Segmentation Strategies: Unlocking the Power of Personalized Email Campaigns

Segmentation is such a powerful tool, but one that should be wielded wisely and with the right information. In our own experiences with segmentation at MessageBull, we see that we have open rates over 67%. Normally, we only see around 42% open rate on average in unpersonalized emails. Why? Because we’re working the right tactics with the right audience segments. And you can get there, too, improving the results of all of your email campaigns. Read on to learn more about segmentation and how to leverage this tool consistently.

1 - What is Segmentation and How Does it Help My Email Campaigns?

Segmentation is a crucial aspect of email marketing for ecommerce entrepreneurs. It’s a practice in which a list owner divides their audience into specific segments based on demographics, behavior, purchase history, or preferences. For example, list owners will commonly segment their audience based on whether or not they have actually purchased services or products, or have yet to do so; owners can segment based on browsing activity on their site, such as dividing lists by which section list members visit most often. A real life example from one of MessageBull clients is that we created a “Dog Birthday club” to engage with the audiences of one of our clients. This club is a small segment of the complete list, but it gives us very valuable insights and very good conversions, mainly because this particular segment gives us more insight into the business’ customers.

Think about it: wouldn’t it be difficult to personalize an email if you don’t know who you’re addressing it to? This is where the data comes into play. If you’re segmenting your audience properly, you can count on list members in a specific segment having specific interests and shared similarities that will make it easier to write a “personalized” email to them. For example: with the mosquito patch business, the list owner might create two separate emails for these segments. For the email segment targeting mothers, the owner might include some “social proof” by way of testimonials from other mothers and emphasizing the long-term wearability of the patches, while for the other segment targeting those with skin sensitivities might focus more on the specific ingredients and why those ingredients were chosen for the patches.

2 - Types of Segmentation Strategies and When to Use Each (And What NOT To Do)

There are several types of segmentation strategies, but today we’ll focus on four main strategies, which includes demographic, psychographic, geographic, and behavioral. Each of these strategies operates on a different set of variables that are used to classify consumers.

Demographic segmentation is one of the most basic types of segmentation strategies, and it’s pretty self-explanatory. Demographic segmentation groups consumers based on age, gender, income, and other factors. This kind of targeting is especially useful for businesses that cater to a specific age group or a particular income bracket. For example, a cosmetic company that targets middle-aged women can use demographic segmentation to tailor their messaging to that group, or a clothing brand that targets Gen Z buyers. Psychographic segmentation, on the other hand, looks into the personality, lifestyle, and values of consumers. This type of segmentation is crucial for businesses that sell products that align with a particular lifestyle or mindset. For instance, a sustainable fashion brand can use psychographic segmentation to target conscious consumers who prioritize environmentally-friendly practices. This segmentation practice would also be useful for luxury brands.

Geographic segmentation groups consumers based on their location. This type of targeting is useful for businesses that have a physical presence and cater to different regions. For example, a fast-food chain operating in a diverse region can use geographic segmentation to tailor their menu and pricing to each location.

Last but not least, behavioral segmentation groups consumers based on their purchasing patterns and behavior. This type of segmentation is ideal for businesses that want to understand each customer's unique behavior and preferences, and for businesses with a high rate of returning customers. Behavioral segmentation can include factors like brand loyalty, product usage, and buying habits. For instance, an e-commerce platform can use behavioral segmentation to offer product recommendations based on the customer's browsing history.

For business owners like you, understanding the different types of segmentation strategies and knowing when to use each is crucial for businesses looking to tailor their messaging to specific audiences. Each of these different types of segmentation have their uses across multiple types of brands. But there are also some caveats– if segmentation were this easy, every brand would be doing it to large amounts of success.

It’s important to know that there are certain mistakes that should be avoided at all costs. Firstly, one should never assume that all members of a particular demographic group share the same needs or interests. For instance, people from the same age group may have different priorities and preferences. It is crucial to conduct research and gather data when developing segmented groups to avoid this assumption.

Secondly, one should resist the urge to create too many segments. More segments do not always translate to more success. In fact, targeting too many different groups can lead to reduced marketing efficiency and increased costs. On the other hand, when you have too few segments, you miss out on opportunities to reach specific audiences who may be highly responsive to your messaging.

Thirdly, never ignore or exclude smaller segments. They may have a lower quantity of people compared to other groups, but their potential can be tremendous. Lastly, and probably most important, never stop refining your segments. As technology advances and customer behaviours change, it is imperative to continuously evaluate your segments and tweak them to be as effective as possible.

3 - Crafting the Perfect Personalized Content for Your Audience

Once you have collected and analyzed the data on your customers, you can use it to identify patterns and create customer personas. These personas represent your primary segments, which helps in crafting the most personalized content. Of course, figuring out which segmentation strategy to use (and segmenting your audience) is only the first part of the equation. Now, the task is to figure out how to personalize email content to resonate with your segmented audiences.

After creating different customer personas, you have to personalize your content, such as email, website, newsletters, and ads, using the relevant messaging, images, and offers that will appeal to each group. Each audience has a unique way of talking, behaving, and engaging with your brand. Therefore, the messaging, tone of voice and offers have to be distinct from one segment to another.

It's essential to craft personalized messages that align with the current stage of the customer's journey within each segment. The stage in the customer journey will have a significant influence on the tone of the message you send. Content for prospects at the first stage must be informative and educational, showcasing the benefits of your products or services. On the other hand, content that targets repeat customers may be even more personalized, using informal language and exclusive offers.

So there you have it– we’re curious about your experiences with segmentation after reading this article. Do you see improved open rates, or a spike in your business’ growth? Let us know!