What is Email Segmentation? All You Need to Know

What is Email Segmentation All You Need to Know - 2 - Elevate Your Small Business
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Are you one of those who believe that email is dead? That is because you have never used the email segmentation strategy. Suppose you are struggling to get successful results from your email marketing. In that case, email segmentation is the strategy that will save your email marketing campaign.

Email segmentation is an email marketing strategy that will help you send the correct email to the right group of people. It will increase the click-through rate, return on investment, and conversion rate.

So what are you waiting for?

Let’s review each and everything you need to know to get the best results with email segmentation.

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What is Email Marketing Segmentation?

Email segmentation can create categories for your email subscribers based on their demographics, needs, or purchase history. This way, you can send different emails according to these categories.

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For example, you can have categories based on location. You can then send location-based, personal, and relevant emails.

Wishing the fourth of July to your non-American subscribers is useless. However, if you wish them on their national holidays, that is a sentiment they will appreciate.   

Sometimes subscribers do not want to get the newsletter or promotional email in their inbox. Instead they only want information on a particular product line. With email segmentation, you can categorize people accordingly and increase your sales funnel.

Why is Email Segmentation Important?

Have you ever subscribed to an organization’s email notifications but are irritated by the flood of emails in your inbox? And then you probably hit the unsubscribe button without thinking twice.

This is where list segmentation comes in.

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With email segmentation, you could have filtered which kind of email you wanted to receive. Around 89 percent of marketers make the grave mistake of not segmenting their subscriber list.

The result: impersonal emails, low customer engagement, low CTR, and therefore a tragic-looking ROI

Other than the steep growth in the click-through and open rate, it can also lead to a better buyer satisfaction level.

Now let’s evaluate the different reasons why email segmentation is important.

1) Email List Filter

With segmentation, you can filter out inactive users. You can then focus on your active and loyal customers to strengthen your customer relationship.

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2) Efficient Email Marketing 

List segmentation will help you build a rich database of your customers. This only helps you in the long term. Knowing your customers well means that you can design more targeted campaigns that are better targeted to them. This also increases conversions.

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3) Customer Relationship Sustainability 

When the subscribers get what they need and what is helpful to them, they are more likely to stay your customers for longer. Other than improved user retention, it will also create a relationship of trust.

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Types of Email List Segmentation

I often do not even open emails unless they seem helpful to me. All I read is the subject line. This is why personalization is so necessary.

Email segmentation tools can really up your game regarding personalized content.

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Let’s discuss some of the most effective list segmentation types.

1) Geographic Segmentation

In geographic list segmentation, you will consider the subscriber’s geographic location. Based on your company’s requirements, you could collect data on their region, country, city, and postal code via an opt-in form.

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Geographic data may seem too basic, but it can have many applications. Companies use this data to design region-specific email marketing campaigns.

Emails are delivered considering the time zone the subscriber is living in. You can inform subscribers about local events and even provide them with early access offers. These emails will be received by customers based in a particular area.

2) Demographic Segmentation

In this list segmentation, you will consider social factors such as age, gender, occupation, financial status, etc. 

Since this is essential information, demographic data can be simply collected via forms.

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3) Psychographic Segmentation

This list segmentation type collects data about the traits and lifestyles of your subscribers. Purchase history, values, opinions, social standing, hobbies, etc., can help you design more targeted campaigns.

While gathering psychographic data, the subscriber’s consent is necessary. 

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4) Behavioral Segmentation

Behavioral segmentation is the most helpful email list segmentation. It collects and also analyses consumer behavior. Whenever you visit an online shopping website, your behaviors are recorded.

Your browsing history, purchase habits, brand loyalty, and spending habits are some parameters studied for this list segmentation.

Behavioral data cannot be collected via forms and surveys. It is more complex and therefore requires research by professionals.  

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How to Start with Email Segmentation?

Email segmentation strategies will provide the best results if you employ them with email automation. A welcome email and a follow-up email are a few examples of automated marketing emails.

This way, your email delivery will become smooth and save you a lot of time. 

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Below are the steps to start with email segmentation.

1) Choose an Email Marketing Platform & List Segmentation Type

There are many email segmentation strategies, but knowing which are allowed in your email marketing platform is essential.

Some platforms have limited email segmentation practices. So choose an email marketing platform where you can create segments as you wish. 

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2) Collect Customer Data

After deciding which list segmentation you want to work with, you will have to devise a data collection strategy. 

For that, you will need a different set of data and collection methods for each type of email segmentation. You can design forms and surveys using email service providers. You can also collect data from website activity.

If you are also using automation tools, you can set action triggers. For example, a survey page or an email sign-up form will automatically appear when someone has made a purchase. 

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3) Create Your Email Subscribers’ List Segmentation

Now that you have customer and contact data, you can start creating segments. Many email service providers have a tool that can make creating list segments easy.

4) Create Relevant Content

The last step is to create relatable content, which is the end goal of email segmentation. You can now send the right message to your target audience and cash in the profit of personalization.

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Tricks for Personalizing Emails

Here are some tricks you can use to personalize your emails are:

Subject Lines 

Write eye-catching subject lines to increase your CTR. Using first names in the subject line is also a successful strategy. 

Purchase History

Use the customer data that you have acquired to curate relevant content. A customer’s past purchases can tell you about their likes, spending habits, financial status, and so much more.

Based on that you can email exclusive discounts if someone is a frequent buyer or a repeat customer. Use this data smartly to send targeted emails.

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Email segmentation can really make or break your email marketing game. Using email segmentation smartly can effectively improve your company’s ROI and customer relationships.

Hence, it is the most versatile email marketing strategy. You can engage with potential customers while sustaining your connection with existing customers.

Before you segment your email list, it is essential to know all the email segmentation strategies and to team up with the correct email service provider.

So after reading this blog post, are you ready to play your A game? Let us know in the comments below. 

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