Email list segmentation is a strong strategy that may dramatically boost the performance of your email marketing efforts. 

According to Oberlo, 81% of marketers rate email marketing as an important part of their customer retention channels.

According to 2023 research, brands earn an average of $42 from every $ invested in email advertising. This good result is the goal that all sales units want to achieve.

 So how to achieve success on? High Return on Investment (ROI) only comes to marketers who provide valuable & affordable content. And the foundation for doing so is through audience segmentation for proper targeting.

In this post, we will cover what email list segmentation is, why it’s vital for your email marketing strategy, and how to segment your email list efficiently.

So now.

What is email list segmentation?

Email List Segmentation divides subscribers into smaller groups based on several criteria such as age, location, status, job, etc. The purpose is to help you create more targeted emails for each audience group.

Segmenting email lists helps increase engagement. Because content is built, that is relevant to a specific set of recipients or subscribers.

Email segmentation is a powerful marketing technique to connect and engage with your target audience effectively.

Why is email list segmentation important?

Segments are created so that marketers can specifically cater to each different email list and its independent interests rather than creating a mass message for all.

Email segmentation has quickly become an effective support solution for marketers, and the most basic reason is:

• · 58% of the company’s revenue is generated from the email segment due to the right customer targeting.
• · Revenue increased by 760% after they segmented the campaigns.
• · Open rates are 14.32% higher than email unsegmented campaigns.

The numbers above show that email list segmentation is becoming more useful than ever because the benefits it brings to businesses are enormous.  

The benefits of email list segmentation

Email marketing segmentation is a powerful strategy when it comes to online marketing. It helps your target customers know who you are, what you do, and more about your brand.

While major brands are hiring marketing experts to promote and drive more traffic to their websites, the email marketing segment helps you to achieve exactly that without spending a fortune—millions of dong.

This is one of the quick, easy, and almost free online marketing strategies to promote the brand to the target customers.

Email list segmentation helps create targeted messages.

The email list includes many customers with different personalities, interest levels, and difficulty scores. List segmentation allows you to send emails to more targeted subscribers.

Today, mass email doesn’t work anymore. Targeted emails have up to 20 to 40% higher open and click rates.

Most users nowadays tend to ignore general news. They are often looking for the right content that fulfills a need, can solve a problem, and help them find a solution to the problem.

Email list segmentation is key to success. Each segment should have a dedicated strategy tailored to the customer’s interests.

Quality database filtering

Sending emails to people who are not interested or whose email addresses have stopped working is a waste of time and money.

Email list segmentation helps identify people who are opening and clicking on emails and those who are not opening. 

This way, you can identify what types of content are holding the attention of your target audience. For example, offering helpful tips is more attractive than a free download.

As such, email segmentation allows you to identify what is working and what is not. From there, it helps to suggest factors that need to be improved to get great results.

Increase conversion rate by precisely reaching customers’ pain points.

Customer groups are always moving at different points in the conversion process. Each stage of outreach requires delivering customized messages at the right times.

As stated earlier, email list segmentation allows for identifying each group’s needs and wants. This way, you can create campaigns that are targeted to relevant groups. This also increases your email open and click rates.

But how do you determine which audience will meet the characteristics of each segment you have chosen?

Here are the basic criteria often chosen by marketers to segment lists.

Instructions for segmenting customer email lists

Segment your email list by demographic.

For marketers who are just starting with list segmentation. The first selection criteria are usually based on customer demographics.

Demographic segmentation is often based on information such as:

• Year Old
• Sex
• Income
• Job
• Education
• Marital status, etc.

This is the most basic type of segmentation because they are easily collected and analyzed information.

You can get demographic information from users when they sign up via an email form on your website.

Suppose you are selling retail items such as clothing. Then age and gender are two important factors you should prioritize, as these fields can be divided into clear segments.

See also: 18 metrics for marketers to optimize email marketing

Segment email lists by behavior

Behavioral segmentation is dividing customers into groups based on the behavior they performed on a previous website. Such as :

• Click a call to action (CTA)
• Abandon cart
• Or any purchase ever made….

Tracking customer behavior allows you to provide a better user experience when sending marketing emails to them. Email content can be sent to this audience:

• Remind them of the products in their cart
• Notifications about offers of items that have been interested or saved to the cart
• Send upcoming promotions based on past transactions.

