Email list segmentation is no longer an option.
According to DMA, marketers have found a 760% increase in email revenue from segmented campaigns
You’ve read a lot of articles and blog posts that stress the power of email marketing.
You have finally decided to invest money and time to build an email list, but you aren’t getting satisfying results. Instead, you’re experiencing:
- Low open & click-through rates
- Low ROI
- Lot of unsubscribes
- Reported as spam.
You start thinking that email marketing is no longer effective or other successful marketers are keeping a secret tool for themselves only.
Email marketing still effective, but it is a little bit different than it was before.
The key to a successful email marketing campaigns is to send the right message to a specific audience.
The days when we send an offer to an entire email list and waiting for results are gone.
That strategy was effective 10 years ago.
To make the most ROI from your email marketing efforts is to send highly targeted emails to a specific type of people.
Email list segmentation is so powerful for many reasons.
4 Reasons Why You Should Segment Your Email List.
Boosts Open and Click-Through Rates
You can spend weeks testing different subject lines, call to action, and offers to get the best results from your marketing efforts. If the content inside the email is not relevant to your subscribers, it doesn’t matter how good it is. Sending the same email to your entire email database may not give a good ROI because people needs and preferences are different.
You can significantly boost your open and click-through rates by strategically segmenting your email list.
One of the best strategies to boost open rate is to segment your list based on where your subscribers buying cycle. Also, you can segment of the subscribers who are highly engaged with your content and send them content and offers that are relevant to them.
Email list segmentation is highly effective to re-engage dead subscribers by sending them personalized emails to bring them back.
High open and click-through rates are the result of sending relevant and targeted messages to your audience.
The contacts that fill your email database are at different stages in the buying cycle. Some have recently discovered your brand, others have been reviewing many offers buy aren’t reading to buy for different reasons.
It simply means that your subscriber will respond to different types of offers depending on where they are in the funnel.
Segmenting your email list allows you to send specific promotions and offers to a targeted group of subscribers that will likely to respond to what you’re offering.
Also, you can send special promotions, coupons, and discount to your loyal customers.
By Segmenting your email list according to the buying cycle of your subscribers, It gets easier for you to create a specific content and promotions that are relevant to them.
The key here to track your contacts behavior and action.
Lower Unsubscribe Rate.
You read a blog post about a certain topic. Suddenly an opt-in form pops up asking you to fill your email address to a free incentive or the latest update.
A few days later, your inbox is bombarded with emails asking you to purchase or content that doesn’t interest you.
What do you do in this case?
Of course, you sign out from that newsletter.
People often subscribe from a newsletter that didn’t send them the content they originally signed for.
Segmenting your email list is your strongest weapons again unsubscribes.
When you send a targeted content to a specific group of people, as opposed to sending the same email to everyone, this makes your content more relevant and lower the unsubscribing list because your contacts find information that is useful for them.
I highly recommend segmenting your list right away after the sign-up process.
Smart marketers use surveys and questionary to know well their subscribers.
- What type of content do you like?
- What are your goals?
- Have bought products before related to your niche?
And so on..
Now, you need to know your subscribers at a deep level.
Based on these data you send them information that is relevant and not overwhelming.
Improves Customer Satisfaction
By segmenting your email list, you can improve your customer’s experience and satisfy their needs. While everyone is your email database is different, with list segmentation you can send content and offers fit each segment on your list.
For examples, let say you have of 1000 emails composed of people who want to build their businesses online.
300 of the entire list have purchased a hosting service.
Of course, building a business online requires other things such as a keyword tool, autoresponder, and lead capture page.
The next step is to create a segment of contacts who purchased the hosting service and send them to content the importance of SEO, competition analysis, and they need a keyword tool.
Not only you will increase your conversion rate, but you will satisfy your customers and improve their experience.
Also, a satisfied customer will eventually share his positive experience with friends, family, and social media contacts, which will lead to more customers.
Gradually your content will go viral and expand your customer base.
5 Ways To Segment Your Email List For Better Conversion Rate.
Position in the sale funnel.
Segmenting your email lists based on their positions on the sale funnel is one best way to increase engagement and ROI. The emails you send to new subscribers should be different than those at the bottom.
At the first stage of the sale process, you need to educate your audience, provide solutions, and provoke interest. Also, you can introduce your brand and set the stage to build a long-term relationship.
On the other hand, people at the bottom of the funnel should be receiving promotional emails such as products with bonus, discount, and coupons. Contacts at the bottom of the sales funnel are more likely to purchase.
People who bought from you are more likely to buy from again and again so you need to check your customer’s purchase history.
You can this data to make the segment of buyers more engaged by sending them more related suggestions
A tiny percentage of people will buy from you at the first contact, so you need to be strategic in your promotions.
Email engagement is a basic way to segment your email list, but the impact on the ROI can huge. Email open click-through rate are the main metrics that every marketer should track.
Open your email marketing service and create a segment for contacts who open and click your emails regularly. This way you can focus all your marketing efforts on people who respond to your content.
For example, You send an email to your entire email list announcing the lunch of your new product that solves a specific problem.
You ask them in that email if they want to know more about that product.
You can create a segment to contacts to respond positively to that email and categorize it as ‘’interested’’
Then you create a series of emails designed to that segment of contacts educating them who well this product will help them achieve a specific result.
Also, you create another segment from users who aren’t engaged. Smart marketers do this all the time.
They create a series of emails to bring them back, remind them about the latest content, and why they aren’t engaged.
As a marketer, you need to know your audience at a deep level. It’s totally fine to ask your visitors to put their names and email address to join your list.
However, you can get more data about your customers if you send them a survey link. I always to send a survey link in the welcome email to get a lot of responses. I usually get more than 80% of CTR for my survey link.
Also, I tell my subscribers that completing this survey provide me with the necessary information to help them. You do not have to send a lot of questions. A quick survey of 5- 10 questions can be enough.
For examples, I was promoting skin care products in the past few years and I send questions like:
- How long have you been suffering from acne?
- What type of products you’ve tried
- How much are you willing to invest to solve that problem.
- How often would like to send you content?
And so on..
After collecting responses, you can now segment your list based on this data. This information can be a good predictor of your future subscriber’s behavior.
OPR and CTR are the most important metrics in email marketing, however, you can learn more about your subscribers based on the lead magnet they request.
This is simply a free incentive to give in exchange of contact information like name and email address. If new subscribers downloaded your lead magnet and didn’t sign ou, it simply means they’re interested in what you’re offering.
Based on that data, create a segment of contacts who requested that free incentive. These people are more likely to hear from you again. Now you need to nurture that segment of people and them through the marketing funnel.
Do worry about people who didn’t request your lead magnet because people are distracted easily and receive a lot of emails. What you can do is to send a sequence of emails telling them about that lead magnet.
The most basic way to segment your email list is to use demographic data.
Demographics can give a lot of information about what your subscribers needs and interests. Information such as location, age, and income can give more options for segmentation.
Many marketers ask these question during the sign-up process, but I highly recommend to do it through a survey. A lot of form in the landing page can drop your sign up conversion rate.
Segmenting your list based on demographics is a great way to make sure to send the right content to the right audience.
Age, gender, location, and income are the most used types for demographics segmentation.
For example, if you’re selling a skincare product, gender and age would be an important demographic. If you are in the digital marketing niche, then income and age would be valuable to know.