5 steps to determine the best segmentation strategy for your email marketing program

You’ve amassed a substantial list of opt-ins for your email marketing program — now what? Sending out generic content to your entire audience won’t cut it in a crowded inbox era where attention spans are short. How do you stand out and engage your customers on an individual level? The answer lies in developing a robust segmentation strategy.

Why is Email Segmentation Important?

1. Increased open rates: According to Mailchimp, segmented email campaigns have 14.31% higher open rates than non-segmented campaigns. (Source: Mailchimp)
2. Higher click-through rates (CTRs): Research by Campaign Monitor found that segmented email campaigns can result in a 100.95% higher CTR compared to non-segmented campaigns. (Source: Campaign Monitor)
3.  Improved revenue generation: Data from DMA (Data & Marketing Association) suggests that marketers who use segmented campaigns note as much as a 760% increase in revenue. (Source: DMA)
4. Enhanced customer engagement: Epsilon research indicates that 80% of customers are more likely to make a purchase from a company that provides personalized experiences. Segmenting email campaigns allows for more personalized content, thus driving higher engagement. (Source: Epsilon)
5. Reduced unsubscribe rates: By sending relevant content to specific segments of your audience, you’re less likely to overwhelm subscribers with irrelevant emails, leading to lower unsubscribe rates. According to a study by HubSpot, segmented email campaigns result in 9.37% lower unsubscribe rates compared to non-segmented campaigns. (Source: HubSpot)
6. Better email deliverability: Email service providers often prioritize emails with higher engagement rates when determining inbox placement. Segmented campaigns, which typically result in higher engagement, can lead to better deliverability rates and reduced chances of emails being marked as spam. (Source: Litmus)

These statistics underscore the importance of segmenting email marketing campaigns for achieving higher engagement, better conversion rates, and ultimately, improved ROI. However, it’s essential to note that the effectiveness of segmentation can vary depending on factors such as the quality of the segmented data, the relevance of the content, and your overall marketing strategy.

Email segmentation remains a potent tool for connecting with your audience and driving conversions in 2024. It enables marketers to deliver personalized, relevant content that resonates with consumers. While the abundance of data and segmentation possibilities may seem daunting, following these steps can streamline the process:

1. Define your data points

Start by identifying the data points that best predict purchase behavior among your customers. Consider demographics (age, gender, income), engagement levels (active, inactive, new subscribers), and behavior (recent purchases, abandoned carts, browsing history). Understanding these metrics will lay the foundation for effective segmentation.

2. Assess available data and identify gaps

Evaluate the data you currently possess and determine which metrics are missing. You have several options to fill these gaps:

• Inference: Deduce missing data points based on user behavior patterns.
• Direct inquiry: Prompt users to update their preferences or participate in surveys through targeted messaging.
• Data enhancement: Utilize third-party resources to enrich your existing data and gain deeper insights into your audience.

3. Develop personas for your audience

Once you have the necessary data, craft personas that represent distinct segments of your audience. Tailor these personas to align with your brand’s objectives and industry nuances. Creating personas enables you to refine your targeting and deliver content, messaging, and timing that resonate with each group.

4. Craft tailored content

With audience segments identified, focus on developing content tailored to each group’s preferences and interests. Targeting alone isn’t enough; custom content is essential to maximize engagement and conversions. For instance, retailer See’s Candies saw significant success by creating specific messaging for previously overlooked segments, resulting in increased email opens and purchases.

5. Test and repeat

Continuously monitor performance and conduct testing to refine your segmentation strategy. Experiment with different creative approaches and content strategies to gauge effectiveness. As you gain insights into your audience over time, adjust your segmentation strategy accordingly to optimize results.

Segmentation remains a cornerstone of effective email marketing. By following these steps and refining your segmentation approach, you can unlock the full potential of personalized communication and drive meaningful results for your business.

Want to delve into the nitty-gritty of segmentation? Let’s chat.