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Do you send out generic emails to everyone on an email list, hoping to get responses, but your efforts are in vain? Then you need to know about the benefits of list segmentation. Maybe you’ve heard of list segmentation but aren’t quite sure what it means. Put simply, list segmentation is the process of generating segments or smaller lists from a larger one. This marketing technique helps in improving your targeting capabilities and makes your leads ready to buy your product sooner rather than later. This is only one reason why list segmentation matters. Here are five basic benefits of list segmentation, along with some considerations and warnings.

1. Tracks the Source of Your Sales

Tracking is one of the main perks of list segmentation as it lets you track where your sales are coming from. Tracking can be difficult or even impossible when sending emails and/or marketing letters to everyone on your list. But by putting a tracking code on each email or letter, you’re able to see the segments of a master list that respond to specific offers.

2. Allows You to Split-test Marketing Efforts

By segmenting a marketing list, you can split-test your promotion efforts, which improves how you approach potential customers. As a result, you can generate more sales. As an example, think about having an email list consisting of 1,500 names. While about 50 percent of the people on this list have already bought your product, the other half has not yet made a purchase.

In a situation such as this, you’ll need to send out different emails. For the 750 people who’ve already bought your product, such as a knitted sweater, send an email offering a discount for a matching scarf. But for the other 750 people who haven’t yet made a purchase, consider bundling the sweater and scarf together, which saves customers money. This is much more effective than sending a generic email to everyone.

3. Generates Sales for Follow-up Products

List segmentation can also be used for generating sales for follow-up products. But don’t present the same offer to everyone on your list at once. Instead, consider that part of your list may want to buy a standard white or black tablet cover, while others may prefer a patterned or colored design. Therefore, when composing a follow-up letter, state that you’re offering a specific color or patterned design to customers who you think would prefer this option.

4. Allows You to Approach Your Visitors at the Proper Time

Another advantage of list segmentation is that it gives you the chance to screen people based on where they stand regarding making a purchasing decision. In other words, segmentation tools help in knowing when to re-approach people so that’s it’s the right time, along with the right level of aggressiveness. This puts you in a better position for those who are most likely to make a purchase, while still trying to win over others who’ve only expressed a mild interest in your product.

5. Gives You a Better Reputation

When you send the wrong emails to people, expect your emails to be tossed in trash folders. However, the right emails can engage your audience, meaning they’re more likely to read your emails as well as consider what you have to offer. When you provide the right content, you’ll gain a better reputation and not be known as just another annoying salesperson.

Considerations and Warnings

  • Consider geographic region—Split your list out by location since this lets you use specific jargon as to where people live. For instance, while you could address Southerners as “you all”, this wouldn’t work well for New Yorkers.
  • Consider the amount of time and money customers have spent with you. Those who have made more purchases and spent more time with you need to be addressed in a special way that makes them feel valued as customers.
  • Consider buying history—Think about what items customers have purchased in the past, because this can be a huge clue in the types of emails and offers that they’re most likely to respond to.

Are you a business owner wearing several hats, trying to market your product, in addition to running your company? Maybe you’re a VP, sales manager or marketing director who doesn’t a have a definite strategy or lacks the proper marketing automation software and other resources. If so, we have the tools you’ll need to be successful. If you need help in developing a sales and marketing plan, please contact us.