Why is email list segmentation important?
Most companies have been doing email marketing for some time. It is quick, inexpensive in relation to most marketing activities, and keeps you in front of your customers. By now, you may have a fairly large email list and yet you are sending the same message to everyone.
A relevant email message can get your recipient's attention, increase your open and click-through rates, and result in higher conversions. You should go through your email list and find the best way to categorize your contacts so you can fine tune the messages they receive.
Once you have decided what categories to segment your list into, it is important to keep the categories up to date and assign new people to the appropriate category. You can also let people choose their own category when they sign up to be on your list.
Here are some criteria you can use when segmenting your list. Not every item will be appropriate for your business, but the categories will get you thinking about the different needs and behaviors of your contacts.
Prospects
The messages and offers we send to prospects are more often sales oriented and may have a discount or reward for making that first purchase.
Customers
Your customers expect you to talk to them like you know them. Get specific. Perhaps your list can be segmented by types of customers.
VIP Customers
Your very best customers are worthy of special offers and exclusive information. Remember that 80% of your business may be from 20% of your customers.
Average Purchase Price
Track what people are buying and how much they spend – you can start to make them offers that match their needs.
Purchasing Frequency
Knowing when a customer purchases lets you time your emails to maximize their order size. You can present new items in their purchase categories, offer related products, send coupons, etc.
Most Recent Website Visit
If someone has just visited your website you can assume they have an interest or a need. Follow up quickly to stay top of mind.
Customer Interests
You can fine tune your email messaging to appeal to your customers' specific interests. Do they have a dog and buy dog related items? Then what can you send them to peak their interest?
Geographic Location
You can target customers based on where they live. The lifestyle in a cold climate is very different than in a warm climate. Think about what your customers are doing at different times of the year.
Demographics
If you are gathering information about your customers (age, interests, income, etc.) then you can create messages that target their interests, needs, lifestyle, and more.
Inactive Buyers
For customers that have not purchased in a long time, send an email with a nice discount to encourage a current purchase. Even better – a discount on something they have previously purchased or a related item.
