If you’re still mass sending all your emails to your entire mailing list and sending the same automated flows to every customer, you’re not getting the most out of your email marketing.
The Benefits
Email segmentation divides your list into smaller, more focused groups based on specific criteria, allowing you to send tailored messages with numerous benefits:
- Increased open rates, click-through rates (CTR), and conversion rates.
- Increased Return on Investment (ROI).
- Reduced unsubscribe rates.
- Lower risk of hitting spam filters.
- Opportunity for valuable insights.
Email segmentation leverages first-party data—information you own and gather—to deliver content that’s both personalised and relevant. Whether applied to automated email flows or regular campaigns, segmentation can significantly improve engagement and retention.
Segmentation Strategies
Segmenting your email list can be based on various factors like demographics, location, engagement windows, and behavioural patterns.
This blog focuses on segmentation by purchasing behaviour, a powerful method as these individuals are proven customers and thus more likely to convert again. Here are 6 segments you can implement within your email strategy:
1. Single-time Purchasers
Target individuals who have made only one purchase. This group presents an opportunity to encourage repeat customers, to increase the lifetime value of a customer after acquiring them. Engage them with discounts on new arrivals, or on their next purchase.
2. Frequent Purchasers (3x or more)
Treat these customers like VIPs. These are customers who have come back to your business multiple times, and they deserve to be recognised. Surprise and delight, make them feel special to encourage loyalty. Give them early access to sales, further discounts on new product launches. Depending on the nature of your business, you could define this segment differently, e.g. based on lifetime value.
3. Category-based Segmentation
Segmenting based on the category that someone has purchased in is perfect for tailored messaging when spotlighting a category, or introducing new arrivals in a certain category.
For example, sending an email with “New shirts for your wardrobe!” to those who have purchased a shirt from you before. It’s an easy way to add personalisation to your emails, especially if someone has only purchased one shirt from you before, and loved it – this could encourage them to purchase again.
In flow emails, you can segment based on category to reference the category specifically, and provide product suggestions within the category.
4. Flagship Product Purchasers
Does your business have one top-selling product that brings people in? Use this to your advantage and cross sell using personalised messaging that directly references the best-seller.
This can be automated using a flow, or used for specific promotions and new product drops related to the best seller.
5. Seasonal Purchasers
Segment based on purchase timing throughout the year. For example, we created a segment of customers who bought items around Christmas in the previous year for a client. We used a tailored message, to reference the personalisation and relate to the customer.
Open rate was 21% higher, click rate was 133% higher, and revenue per recipient was 1125% higher than the seasonal email sent to the entire database.
Click rate was 133% higher, and revenue per recipient was 1125% higher.
This is something that can be replicated for similar holiday periods or any events that are relevant to your business like Valentines Day, Back to School, Mother’s or Father’s Day.
6. Budget-friendly vs Luxury Buyers
If your product range varies widely in price, segmenting customers based on their spending habits can be valuable. For heavy discounts or clearance sales, consider excluding luxury buyers to maintain brand integrity and avoid altering their purchasing behaviour. For new products that are in the higher price range, consider targeting your message towards the luxury buyers.
Start Segmenting
By leveraging these segmentation strategies, you can enhance the effectiveness of your email marketing efforts, ensuring that your messages resonate more deeply with your audience and drives better results.
Ease Into It
If you’re concerned with missing out on potential conversions by excluding people from email sends, try splitting out your sends: sending to your segment, and then the rest of your list. This way, you can observe the performance of your segment and customise your messaging, then use generalised messaging for the larger list.
Want some help on segmentation or other ways to optimise your email marketing strategy? Contact us today.
