Personalisation is very important for your business. To use personalisation effectively, you must segment your users into different segments or customer personas. Email marketing offers a higher Return on Investment compared to other media. Average email marketing ROI stands at $36 for every $1 spent when we measure direct attribution, compared to $2.80 for social media. It also helps in boosting your engagement and sales. You must optimize your email for mobile because, according to a report, 88% of smartphone users regularly check their emails on mobile phones.
In 2025, approximately 4.5 billion people use email globally; this number is expected to increase and surpass 4.8 billion by 2027. You must be prepared to target these users, and segmentation helps in better targeting your audience.
In this blog, we’ll learn what email segmentation is and its types. Also, why is email segmentation important and its best practices?
What is Email Segmentation and its types?
Email segmentation helps marketers in dividing their customers and users into different groups or segments based on their demographics, interests, past purchases, behaviour, browsing, etc. It lets you design creative and highly targeted campaigns. So rather than sending one-size-fits-all messages to everyone, you can create specific and relevant messages that would be apt for that segment. It lets you send the right message to the right people.
Email segmentation is of various types, such as demographic segmentation, behavioral segmentation, geographic segmentation, waterfall segmentation, customer lifecycle segmentation, and psychographic segmentation.
- Demographic Segmentation is sorting your email list on the basis of age, income, gender, language, ethnicity, etc.
- Behavioural Segmentation: It includes when you segment your customers and users on the basis of their actions and interactions, such as purchase history, engagements with previous emails, etc.
- Geographic Segmentation: It is segmenting your users based on the location of your users, so that you can create local content to target them
- Waterfall Segmentation: It is based on importance, where a customer is placed in one segment at a time. Examples of it can be “Free Trial Users”, Active Subscribers”, etc.
- Customer Lifecycle Segmentation: It focuses on the stage where your customers are in the customer journey. For example, for new subscribers, the focus is on welcoming and onboarding, where you provide information related to the business and products.
- Psychographic Segmentation: It is based on interest, lifestyle, attitude, value, philosophy, etc.
Why is Email Segmentation Important?
Email segmentation can have a positive impact on your business. Here are some of the reasons why email segmentation is important for your brand
- Personalisation: Sending personalized content or messages makes your users feel valued, which makes them trust you and make a purchase. It also has a higher chance of opening your email.
- Engagement and Conversion Rate: By sending highly targeted emails, chances are your engagement and conversion rates will increase.
- Minimize Subscriber Fatigue: If you send irrelevant content to the target audience, they might lose interest and start working independently.
- Reduce Unsubscribe and Spam Complaints: Sending irrelevant emails to your subscribers can frustrate them and make your email marked as spam. It can also hamper your sender score.
- Increase ROI: It allows you to target customers more effectively and provide them with engaging content. The ROI for email marketing
- Customer Experience: Customer experience is important because a single incident of poor customer experience can make you lose customers.
Best Practices of Email Segmentation
Here are some of the more effective strategies and tips to improve the segmentation process. The idea is to identify which category is best suitable to which user.
- One-Time Buyer: Customers who have made a single purchase from your brand can be categorized into one group. You can send them an incentive to convert them into a repeat customer.
- Window Shoppers: Subscribers who have opened and clicked on at least one email within a certain period but haven’t converted yet. You can send discount codes to them or send targeted recommendations to them.
- Shopaholics: Customers who have made multiple purchases in a given time frame. You can reward these buyers by letting them access the sales a little before.
- Monitor Feedback: To begin with, you must have a CRM, Customer Relationship Manager, and use an analytical platform or tool for organising and managing your data. You can send surveys to ask for feedback. Along with this, you can monitor the email marketing metrics and social media interaction as well for a better understanding.
- Recently Contacted: It includes subscribers who have recently engaged with you in the last 2-7 days but haven’t made a purchase. You can share time-sensitive deals with them and inform them more about the brand.
- Offer Oriented: It includes subscribers who made purchases from you only when you offered them a deal or during a discount season. You can send them a limited-time offer.
The more data you have, the precise your segmentation will be. You can consider the website data, real-time shopping behaviour, and interaction, etc, to create it. For effective results, it is important to frequently monitor your performance. Segmentation helps in enhancing the engagement and conversion rate. Which eventually boosts your ROI. Lumia 360 also provides digital solutions to grow your business. Our services range from innovative digital marketing solutions to creating a responsive web design. To know more about our services, email us at info@lumia360.com or call us at 514-668-5599.
