In the context of email marketing, segmentation is how your audience is divided, based on a particular factor. It is crucial for targeting the right audience with email marketing. In this article, we’ll explain some of the methods by which your audience can be segmented.
Demographic Segmentation
This involves grouping your audience based on demographic factors. Such factors include age, gender, location, income, or occupation. Content can then be tailored according to specific demographics’ preferences.
Behavioural Segmentation
This splits the audience based on how they interact with your emails or website. Categories might include engagement level (those who open your emails, known as active/inactive subscribers). Other categories include purchase history, browsing behaviour, and specific actions taken (for example abandoned baskets, when items are added to the basket but not purchased). We will discuss more about these below.
How else can subscribers be segmented?
Preferences and interest
This could include subscribers’ preferences for certain types of content, products, or services.
Customer lifecycle stage
Your mailing list could be segmented based on where your customers are in their lifecycle? Are they a new subscriber, a frequent customer, or someone who hasn’t made a purchase in a long while? Have they signed up to your mailing list but not made a purchase to date? Each group will benefit from receiving different emails and offers. It would be expected that subscribers will move segments here over time.
Email engagement
Email engagement is another way of classifying subscribers. Look at the open rates, click-through rates, or interactions with specific types of content. This may help you send more targeted and engaging content. For example, more engaging, time-sensitive or offer-driven subject lines may encourage inactive subscribers to open the email. Equally, special offers can be sent to the most engaged subscribers to reward loyalty.
RFM (Recency, Frequency, Monetary)
This method of segmenting subscribers is based on their recent purchases (recency), how often they buy (frequency), and how much they spend (monetary value). It helps to identify high-value customers and to re-engage inactive ones. You may schedule high-value customer more frequently than less engaged customers.
Why you should segment your email mailing list
Implementing these segmentation strategies will help tailor your email schedule and content to specific audience segments. It will enable you to deliver much more relevant and targeted content. Segmentation of one type or another should increase engagement, conversion rates, and the overall effectiveness of your email marketing campaigns. Regularly analyse and refine your segments based on whether they seem to be effective or not! Ensure you are monitoring unsubscribers from your mailing list, and tailor your segments accordingly. Segmenting your mailing list and targeting email campaigns should result in the increased effectiveness of your email marketing.
How can Westwinds Marketing help?
If you would like assistance with segmenting your data, your email marketing strategy or the implementation of your email plan, contact us. We can help with all elements of your email marketing from strategy to template building and email creation to metric analysis. Contact us to discuss your email marketing needs.