What is segmentation?
Segmentation is a process whereby you sort or divide your audience/subscribers into certain groups based on predefined characteristics. It could be as simple as segmenting them based on location or even age.
What can you use to segment on?
There are various characteristics you can use to segment your audience such as location, age, products previously bought, gender, etc. A large factor that you need to consider when segmenting is what data you have available to you. So in essence, what data have you gathered and how can you use that data effectively.
Why is this beneficial?
Segmenting your lists in order to send recipients more pertinent emails is a good way to improve your subscriber's engagement with your campaigns. By segmenting according to location, age, income, or whatever other data you have, you can make sure that you are providing useful information and offers to your subscribers, rather than spraying everyone on your list with the same uniform message.
Things to keep in mind:
Rewarding engaged customers:
Using segmentation to reward engaged subscribers is a brilliant way of maintaining a solid customer base. Sending your most engaged subscribers, the ones who open every one of your emails, special offers and opportunities to take first crack at new products will cement their interest in your brand. Repeat customers are incredibly valuable – even more valuable than new customers.
It might be tempting to assume that your high-engagement subscribers will take care of themselves and focus on developing strategies for attracting new customers. While new customers are important for growing your business, it is far easier to make sales to people who are already inside your shop than to people who have never even looked at your shop front.
A 2016 study by Monetate found that repeat visitors to e-commerce websites were twice as likely to make a purchase as first-time visitors. Returning visitors also spent almost twice as much as first time, despite making up less than half of visits. Building long-term interest in your brand will provide the steady customer base you need in order to develop your brand's profile and attract new customers.
Less engaged subscribers are also important to your business. People who made one or two purchases but then apparently lost interest can be profitably re-engaged. Re-engagement campaigns, which try to lure subscribers back by sending special offers or pushing different products, require different handling.
It's important to segment your lists accurately. Sending out a "we miss you" email to a customer who made a purchase last week seems needy, while a "thanks for your loyalty" email sent to someone who hasn't bought anything from you in a year might come across as a bit sarcastic. It also makes it more difficult for your subscribers to feel personally addressed by your emails, which is likely to lessen their further engagement with your brand.
Generating and rewarding engagement will enable you to find the people who like what you are selling and are interested in what you are saying. These highly-engaged subscribers can easily become your best customers.