Psychology

More advanced criteria require marketers to be more attentive to user needs. Understand their likes and dislikes enough to be able to predict their actions.

Derived from psychological theories, this type of segmentation is based on the following characteristics:

• Character
• Value
• Interest
• Life style
• Engine.

Delivering hyper-personalized content based on these elements in email marketing helps drive customers further down the sales funnel. Thereby increasing revenue for the unit.

Geography

Last but not least is geographic segmentation. It sounds easy to understand—segment users based on geographic location.

There are five integral aspects of geographic segmentation:

Location

The user’s physical location can be the country or city where they reside. That the main factor to consider here is the difference in time zones. Why should we pay attention to this factor? 

What do you think about two time zones receiving emails between 12 pm and 8 am? At what time will users open an email more? Or would they be more happy to see email without being bothered?

See also: What are the best times for email open rate?

Climate

Pp Locations are subject to change depending on the weather. Hot climate, cold climate, and extreme weather conditions. They all require different products.

Culture

Diverse cultures and traditions are observed across the globe. Note about holiday times and anniversaries. Then segment your audience based on these factors.

Language

Understand that location does not dictate language. Segmenting users based on their preferred language avoids translation problems.

Geographic email segmentation ensures that the right products are shown to interested customers. And you always send emails in a language they understand. Therefore, this reduces the risk of unsubscribing.

Ten most effective ways to segment emails

Job Function

Functionality at work is extremely important for B2B businesses. B2B companies often sell products to a specific group of customers. Whether you market an automated marketing platform or system, most of your business’ products are geared toward serving a particular job function. This is extremely important in how to segment email lists that marketers need to know.

Job title

Consider segmenting by job title if the job function needs to be more detailed. The difference between job function and job title is this: the job title indicates a person’s buying authority. Moreover, it allows you to learn the specific “pain points .”Their bodies. When you segment by job title, you can tailor your message to a person’s particular needs and needs based on their day-to-day responsibilities.

Size of the business

Companies of different sizes will have various purchasing options. Similarly, they also have different budgets and product requirements. You wouldn’t expect a small business to have the same needs as a large corporation. If you have products designed for businesses of all sizes, it makes sense to segment your emails by company size.

Customer buying stage

An effective marketing strategy helps buyers interact and purchase through sales channels. One piece of advice is that email segmentation should be done by analyzing the customer buying process stages. That way, you can use messages and emails that provide them with useful and specific information that will help bring them to their final destination, your business.

Blog subscribers have indicated they are interested in your content. Therefore, you may not get the expected results if you send them product-heavy emails. Instead, send them blog updates but include a call to action at the end of your email to encourage them to explore your product offering.

Geography

The products your business creates have different categories and features suitable for each geography, so this is a reason for marketers to segment emails. Location often dictates regional laws, seasonal needs, and event attendance. If a country has new rules on how and when you can send email marketing, you’ll want to have people living in the country on a separate emailing list to avoid problems. Legal issues.

Email interaction

If you want to improve your email open “click” rates, tracking how and when your subscribers interact with your emails is important. For example, it’s recommended that you test email segments based on active and inactive users. 

You can then develop personalized content and re-engagement campaigns to drive those users back to your business. Often interactive campaigns offer discounts, inquire about a person’s interests, or use compelling subject lines to determine if a user is still interested in a company, brand, or product. Hit their psyche.

Information on past purchases

Segmenting emails based on their past purchase history helps marketers increase the likelihood of customers returning and purchasing company products. 

Whenever you have a product update, extra feature, or new product that integrates with existing products, you can send relevant emails to customers with a track record of similar items on their own. When you segment your email list by past purchases, you can target buyers most likely interested in a particular offer.

Customer’s spending budget

To be more specific, segment your list by past purchases and how much customers have spent. You can use purchase history information to predict which customers are more likely to buy more expensive items. 

Moreover, customers who only show interest in lower-cost items are also interested and need specific research. You can then send people information about products that fit their budget.

Their website browsing habits and online activities

A person’s behavior on your website can tell marketers a lot about their preferences. When you track what pages and content someone responds to, you can predict what they’ll do with you in the future.

