Email Marketing
Using Segmentation to Improve Email Click Rate and Increase ROI
April 18, 2017

Many big and small businesses out there are struggling to increase their return-on-investment (ROI) with the most cost effective method – email marketing, but the main question here is: are they using the right email marketing strategy to leverage their marketing game?

Email list segmentation is a key approach to improving your click-through-rate and ROI. By sending relevant and important emails to targeted segments of your email list, you can guarantee that your clients and prospects are getting information and content about the products and services they are most keen on.

Here I am going to discuss the most ideal five ways through which you can optimize your click-through-rate and ROI with email segmentation.

Why Email Segmentation is a Smart Strategy?

Dividing your email list into smaller groups in view of comparable characteristics, for example, where your subscribers live or what they have bought previously—can drastically expand the relevance of your email marketing campaigns.

At LeadSparrow, our team analyzed results of segmented email campaigns with non-segmented email campaigns and found that both open and click-through rate increased by more than 14% in users’ segmented campaigns. By sending to extremely focused segments, we have seen open rates as high as 80% for LeadSparrow clients.

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Also, the users’ segmented campaigns helped us to acquire 10% enhanced revenue than the same email sent to all subscribers on a list.

Segmentation can likewise help you improve deliverability. Individuals are more prone to open and click-through emails that have significant and relevant information. In addition, they are less inclined to get irritated and mark your emails as spam.

What’s more, the good news is that the innovation and tools like LeadSparrow, make the customization and sending off your segmented emails simpler than ever.

So once you’ve decided how to segment your list, the rest of the process is relatively simple.

How to Segment Your List?

Analyze the information you’ve gathered from your list of subscribers, and afterward examine your response or purchase information. Are there any specific patterns you can see? The accompanying five email segmentation tips can help you reveal the patterns to enhance your click-through-rate and ROI with email marketing campaigns.

Geographical Segmentation

On the off chance that you’ve gathered such information as locations, addresses and zip codes from your subscribers, then you can utilize geography to segment your list. In the event that there’s a promotion at one of your organization’s areas, for instance, send to the group on your list that lives inside driving distance of that area.

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Or, then again, if news influences individuals living in only one state, segment likewise. By sending an email to just the subscribers it relates with, you can lessen the chance of irritating your overall list with an excessive number of insignificant messages in their inboxes.

Segmentation Based on Purchase Interest

What have your list subscribers purchased before? On the off chance that they have acquired a printer, for example, you realize that they’ll, in the end, need to supplant the ink cartridges. Along these lines, you can focus on specific groups with promotions for particular items.

In addition, by revealing what products customers usually buy after some time, you can expect what items different customers might be interested in who may have obtained just some of those things. So let’s suppose you watch that a lot of your customers regularly purchase products – A, B, and C. In the event that you have a gathering of customers who have purchased just products A and B, you might need to send them an email about product C.

So let’s suppose you watch that a lot of your customers regularly purchase products – A, B, and C. In the event that you have a gathering of customers who have purchased just products A and B, you might need to send them an email about product C.

Demographical Segmentation

Some important information and statistics that you can use to segment your list incorporate – age, gender, yearly income, and job title. As you take a look at the statistic information you have gathered, you may also reveal patterns in their purchase history. If you have a gathering of ladies who have obtained men’s dress previously, for instance, they would likely be a decent segment to target with a Father’s Day deal.

If you have a gathering of ladies who have obtained men’s dress previously, for instance, they would likely be a decent segment to target with a Father’s Day deal.

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Segment Clients and Prospects Separately

Since a customer’s association with your organization contrasts from that of a prospect, they ought to be segmented on your email list. For example, you would prefer not to send current clients a limited time email with an exceptional initial rate that is really lower than what they pay. Additionally, customers ought to get follow-up email campaigns — including deals and discounts—to help optimize more sales and increase customer loyalty.

Additionally, customers ought to get follow-up email campaigns — including deals and discounts—to help optimize more sales and increase customer loyalty.

Behavioral Segmentation

Utilizing behavioral information to segment your list is another imperative approach to help enhance your ROI. The accompanying are a few cases of behavioral information classifications:

A- Individuals who have opened your email
B- Individuals who have opened and navigated to your website
C- Individuals who have opened, navigated, and made a purchase
D- Individuals who have not opened your email

Here you need to understand that each of these groups should be dealt contrastingly in future email marketing campaigns. You could send a similar promotion with another subject line – for instance, to attempt to draw in the attention of the group who didn’t open your email.

Key Takeaways

Email segmentation can do wonders for your business if done in the right way. Here, the bottom line is that you need to understand that the relevancy is critical to enhancing your ROI and click-through-rate, and segmentation is an imperative approach to keep your emails relevant.

If you have tried segmenting your email list the other way which enhanced your results and you believe it is the ideal approach which can help to elevate email marketing campaign amazingly, do share it with me in the comment section below.

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