5 Reasons You Should Segment Your Customer Data

23rd August 2019



Email marketing is back and bigger than ever, despite the dreaded GDPR effect we were all expecting. With 269 billion marketing emails sent worldwide every single day, we’re faced with a number of challenges.

From making our emails stand out to customers without bombarding their inbox to making them feel like they’re our only customer, making sure you’re sending emails to an engaged and active audience is one of the best ways to guarantee success, and segmenting your data is crucial to achieve this.

 

So why segment your data?

 

Tailor and Target Your Communications to Specific Audiences

With the right tools you can segment your data by customer interests, gender, occupation, age and location, which means that you can create personalised and relevant email marketing campaigns.

64% of customers now expect a personalised experience from brands, and this isn’t just adding their name to an email. Personalisation means sending customers communications that they’re interested in, that they’ll respond well to and that will add value to them.

 

Better results

Sending targeted email campaigns to a small selection of engaged contacts will unsurprisingly lead to better open rates. There’s less chance of an email being deleted straight away if it is going to someone who has knowingly signed up to receive information about a specific product or service. If it feels like a generic email that’s been sent to thousands of people about a random topic, you’d better believe it’s going straight to our trash.

According to a recent MailChimp segmented-list user datareport, open rates were 14.31% higher and click-through rates were 100.95% higher for segmented data lists than with non-segmented campaigns. If you want your email results to wow everyone, then this is a sure-fire way to guarantee success.

 

Build loyal relationships with customers

Having segmented data allows you to build up loyal relationships with customers. For one thing, they don’t associate your brand with clogging up their inbox with annoying emails (always a bonus) but also, it gives the potential to provide personal offers and incentives to those that are loyal to you.

When user experience is personalised, the customer instantly feels a connection with the message making them more likely to act. Plus, 83% of customers think an individualised experience is important and plays a vital part in deciding if they buy, so it’s not something that should be overlooked.

Segmented data can allow you to see which demographics respond well to offers, for example younger audiences may love an offer for an overnight stay whereas older generations may be more in favour of food deals. This means you can target them with more of what they want in the future, in return you’ll have happy customers and business will be booming!

 

Gain Insight into How Campaigns and Channels are Performing

Segmented data also gives the opportunity for split testing of specific campaigns as your data is already divided. You can subtly change emails or test a whole new campaign in order to see which generates the best response and identify your most effective communication techniques. This means that all of your future emails will gain great responses and gives you a better understanding of your market.

Split testing is always popular but having segmented data lists is an easy way to take full advantage as the hard work is done for you!

However, it’s important to remember that not all buyers are the same, so one size will never fit all. What makes one customer engage with your brand could also turn another off, so it’s important to keep creating innovative and exciting campaigns rather than repeating the same thing because you saw good results from one or two emails.

 

Identify your most and least profitable customers

Segmenting your lists allows you to gain a more accurate idea of where sales are coming from. Sending messages to an entire list makes it harder to determine the source of sales and detect the ROI, and knowing where your business comes from is hugely important to any industry.

If you know that your business gets the most attention from over 60s, you’ll be able to build a better customer profile which will guide your marketing efforts in the future. It will provide you with far more opportunities for you to upsell, creating deals and packages that these specific customers can take advantage of.

 

Overall, segmenting data allows you to be clever and create strategic and tactical marketing activity. This will leave your customers feeling valued and appreciated but also allow you to gain more from your email marketing strategy for years to come.

If you need some help developing a showstopping email strategy, or would like to know more about how Cuckoo can help you to manage your customer data, contact jennifer@cuckoodesign.com or call 0161 660 8352.

 


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