Have you ever filled out a form on a website—like to get a discount or enter a contest—only to end up bombarded with daily promotional emails that are completely irrelevant to you?
That’s an unfortunate outcome when a business sends the same email to everyone on their subscriber list. Some people may like those messages. But many won’t, and the brand will end up with a low open rate and more people smashing the “unsubscribe” link.
The solution is audience segmentation for email campaigns.
When you segment your email audience, you can send each group a different, more relevant email. You’ll get higher engagement, better conversions, and happier customers.
In this guide, we’ll show you how to segment your email audience, cover some things to avoid, and share examples to bring it all home.
Contents
- What is audience segmentation for email campaigns?
- What are the benefits of segmenting your email audience?
- How to segment your email audience effectively
- 5 email audience segmentation ideas
- Email audience segmentation dos and dont’s
What is audience segmentation for email campaigns?
In email marketing, audience segmentation means dividing your subscriber list into smaller groups based on some trait or traits they have in common. Instead of sending the same message to everyone, you tailor a different email to send to each group so they’re all more relevant.
Here’s a quick example. Have a look at this promotional email from a pet supply store.
It’s targeting a segment of subscribers who haven’t used their 10% off voucher yet. If I’d received this email right after using my voucher, it might be a little off-putting. But when sent to the right audience, it’ll generate more conversions.
Segmentation lets you send these types of targeted emails to different cohorts of subscribers.
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What are the benefits of segmenting your email audience?
Why create segments? Because segmented email campaigns can get up to a 69% higher open rate and a subsequently higher click-through rate. That’s because they speak directly to the reader’s interests and needs.
You’ll also cut down on the number of people who unsubscribe. That’s important because nurturing leads can take time. If you send the wrong message to the wrong person and they opt out of future emails, you’ll lose your chance to convert them.
Finally, segmenting email campaigns shows that you know what your customers want—a key factor in building trust. Say you run a physical therapist office, and a portion of your clients come to you to solve their back pain. You can segment that group and send them educational content about good sitting posture and the best types of shoes to wear. That’ll prove that you’re there to solve their specific issues.
How to segment your email audience effectively
84% of marketers use basic segmentation, but the key is to create segments that drive real results. Segmenting your audience might sound complicated, but it doesn’t have to be. Here’s how to do it step by step.
1. Gather the right data
Start by ethically collecting information about your subscribers. This could include:
- Basic details like age, location, or job title.
- Behavioral data like purchase history or website activity.
- Engagement metrics like how often they open your emails or click on links.
Look at this sign-up form on Douglas Elliman, a real estate agency.
It asks for the usual details like name, email, and phone number. But it also includes fields for property addresses and a custom message. At the top, it says, “Thinking of selling?” That’s a great way to help people self-qualify if they’re the right person.
Everyone who submits this form is likely added to a “sellers” segment in the business’s database. From there, the marketing team can create sub-segments based on location, using the property addresses they collect. Simple, but smart.
Take a page out of Elliman’s book and use sign-up forms, surveys, and analytics tools to gather this data. And remember, more isn’t always better, so focus on data that’s actually useful for your campaigns.
2. Choose your segmentation criteria
Think about what makes sense for your audience and goals. Here are some popular options:
- Demographic: Things like age, gender, or income level.
- Geographic: Where your subscribers live, down to the city or even neighborhood.
- Behavioral: How they interact with your emails or website – clicks, purchases, or engagement.
- Psychographic: Their interests, values, or lifestyle.
- Lifecycle: Where they are in their journey with your brand, from new sign-ups to loyal customers.
In Elliman’s case, they probably have segments like buyers, sellers, renters, investors, agents, and partners. An auto repair shop may segment its customers by vehicle type, service type, and service frequency. In short, your segments depend on your business use case, so pick one or two criteria to start and refine as you go.
3. Create personalized content
Segmentation is only effective if the emails feel relevant. Since you have some data, you can add a touch of personalization to these segmented emails.
Here are a few ways to do that:
- Address specific pain points or interests for each group.
- Mention product categories or use cases that would be meaningful to each segment.
- Incorporate a different review or customer testimonial from a customer with similar characteristics to that segment.
Look at this email I received from Product Marketing Alliance.
Beyond just using my name, it mentions a course I had shown interest in last year. It also mentions the general feedback I gave to them a few months ago. Although I am sure it is part of a larger, automated campaign, it feels like a personal email. If you have your segments right, you can also send out such personalized campaigns.
4. Automate your email list management
Managing segmented email lists manually can get overwhelming. That’s where email automation strategies and AI tools come in handy.
Start by setting up workflows to automatically assign new leads to email segments based on their actions and characteristics. That way, when someone subscribes or completes a lead magnet, you won’t need to manually move them into the right category.
Then, use dynamic lists to keep segments updated in real-time as subscriber behavior changes. Say someone moves from lead to customer or doesn’t open an email for a while. Your dynamic list will recategorize them so they get the right message in the next campaign.
