What is Lead Segmentation?

Customers aren’t all the same. They come from different places, have different jobs and varied interests. Their expectations are also different – while some will be okay with your regular email content, most people want something that is truly useful for them.

How can you give something valuable to all those different people? It’s easy if you have a segmented list. According to DMA,  77% of ROI comes from segmented, targeted, and triggered campaigns. Campaign Monitor also noted that segmenting marketing campaigns can lead to even 760% increase in revenue.

Simply speaking, segmentation is dividing your long lead list into few or several smaller groups and preparing unique messages for each of the groups (or segments).

Instead of making one email copy only and sending it to everyone on the list (and risking a vast number of the emails will be ignored), you are giving your customers content that is relevant to their needs or interests and raise both their engagement with your business and your chances for higher revenue.

Here’s a couple of stats to show you how important it is to have your email list segmented:
  • Segmented and targeted emails generate 58% of all revenue. – DMA
  • Top 3 email marketing tactics are: list segmentation (51%), personalization (50%), and triggered emails (45%) (Ascend2)
  • Segmented email campaigns show 50% higher CTR than untargeted campaigns (Help Scout)
  • Segmented email campaigns open rates increased by 39%; revenue, deliverability and sales leads all increased by 24%, transactions – 18% (SuperOffice)
  • During a SuperOffice email marketing experiment, a segmented email campaign earned a 94% open rate and a 38% CTR, versus 42% open rate and 4.5% CTR in a non-segmented email campaign (SuperOffice)
The best part about lead segmentation?

There is an endless number of ways in which you can segment your email list to create newsletters and campaigns your customers will be interested in. For example, you can segment your email list by:

  • Customer activity level (active or inactive ones)
  • Location (perfect for location-exclusive offers)
  • Customer interests
  • Lead magnet type (if you have several)
  • Purchase history (amount, type, frequency and so on)
  • The device used (mobile, tablet, desktop)
  • Length of time the customer is with your company (new customers, loyal customers)
  • Website/social media/blog activity
  • Age
  • Gender
  • And any other way that is relevant to your business

If you have a B2B lead list, there’s plenty of ways to segment your email list too:

  • Industry
  • Job title
  • Business type
  • Business size
  • Content used
  • Education level
  • Engagement level

The more you know about your customers, the more ways you have to tailor your emails to their needs – though this will require some extra work.

To make the segmentation efficient, you first need to gather data about your customers, pick the best ways (or a combination of ways) to segment your email list and prepare enough content for all of the segmented groups.

While content you have to prepare yourself, gathering data, segmenting your list and sending tailored emails to your customers you can leave to a marketing automation system. With a good marketing system on board, many simple but time-consuming tasks (such as gathering data on your customers or sending newsletters) is done for you so you can focus on more important tasks.

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