Segmentation is the division of an email list into small segments based on one or more characteristics (e.g., purchase history, demographics). Segments are created so businesses can deliver extremely relevant emails to their contacts.
Why is Segmentation Important?
Email segmentation makes your relationship with your contacts more personal and is a best practice to improving your open and click-through rates. According to MailChimp:
Segmented email campaigns achieve 14.31% higher open rates than non-segmented email campaigns.
Segmented email campaigns also earn 100.95% higher clickthrough rates as compared to non-segmented email campaigns.
An Example of Demographic Segmentation?
A small clothing store may specialize in women’s clothing, some customers buy dresses, some will buy blouses, and some may buy slacks. The ones buying dresses may not care about slacks and blouses. So, an owner would primarily send dress customers information on their dresses. Sending emails that are extremely relevant to a customer demonstrated interests and is a way of keeping both your conversion and retention rates high.
Different Ways to Segment Your Contacts with Constant Contact
There are many different ways to segment your contacts depending on what information you have. Let's take a look at few different.
Demographics – age, gender, education
Type of business
Sales funnel location
Active vs inactive users
Whether you are just starting your business or are an established business, email segmentation is a best practice you should utilize.