How Effective Is List Segmentation?

Hi Brian here again, the nights are certainly getting darker. It will soon be Halloween, or All Hallows Night, here in the UK. Our American cousins refer to ‘Trick or Treat’. It is the time of year traditional for the ‘ghostly’ spirits to be on the loose, as well as sweet treats for the little ones.  Here in the UK we will also have Bonfire Night, celebrating the failure to blow up Parliament by Guy Fawkes and his group. Enjoy your selves, and keep safe.

Back to business, ‘how effective is list segmentation?’, a question I asked my self a while ago.  We have looked at some aspects of list segmentation in earlier blog posts,

The need for segmentation. 

And of course the advantages of segmenting your list.

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So, how effective is list segmentation?

If you want to multiply your email marketing conversions you need more targeted potential buyers. To accomplish this you will need to send more targeted information to them, based on who they are and how they got on your list. The best way to do that is by targeted email marketing using segmentation methods.

According to the Direct Marketing Association, almost 80 percent of return on investment comes from, “segmented, targeted, and triggered campaigns.”

Eighty percent! That is a very big number in terms of email marketing statistics, where we are usually looking at single figure/low teens. It’s important not to undervalue the meaning of this. This means that if you haven’t set up tagging, behavioural triggers, and other ways to segment your audience then you can improve your conversions many times over just by doing this.

Use the technology

By doing something that you can automate you can make a huge difference in your return on investment. In other words, by putting this process on autopilot you can see a great improvement in your email marketing results simply by using list segmentation.

Of course, it’s imperative that you understand the best ways to segment your audience before you do it. Look at your customer buying cycle and seek to segment your list members based on where they are in the cycle. To do this use behavioural triggers and tags. Only segment in other ways when you know exactly why you’re doing it.

Return On Investment

Another stat, this time from Campaign Monitor, states that each dollar spent on email marketing generates 38 dollars in return on investment. This is tremendous. This puts email marketing solidly in the lead for return on investment above all other marketing categories. No matter what anyone says, the money is still in the list.

But, you can get a lot more money out of your list if you’re using basic and sound segmenting. Most autoresponder softwares like Aweber.com or Convertkit.com already offer some native the ability to set up some sort of segmentation. This can include behavioural triggers, tagging, or the ability to create sublists that will enhance your marketing efforts.

When you consider that a little more than 1/3 of online marketers aren’t segmenting their lists, that leaves a lot of possibilities for you to command the marketplace by putting segmenting at the top of your priority list. Thankfully, with today’s technology, you can add segmentation in later for your old school list that will do wonders for your return on investment.

In Conclusion

How effective is list segmentation? List segmentation is extremely effective because people like to feel important. They like to open an email and feel as if you can read their mind. If you set up different email series to run based on your customer’s behaviour and where they are in the buying cycle they will respond in amazing ways. So, yes, the answer is that list segmentation is very effective and every single person who has an email list should develop some sort of segmentation to help improve conversions.

And a topical example of ‘How effective is list segmentation‘ below: