3 Email Segmentation Strategies that Increase Engagement

Is this something you can relate to when it comes to email marketing? You design a fantastic message, hit send, and… silence. The email is delivered, but the response is….underwhelming. 

It could be a multitude of things, but one thing our time providing email marketing has shown us, is that it is often a small change that can be all the difference between success and less than success. We won’t cover all the reasons or solutions in this blog, rather we will focus on email segmentation and why we believe it is a powerful tool to enhance your results. 

What is Email Segmentation? 

According to MailChimp, e-mail segmentation is the process of dividing an email subscriber list into smaller, more specific groups, or segments, based on certain criteria. These criteria can include demographic information (such as age, gender, or income), geographic location, behavioural data (like past purchases, email open rates, or website interactions), and psychographic factors (such as interests, values, or lifestyle).  

The goal is to categorise subscribers into meaningful groups that share common characteristics, enabling the creation of targeted and relevant email content that aligns with the distinct needs or preferences of each segment. 

Think of email segmentation as having a conversation with your audience about something they are interested in, not lecturing them on what you want to tell them. By dividing your email list into smaller groups based on their interests and behaviours, you can send targeted messages that resonate with them and they are interested in. 

Instead of generic emails, you’re delivering personalised content that speaks directly to their needs. This not only boosts open rates and clicks but also fosters stronger relationships with your audience. 

Think of it as the secret weapon for building loyalty and driving results. Let’s talk about how email segmentation can transform your email marketing. 

How Email Segmentation Benefits Your Brand 

Why segment?  

Have you ever received an email promoting a major sale just days after the event ended? Or perhaps an email offering discounts on seasonal items well after that season has passed? These kinds of irrelevant messages annoy readers and are a waste of your marketing $$ and efforts.  

Think about that famous Target incident when their data figured out that a teen girl was pregnant before she and her father did, your reader could have lasting negative effects on your brand’s reputation.  

But what if you segmented it right?  

Suppose instead, you send your reader an email offering resources for affordable home office setups that cater to job seekers or remote workers, or even tips for maintaining wellness during challenging times. This type of communication positions your brand as a supportive partner in your reader’s journey. 

According to Campaign Monitor, if your email marketing strategy involves sending the same message to your entire list, you’re likely to see disengagement, unsubscribes, and even penalties from Internet Service Providers (ISPs). ISPs monitor how recipients interact with your emails — whether they open, click, or delete them—and penalise senders whose messages consistently miss the mark. Your emails could end up in the spam folder, damaging your reputation and costing you valuable customer relationships. 

Generic one-size-fits-all messages do not work. Stop wasting another email — instead, implement segmentation for better relevance and ROI. 

Zapier, a leader in marketing automation, reveals that their secret weapon for email marketing success is powered by segmentation. According to them, here are its benefits: 

• Engagement soars: No more crickets! Craft messages that speak directly to their interests.  

• Loyalty grows organically: Feeling valued is the key to a subscriber’s heart. Segmentation fosters stronger relationships by delivering personalised content that shows you understand their needs. This reduces churn and builds a loyal base who is excited to hear from you.  

• Inbox hero status: Segmentation is the ultimate spam filter slayer! By sending targeted emails that people engage with, you improve your  reputation as a sender. This ensures your messages land where they belong: right in front of engaged readers.  

• Results you can measure: Segmentation delivers measurable results. You can track higher open rates, clicks, and a clear path to achieving your marketing goals 

3 Result-Driven Segmentation Strategies to Elevate Your Email Campaigns  

Demand Curve, a growth training program, talks about tactics for email segmentation which you may find helpful. 

Strategy Number #1: Demographic Segmentation in Personalised Greetings 

Have you ever seen a greeting that started with “Dear Valued Customer”…? 

What are the chances that if you did, you would open it? By comparison, think of the emails you get from firms you enjoy opening. Chances are when you open the email, you’re greeted with a personalised salutation like “Hi Sarah!” – your actual name! 

The difference is stark, in fact the two emails feel different. One feels like it addressed specifically to you, the other seems like a throw away. This is the power of demographic segmentation, particularly when applied to greetings. 

Think about it: wouldn’t a young parent named Sarah struggling with back-to-school shopping feel more seen if the email addressed them directly? “Hi, Sarah! We know back-to-school season can be hectic… compared to a generic “Dear Valued Customer…” 

Strategy Number #2: Geographical Segmentation  

So, you’ve addressed your audience by demographics and personalisation, but your emails are still generating crickets; here’s another reason why: you might be missing the mark on location-based segmentation.  

Think about it this way: Have you ever received an email about a sale on a product you can’t even get in your city? Frustrating huh! Geographical segmentation eliminates that issue.  

By segmenting your list based on location, you can send targeted emails that showcase local inventory, highlight upcoming events in their area, or offer promotions specific to their region. This ensures your emails feel relevant and cater to the unique needs and interests of subscribers wherever they are. It’s a win-win for everyone: subscribers get emails that feel personal and valuable, and you see a boost in engagement and effectiveness in your marketing efforts.  

Strategy Number #3: Behavioural Segmentation 

Behavioural segmentation isn’t a magic trick, but it might feel like one! It’s the science of understanding your subscribers on a deeper level by analysing their actions. Imagine having a secret decoder ring that unlocks the hidden messages in their past purchases, clicks on emails, and website visits. 

