Email marketing segmentation
It’s always a bit of a surprise to us when prospective clients admit that they’re not segmenting their list in their email campaigns. Mass messages can mean poor targeting and less relevancy. Why miss the opportunity for resource usage, improved customer loyalty and increased profitability?
Research shows that open rates for segmented versus non-segmented campaigns are as much as 20% higher on average for the first 30 days (Source: MarketingSherpa “Email Marketing Benchmark Guide 2008”, 2008).
One of the great things about email marketing is that different forms of targeting and testing can be done at lower cost. For example, we can do things like tweak and test the banners, headlines, subject lines or salutation lines very easily. With each version, we can compare metrics such as open rate, click through rate and conversions to make the campaigns even more successful.
When it comes to ‘how’ to segment, there are plenty of options on how to define your different segment groups. For instance, many B2B companies tailor their message of their email campaigns according to sector or profession, whilst B2C e-tailers use lifecycle segmentation to encourage customers to move up the ‘loyalty ladder’. These can be simple (e.g. all first time visitors) or more complex (e.g. a multi layered approach).
And, it doesn’t have to be a costly exercise. Some marketers think that they need to develop specific campaigns for each segment. That’s not true as you can develop strategies whereby an email is triggered according to changes in customer behaviour. This is a good one to focus on as past and current behaviour can be a very good indicator of what a customer is likely to do in the future.
For marketers (with a reasonable list size) wanting more from their email campaigns, we think you really should think about a targeted approach. The level of sophistication would depend on what you want to achieve and the size of your list. Get it right and the results will speak for themselves.
So, how are you tailoring your email campaign messages?