5. Monitor and optimize
You can do a lot with automation, but segmented email marketing is never a set-it-and-forget-it tactic. Set up regular check-ins to learn things like which segments are engaged the most, which types of emails work best with each group, and so on.
Many of your segmented email success will come down to tracking the right metrics. Here are a few to keep in mind:
- Open rate: Percentage of recipients who open emails. A higher open rate in a segment means your subject lines and timing resonate well.
- Click-through rate (CTR): Percentage of people who click a link in your email. A strong CTR shows that your content is relevant to that segment.
- Engagement over time: Allows you to compare open rates and CTR across different email campaigns to spot trends.
- Email read time: Measures how long subscribers spend reading an email (available in most email automation tools).
- Unsubscribe rate: Percentage of people who unsubscribe from your email list. A high unsubscribe rate for a particular segment could indicate a misalignment between email content and their interests.
If one segment consistently has higher open and click rates, analyze what makes them different and tailor more content to their preferences. Similarly, if a segment has low engagement, adjust the messaging, send time, or frequency of emails to better align with their behavior.
By following these steps, you’ll create a segmentation strategy that makes your emails more effective and strengthens your connection with your audience.
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5 email audience segmentation ideas
There are nearly unlimited ways you can group your subscribers to give them a better email experience. Here are five tried and tested options to get you started.
Greet new subscribers with a welcome email
That first email is critical in setting the tone with your new subscriber. Don’t let it be the same generic message everyone gets. Create a specific welcome email that greets people with a virtual smile and maybe offers something valuable to kick the relationship off right.
Lawncare brand Sunday sends a welcome message that does a ton of trust-building.
It starts off with a little history about why the founders started the company. Then, it shows off some customer feedback and offers a little explanation of why the products are different. In all, you’re giving a great introduction to the brand, its values, and its product positioning.
Offer special promotions to loyalty members
Loyalty programs keep customers coming back for more. You can maximize the effect of your loyalty program by creating a segment for this group of repeat buyers and offering them exclusive promotions, events, and information.
Here’s how REI engages its loyalty members with big discounts on popular products.
Discounts, gifts-with-purchase, early access to new products, and member-only contests and giveaways are all great options here.
Include solutions based on demographics
This is one of the most common ways to send segmented email campaigns. Curate products or solutions that match some known characteristic of that segment.
An easy option for a clothing brand is to share products designed for men or women.
There are dozens of options here. You could have a group of bargain hunters and a group of luxury buyers, young parents and retirees, and so on.
Personalize emails based on geography
Location-based segments are really useful for travel brands and sports-related retailers. They also work great for local businesses with multiple locations.
Let’s say you operate a running gear store with shops in several states. You could send a segmented email to people near one of your locations to invite them to an in-person event.
If you want to get really fancy, you could tie local weather events into your outreach. So when a big snowfall is headed towards a location you cover, send out helpful tips for driving in the snow or a discount on cold-weather gear.
Ask subscribers to self-segment
There’s a quick way to make sure every subscriber has been placed in the right segment: ask them to do it for you.
Petsmart, for example, asks subscribers to share more about their pets.
With that info, the shop can send emails with promotions for cats, birds, or specific dog breeds. Consider asking your readers a qualifying question or two.
Email audience segmentation dos and don’ts
Segmentation can transform your email marketing, but if done wrong, it can backfire. Here are some tips to help you get started and a few things to avoid.
Segmentation dos
Get off on the right foot with these segmentation tips.
- Start small and build gradually: You don’t need dozens of segments to see results. Begin with one or two simple criteria, like location or engagement level. Test your approach, gather insights, and expand as you gain confidence.
- Use your current tools: Most email marketing platforms come with built-in segmentation features. Use these to create and manage your segments efficiently. If your platform supports automation or dynamic lists, take advantage of those to keep your data fresh.
- Take inspiration from what’s working: Look at successful campaigns from your competitors or within your own business. What are others doing well? How can you replicate or adapt those strategies to your audience?
Segmentation don’ts
Avoid these missteps to get the most out of your email marketing.
- Over-segmenting your audience: Creating too many segments leads to confusion and inefficiency. Start with a few broad segments and refine them over time. Aim for a balance that’s specific enough to be relevant but manageable in scale.
- Using outdated or incomplete data: If your data is inaccurate or old, your segments won’t reflect your audience’s current needs. For example, targeting a subscriber based on their location from three years ago could lead to irrelevant messaging.
- Treating segments as static: Audiences change, and your segments should, too. If you don’t update them, you risk sending emails that no longer make sense to your subscribers.
Get started with audience segmentation for email campaigns
The key to effective segmentation is to start with the basics, test and learn, and continuously improve. With the right steps, you’ll send emails that your subscribers look forward to and that drive the results your business needs.
If you’d like some support improving your email marketing, contact us. We’ll show you we can help.
