Using Segmentation to Improve Click Rates and Increase Sales
Hugo’s data-segmentation is a powerful tool that allows campaigns to be sent to targeted segments of subscribers. These segments can be based on the ticket-type they bought, the event they went to, demographic data and other subscriber data. Segmenting is not necessary for every campaign but it can significantly increase important two campaign success metrics:
1) Click-through rates
2) Ticket sales/ e-commerce orders.
Based on the campaigns that were sent using the Hugo system, we saw that click rates between campaigns different a lot and that even a 1 percent improvement can mean substantially more website visits and/or additional orders.
We from Hugo considered regular campaigns sent during the second half of 2016, then determined if the campaign used segmenting or not. We used the median rate for each metric to avoid bias from outsiders that were extremely low or high.
First an outline of the different segmentation types mentioned
Demographics: segmenting based on a subscribers age, language and gender. You can target users with personalized content using these types of pre-built segments in order to increase engagement.
Ticket sales/ e-commerce: segmenting based on data from the ticket type or article they buy at your website. Using this can increase ticket sales with existing or lapsed ticket buyers. This segment type has several options, including specific items or item categories purchased, ticket type, money spent, buying dates etc.
E-mail engagement: segments are based on interactions with campaigns, like who did or didn’t open or click a campaign. These segments are often used to follow up on previous campaigns or to re-engage subscribers with lower activity ratings.
Interest groups: segmenting based on their interests and preferences subscribers/ ticket buyers choose when filling in a survey. Interest groups are great tools for making sure subscribers are getting content that they will engage with.
Location: segments use each subscriber’s geolocation data to target a specific geographic region with a campaign. This can be useful when you for example want to increase ticket sales by offering a special travel deal.
For both of our metrics (click rate and ticket sales/ e-commerce orders) we found that most of the segmented campaigns performed better than those without segmentation. For instance, median click rates for segmented campaigns improved by up to 2%. Email engagement is the exception, we’ll explain that later.
When you want to increase your ticket-sales, it’s best to segment based on e-commerce data/ ticketing data instead of demographics. The rest of the metrics stays the same.
So, why is the email engagement click through so low?
The email engagement segment scores lower that the non-segmenting. This segment type can include inactive subscribers (those who had not clicked, opened or otherwise interacted with previous campaigns), so it makes sense that these campaigns might not fare as well. At first glance, the small click rates for the less active subscriber segments appear to render those types useless. But remember that it may be less expensive to target a past ticket buyer, than it is to find a new one, and winning back the interest of inactive subscribers with a re-engagement campaign helps you make the most of your list.
There will, of course, be cases when you would want to send a campaign to everyone on your list. For example, when you announce your first event info like the date and first artists. But for most campaigns, it’s wise to send smaller, segmented campaigns with content personalized to those subscribers.
Don’t have a Hugo account? Click here: https://hugo.events/en/signup and start for free!