Recent years have seen a steady rise in the popularity of social media. In spite of the apparent marketing benefits of platforms like Facebook and Instagram, email marketing continues to be the preferred choice for 86% of professionals. The ability to reach the target audience, drive traffic and build a reputation, at a very low cost are few obvious reasons behind this preference. However, the success of email marketing is not down to pure chance. The strategy that makes this campaign achieve all its goals is Email Segmentation.
In simpler terms, email segmentation involves categorizing your email list into multiple small groups based on specific characteristics. You send emails- unique to each group- in order to improve conversions by speaking more directly to customers.
Steps to Take
By creating content that is specific to consumers, 82% of marketers reported a rise in open rates. What they did correctly was, take strategically calculated steps like these:
Software for Segmenting Email List- Not all email service providers allow you to segment your email list. So the first step is to find one that fit your needs
Page-Level-Targeting- You’ll need the help of tools like OptinMonstes, which allows you to target email opt-in forms of visitors to your website and categorize them into segments.
Lead Magnets- Creating a useful lead magnet will allow the visitors to sort themselves when they visit your website.
Listed below are few suggestions to help categorize your customers.
Demographics
Listing your customers demographically is the first step to start with for targeting your audience. The thing to keep in mind is that there will be no homogeneity in the visitors coming to your website. You might be able to land a doctor as well as an engineer or a college student and also a pawn shop owner.
The fact is your traffic will differ in age, gender, income, ethnicity, education and many such factors. Categorizing them by demographics allows you to interact with each group differently, adjusting the messages as required. Plus, demographical segmentation requires less data which is easy to obtain.
Geography
If you are a fast food joint in Toronto, chances are you won’t be willing to target a person from Vancouver. That won’t be the best use of your resources.
This example is to show that the geography of the customer is a big factor when devising a marketing strategy for businesses where location impacts purchasing decisions. Knowing the region your customers belong to can help in formulating campaigns that’ll not only be of relevance to them but also to their taste. Hence, you’ll find the food menu of McDonald’s in Canada is different from that in Thailand. It makes advertising more specific and contributes to your customers making a positive purchasing decision.
Geographical segmentation is even more important for small businesses with budgetary constraints. When creating region-specific content, it is easier to connect with customers and get more return on your investment. There is no need to depend on an immense amount of data, keep it objective and have very few variables.
Engagement
Two important metrics you need to keep track of while running an email campaign are the open rates and clickthrough rates. They are crucial in understanding the impact of your campaign and whether it is generating the desired interest among your audience. One additional piece of data that can also be derived is the engagement of your users.
Engagement of the users refers to whether they are active users (interact with the company’s mail frequently) or inactive users (have not opened the company’s mail in a long time). Segmenting them on the basis of the difference in their interaction is necessary in order to contact them differently in the future.
For active users, it is advisable to treat their loyalty with generosity. They can be emailed specifically, with rewards like a limited period discount on their next purchase. Several companies also provide their loyal customer early access to their products.
A higher percentage of inactive users can affect the email campaign negatively. Therefore, inactive customers require to be convinced to return. A simple trick is to send them a reminder mail. You might also try bringing to their attention the benefits and offers on your latest product to show them what they are missing out on.
Past Purchase
One of the most widely used techniques for segmenting your customers is by following their past purchases. It gives you the perfect indication of the interest and requirements of your customers and can be used to great effects.
Some companies choose to send an email to their customers with links to related products before their items are shipped. Such an interaction encourages further purchases. The important thing is to understand the buying pattern of your customers, in order to keep them updated about their desired products. So, if an electronics store has a new device, it’ll be useful to make past customers aware of its availability.
Amount Spent
Most businesses offer a wide variety of products at different price points. A thorough analysis of your customers can help you discover the amount they had previously spent in your store. This information can be subsequently used to categorize and target them with specific emails about products at certain price points, anticipating their future purchases.
Segmentation on the basis of money spent is utilized extensively by clothing stores or bakeries. You might also choose to indulge customers with large purchases into a free gift or a special coupon.
