Segments

List Segmentation

Purpose

  • What is it?

  • Why is it important?

  • How is it done?

 

Table of Contents

  • What is List Segmentation?

  • Why is list Segmentation important?

  • Where do you get the data from to develop the segmentation?

  • Segmentation strategies

  • Unique segmentation strategies for B2B companies

  • Using personalization and dynamic content

  • Personalization and dynamic content strategies

  • Recommendations for you

 

What is List Segmentation?

  • List segmentation is the process of taking your email list and placing the individual email addresses into groups based on similar demographic, psychographic, or behavioral characteristics.

Why is List Segmentation important?

  • Youre sending targeted offers to specific groups of people.

    • Not to everyone on your elist.

    • Cuts down on send volume, a lower cost for you if you’re billed by volume from your Email Service Provider (ESP).

  • Also, some subscribers may comment “Why are they sending this offer to me?

    • They know what my interests are.

    • I think I’ll unsubscribe because this company is confused and hasn’t got it right.”

  • What’s important for you to know?

  • Check your ESP to see if they have the relevant features available that you will need for list segmentation.

  • Warning: Have your website’s privacy policy explain how you collect and use visitors’ behaviors and clicks data so you’re not violating any laws.

Where do you get the data from to develop the segmentation?

  • Recognize it’s an ongoing process.

  • Use an autoresponder to get subscriber information.

    • Have a link to an online survey that is simple to take.

    • Survey gets automatically sent after an opt-in form is submitted or a purchase is made

    • Just a couple of simple questions to learn more about their interests

      • Have a checklist on topics you like to write about. Ask them to check off what they would like to see.

      • A checklist of benefits that matter to them.

    • Survey tools are available at:

    • Opt-in form

      • Keep it simple. Don’t ask for too much info or highly personal info.

      • Asking only for an email address works the best.

      • Can ask for zip codes to segment by geographic location.

    • Customer account information

      • When purchasing, can ask for their address and birth date.

    • Products purchased

      • Gives insight about their interests.

    • Pages visited on your website

      • Track this data for segmenting by interests and for future marketing initiatives.

    • Links clicked on your website and in your emails.

      • This also tracks interests.

    • Lead magnet requests

      • Also add to segment list

    • Webinars attended – ditto to add to segmented list.

Segmentation strategies

  • You’ve collected your data. Now develop strategies to boost your email marketing results.

  • Behavior’s segmenting yields the best email marketing results in most cases.

    • Your goal is to develop targeted email funnels based on the data you have.

    • Test your data to find the most effective targeted campaigns.

  • The list below of Common Email Segmentation Strategies lists popular ones to improve your marketing results.

    • Demographic and psychographic characteristics

      • Location

        • Segment to send local offers, promote products based on climate.

        • Segment sending promotions to national audiences during sport seasons.

      • Gender

        • Males and females have different interests on products.

        • Could also be interested on different features of a product. Segment towards interested features and benefits.

      • Birth date

        • A brand sends “Happy Birthday” with 20% off your next purchase.

      • Age

        • Age-related segments. Create special promotions for Baby Boomers, Millennials.

      • Anniversary of a customer’s first purchase

        • Special offers at anniversary dates can build a stronger relationship.

      • Income

      • Occupation

      • Education

      • Marital status

      • Interests

      • Hobbies

      • Favorite website and blogs

    • Behavioral characteristics

      • Position in the Marketing Funnel

        • Work an email funnel related to the position of the recipient in the marketing funnel.

        • That’s far more effective than sending a single offer to a broad audience.

        • If you go the single offer route, you liable to get some “Unsubscribes.”

        • For sure, you will lose some trust.

      • Purchases

        • Shows interest in a particular type of product or service.

        • Segment your list to send messages promoting add-on products or discounts on supplies.

      • Clicks

        • Contact could click for a special promotion.

        • Indicates contact is at the bottom of the funnel.

        • Segment into a targeted email funnel for that contact.

        • Or the contact could of clicked a product page, pricing page, free trial page, or a demonstration page. More segmenting with a special funnel to follow.

      • Pages visited (or not visited) on your website

        • Segment by pages contact visited.

        • Can look for contacts clicking a product page but he does not view related pages like tutorials, testimonials.

          • Segment him into messages for that material.