This isn’t just about broad categories like age or gender. Behavioral segmentation digs deeper, revealing individual preferences, buying habits, and pain points. It’s like having a conversation with each subscriber, learning what excites them and what keeps them coming back for more. 

Here’s how these insights fuels laser-focused email campaigns: 

• Timely and relevant engagement: Behavioural data isn’t just about the past; it predicts the future. For example, if a subscriber abandons their cart full of camping supplies, a timely reminder email with a discount on those items could nudge them towards completion. This ensures your messages are relevant and reach subscribers at the perfect moment for conversion.
  The key with this approach is to have someone log in before they get to the checkout so you can identify them and then send follow-ups that are relevant to them.  

• Proactive, not reactive campaigns: Behavioural data acts as a marketer’s crystal ball. Over time, it allows you to anticipate future actions. This empowers you to craft proactive campaigns instead of reactive ones. Imagine sending emails with recommendations for winter jackets to subscribers who frequently purchase outdoor gear in the fall, not waiting until winter arrives. 

• Life cycle campaigns: Some businesses know when their customers are likely to run out of items based on quantities purchased, time of year or other similar factors. Setting up trigger-based emails that speak to the recipient directly will enhance how they view your brand and increase conversion.
  By example, if someone purchases wine from a distributor, that distributor may know that 12 wines may last 2 weeks if they drink every day. Factoring in the fact they likely will not drink that often, the company might set a reminder to email the consumer at the 4-week mark asking if they want to repurchase that wine, or try something new. Bundling in something else with the original purchase, (showing you know your customer) is another powerful tactic.   

How to Begin with Email Marketing Segmentation 

With numerous segments and subsegments available, what once was a straightforward process can quickly become a complex web of email campaigns without a clear plan. 

If you’re unsure where to start, follow Zapier lays out these three steps to create a smooth workflow for your segmented email marketing campaigns. 

Step 1: Identify Your Data Points 

The first step is crucial: you can’t create segments without data. To maximise your email marketing efforts, focus on gathering and analysing data that can be strategically divided into relevant segments. 

Consider these three questions: 

1. What data do we currently collect? These will form your simplest segments. 

1. What data can we begin collecting? Identify data points that you can track but haven’t yet turned into actionable insights. 

1. What data do we need to request? This involves information you must directly ask your customers for. 

You may not have all the data you need, and your existing data collection system might not support every test you want to run. In such cases, consider leveraging development resources or investing in third-party tools. 

Step 2: Experiment and Explore 

Once you have your data and a clear understanding of your target audience, start experimenting with different email list segments. Use your unique insights about your customers to get creative with your groups and strategies. 

Most email marketing software includes tools to automate both segmentation and delivery. For instance, you can instruct your email marketing app to filter recipients into a group of subscribers who have been with you for over a week but less than a year. Then, you can schedule a “Thanks for joining us this year” email to be sent on New Year’s Eve at 10 a.m.—all while you enjoy the holiday. The software will handle the rest. 

Step 3: Monitor, Adjust, and Repeat 

After your emails are sent out, track how recipients interact with them. Pay attention to what they open, click on, and which content engages them the most. 

Use this data to refine your future campaigns. For example, if a portion of your loyal customers aren’t responding to surveys, target your next survey to a different segment of loyal customers who do engage. If half of your recipients don’t open emails on Mondays, create separate segments based on their preferences and adjust your schedule accordingly. 

To accelerate learning, incorporate A/B testing — this method pairs well with email marketing as it allows you to easily split lists into “A” and “B” groups. Many email marketing platforms now include AI tools that streamline A/B testing by predicting which changes are likely to yield the best results based on past data and user behaviour. 

Best Practices for Effective Email Segmentation (+ Pro Tips!) 

Collecting Segmentation Data

Start by getting to know your audience better. Use tools like Google Analytics or SurveyMonkey to gather key details—age, location, shopping habits, etc. Don’t just rely on basic data; dig deeper to understand what makes each segment tick. 

Dynamic Content Creation

Tailor your emails by inserting dynamic content based on the segments you’ve created. Imagine sending an email where the content automatically changes to match the interests of different groups—think of it like customising your message for each reader without having to create multiple versions. 

A/B Testing Segmented Campaigns

Don’t guess what works—test it. Set up A/B tests within your segments to compare how different subject lines, images, or offers perform. For instance, you might find that a specific call-to-action resonates better with younger audiences but not with older ones. 

Analysing Performance Metrics

Keep an eye on the numbers. Track how each segment is performing by regularly reviewing metrics like open rates and click-through rates. This helps you spot trends and adjust your strategy if a segment isn’t responding as expected. 

Automation and Tools 

Don’t try to do it all manually. Leverage automation tools to manage your segmentation efforts efficiently. Platforms like Dotdigital or Mailchimp can handle the heavy lifting, from segmenting your audience to sending tailored messages automatically. 

Start Getting Your Emails Recognised  

Email segmentation isn’t solely the domain of large corporations with substantial marketing budgets. Small and medium-sized enterprises can also adopt basic segmentation strategies to enhance their email marketing initiatives.  

By gaining a deeper understanding of the distinct needs and behaviours of various subscriber segments, businesses can craft more engaging and effective email campaigns that yield improved outcomes. 

Reach out to Three Piece Marketing to take your email marketing efforts to the next level!