Email Segmentation: Why it Matters In 2024

Email Segmentation

Email marketing is one component that is essential for your digital marketing plan. It offers a high return on investment when compared to any other strategy. Despite it being a crucial part, you might be one of those whose emails are overflowing from tons of branding emails. Well, not everyone can get it right. That’s why the guide will help you with email segmentation to be able to send the right customer the right email.

What is email segmentation?

Email segmentation is a process where we divide and separate email subscribers into segments. The segmentation is based on criteria using different tags in your email marketing platform. The subscribers can be categorized into multiple segments depending on age, location, and behavior.

The email marketing segment’s purpose is to create content tailored to the target audience based on the criteria. A dinosaur-themed school bag can’t be advertised through email to an old age man. Similarly, if you sell per product you will send out coupons or deals by email to those who own a cat, a dog, or any other pet.

Many businesses send the same email and content to everyone on their list without giving a personal touch or working on the segmentation part. As a result, most of them go unread and piled up on someone’s email inbox and finally, within the next 15 days, it’s in the trash.

How effective Email segmentation is?

Email segmentation helps you target the right audience at the right time. The stronger your criteria is the better the segmentation gets. The right message to the right person increases the chances of sales. Email segmentation helps create a personalized customer experience.

It narrows down the people who are the best fit for your products. The smaller your segment the higher the chances of attracting customers to your website.  The effects of email segmentation can help you build more targeted email campaigns based on several factors that can help you in determining data about your audience.

Let’s talk about some numbers to strengthen the argument.

  1. As per DMA, 25% of revenue share is generated through the segmented list of emails, and sending out targeted emails tailored to a segment brought in 30% of revenue.
  2. Around 15% of marketers need to work on email segmentation to be able to send tailored emails that are read.

Benefits of email marketing

Creating content for segments offers a unique understanding of the offers you built rather than a widespread communication method. If you think about it, it helps you set a goal that is specific and is talking to you. You can go through the piles of emails resting in your emails and open up the one that is talking to you. You can assess it through its headlines.  Segmentation provides direct personalized communication to the people. Below are some benefits linked to email segmentation:

Increased sales

Sales is what all businesses work for and email marketing management does just what you want. Due to its ability to target customers with a personalized offer and promotions, it helps increase sales. By leveraging customer data, businesses create tailored email campaigns that bring in high engagement and conversion rates.

 Email marketing also allows the analysis of customer responses to enable businesses to refine their strategies for better results. Email marketing also provides immediate results which can quickly capitalize on trends or customer behaviors.

Improved open rates

Email segmentation can also help in creating engaging subject lines, increasing the likelihood of recipients opening emails. After the recipients, half of your job is done. After Customers open your email now it’s your chance to provide value which can be done through segmentation. Make sure your headlines aren’t deceptive as it leads to negative results and a lack of trust.  

Higher Click-through Rates

Click-through rate or CTR is a measure that reflects who clicked on the link provided in the email. Once you can engage your recipients with your email. You need to create targeted calls to action to encourage action.  The email segmentation strengthens the CTA to reach your audience and explain which design appeals most to the customer segment.

Enhanced Conversion Rates

 Email segmentation aligns with the interest of the customers increasing the chances of taking desired actions. For instance, signing up for an event, taking a free course, or using the discount coupon for the new collection.  By email segmentation and sending out targeted emails you can elevate the chances of conversion.

Increased ROI

Around three-fourths of marketers consider email segmentation needs to be integrated into the marketing strategy. Even, though 89% of marketers use email marketing there are still ways companies are finding ways to be different from noise means to be heard. However, despite the ongoing efforts marketers still invest in email segmentation as it helps bring in quality customers and increase the ROI.

How to segment your email list

Before getting the above benefits you will need to get started using the best strategies. Let’s look into the below steps to create email segments that help you bring in profits.

1. Decide criteria

The first step in the segmentation process I to decide a criteria that help determine segments. This will depend on your goals. For example, if your business wants to bring in new leads then you need to segment it based on demographics, signup source, or engagement as it is more appropriate. Similarly, if your goal is customer retention, then work on the purchase history viewed and purchase value.

2. Leverage data

After you have decided on your criteria for segments, you can now gather data if you haven’t done it. Good data results in effective personalisation which is the key goal of email segmentation. There are several data points you can work on from your audience and many sources you can consider. The data will vary from business to business. For example, if you are a B2B brand you will require the budget, quality standards, and company size. On the other hand, if you are a B2C brand then data like age, gender, and birth date will be useful for segmentation.

3. Set up segments

After you are done with data, setting up segments is important. You will require two tools which are an email service and a Custome­r Relationship Management (CRM) system. You’re in a better position if you’re CRM and e­mail service, like Monday Sales CRM for instance, connect easily. A sturdy CRM aids in automated segmenting and making specific campaigns.

When picking a CRM, put automated workflows, customization abilities, and email service compatibility at the top of your selection criteria. Linking your CRM to your email service lets you:

1.Build Unique Audiences- Use rating methods to sort leads into certain lists. Use custom colors and statuses to point out diffe­rent audience se­gments.

2. Organize Email Sequences- Make personalized emails for each segmented list.

3. Track Important Analytics- Keep an eye on critical markers to measure your mass e­mail campaign’s performance.

4. Monitor, adjust, and repeat

Once you are rolling out the emails, you need to monitor and track performance and use data to refine your success. Track metrics like click rate, open rate, and spam conversion rate. You can run A/B tests to find the best content that is working for email marketing.

How to use email segmentation to improve email marketing ROI

Use two methods for improving the email marketing ROI.

  1. First is integrations- it means syncing your favorite marketing tools to monitor data in the CRM and ensure campaigns.
  2. The second is dashboard reporting- it keeps track of email campaigns with customized dashboard and reporting widgets on board so you can understand data and draw insights.

Conclusion

So, email segmentation remains a crucial strategy in 2024. One needs to crack the code to be able to take full advantage of the strategy. By reaching the right people with special content, your sales, involvement and ROI can see a boost.

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