Share on linkedin
Share on facebook
Share on twitter
Share on google

Email Segmentation Can Boost Results

JBM Marketing Solutions

Why you should consider email segmentation.  Today customers expect businesses to speak to their specific needs and preferences. This applies to all marketing channels.  Email marketing is no exception.  Email marketing is a proven marketing tool and is part of most marketing programs.  When it comes to generating and nurturing leads and producing revenue it’s effective.

As with any marketing tactic, any email marketing strategy has to evolve as the market changes to remain effective.  As a result, a one-size-fits-all approach to sending out emails is ineffective.  Personalized emails based on email segmentation is the answer.

What is Email List Segmentation?

Email list segmentation refers to the process of adding tags to your email list(s) to craft more targeted marketing campaigns.  Adding tags helps avoid the practice of dividing the email list many lists. Email segmentation is now common practice for marketers. Here’s why:

  • Segmented and targeted emails generate an average of 58% of a company’s revenue.
  • Marketers report a 760% increase in revenue after segmenting their campaigns.
  • Open rates on segmented email campaigns are 14.32% higher than non-segmented campaigns. 

When done properly, email list segmentation improves open rates, lead generation, and revenue.

Types of Email Segmentation

How you segment your email lists is very dependent on your business.  It comes down to what you are trying to accomplish.  Here are some ways that you may want to segment your email lists.

Job Function

Job function is important in the B2B space. That’s because B2B companies often sell products for a specific group of people. Whether you sell an email platform or a payroll ticketing system, most products focus on a particular job function. In these examples, the target job functions would be marketing or HR.

Job Title

Job function may not be granular enough. In that case, consider segmenting by job title. The difference between job function and job title is that job title gives you a sign of a person’s buying authority. It also allows you to focus on previously identified pain points. Segmenting by job title allows you to align the messaging to a person’s specific responsibilities.

Company Size

Companies of different sizes have varying buying preferences, budgets, and product requirements. A small business will not have the same needs as a corporation. If you have product offerings for various business sizes, segmenting your email list by company size is the way to go.

Stage of the Buyer’s Journey

The most effective marketing strategies move buyers through the sales funnel.  Segmenting your email list according to the buyer’s stage means tailoring the messaging in a way that moves the buyer to the next stage of the journey.

For example, a potential customer visits your landing page, completes a form asking for more information.  This person is clearly at the top of the funnel.  Sending the prospect product-heavy emails will most likely not produce the results you’re seeking. The main purpose of this phase is to improve the visibility of your brand and start collecting leads. While you want to be sure you’re targeting the right group of people, it’s also okay to cast a wide net at this stage.  Your messaging should be information, educational, and in some instances fun.

Location, Location, Location

Depending on what types of products you offer, it may make sense to segment your email lists based on geographic location.  This is one area where tagging is better than creating a new list.

For a retailer offering a “back-to-school” deal, it’s good to know that certain states head back to school earlier than others. Segmenting your list by location can make it easier to time emails to arrive when they’re most applicable.

Email Engagement

If you want to improve your email open rates, it’s important to track how and when your subscribers engage with your emails. For example, we recommend testing list segmentation based on active and inactive users. When someone hasn’t opened an email within a designated period of time– say, three months – tag them as inactive.

Now you can develop re-engagement campaigns to draw those users back in. Re-engagement campaigns may include offer discounts or request information about a person’s preferences.

Past Purchases

Segment your lists based on a customer’s purchase history to increase your chances of re-selling to a one-time buyer. Marketing automation program’s deep data integrations provide all of a customer’s history. This makes it easier to personalize messages based on past purchases and anticipated needs.  When you segment by past purchases, you are able to target buyers most likely to show interest in a specific offering.

Deal Size

If you want to get more specific, segment your list not only by past purchases but also by the amount of money the customer has spent. You can use purchase history information to predict buyer behavior. You know which customers are more likely to buy expensive items and which customers show interest in lower-cost items. Again a deep data integration is the best way to go, especially when using WordPress and woocommerce.

Growth Strategies for Small
and Mid-Size Businesses

Scroll to Top
small_c_popup.png

Let's have a chat

Learn how we help
Companies Grow.
Get $750 Google Ad Credit