Segmenting marketing emails can significantly improve open and click-through rates, as well as overall campaign results. Here’s why.
Most marketers understand that email is an important aspect of successful campaigns. But smart marketers take email marketing to a whole new level: they segment their email lists.Savvy, customer-oriented marketers employ a technique, email list segmentation, in which they effectively divide their larger email list into smaller, more focused groups, or “segments.” Each segment is then sent personalized messages – email marketing campaign content curated to match their user behavior patterns, product or service preferences and more.
When used correctly in conjunction with the latest in marketing technology and tools, email list segmentation can improve open rates by roughly 14% and CTR by over 100%, a study reveals. Bounce rates can diminish by nearly 5% and approximately 9.4% fewer users unsubscribe to organizations’ mailing lists.
Let’s examine why segmentation has such a powerful effect on the success of email marketing campaigns.
Businesses cater to many kinds of customers
Your customers are not all cut from the same cloth. They have different purchase needs and preferences. Prompting them with the same, broad message wouldn’t be nearly as effective as segmenting groups of customers and sending them targeted emails that cater to exactly what they are looking for from your business.
And yet, while the majority of marketers launch campaigns in multiple channels, seventy percent of brands still do not personalize the marketing emails sent to their subscribers. Finding out what your customers’ preferences are regarding receiving blog post updates, discounts, important updates and more can and should be used to deploy emails that are relevant to each customer. A male customer might be interested in having his hair cut at a unisex hair salon, but he is not likely in the market for a French manicure.
Armed with the knowledge of the different customer personas within your organization’s market, you can segment according to their preferences and curate content that you know will resonate with each individual group. And when a marketing campaign strikes a personal chord, it is more likely to drive the customer to order or purchase your products or services.
Segmentation helps prevent missed opportunities
The many contacts making up your email list are likely at varied points within the sales funnel. Your potential and existing customers are engaged in different stages of interaction with your organization. You may have just captured some email addresses, while others may belong to long-time and loyal consumers. Depending on which point each customer is within the sales funnel, different types of information and marketing materials are required to keep them headed towards conversion. While a new newsletter subscribed might be touched upon receiving a welcome message, a cart abandoner would find such marketing materials superfluous and irrelevant.
Failing to take advantage of customers’ needs at different points along the sales funnel ultimately leads to missing out on lucrative opportunities for your business. This can and should be prevented by using email segmentation. Inactive subscribers can be reminded of the next steps they can take, drawing them back to your website. Form or cart abandoners can be prompted to re-engage and finish the process they started. Customers who expressed interest in an out-of-stock or limited product can be notified when new shipments reach your warehouse. And the purchase history of customers who successfully completed transactions can be used to up or cross-sell products or services.
Segmenting according to the types of devices used streamlines the customer experience
Responsive email design is a determining factor in whether a customer will open an email, click-through to the organization’s landing page and make a purchase. And while the email reading experience is exponentially different on desktop and mobile devices, a startling 49 percent of email marketers have yet to jump on the per-device segmentation bandwagon. Segmenting your email lists based on the types of devices your customers use can afford customers the comfort of use necessary to entice them to convert, instead of them giving up after a few attempts at scrolling up and down, magnifying or shrinking their views and clicking on awkward buttons.
Location, location, location!
Unless you’re a small-town, mom-and-pop shop, your customers more than likely hail from various locations. So, when it comes to location-specific events and sales, shipping details and more, it’s a good idea to ensure your marketing emails are geo-targeted. That way, you’ll reach the right customers in the right locations with the right information – and you won’t unnecessarily bombard customers with irrelevant and inapplicable promotional messages.
Smart marketers know that email list segmentation leads to significantly better marketing campaign results, but they may not necessarily know why. Segmentation targets the needs, desires, behaviors and locations that are common to defined groups of customers. That way, they can receive tailored marketing emails specifically aimed at getting them to convert and boosting your returns.