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How Marketing Segmentation Improves Your Email Marketing

By Rica Bouso

You have ten thousand email addresses in your contact list and you want to launch an email marketing campaign. Your options are:

  • Create a general email copy and blast it to everyone in your database.
  • Personalize emails based on your clients’ needs. 

Your contacts likely have different problems, experiences, and goals. So it would make sense for you to personalize emails based on your client's needs. The challenge is to segment our database and develop the right messaging for each group.

Buyer Persona

You might already have an idea of your “ideal customers” in mind. If you're a jewelry shop owner. Your target audience is most likely:

Sophisticated Stella Fashionista Liz Boyfriend Greg
 A housewife and art patron who loves classic pieces A career woman who is looking for jewelry she can wear in the boardroom A guy looking for the perfect engagement ring 

 

Given their different requirements, you have to reach out to them using different messages. You should extend this principle to your email list. Group your contacts according to personas you created for your marketing strategy. Once you have grouped them based on their respective profiles, you can customize your email message.

When creating personas you need to consider demographics, psychographics & behaviors.

Demographics

  • age
  • gender
  • Income
  • Education

psychographics

  • attitudes
  • beliefs
  • opinions

Behavior

  • Purchasing habits
  • Online behavior

Lifecycle

Your prospect doesn’t jump from being a stranger to a buyer. There are different stages of the buyer’s journey.

Lifecycle stage.pngSome of your contacts may have never heard of your brand. Others may be shopping around, comparing your product or service with others. Now, some of your contacts may be ready to decide. Of course, you have to engage with them differently.

Screenshot 2017-01-17 08.15.47.png

Segmenting your contact list does not only work in theory. Studies have shown that targeted email is more successful than generic ones:

  • A recent MailChimp study indicated that segmented contact list and customized content have a 15% higher open rate and a 94% higher click rate than unsegmented contact list and general messaging.
  • A Lyris report also shows that 24% of companies who segment their contacts and personalize their content experience significant increase in revenue and customer retention.