In the olden days of email marketing, you only had basic information about your customers, like email addresses. Maybe if you were lucky, people volunteered to give you more details like their first and last name or birthday, but even that data was unreliable. So when you started email marketing campaigns, you’d have to send the same email to the entire list and hope it was a generalized enough message that everyone would respond in some way.
But now, thankfully, with segmentation you can split your list into distinct groups, and target messages appropriately for each cluster. Segmentation is a two-step process: the first step is actually dividing the list and the second is targeting each group with a specific message.
When setting up segments, we suggest starting out by dividing your customers in these four groups: best customers, non-purchasers, churning customers, and all others. We choose these groups because they will likely be your largest segments, and the easiest to target.
We usually start with the best customer segment by defining what a best customer actually is. For instance, our client SkinMedix defines their best customers as those who have purchased in the last 8 months and made more than 3 purchases. Any time you interact with a best customer, you should let them know that you recognize them and their loyalty to your brand.
Non-purchasers are those people who receive your promotions but haven’t purchased yet, which means there’s a great opportunity here to get these subscribers into your sales pipeline. Turn your subscribers into customers using targeted messages letting them know you recognize they haven’t made a purchase yet and offer incentives to motivate a purchase.
With churning customers, who are people that haven’t purchased in a while but were once high value customers, the message is very easy. You want to tell this segment that you miss them and ask them to come back and purchase again.
The all others group is just anyone who doesn’t fit into the aforementioned categories.
We’re here in Client Success to walk beside clients in their retention automation efforts. We answer questions, talk through the strategy and show clients how to set up campaigns, so that they can gain the knowledge to do it themselves. - Scot Caitlin
One segmentation best practice I’d suggest is to evaluate how your emails were performing both before and after segmentation. You can do this by measuring your last three pre-Windsor Circle emails for metrics like opens, clicks, conversions, and average order value. Then, do the same for the first three segmented emails, and compare the two data sets. You’ll likely see a lift on the segmented messages.
Segmentation adds value for your customers, and allows you to engage with them in a meaningful and relevant way, which leads to your ultimate goal of retention.
Download our Email Segmentation Guide for access to step-by-step instructions and more.