When a business has established a base of loyal and interested customers and has secured their email addresses to promote their goods and services, it later comes to realize that not all customers will react the same way to the promotions. Some news, product, or service may appeal to one customer but not another. Since all customers are different, it is natural that different things will interest them.
When it comes to email lists, it is helpful for a business to identify customers with the same interests and group them together so as to send personalized and targeted information that is relevant to them. This is called email segmentation or list segmentation. It usually is based on behaviors and demographics like place of residence, jobs, purchases, age, sex, values, etc.
- It increases open rates.
When a business identifies customers with specific interests, it is good to make content that targets them specifically. The relevance of the content makes them want to open the emails, which increases engagement. Personalization makes the customers feel like the business thinks about them.
- Greater customer retention.
When the customers feel like they are thought of, the business builds a rapport with them. This in turn, makes customers loyal to the brand, and retains them for a long period of time.
- Reduces bounce and unsubscribe rates.
Through segmentation, a business can identify subscribers who are and are not opening your emails. By weeding out subscribers who are not interested, the business can reduce bounce rates.
Criteria and How to Segment Your Email List
Since a business caters to a wide variety of subscribers and customers through its emails, reaching out to all of them in the same way is not bound to work. This is why we need to segment our emails so as to cater to the personal needs and interests of the subscribers.
Here are some common criteria that can be used to split up your email list:
- Demographics: This includes further subdivisions like location, time, age and gender, and profession. Looking into these factors, a business can segment their email list to cater to a particular group of people. For example, a single working mother or father may need services for babysitting in their area; or high school or college students may need a service to help them with assignments or exam preparation.
- Geographical location: Using a subscriber’s location is helpful if a business wants to prove them localized promotions. For example, a theme park in an area can promote their rides and amusement and target families with children, which can interest parents to subscribe for further information.
- Previous purchases: Using a subscriber’s past purchasing history to promote goods similar to the ones they bought before can help drive sales and foster a long term relationship with customers.
- Purchase frequency: Frequent shoppers can be identified and offered a coupon, a discount, or an invite to join the loyalty program. This can encourage subscribers to purchase more.
- Open rates: A business can use a subscriber’s frequent engagement with their emails to promote special offers and opportunities, such as beta access to a new application or program.
This is by no means an exhaustive list. There are many criteria and the business can use whatever criteria that fits their needs best.
In short, email segmentation can help a business cater to their subscribers in a more personalized manner that includes the subscriber’s interests, profession, age, gender, purchasing history, etc. Personalization can increase the subscriber’s interest in the business and their goods and services. It is a necessary aspect to consider in order to improve business reputation and goodwill.