Using Segmentation to Optimize Email Campaigns

How many unread marketing emails are in your spam? According to the Data & Marketing Association (DMA), only 13% of people say more than half of the emails they receive are useful.

Despite this (rather dismal) statistic, email marketing is still an effective channel for nurturing leads and increasing conversions, with one of the highest returns on investment: $36 for every dollar spent. It’s no wonder 81% of B2B marketers say their most used form of content marketing is email newsletters.

But how can you make sure your email communication doesn’t fall on deaf ears?

As a trusted Hubspot and Klaviyo partner and one of the top email marketing agencies in the US, SLTC empowers brands to meet the unique needs of their customers by implementing personalized email strategies that increase the number of opens, clicks, and increase conversions. We’ve carefully tested and optimized thousands of campaigns, sending over a million annually for brands in eCommerce, B2B, Health & Wellness brands and more.

Our main takeaway? Whether you’re running campaigns focused on brand awareness, lead generation, or conversions, segmenting your audience and delivering targeted content based on demographics, interests, and behavior will take your emails out of the bin and keep customers wanting to more.

Segmentation uses a shared property within a group of contacts, while personalization modifies the content for each individual contact. For example, segmentation allows you to target anyone who has purchased an item with an email promoting other relevant products. However, you can personalize this campaign on an individual level by using each contact’s purchase history to share recommendations that are unique to them.

Why segmentation works

In a world where technology continues to influence almost every aspect of our personal and professional lives, consumers expect personalized content that is relevant to their tastes and needs.

By segmenting your contact list into audiences of people at specific stages of the customer journey, you can deliver content that taps into each group’s different triggers, prompting them to make a purchase or complete the desired action.

The results can be astonishing. Marketers using segmented campaigns recorded a whopping 760% sales increase.

segment

The intricacies of audience data and information can provide seemingly endless opportunities for segmentation, leaving many small business owners feeling overwhelmed and unsure of where to start. Our advice? Keep it simple.

The types of segmentation you prioritize depend on the industry, the products and services you offer, and the current goals for your business. Start with the basics by considering demographics, customer journey, interests, location, behavior and engagement.

demographics

This is the most common type of segmentation used by marketers. Information such as age, income, gender, education, and employment are all demographic data that can be used to segment your subscriber list.

By creating buyer personas for your ideal customer, you can personalize your campaign’s messaging, content, and formatting to increase engagement and conversions.

For example, when implementing email campaigns for NYC-based formalwear brand Betsy & Adam, SLTC created segments based on age, education, and more to deliver relevant content and drive sales for prom, homecoming, graduation, and more. student associations.

Abandon cart flows

Tired of seeing abandoned shopping carts in your online store? You are not alone. By 2021, nearly 80% of online shopping carts were abandoned. If you re-engage with these visitors with a concise, personalized email, you can recover a third of these otherwise lost sales.

SLTC used Klaviyo to segment 41,000 subscribers to The Dogists to deliver relevant messages within the customer’s current buying stage. Automated exit email flows would be triggered when a consumer views a product and then close their browser, while another flow that provides an incentive to purchase would be triggered when a consumer adds a product to a shopping cart before exiting it.

Likewise, welcome and thank you flows strengthened The Dogist’s community and brand identity, extending the lifecycle of each individual customer by making them feel seen and valued.

Interests and needs

When was the last time a brand asked you about your interests and values? Surveys and quizzes are highly effective strategies for collecting psychographics about your customers, allowing you to use personalized content based on their preferences, pain points, motivations, and triggers.

Place

Location-based segmentation is a common strategy in email marketing. This is especially true for businesses that rely on location to drive purchasing decisions. Geographical data can be used to send information about location-based events, offers from local stores, or to deliver content in the subscribers’ time zone.

buyer behaviour

Tracking consumer behavior on your site can take segmentation and personalization to the next level. Behavioral data such as past purchases, average spend, and other shopping habits allow you to create dynamic content tailored to your customer’s tastes. Recommend the perfect accessories for a new outfit someone bought, set reminder emails for

products they buy regularly, or offering discount codes to shoppers who only buy on sale will encourage them to keep buying from you.

Engagement

How often do people interact with your content? Segmenting contacts based on open and click-through rates helps you deliver targeted follow-ups. Reward actively engaged users with exclusive sales, events, or new features.

Inactive users or new subscribers may need more information about your brand or products. A/B testing your email subject line can help you optimize copying and increase your open rate over time.

Harness the power of email marketing

There’s no denying that email segmentation is the way to personalize emails and newsletters and deliver targeted content that engages your email subscribers.

Email segmentation doesn’t have to be complicated. You can kickstart your email strategy today by contacting SLTC, a proven growth partner, to help you deliver robust and effective email campaigns that protect and grow your first-party data today!