What are the best email marketing segmentation strategies used by top brands to achieve high engagement and increased revenue? How are brands like Klaviyo, ActiveCampaign, and Sendgrid maximizing segmentation to keep their subscribers engaged?
According to recent studies, segmented email campaigns can result in up to a 760% increase in revenue. Also, segmented email ads make business 58% of their total income.
Everyone needs a vacation once in a while. You have been considering getting one, so you recently searched online for the best vacation spots. Afterward, you randomly receive emails about discount offers for vacations to the Maldives. It feels like a message crafted just for you, right? That’s the point of email marketing segmentation. You want to make each member of your audience feel like you crafted a personalized email for them.
Email audience segmentation is about sending the right emails to the right people at the right time. It boosts user experience and increases open rates, and engagement. In this piece, we explore the different email marketing segmentation techniques for increased engagement.
4 Basic Strategies for Email Marketing Segmentation
Table of Contents
First, let’s quickly look through four regular email marketing segmentation strategies.
1. Behavioral Segmentation
Do you remember when you searched for something online and saw it everywhere afterward? That’s behavioral segmentation. It is tailoring emails based on user behavior – what pages they visit, what products they browse, and what actions they take. For instance, if a subscriber frequently engages with your blog content, you might send them emails highlighting your latest articles or offering exclusive insights.
2. Demographic Segmentation
If you know anything about marketing, you know this is the classic email marketing segmentation technique. You categorize your subscribers based on demographics like age, gender, or income. Imagine you’re a clothing brand launching a new corporate wear line targeting women between the ages of 25 to 50. Your messaging must appeal to that exact demographic.
3. Psychographic Segmentation
In this technique, you study the psychological aspects of your audience—values, interests, and lifestyles. What are they passionate about? What are their priorities and passions? How do they make decisions? Say your brand ethos aligns with sustainability. Psychographic segmentation helps you identify and target eco-conscious subscribers. Get it?
4. Geographic Segmentation
French fries versus chips. Cookies versus biscuits. These are the same foods, called different names by different audiences. Geographic segmentation is tailoring your emails based on the location of your subscribers.
Just like the way you would try to sell to an American audience is different from a British audience. When you have a promotion specific to a certain region or climate, geographic segmentation ensures you’re sending offers relevant and relatable to the people within that location.
Listen. The secret to a top-performing email marketing strategy is combining these strategies. Don’t just settle for one; mix and match them. That’s how you create truly personalized experiences.
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7 Advanced Email Marketing Segmentation Techniques
Let’s take it a notch higher. The following advanced email marketing segmentation techniques will help you streamline your strategy to ensure you hit the right targets, every time.
1. Follow the Data
Experts call it predictive analysis. It is like having a crystal ball for your email campaigns. You use data and algorithms to predict future behaviors and preferences. Here’s a summary of what you do.
- Use data and smart tech to guess what your audience might like next.
- If your audience is into certain things, you can predict what other things they would be into.
- Use your data-based predictions to send them stuff they are highly likely to be interested in.
2. Personalize Content in Real-time
Tailor the content within your emails in real-time based on the recipient’s characteristics or behaviors. If a subscriber has previously purchased a certain category of products, dynamic content ensures your future emails highlight similar items or complementary products. How it works:
- Emails change on the fly based on what your audience likes and does.
- Each member of your audience sees the exact things they like.
- If your customer buys something, you show them more things they might dig.
3. Target High Engagers
Here, you identify your super-engaged subscribers — those who consistently open, click and interact with your emails. Reward their loyalty with exclusive offers or sneak peeks. Go about it like this:
- Split folks into groups based on how much they engage with your emails.
- Big fans get VIP treatment. Reward their loyalty with exclusive offers or sneak peeks.
- If they’ve been quiet, nudge them with special offers to get them back in the convo.
4. Separate B2C from B2B
Many times, the methods required to sell to single customers are different from those needed to sell to businesses. If your business serves both types of audiences, you must adapt your style for each type. Do the following:
- Sort your audience into two groups: one for regular buyers (B2C) and another for businesses (B2B).
- Treat regular shoppers to personalized deals and chit-chats.
- For businesses, go big with tailored offers that suit their company’s needs.
5. Track Changes in Buyer Behaviour
People get distracted, lose a job, pick new hobbies or their preferences just change. When life happens like that, it could affect buyer behavior. Do these to stay on top of the game:
- Keep an eye on how your buyer’s shopping habits change over time.
- If they suddenly stop buying, reach out to find out why.
- If they start loving something new, catch on and add that to your marketing strategy.
6. Maximize Role-Based Targeting
Sometimes, different people wear different hats, especially when acting on behalf of an organization. The decision-makers, influencers, or buyers may differ. Here’s how to make the most of that:
- Figure out who plays what role in the buying process.
- Tailor your messages based on each role.
- Speak directly to decision-makers when it’s time to seal the deal.
Each customer is on a different stage of their sales journey. Buckle up and figure out who’s where. Then target them accordingly.
- Master every stage in your sales funnel.
- Design each message to fit each stage.
- If buyers drop off, figure out why and fix it for a smoother ride.
How to Implement Your Email Segmentation Strategy
Now that we’ve covered the advanced email segmentation techniques, how do you put them into action?
1. Define Your Segmentation Criteria: Clearly outline the criteria you’ll use for segmentation. It could be behaviors, demographics, psychographics, or a combination.
2. Segment Your Email List: Use email marketing tools to segment your list. Most platforms offer intuitive segmentation features. These features allow you to filter subscribers based on different criteria.
3. Craft Personalized Content: After segmenting, tailor your content accordingly. This isn’t just about changing the salutation from “Dear Customer” to “Dear Bob.” Adapt the entire message to resonate with each segment.
4. Test and Optimize: A/B test different segmentation approaches to see what works best for your audience. Optimize again and again, based on the results.
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In email marketing, personalization is not a luxury. It’s an expectation. By using advanced email segmentation techniques recommended in this article, you will not only meet your subscribers where they are but anticipate where they’re headed.
Milk the data, pay attention to high engagers, respond to any change in buyers’ behavior and target the decision-makers. That’s how to get the best from your email marketing efforts.