any subscriber who hasn’t opened or visited your email over a lengthy time period can be deemed ‘inactive’. As a substitute for writing them off as a lost cause, segment these subscribers and aim to send a targeted reactivation campaign to them sooner. MailChimp has some great campaign resources on how to reactivate inactive subscribers as well as a resource guide dedicated to this topic.
- Interest based preferences. Don’t be frightened to request information you don’t have, like new interests and updated email addresses. This can be easily done by sending an “Update your preference” campaign to your subscriber database. Also providing a “Update your preferences” link in each of your emails is a good way to always be acquiring new information about your subscriber base.
- Top Clients – Segmenting by customer value is a great way to keep your top spenders engaged. However, sending targeted offers to those clients that spend less is also a great way to increase their engagement.
- Purchasing habits. New product launches can be sent out to subscribers that have purchased similar products in the past to keep them “in the loop” about new purchase opportunities. This can be taken a step further by creating specific landing pages for these products.
- Your email provider should provide an easy way to segment and group your subscribers by all or most of the above segmentation strategies. Talk to 6S Marketing about how we can help you implement a segmentation strategy to meet your business needs.