Segmentation—it’s a four-syllable word. Often when we start talking about segmentation to new prospects, they look at us like we’re throwing out four-letter words, likely to do with all the misconceptions out there regarding segmenting for email campaigns. Our goal for this article in our SMART email blog series is to help add clarity and understanding to highlight its value. While this is just a brief dive into segmentation in email campaigns, we’ve provided an in-depth whitepaper on this subject and more, available for download at the bottom of this article.
One of the reasons why email marketing segmentation can make a client cringe is based on the fact that every time you segment, there is the potential for added costs based on new content required. And while this is true, separating emails based on your audience’s past interactions, job titles, purchase history and other important variables is extremely important. Why? It increases message effectiveness. Over-segmentation, on the other hand, certainly becomes costly, so it’s important to make sure that your audience segmentation has enough variation to require content changes.
Let’s look at what type of segmentation makes the most sense:
Purchase history: Nothing is worse than receiving an email promoting a product or service with a lower price than the amount you just spent. Paying attention to where the customer is in their purchase cycle is critical.
Interaction level: Did the last two emails sent to the audience resonate with them? Were the subject lines compelling enough for the audience to open the email? Was the CTA effective, and did the audience click through to the designated landing page? Was there action on the landing page, and did the lead shift into a different customer category as a result? All of these indicators may require a variance in content and, therefore, segmentation.
Persona indicators: How does the recipient view the product or service offered by the email? A direct user may require different content than a peripheral one. Depending on how much information you can pull from your CRM tool about your audience, there are many data points that can inform you on what kind of content will be most relevant.
It’s just as important to discuss what ISN’T segmentation. Sometimes, people use different terminology, and so there are aspects that some would consider segmenting that we don’t.
For instance, changing a single line of text based on a standard variable is not considered segmentation. That’s dynamic content. If the only difference between group A and group B is job title, and the only content that needs to change is the sentence or two that appears next to the recipient’s name, for example, no segmentation is needed. Instead, a variable equation just needs to be added into your CRM tool that says, “If this, write X. If that, write Y.” Such a variable equation doesn’t require completely new content—just a small content substitution. And although it’s more work than a “one email fits all” approach, doing so is nowhere near as complex as truly segmenting content. That’s because when we talk about segmenting for audience variances, we mean more than crafting different content. Changes to send times and even the frequency of emails, whether reducing or speeding up time delays between email blasts, are both ways to segment email marketing.
The way we segment content and audiences is based on CRM lists. These lists aren’t permanent by any means, and based on the ways recipients interact with content as well as other changes within the CRM, contacts may shift from one list to another automatically. Our segments are therefore as fluid as the customer, a primary differentiator between how we and others view segmentation.
Interested in taking a deeper dive into segmentation, and learning about how it can improve your email campaigns? Fill out the form below and download our whitepaper, Email Marketing is A LOT of Work, or schedule a call with us today.