        • Segments suited for people in the middle or bottom of the funnel.

      • Lead magnets requested

        • Tracking clicks on lead magnets – you can have a segment targeting offers and email funnels to strengthen relationships with your brand.

        • It’s pushing them through the funnel.

      • On-site searches of your website

        • Track the keywords a contact is using to search on your website.

        • Use that data for another set of segments.

        • Are they searching for a specific product, feature, or benefit?

        • Or is the search for a solution to a problem or to find a “want”?

        • More sets of targeted email campaigns.

      • Response frequency

        • The more engaged, the more important to foster the relationship.

          • Reward that segment. They’re your brand ambassadors

        • Segment by emails opened, clicks on links, purchases.

        • Work to keep those loyal customers.

      • Opened email message

        • Segment by types of messages opened.

      • Engagement dormancy

        • Important to re-engage dormant subscribers.

        • Create segments targeting different types of dormant subscribers.

          • Those who haven’t opened your messages.

            • Psst – you need a killer headline. You can do it!

          • Those who haven’t visited your online store.

          • Haven’t purchased anything in months.

        • Missing behaviors

          • Create segments on actions they don’t take.

          • Use missing behavior to persuade inactive subscribers to come back in the fold.

        • Buyer loyalty – segment into four groups

          • First-time buyers – people who recently purchased for the first time, get very different offers and messages than your most frequent buyers.

            • Do not ask them to join your loyalty program.

            • Instead, build brand trust and try to motivate them to buy from you again.

            • Segment to build trust.

          • One-time buyers

            • Do not ask them to join your loyalty program.

            • Instead, build brand trust and try to motivate them to buy from you again.

            • Segment to build trust.

          • Repeat buyers – people who have bought more than once

          • Frequent buyers

            • People who buy based on a frequency you choose, such as weekly or monthly.

            • Invite these people to join your special loyalty rewards program.

          • Shopping cart abandonment

            • Reaching out to these people immediately after they abandon their carts is a great way to convince them to complete their purchases.

            • They are valuable contacts.

            • Create a segment of these people and target emails to them.

            • Evoke emotions such as the fear of missing out.

          • Amount spent

            • It does make sense to segment your list based on amount spent.

            • You could set a $100 threshold and offer discounts to reward their loyalty or honor them at an event.

          • Interest

            • Option to ask your contacts to provide some info about their interests.

            • Your email provider may have a feature to create this form within your marketing tool.

            • Or use Google Forms (google.com/forms/about), Formstack (www.formstack.com), or JotForm (www.jotfrm.com/) to set up the form.

            • Ask the user to check the boxes on an online form for the topics they’re interested in.

Unique segmentation strategies for B2B companies

  • Here are a few segmentation opportunities B2B companies can use to increase email marketing results.

    • Decision maker status or role

      • Determine a contact’s job, title, role, or decision-maker status through information from opt-in forms, or account information after a purchase.

      • Say you own a technology company. You wish to promote an event coming up where you’ll be exhibiting.

        • Segment your list by role. Send relevant messages to each of your contacts.

        • Highlight a problem you’re working on with another company. Describe how you’re relieving their pain.

        • Have a conversation with your contact on the process and results.

        • That’s building trust.

        • Even lower-level, non-decision making people at a company could bring back valuable information from you relevant to their business. They’re a hero.

      • See a couple of segments there.

    • Industry

      • Create messages and funnels to target specific segmented industries.

      • Businesses in different industries might want to hear new information about how their technology could be managed.

      • Segmenting your list, the right people get the right messages. Not the general public.

    • Company size

      • A large company with thousands of employees would get different messages, offers, and content vs. a small business.

      • Segments – large companies, small companies.

      • Best to keep your messages separate for these two segments.

        • You want to maximize your email marketing results.

      • Personalize the messages.

Using personalization and dynamic content

  • Personalization is offering content in your email messages to specific recipients.

    • Look for your email service provider to help you with this.

  • Use personalization only if you’re confident in the accuracy of your data

  • Use contact’s first name in the message’s subject line

  • Dynamic content will be programmed to change depending on the person who sees it.

    • For email marketing, dynamic content could be an image, an offer, a link, or text in your message.

    • Using dynamic content, you can create one message for your entire audience.

      • But one or more elements will be changed based on the recipient.