That’s why you should implement email segmentation according to their online habits. The analysis also shows that people who click through to a particular landing page are likelier to respond to an email about a related product.

Email registration date

We recommend differentiating new email subscribers by start time. That way, you can send unique messages to new and old subscribers. For example, send new subscribers a welcome email when they sign up, and then send a few emails over the next few months to introduce them to your organization and some of your best content. Conversely, you can show appreciation to loyal subscribers by surprising them with coupons, gifts, or exclusive content.

See more:

The most effective method between Email marketing inbound vs. outbound

Spam words to avoid in email marketing

Segmenting email lists will bring unexpected results for advertising campaigns.  

Email list segmentation benefits marketers. Because it helps to determine exactly which topics will attract customers. Thereby increasing engagement in the form of open and conversion rates.

Customer-centricity is no longer an option for brands. Above all, this is an essential thing to do if you want to have revenue.

Segmented and targeted emails can increase sales by 58%. Besides, 74% of marketers say personalized emails drive more customer engagement.

In the past, marketers used to do email marketing in a way that sent as much as possible. Today, the method has changed. They started to pay more attention to quality.

Email marketing is increasingly demanding customer experience. One study found that personalized email subject lines increased opens by over 26%.

Remember, you are not alone in marketing. And there are countless other advertisers competing every minute, every hour. Personalize your email today, so you can get all the customer data you have.

Conclusion

The ultimate goal of email list segmentation is undoubtedly to improved user personalization and positive results for your marketing campaigns. In today’s fierce and crowded market, improving user experience and marketing campaigns is the “gold standard” for businesses to implement. Therefore, email segmentation is a method that helps marketers bring extremely effective sources for the company’s campaigns and revenue.

By segmenting your email list and delivering tailored messages, you can enhance engagement, conversions, and ROI while saving time and money. Use the techniques indicated in this article to segment your email list efficiently and produce personalized communications that connect with your readers.

Remember to continuously test and adjust your email campaigns depending on the results to ensure that you continue offering your subscribers the most relevant and tailored content. With the correct email list segmentation plan, you can take your email marketing efforts to the next level and achieve even greater success for your organization.

Frequently Asked Questions

How many segments should I create?

 The amount of segments you generate depends on your company objectives and the size of your email list. Therefore, it’s preferable to start with a few categories and progressively add more as you gather more data and obtain more insights.

Can I use the same message for several segments?

Although you may use the same message for several segments, adapting your messaging to each segment’s requirements and preferences for higher engagement and conversion rates is preferable.

What are some standard criteria for email list segmentation?

Some popular factors for email list segmentation are demographics, behavior, preferences, interests, geography, purchase history, and engagement level.

 How frequently should I update my segments?

It’s a good idea to examine and change your segments often, particularly when your company and your subscribers’ demands develop. Consider changing your segments periodically or bi-annually to ensure that your messages stay fresh and effective.

How can I know whether my portions are effective?

Employ analytics tools to measure the success of your email campaigns and assess how well each section is functioning. Look at measures like as open rates, click-through rates, conversion rates, and unsubscribe rates to determine the efficacy of your segmentation.

 Can I split my email list based on prior purchases?

 Absolutely, you may segment your email list based on prior purchases to produce customized communications that advertise relevant items or services. For example, you might build a segment of clients who have bought a certain product or service and send them an email marketing a similar item or providing a discount on a related purchase.

 Should I separate my email list depending on the interaction level?

 Segmenting your email list depending on engagement level may help you discover subscribers who are most likely to convert or need re-engagement efforts. For example, you might establish a section of subscribers who haven’t read your emails in the previous six months and send them a re-engagement campaign to attempt to win them back.

 Does email list segmentation help me minimize spam complaints?

Sure, by providing relevant and targeted content to your subscribers, you may lessen the possibility of them labeling your emails as spam. This may enhance your deliverability rates and guarantee that your communications reach the appropriate audience.

What frequent errors should you avoid when segmenting my email list?

 Some frequent pitfalls to avoid include the following:

• Segmenting your list too widely.
• We need to gather more data to form effective segments.
• Delivering an identical message to all segments.

Be sure to gather and analyze enough data to build targeted segments and personalize your communications to each group’s individual requirements and preferences.