Maximize your ecommerce ROI: Discover advanced email segmentation tactics and provide stellar brand experiences
Posted: Wed Dec 18, 2024 3:51 am
With customers valuing personalization as an essential part of their interaction with brands, ecommerce companies are increasingly leveraging segments to keep tabs on buyers’ needs.
That said, what counts as a personalized interaction? Is it enough to segment customers based on age, gender, and occupation and call it a day? Or do you need a larger focus on segmentation?
With 85% of customers favoring brands that treat buy phone number list them as individuals, it’s the latter — you need advanced ecommerce customer segmentation that caters to each buyer’s purchasing preferences to become popular among your target audience.
Read on to learn how to set up advanced email marketing segmentation for your brand.
Why is segmentation important in email marketing?
Email segmentation lets you send relevant content to target customers based on their interests, preferences, and behavior. Instead of sending bulk marketing messages, you create personalized strategies for each group of customers. This allows you to:
Boost your conversion rates: By grouping customers into smaller cohorts, you can customize their interactions with your brand, which increases conversions since 56% of customers become repeat buyers after getting a personalized experience.
Improve your reputation: With segmentation, you can remove unnecessary spam from your marketing channels. It improves engagement with the relevant audience, reduces your unsubscribe rate, and avoids penalties from email service providers.
Increase your marketing ROI and revenue: The average return on investment for email marketing is $38 for every $1 spent, as email serves as a direct communication channel between the brand and the customer. By segmenting customers, you know just the right words each person wants to hear to increase the ROI further.
Types of customer segmentation
While there are several ways to group customers, popular segmentation models include:
Demographic segmentation: Demographic segmentation refers to using demographics to divide the customer base into different groups. Examples include age, gender, occupation, marital status, and income.
Psychographic segmentation: In psychographic segmentation, customers are grouped based on their psychological characteristics. Some examples are habits, interests, traits, and beliefs.
Geographic segmentation: Geographic segmentation means grouping customers based on their location. For instance, you may group New Yorkers in a separate segment and Floridians in another.
Behavioral segmentation: In behavioral segmentation, you can divide customers into specific groups based on their habits and behaviors. Examples include purchasing habits, browsing behavior, and website activity.
This model also includes advanced segments, like signup source, type of customer (new, loyal, or inactive), and high-value customers.
Technographic segmentation: Technographic segmentation refers to grouping customers based on how they interact with technology. Examples include users of different devices.
Advanced email ecommerce customer segmentation strategies
While standard groups help you get started, you need an advanced email customer segmentation strategy to develop dynamic segments that enhance your relationship with buyers, address their needs, and help them move along the customer lifecycle.
The best way to do so is to divide your sales funnel into 3 distinct sections — top of the funnel (TOFU), middle of the funnel (MOFU), and bottom of the funnel (BOFU) — and then use a point-based system to automate marketing messages.
1. Segment TOFU subscribers for more clicks
In TOFU, people aren’t ready to purchase. Instead, they just came into contact with your brand and are looking for more information to decide if you have something they need.
To offer a better experience to those searchers, you can segment them based on:
Demographics
Demographic segments are essential as a starting point. For instance, if you sell footwear, you must know if the lead requires men’s or women’s shoes. Besides that, age-based segmentation will help you decide between the categories you should promote.
So, group customers based on their age, gender, education, income, and other demographic characteristics.
While there are several ways to handle this, you can look at SSENSE’s opt-in form to see how to do it the easy way: Prospects decide the type of emails they want to receive, so SSENSE never has to guess based on their purchasing behavior.
That said, what counts as a personalized interaction? Is it enough to segment customers based on age, gender, and occupation and call it a day? Or do you need a larger focus on segmentation?
With 85% of customers favoring brands that treat buy phone number list them as individuals, it’s the latter — you need advanced ecommerce customer segmentation that caters to each buyer’s purchasing preferences to become popular among your target audience.
Read on to learn how to set up advanced email marketing segmentation for your brand.
Why is segmentation important in email marketing?
Email segmentation lets you send relevant content to target customers based on their interests, preferences, and behavior. Instead of sending bulk marketing messages, you create personalized strategies for each group of customers. This allows you to:
Boost your conversion rates: By grouping customers into smaller cohorts, you can customize their interactions with your brand, which increases conversions since 56% of customers become repeat buyers after getting a personalized experience.
Improve your reputation: With segmentation, you can remove unnecessary spam from your marketing channels. It improves engagement with the relevant audience, reduces your unsubscribe rate, and avoids penalties from email service providers.
Increase your marketing ROI and revenue: The average return on investment for email marketing is $38 for every $1 spent, as email serves as a direct communication channel between the brand and the customer. By segmenting customers, you know just the right words each person wants to hear to increase the ROI further.
Types of customer segmentation
While there are several ways to group customers, popular segmentation models include:
Demographic segmentation: Demographic segmentation refers to using demographics to divide the customer base into different groups. Examples include age, gender, occupation, marital status, and income.
Psychographic segmentation: In psychographic segmentation, customers are grouped based on their psychological characteristics. Some examples are habits, interests, traits, and beliefs.
Geographic segmentation: Geographic segmentation means grouping customers based on their location. For instance, you may group New Yorkers in a separate segment and Floridians in another.
Behavioral segmentation: In behavioral segmentation, you can divide customers into specific groups based on their habits and behaviors. Examples include purchasing habits, browsing behavior, and website activity.
This model also includes advanced segments, like signup source, type of customer (new, loyal, or inactive), and high-value customers.
Technographic segmentation: Technographic segmentation refers to grouping customers based on how they interact with technology. Examples include users of different devices.
Advanced email ecommerce customer segmentation strategies
While standard groups help you get started, you need an advanced email customer segmentation strategy to develop dynamic segments that enhance your relationship with buyers, address their needs, and help them move along the customer lifecycle.
The best way to do so is to divide your sales funnel into 3 distinct sections — top of the funnel (TOFU), middle of the funnel (MOFU), and bottom of the funnel (BOFU) — and then use a point-based system to automate marketing messages.
1. Segment TOFU subscribers for more clicks
In TOFU, people aren’t ready to purchase. Instead, they just came into contact with your brand and are looking for more information to decide if you have something they need.
To offer a better experience to those searchers, you can segment them based on:
Demographics
Demographic segments are essential as a starting point. For instance, if you sell footwear, you must know if the lead requires men’s or women’s shoes. Besides that, age-based segmentation will help you decide between the categories you should promote.
So, group customers based on their age, gender, education, income, and other demographic characteristics.
While there are several ways to handle this, you can look at SSENSE’s opt-in form to see how to do it the easy way: Prospects decide the type of emails they want to receive, so SSENSE never has to guess based on their purchasing behavior.