Getting Started With Email Segmentation

Creating effective email connections that drive response and revenue requires segmentation. That sounds fine in concept, as many marketers know they need to do more segmentation in order to engage subscribers and break through the clutter. However, many marketers struggle with getting access to data and developing creative approaches that match the customer lifecycle. I urge you to not be intimidated. Demand greater data integration and access from your vendors. Start testing new content and creative approaches so that you can be automated and fully functioning immediately.

Creating effective email connections that drive response and revenue requires segmentation. That sounds fine in concept, as many marketers know they need to do more segmentation in order to engage subscribers and break through the clutter. However, many marketers struggle with getting access to data and developing creative approaches that match the customer lifecycle. I urge you to not be intimidated. Demand greater data integration and access from your vendors. Start testing new content and creative approaches so that you can be automated and fully functioning immediately.

Ease into segmentation to avoid overtaxing your precious resources. Use early tests to learn about subscriber interests and understand key success metrics. Doing so will build your confidence and help you make a case for automation, data integration and creative services — all of which are essential for advanced segmentation and better results.

There are two ways to get your arms around your segmentation opportunity, both with the goal of “right message, right person, right time.”

  1. Segment by customer profile and craft messages around customer demographics, firmagraphics and behavior.
  2. Segment by customer life stage and speak to customers who are in specific life stages.

Customer profile segmentation: With profile approaches, even simple segmentation can make a big difference. Separate your file into large segments that distinguish subscribers by a factor that has significance to your business. Clickers are a good place to start. Those subscribers who have clicked on something in the past month are more likely to be engaged than those who haven’t.

You can do less storytelling with clickers. For example, a retailer may simply alert clickers that a sale continues until Friday or put in specific sale prices for pants, sweaters and scarves. A business software marketer may send clickers three of their most popular whitepapers or an invitation to participate in a LinkedIn community. In both cases, clickers need less background info and more options to get them to act, whereas nonclickers may need more guidance and education prior to taking action.

Why burden clickers with info they don’t need and that gets in the way of their actions? At the same time, don’t skimp on critical storytelling information for nonclickers, as they clearly don’t have a strong connection with your offer yet.

Other starter segments worth testing include new subscribers versus long-time subscribers, buyers, geography (e.g., north versus south) and gender.

Draw segment lines around key drivers for your business — i.e., differentiators that give you a clear path to a custom message that will make an impact. For many B-to-B marketers, the most important driver of customization is job title. For B-to-C retailers, the key data point is most recent purchase. Don’t choose geography if location has no bearing on purchase behavior. Your business is unique, but good marketers understand the key customer attributes that lead to increased sales and satisfaction. Focus there for your segmentation and you’ll be rewarded with the biggest lift.

Life stage segmentation: To effectively segment by life stage, first abandon the notion that every email program has to be a long-term affair. Short-term email conversations can be even more powerful, particularly because they address a specific need at the time when that need is most acute. A four-message reminder series that disrupts the messaging flow around renewal time can be much more powerful than a generic newsletter which comes like clockwork every two weeks. Why not replace the newsletter with custom messaging for all customers who are up for renewal in a particular quarter? Similarly, create custom series of two messages to 20 messages that cluster around that particular life stage.

Remember to think through the dialog of the conversation if the message series is longer than three messages so that you can intensify, cease or adapt the message stream to accommodate response. For example, stop pitching the purchase midstream if someone has already upgraded from a free trial.

Not every email program has to be long term. The goal of “right message, right person, right time” can be achieved through segmentation that focuses on a specific life stage as well as customer profile.

What are your biggest challenges when it comes to nurturing engagement via segmentation strategies? Perhaps I can address them in a future blog or learn from others handling of them.