This is the third post in a series on how to make your email marketing strategy more effective. Last week’s post showed you how to use email personalization to connect with your subscribers. This week is all about email segmentation and how you can use that to increase your conversion rate.
The simplest way to get someone to buy is to send them the right message at the right time.
I’m sure your next question is, “Okay, how do I do that?”
The answer is email segmentation. By splitting your email subscribers up into segments, it’s easier to send each segment messages that will resonate with that particular group, which leads to more sales.
“Ugh,” I hear you groan. “Is it worth all the work to do this?”
Well, according to HubSpot, marketers who use segmented campaigns noted as much as a 760% increase in revenue.
So, the answer is, “Yes.”
Here’s why…
What Is Email Segmentation?
When you segment your email list, you are dividing your subscribers into groups based on certain criteria. This lets you tailor your emails to each group, based on the segment they’re in.
It also lets you target the “right message” to your subscribers when they’ll be most receptive to it.
Many businesses have more than one ideal customer, also known as a customer avatar.
Email segmentation lets you customize your message to each group, so you can send information that is relevant to those subscribers. Sometimes that will involve simple changes to a general email. Other times it will involve specific emails going to a specific group.
If you do have a single customer avatar, you can segment within that group of people, so they’re getting the offers that will appeal most to them.
For example, your customer avatar may be women between 25 and 35 who love “boho” or bohemian style fashion.
Within that group, you could segment by size, such as petite, standard and plus sizes.
You could also segment by location. Speaking from personal experience, it is cruel and unusual punishment to send pictures of flowy sundresses to people who live in cold climates in February. However, sending pictures of warm cozy, fashionable sweaters would definitely get you some love and several sales.
Here are more ways you could segment your email list.
Demographics
This can include size and location, as used in our earlier example, but also age, gender and where they live (house, apartment, RV). Family demographics are another consideration. Do they live alone or are they in a relationship? Do they have children or grandchildren? These are all factors you can use to segment your list so you’re sending appropriate messages.
To use our clothing example from above, if your fashion company also puts out a line of men’s clothing that is geared toward skateboarders who are 15-25, you definitely want to segment by gender and age.
Location
I know I used this in my fashion example above, but it goes beyond seasonality. When I was a touring musician, I would send my monthly newsletter to everyone on my email list. I sent upcoming show notifications only to people who were in a 100-mile radius of my performance venues, based on their zip codes.
It doesn’t make a lot of sense to invite someone to a show in Boston if they’re in California. Please note, this was in the days before live streaming. I realize the rules for this example have changed a lot. The idea still holds true.
Job Title
This applies more to B2B businesses but can also apply to B2C. If your target audience includes several different job titles, such as:
- VP of Marketing
- VP of Operations
- Chief Financial Officer
You can segment your list and customize the message you send to people in each of those positions, even if you’re promoting the exact same product or service.
Job title can apply to B2C as a measure of how likely someone may be to purchase a certain product or the same product but at a certain level.
For example, a VP of Marketing may be more likely to purchase a high-ticket package at a gym that includes a personal trainer, because they don’t have a lot of time and want to get the most from their workouts. Whereas someone at a managerial or lower-level job may be more likely to purchase a less expensive package that involves group classes.
Subscriber Interests
Your subscribers tell you what they’re interested in as soon as they join your email list, based on the lead magnet they download. If you have several products or services, you should have a lead magnet that corresponds to each product, or at the very least each group of products.
You can set up the automation in your ESP or CRM and add email marketing tags to your new subscribers’ records, based on the lead magnet they download, then send emails related to that particular product or service.
If you have subscribers who download multiple lead magnets or content upgrades, your subscribers are giving you even more information on what they’re interested in, allowing you to segment and customize even more.
Customers vs. Subscribers
The messages you send to people who have already purchased from you should be different from the messages you send to those who have not.
Your subscribers need more persuading to make a first-time purchase than your customers do. The messages you send should be based on where a person is in their buyer’s journey.
Meanwhile, your customers may wonder why you keep sending them messages that are obviously meant for someone who hasn’t made a purchase yet. You may even offend them and drive them away, if you’re not careful.
Purchases
Speaking of emailing your customers, this is a very important part of email segmentation.
If you are running a sales campaign and someone buys your product or service, they should not be getting more sales emails for the same campaign. Again, when they purchase, your ESP or CRM can automatically add a tag that will exclude them from the rest of the sales campaign.
They should then be added to an onboarding campaign that tells them more about what they just purchased, how to get the most from it and what to expect.
This is all easy to set up in your ESP or CRM. Doing it makes it easier on your customers and shows that you are paying attention to their needs.
Past Purchases
I separate these two ideas because the one above has to do with behavior immediately following a purchase.
Past purchases relate to the messages you do (or do not) send based on the amount of time since someone has made a purchase.
If someone has purchased a durable good or a service that is “one and done” as in they’re part of a membership or they’ll never need to buy this thing again, you shouldn’t send them offers to buy it anymore.
You should send them offers for complimentary products and services because people who have made one purchase are more likely to buy again.
If someone has purchased a product that is a consumable or a service that needs to happen on a regular basis, you should send them emails reminding them to purchase again or make another appointment.
As an example, my Toyota dealership reminds me regularly that I need to bring my car in for an oil change.
The point of email segmentation is to make your life a lot easier, even if it does take a bit of set up on the front end.
What is the Difference Between Email Segmentation and Personalization?
Fair question.
These terms are frequently used interchangeably, despite the fact they are different functions.
Email segmentation is, as mentioned, dividing your list into groups based on any of the criteria listed above.
Personalization usually involves using data in your subscribers’ records combined with other forms of automation to send offers that are specific to an individual, not just a group.
Email segmentation and personalization should be used together to convince more people on your list to buy.
How Do You Segment Your Email List?
Your ESP or CRM will have specific instructions on how to use email segmentation within that platform. You should be able to segment based on all of the criteria above in one way or another.
Here are a few ways you can segment your email list within your ESP or CRM:
- Email marketing tags – as mentioned earlier, these let you sort people based on information you’ve collected when they opt into your list.
- Last email opened
- Website actions
- Purchases
- Active/inactive subscribers
Each of these functions helps you narrow the scope of your message or a specific offer.
For instance, a website action may trigger an abandon cart sequence, which can bring someone back to an order form and convince them to complete the transaction.
It can also trigger a reminder email for someone to continue to use your service, like this one from SEMrush.
If a subscriber has been inactive for a certain period of time, that can trigger a re-engagement sequence that urges them to open an email and confirm they’re still interested in receiving emails, like this one from Danny Iny.
Many ESPs and CRMs include pre-automated sequences and email templates for these situations. They also make it easy to set up custom sequences, so you can send the right message at the right time.
After all, it’s in their best interests for you to succeed because when you make more sales, you keep using their service.
Want to Learn More About Email Segmentation and How it Can Benefit Your Business?
I cover this, along with many other ways to automate your email marketing in the Email Marketing Connection Academy.
Here’s the catch. I don’t let just anyone into the Academy. I want to make sure you and your business are a good fit for the group and that you’ll benefit from what I teach.
Click on the button below to find out whether you’re a good fit for the Email Marketing Connection Academy now.