Alert Solutions Blog

Top 8 List Segmentation Strategies to Maximize Email Marketing ROI

Posted by Nina Russo on Thu, Aug 30, 2012 @ 15:08 PM

According to eMarketer, businesses that perform list segmentation experience better open rates, improved deliverability, lower unsubscribe rates, increased lead generation and a higher ROI.

Now that you are super excited about list segmentation, you’re probably starting to wonder how you can get started. All you need to do is collect the right information and use it the right way.

The end goal of performing list segmentation is to provide your target audience with relevant content at a time that works best for them. Below are 8 best ways to segment your list for optimal results:

1. Email Client
There is a lot you can learn by someone’s email address. Each email client may display your email marketing campaign differently. You may want segment your list and augment your email design based upon the email address of your recipient. Some email design best practice tips include:

- CSS-based layouts are not supported by most major email applications so don't use them. Your design will render more consistently when HTML tables are used for email template layout. But you can use inline CSS to format content.

- Always provide a link to a web-based alternative to your email marketing campaign at the top of the email. This way if there are display issues, a reader can click that link and view your email in their browser.

2. Shopping Cart Abandonment
Marketing Experiments found that more than half of shopping carts are abandoned prior to purchase. Potential revenue lost at or right before the moment of purchase is considered to be as high as $1.2 million per day for some large e-retailers. Perform list segmentation and deploy dynamically triggered marketing campaigns that follow up with an unbeatable offer to help recover lost revenue.

3. Buying FrequencyList Segmentation
Segment your email marketing list based on how often someone purchases. Against the backdrop of a solid marketing program, you should add in additional efforts based on anniversary of purchase and frequency of purchase.

Increase your contact frequency in the lead up to an anniversary of past purchase and follow a missed anniversary with aggressive marketing to prevent defection. Look for increases in purchase frequency as a signal. This is a great opportunity to build a tighter customer relationship through dedicated account management.

4.  Past Purchases
Divide your list into segments based upon past buying behavior.  By tailoring your marketing messages specific to these groups, nurture and better engage recipients so that what they are ready to purchase again, they’ll have you in mind.

5.  Job Title
Odds are, your marketing list includes a wide variety of individuals with different job titles. Considering the breadth of job types within any given organization, doesn't it make sense to segment your list accordingly? Based on who they are to your organization you will need to segment. For instance, prospect vs. customer vs. partner vs. vendor vs. employee.

6. Seniority Level
As I mentioned in No. 2, there are many different job types. On top of that, there are many different levels of seniority within a job type. Each contact will differ in years of experience, pain points and decision-making power. This makes list segmentation critical

7. Content Topics
It’s pretty obvious that not all of your leads will be interested in the same content topics. Segmenting your list based on the topics your contacts have shown interest in is important. The MarketingSherpa 2011 Email Marketing Benchmark Report showed more than half of B2C businesses use list segmentation for the email marketing campaigns to improve relevancy. List segmentation prevents businesses from overwhelming subscribers with seemingly irrelevant content.

8.  Interest Level
Perform list segmentation based on how interested leads are in your content. And don't be scared to ask for information you don't have, such as new interests and updated email addresses. Personal interests can be captured by allowing your subscribers to manage their preferences through an email subscription center. Tell customers that it will help you send more relevant email marketing campaigns.

For more list segmentation and audience targeting tips and tricks, downloaded our best practice kit today.

Topics: list segmentation, list segmentation best practices, email marketing

Subscribe via Email

Subscribe Via RSS Feed

Latest Posts

Browse by Tag