Email Marketing Segmentation

Email Marketing Segmentation

Email Marketing Segmentation

The stalwart of modern-day communications, email continues to prove a valuable marketing tool. How can your organization leverage this communications channel to help your business grow? One key to leveraging email marketing is to focus on email list segmentation to provide more value for your customers.

Segmentation by customer sales: All businesses have a percentage of customers who are extremely profitable. One customer spends $100 and another spends $1,000 and it often costs the same dollar amount for a company to acquire either customer. With list segmentation by sales, you take the top 10% of profitable customers and make it your mission to add value for them through email communications.

You could reward these customers by inviting them to a VIP event, a private shopping session, or perhaps by giving them a free gift card or discount for their patronage. Keeping your existing high-value customers happy can pay dividends when those customers have another opportunity to buy. They reward you with a large amount of value, so it makes sense to take the time to provide more value for them in turn.

Segmentation by product or service: No one knows your offerings better than you do. Are there certain aspects of that product or service you can share with your customers that will help them use it more effectively? By segmenting your email list by product, you begin to create more relevant information to those who could genuinely use your help.

In the case of an auto dealership, perhaps you begin sending out an email to your Volkswagen Jetta owners. You can add value for your customers who purchased Jettas by giving tips about how to adjust their sound system to get the most out of their music. You could give them a sneak peek at the brand new model that just rolled into your showroom. You could talk about the Jetta owners BBQ event that is coming up next week at your dealership. By making connections and providing value, you change the customer perceptions of your business from a profit-making venture to being seen as a trusted advisor…leading to greater customer loyalty and greater profits.

There are a number of smaller segments you can explore once you get your email list up and running. After looking at email open rates and click-through rates, you can see who hasn’t been too interested in your emails and invite them to re-engage. Perhaps you can give them an offer on their first order, or suggest a few ways to get involved with your organization. Once they start to respond to your emails, you have an opportunity to move them to your “engaged customers” list and continue to work on other customers.

One of the best things about email marketing is the return on investment. With current clients, we have seen generous returns as email list signups begin to build some momentum. We look forward to helping your company create value through email segmentation. Feel free to set up a meeting with us at BDC advertising. We would love to discuss how email marketing can add value for your industry and your customer base.

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