What Is Email List Segmentation And Why Do You Need It

Having a few thousand email subscribers is excellent. But how do you personalize your message to each one of them? Enter email list segmentation.

You should already know at this point that personalization is key to the success of your business. According to SmarterHQ:

That only proves that the way you interact, engage and build a relationship with your email subscribers matters.

In today’s article, we will define what email list segmentation is, why you need it, and how to segment your list.

Here we go!

What Is Email List Segmentation?

Email list segmentation is the division of subscribers into smaller sections based on set criteria. Typically, marketers use email list segmentation to deliver personalized messaging based on geographic location, interests, buying history, etc.

Marketers create segments to cater specifically to each different email list and that list’s independent interests instead of sending one generic message for all.

However, many marketers still believe that all of their subscribers should get the same content. After all, it’s one big list, and there’s so little effort required, right? That's true, but the lack of personalization always shows. Keep in mind that most subscribers end up trashing impersonal and irrelevant emails.

If all you have to send your subscribers is something generic, they’re not going to get valuable information, which means ZERO returns for your business. For your information, segmented email campaigns drive a 760% increase in revenue.

This is why email list segmentation is important; it’s equally essential to marketing B2C or B2B.

The Benefits Of Email List Segmentation

Here are five reasons why you should divide your email lists into segments:

1. Better Subscriber Engagement

You understand your email subscribers well if you know how to tailor-fit your content according to the characteristics of people you engage with.

It is easier to identify what type of content or offers would attract subscribers, which leads to better engagement when you segment your email list.

Email list segmentation is a simple and cost-effective way to give your subscribers the content they want and how often they want it, most likely to get you better engagement.

2. Effective Campaign Targeting

Email list segmentation helps you create effective targeted campaigns based on your subscriber groups.

For example, you can offer limited promotions and special discounts to your loyal subscribers, which will make them feel appreciated to keep them from unsubscribing and patronize your business even more.

It also becomes easier to create specific promotions or vouchers that will attract subscribers according to how relevant it is to them by dividing your email list according to subscriber groups.

The key is to develop an offer that will entice subscribers based on their interests.

3. Helps Track Active And Inactive Email Users

Email list segmentation helps marketers track active and inactive email subscribers in terms of engagement. It makes it easier to re-engage with inactive subscribers by sending custom tailored messages to them so you can avoid deleting them from your email list.

You can offer loyalty vouchers, and VIP passes to keep high engagement and loyalty among your active users.

You can divide your email by subscriber activity when using MailChimp, ActiveCampaign,  MailerLite, and similar email marketing platforms. These email marketing tools allow you to keep track of your subscriber engagement by identifying activities like:

• The number of subscribers who opened your email.
• The number of subscribers who clicked a link in an email
• Unsubscribe rate.

Keeping track of your engagement helps you identify what email marketing strategies work and what needs improvement.

4. Improve Email Open And Click Rates

Email list segmentation allows you to send more relevant messages to your subscribers, which will drastically improve your open and click rates. It also enhances your email marketing send time because you learn when people open your email.

Sending out the same email content to your subscribers may not give you the best results as different needs and preferences often drive people. Email list segmentation allows you to connect with your subscriber groups with a message that will better resonate with them.

Overall, segmented emails help increase engagement and achieve better results than unsegmented ones.

5. Better Bounce Rates And Lower Unsubscribe Rates

You can develop your bounce rate by identifying inactive email addresses, contributing to a higher bounce rate by segmenting your email list according to the sign-up date.

Email list segmentation helps you identify inactive email addresses and customers and offer them a special follow-up email for re-engagement.

Also, email list segmentation decreases the number of unsubscribers when they receive appealing and valuable content, significantly improving a brands’ overall revenue.

How To Segment Your Email List

Here are five ways you can segment your email list:

1. Geographic Email List Segmentation

Geographic location is the most obvious way to segment emails. For example, if you provide heating and air conditioning services across the country knowing where people are located will enable you to send relevant messages throughout the year.

People in Florida vs Michigan may need different messages regarding their heating and air conditioning needs.

2. B2B And Specialization Email List Segmentation

This segmentation involves business to business relationships. Because you work with different people internally and externally, you wouldn’t send the same email to a merchant contact as you do to a marketing manager, a sales specialist, or an executive assistant. Each person may require a unique email message.

3. Content-specific Email List Segmentation

You need to depend on data collected about specific contacts for this method.

Here are some questions you need to answer:

• What pages did they visit on your website?
• What did they download from your site?
• What tools did they use?
• Did they buy anything?

4. Behavior-specific Email List Segmentation

This method requires a deeper understanding of your email marketing segmentation data.

Here are some questions you need to answer:

• How long do customers stay on a page?
• How many pages do they view when they visit a page?
• Do they visit and buy immediately?
• Do they visit several times a week but don’t buy?

5. Influencer Email List Segmentation

This email list segmentation method is more complicated than most marketers think.

Today, consumer loyalty is no longer just about purchase totals and the frequency of purchases; it’s about who recommends a brand.

Here are some questions you need to answer:

• Who’s given you online testimonials or reviews?
• Who shares your products or services on social media?
• Which social media platform did they use?
• How many referrals did you get from those platforms?

Send superficially to those subscribers to show appreciation for spreading word-of-mouth for your business.

And that’s everything you need to know about email list segmentation!

Head over to the recommended resources section below to learn more about email list segmentation. You can also set up a free consultation with us if you need help and outside eyes on this.

Recommended Email Marketing Resources

• 10 Quick and Easy Email Marketing Segmentation Strategies to Try Today
• 30 Ways to Slice Your Email Database for Better Email List Segmentation
• 50 Email Segmentation Tips You Need to Use Now

So what do you think about this article? Are you ready to segment your email list?

Leave a comment below.

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Header image courtesy of Stockunlimited.

About the Author Tim Fitzpatrick

Tim Fitzpatrick is the President of Rialto Marketing. At Rialto Marketing, we help service businesses simplify marketing so they can grow with less stress. We do this by creating and implementing a plan to communicate the right message to the right people. Marketing shouldn't be difficult. All you need is the RIGHT plan.