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Glossary – Subscriber segmentation

Subscriber segmentation

Nikiforov Alexander
Friend of clients
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Subscriber Segmentation: How to Increase the Effectiveness of Email Campaigns

Contents

What is subscriber segmentation?

Subscriber segmentation is the process of dividing a customer base into different groups based on specific criteria. These criteria can vary, and each group will receive personalized emails with relevant information. For example, a simple way to segment is by gender, where an online clothing store sends new women's collection items to one group and new men's items to another. Without segmentation, all subscribers receive the same email, which can decrease interest in the campaigns.

Why is subscriber segmentation necessary?

In the context of overflowing inboxes, users receive a multitude of emails, and your message with an attractive offer may end up in the spam folder. To stand out and reach the target audience, it is important to send relevant emails only to those people for whom they are genuinely interesting. Here are a few reasons why segmentation is critically important:

  • Increases open rates. According to Mailchimp, segmented campaigns have a 14% higher open rate.
  • Boosts email conversion. Segmented emails generate twice as many clicks as non-segmented ones and can increase profitability up to 8 times.
  • Reduces unsubscribe rates. Unsubscribes from segmented campaigns occur 9% less frequently.
  • Saves budget. Segmentation allows for the exclusion of unsuitable recipients, helping to reduce mailing costs.

How to segment subscribers?

For successful segmentation, it is important to determine the criteria for dividing subscribers. Two main groups of characteristics can be identified: demographic data and behavioral traits.

Demographic Data

  • Age: allows for tailoring offers based on the needs of different age groups.
  • Gender: helps to better target offers, for example, in clothing stores.
  • Interests: segmentation by interests helps avoid irrelevant offers for subscribers.
  • Geography: relevant for companies with physical stores or events.

Behavioral Traits

  • Activity: tracking opens and clicks helps identify active and inactive subscribers.
  • Lifecycle stage: understanding customers' needs at different stages of their interaction with the product.
  • RFM analysis: analyzing purchase frequency and amount helps determine which customers need to be retained.

Where to get data for segmentation?

There are several ways to collect data for subscriber segmentation:

  • Subscription form: you can ask users about their preferences during signup.
  • Survey: periodically conducting surveys among subscribers can help you learn about their interests.
  • Analytics services: connecting Google Analytics or Yandex Metrica can provide user data.
  • Interaction history: most mailing services automatically collect information about subscriber actions.
  • Unsubscribe form: offer subscribers the option to customize their subscription based on their interests to avoid unsubscribes.

Segmenting the customer base is a labor-intensive process that requires thorough analysis and proper content management. However, well-executed segmentation can significantly enhance the effectiveness of your email campaigns and lead to improved business metrics.