Email marketing is one of the most effective ways to reach and engage with your ecommerce audience. However, sending generic emails to your entire email list can lead to low open rates, click-through rates, and conversions. The solution to this problem is customer segmentation.
In this article, we’ll explore the variables and parameters that ecommerce store owners should use to effectively segment their email audience and achieve maximum results.
Variable 1: Demographics
Demographic segmentation is one of the most common and straightforward methods of customer segmentation. Demographic variables include age, gender, income, location, and occupation. By segmenting your audience based on these variables, you can create targeted emails that appeal to specific groups of customers.
For example, if your ecommerce store sells beauty products, you may want to segment your audience by age and gender. You can then create email campaigns that are tailored to the specific needs and preferences of each group. A campaign targeted at women in their 20s will be different from a campaign targeted at women in their 40s.
Variable 2: Purchase History
Segmenting your email audience based on purchase history is an effective way to target customers who have already shown interest in your products. By segmenting your audience based on past purchases, you can send targeted emails that showcase complementary products or offer discounts on items they have already shown interest in.
According to Joey Vitale, founder of Indie Law, “One of the best ways to segment your email audience is by their purchase history. You can create segments based on the type of product, the frequency of purchase, or the amount spent. This allows you to target customers with specific offers that are most likely to appeal to them.”
Variable 3: Website Behavior
Segmenting your email audience based on website behavior is an effective way to target customers who have shown interest in your products but haven’t made a purchase yet. By tracking website behavior, you can segment your audience based on the pages they have visited, the products they have viewed, and the length of time they spent on your site.
For example, if a customer has spent a significant amount of time on your website looking at a specific product, you can send them an email that highlights that product or offers a discount on it. This targeted approach can increase the chances of the customer making a purchase.
Variable 4: Interests and Preferences
Segmenting your email audience based on interests and preferences is an effective way to target customers based on their specific needs and desires. This approach involves collecting data on what your customers are interested in and using that data to create targeted emails that appeal to their interests.
According to Derric Haynie, CEO of Ecommerce Tech, “Segmenting your email audience based on interests and preferences can be a powerful way to increase engagement and conversions. You can create segments based on the customer’s hobbies, lifestyle, or even their favourite TV shows. This allows you to create targeted campaigns that are most likely to resonate with your audience.”
Variable 5: Engagement Level
Segmenting your email audience based on their level of engagement can be an effective way to target customers who are most likely to respond to your emails. You can segment your audience based on the frequency of their opens, clicks, and purchases.
For example, you can create a segment of customers who have not opened your emails in the past 30 days and send them a re-engagement campaign that encourages them to interact with your brand again.
According to Jenna Tiffany, Founder of Let’sTalk Strategy, “Engagement is a critical factor when it comes to email marketing. By segmenting your email audience based on engagement level, you can target customers who are most likely to respond to your emails and increase the chances of conversion.”
Parameters for Effective Segmentation
While there are many variables that can be used to segment your ecommerce email audience, it’s important to establish some parameters to ensure that your segmentation strategy is effective. Here are some key parameters to consider:
- Size of the Segment: When creating segments, it’s important to ensure that the size of each segment is large enough to justify the effort and resources needed to create targeted campaigns. If a segment is too small, it may not be worth the effort to create a targeted campaign for them.
- Relevance: The segments you create should be relevant to your business and your customers. If a segment is not relevant, the targeted campaigns may not be effective, and the effort will be wasted.
- Actionability: The segments you create should be actionable. This means that you should be able to create targeted campaigns that are relevant to the segment and that will result in a specific action, such as a purchase or a click-through.
- Testing and Optimization: It’s important to regularly test and optimize your segmentation strategy to ensure that it’s effective. This can involve testing different variables, such as demographics, purchase history, and website behavior, and analyzing the results to determine which segments are most effective.
Once you have segmented your email audience, the next step is to incorporate personalization into your email campaigns. Personalization involves tailoring the content of your emails to the specific needs and preferences of each segment.
According to Christina Del Villar, Founder of ChristinaDelVillar.com, “Personalization is the key to effective email marketing. By tailoring your emails to the specific needs and preferences of each segment, you can increase engagement and conversion rates.”
Here are some ways to incorporate personalization into your email campaigns:
- Use the Customer’s Name: Addressing the customer by name is a simple but effective way to personalize your emails and make them feel more personal.
- Customized Product Recommendations: Based on the customer’s past purchases or website behavior, you can recommend products that are relevant to their interests.
- Tailor Content to the Customer’s Interests: Use the data you have collected on the customer’s interests and preferences to create content that is relevant to them. This can include articles, blog posts, or other content that they are likely to find interesting.
- Send Emails at the Right Time: Sending emails at the right time, such as when the customer is most likely to be online, can increase the chances of engagement and conversion.
Incorporating personalization into your email campaigns can take some effort, but the rewards are well worth it. By creating targeted campaigns that are tailored to the specific needs and preferences of each segment, you can increase engagement, conversions, and revenue.
Effective customer segmentation is critical for any ecommerce business that wants to maximize the results of their email marketing campaigns.
By collecting data on your customers and segmenting them based on demographics, purchase history, website behaviour, interests and preferences, and engagement level, you can create targeted campaigns that are more likely to resonate with your audience.
Incorporating personalization into your campaigns can further increase engagement and conversions. Remember to establish parameters for effective segmentation and regularly test and optimize your strategy to ensure that it’s effective.