Why Marketing Segmentation Improves Your Email Marketing

Imagine for a moment you have 10K email addresses in your contact list. You want to launch an email marketing campaign. What do you do?

Option 1: You create a general email copy and blast it to each and every prospect you have.

Option 2: You personalize emails based on your clients’ needs.

Your email readers may have different sets of problems, ambitions and goals. So it might make sense for you to choose Option 2. Now, here’s the challenge. Where do you begin?

First, you do is segment your 10,000 contacts into groups. HubSpot has devised two effective ways of segmenting your prospects. You can group them based on your buyer persona profile, and you can group them according to their buyer’s lifecycle stage.

Buyer Persona

As a marketer, you have an idea of your “ideal customers” in mind. Each of these clients may have different personas. They come from diverse backgrounds. They have different attitudes and beliefs. They may even exhibit different behaviors. And you have to cater to all of them.Let’s say; you’re a jewelry shop owner. Your target audience is most probably the following:

Given their different needs, 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 now customize your email message.

Pro tip 1: You can start with three personas and then split them further into sub-personas later on.
Pro tip 2: When creating personas, consider demographics (age, gender, household income, educational status), psychographics (attitudes, beliefs, opinions, perceptions), and behavior (mainly buying habits and online behavior)
Pro tip 3: Find the right balance when it comes to your segmentation. Your grouping shouldn’t be too broad nor too narrow.

Lifecycle

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

Some 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.

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 shows 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.

Why?

At the heart of segmentation is understanding. When you segment your contacts and prospects, you get to understand their needs better. As a result, you can offer solutions that work. This builds up your credibility as a brand. Your contact will perceive you as reliable. Now, every time you email them, they will read your message because you helped them before. They will be more open to engaging with you. They may even forward your email to friends or colleagues. That’s how email marketing should work!


Originally published at www.nextcollision.com.