Personalization and dynamic content strategies

  • Using a personalization strategy, how long do you think it would take to send out all the messages manually?

    • I can’t imagine it. But it would take a very long time.

    • To the rescue – a dynamic content strategy.

  • See if your ESP provides the service for dynamic content.

    • Some don’t.

  • Ideas to use dynamic content in a personalization strategy:

    • Similar products or services

      • Strategy based on customer’s last purchase.

      • Example: campaign includes an image of each customer’s prior purchase.

      • Contains a message saying, “You loved this.”

      • Then some related products are shown.

      • It’s an upsell. Some retailers do very well with it.

    • Visitor views pages on website

      • Campaign automatically starts when a viewer clicks to see a product on your website.

      • One message used for viewing of several products.

      • Just change out the product image and the product’s relevant part of the message.

    • Abandoned Cart

      • Message reminds people what they were going to buy has a lot of great benefits for them.

      • Again, just change out images and relevant text in the message for the unique product abandoned.

      • Can you include a couple of the major benefits? Maybe an emotional benefit?

      • If the first message is not effective, try a second message offering a discount or free shipping.

        • Watch out for this. Some customers catch on and will consistently use this strategy for a discount.

    • Gender

      • Think about ways you can segment your audience by gender.

        • Consider how men and women use your products or services differently.

          • Are there different benefits for each gender you can focus on?

        • Develop a funnel using dynamic content for the relevant images, copy, or offer aimed at each gender.

        • Save yourself from having to create and send multiple messages.

    •  Location

      • If you happen to have several brick-and-mortar locations in the same general zip code, they may be located in areas having differences in ethnics, income, or age.

      • With dynamic content, create one message and personalize your segmented offer for each specific location based on the differences.

      • Example: an offer meant for families with young children would go unnoticed in a senior citizen living community.

        • Or there might be a local high school event in an area.

        • Maybe one of your locations has a significant amount of tourist traffic.

    • Birth date

      • You can have a special promotion, gift, or event to celebrate a person’s birthday.

      • One message but personalized for the recipient’s name and birthday.

      • Works well if the birthday reaches a milestone.

    •  Age

      • Your product or service might be used differently depending on age.

        • Some features and benefits might work better for the older generation.

        • Example: Ocean Cruises to historic locations in Europe.

      • You can segment your message for senior citizens, baby boomers, Millennials.

    • Marital status

      • Personalize the benefits for your product or service for people who are single, married, widows/widowers, or are same sex partners.

      • Think about the differences in travel, dining, socializing, sports, health related activities’ or hobbies.

      • Or even sleeping arrangements.

        • Older married couples tend to want to sleep in separate bedrooms.

        • Wouldn’t you think they would want their own bedroom personalized for them?

      • Consider how marital status affects the way people use your product or service.

      • With that data, personalize the benefits with dynamic content.

      • One message as a base, with segmented, personalized benefits.

    • Parental status

      • Consider the different age groups parents have with their chil

        • Some in diapers. Others pre-school, elementary students, high school. Even college students living at home.

      • There’ll be differences in sleeping arrangements, children’s health, dining, socializing, entertainment, even the car the parent’s have.

      • Then there is your product or service.

        • Most likely different features, benefits identified for each category

      • Now your offer.

        • Probably want the offer to be different for each category.

        • You personalize it with dynamic content.

        • One message segmented for each opportunity.

        • Saves you a lot of work.

      • Run an A/B split test on some of the

    •  Weather

      • Look at the people on your list segmented by location.

      • Weather can be dry, wet, snowy, warm, cold.

      • People living along the Great Lakes have lake effect weather (heavy winter snow).

      • Others are prone to tornadoes, tropical storms, road-closing snowfalls.

      • Does your product or service have different features and benefits depending on the climate people live in?

      • If yes, it’s for you to segment your message with your ESP using dynamic content.

Recommendations for you

  • This section covered dozens of ways you can use segmentation, personalization, and dynamic content for your product or service with email marketing.

  • The opportunity is yours.

  • Deliver relevant content and offers to your audience.

  • Experience the accelerated way people will be paying attention to you and follow your calls to action.

    Are you in heaven? Yeh, you bet.

Questions? Do you need help with segmenting your email mailing list?

Call Paul at 585 703-0646.

Or email psheiler@centurylink.net