Originally written by the Sciart team for EAN-Online and first published there.
Each time you send an email campaign, are you blasting your entire database or targeting smaller groups based on specific criteria like behaviour, interests, preferences, demographics, or their stage in the customer journey? If you’re not segmenting, you’re missing out on a powerful strategy that can elevate your email marketing game.
Why Email Segmentation Matters
By segmenting your email list, you can tailor your content, offers, and timing to match the needs and expectations of each segment, thereby increasing the chances of getting a positive response from your subscribers. Effective email marketing segmentation can help you improve your open rates, click-through rates, conversions, retention, loyalty, and revenue. Here’s why email segmentation is crucial and how to optimise it for the best return.
Growing Your Email List with Segmentation
Segmentation begins even before someone becomes a subscriber. By offering different sign-up incentives that appeal to various segments of your audience, you can attract more subscribers. For instance, you might offer a free guide on enhancing sexual pleasure to couples, whilst offering a discount on a best-selling vibrator to singles. This targeted approach ensures that new subscribers find immediate value, fostering growth from the outset.
Keeping Subscribers Engaged
Once your list is growing, keeping subscribers engaged is essential. Segmented email campaigns are far more effective in maintaining interest. Mailchimp reports that segmented campaigns can lead to a 14.31% higher open rate and a 100.95% higher click-through rate compared to non-segmented campaigns. By delivering content that resonates with each segment’s specific interests and needs, you can maintain high levels of engagement and reduce the likelihood of unsubscribes.
Building Automated Campaigns for Continuous Engagement
Beyond one-off campaigns, automated email campaigns or workflows play a pivotal role in nurturing leads and guiding them through the customer journey seamlessly. Once your segmentation strategy is established, automated campaigns can work in the background to:
-
Re-engage Lapsed Users: Bring them back into the fold with targeted content and offers based on their previous interactions.
-
Upsell Complementary Products: Recommend additional products or services that complement their previous purchases or interests.
-
Educate New Subscribers: Introduce your brand and educate new subscribers about the benefits of your products or services.
By setting up these campaigns, you ensure that relevant and timely messages reach your subscribers without continuous manual effort, maximising efficiency and effectiveness.
Reducing Unsubscribe and Spam Rates
One of the biggest challenges in email marketing is keeping unsubscribe and spam rates low. Klaviyo benchmarks for a sexual wellness brand is that an unsubscribe rate should be less than 0.2%. When emails are relevant and tailored to the recipient, they are more likely to be welcomed rather than marked as spam. Segmentation helps you send the right message to the right person at the right time, significantly lowering the chances of being flagged as spam. Moreover, subscribers who receive content they care about are less likely to unsubscribe. Klaviyo's data shows that the unsubscribe rate for unsegmented campaigns is twice that of highly segmented campaigns, further demonstrating the effectiveness of segmentation in maintaining subscriber retention.
Enhancing the Customer Journey
Segmentation is a powerful tool for guiding subscribers through the customer journey:
-
Consideration: Provide detailed comparisons, reviews, and testimonials that address specific pain points. An email comparing different types of lubes and their benefits can help customers make informed decisions.
-
Conversion: Send targeted promotions and personalised offers to encourage purchases. For instance, offer a limited-time discount on premium bondage kits to those who have previously purchased handcuffs or ropes.
-
Advocacy: Reward your most engaged customers with loyalty rewards, exclusive previews, and referral incentives, turning them into brand advocates. Share a sneak peek of upcoming product launches or invite them to a VIP event.
Avoiding Over-Complication
While segmentation offers numerous benefits, it’s important not to overdo it. Over-segmentation can lead to overly complex campaigns that are difficult to manage and execute. Victor Montaucet, CEO of ThirtyFive/Ben&Vic, advises, "Firstly, perform regular list cleaning to ensure you’re only targeting engaged users that want to hear from you. Then, segment your subscribers into groups that have similar behaviours or interests to serve hyper-tailored content where relevant."
Here are a few tips to strike the right balance:
- Start Simple: Begin with broad segments based on key criteria such as purchase history, and engagement levels.
- Test and Learn: Use A/B testing to determine which segments respond best to different types of content. Gradually refine your segments based on these insights.
- Automate Where Possible: Utilise eCRM tools that offer automated segmentation and personalised content delivery to streamline your efforts.
- Focus on High-Impact Segments: Prioritise segments that have the most significant impact on your business goals, such as high-value customers or frequent buyers.
The Power of Personalised Content
By optimising your email segmentation strategies, you’re not just boosting conversions and revenue—you’re also creating more meaningful and engaging experiences for your subscribers. Klaviyo reports that highly segmented lists return more than 3X the revenue per recipient of unsegmented lists (£0.19 vs. £0.06). This tailored approach ensures that every interaction is valuable and relevant, fostering a deeper connection with your audience. Remember, the goal is to enhance personalisation without overcomplicating your processes.
