Segmentation is the process of identifying customer needs, buying pattern, buying behaviour and also studying demographics. Sending mass email blast is very old-fashioned and does not produce the desired results. Hence, one needs to send targeted emails that generate interests and hence improve conversions.
A campaign that uses segmenting based on past behavior, such as opens, clicks or conversions, can bring in nine to ten times more revenue than one in which the entire list receives the same message. Segmenting can help you keep your mailing list fresh and engaged. For example, target subscribers who haven’t opened or clicked in your emails for a while and try to re-engage them. Also, get new subscribers – the ones most likely to open and click – by targeting them with a welcome message, special offers to capitalize on their enthusiasm and other incentives to get them into the fold. This can help your deliverability, because when your messages are more targeted and relevant, they will stand out in an overflowing inbox. Ultimately, your subscribers will be more likely to open and act on your emails and less likely to delete them or report them as spam when they’re relevant and expected.
If your email marketing tool allows you to segment customers only into two groups – one who bought your products / services and the other who did not, it doesn’t help much. If your email marketing tool allows you to add any kind of variable to your customer record, then you will be able to build a segment by querying these variables and hence build a targeted campaign around a particular segment.
Ultimately, if you are a realty company, you don’t want a customer who is interested in farm houses to receive your emails regarding commercial office spaces. Cross-selling is different. Once someone becomes your customer for farm-houses, you may try to find out if he is also interested in commercial office spaces but not until he becomes your customer.