List Segmentation

What is list segmentation?

As the name suggests, list segmentation is the process of dividing your email list into subcategories based on things such as demographic data, preferences, position in the buyer’s journey, behaviour, or any combination of the four.

If you want a more in-depth understanding of this topic, check out the FAQ section below:

Question #1: Why is list segmentation important?

List segmentation is important because it makes it significantly easier for you to deliver useful, relevant, and targeted content to your email list.

For example, if you run an online camera store, instead of simply sending out generic camera-related content (and offers) to everyone on your email list, you can segment your list based on their goals and then deliver more focused content to each one.

If you have a subcategory that consists of professional filmmakers, then you can send them to content about the latest and greatest cinema cameras along with film-related news, tips, and tricks.

For a subcategory that consists of vloggers, on the other hand, content about lightweight cameras and related vlogging accessories would be more suitable.

For more benefits of email list segmentation, check this helpful article from Upland Software.

Question #2: What are the benefits of list segmentation?

The main benefits of list segmentation are as follows:

1. It keeps your emails from being marked as spam. As we have seen earlier, list segmentation makes it significantly easier for you to send useful, content relevant to your email list. Of course, useful, relevant content has a much lower chance of being flagged as email spam than a generic marketing email.
2. It makes selling easier. Another benefit of list segmentation is that it also allows you to craft compelling offers. Instead of coming up with a generic offer that is supposed to appeal to everyone on your list, you can create a super compelling one for each segment.
3. It helps you get more out of your marketing budget. Instead of sending a generic marketing email that might resonate with, say, 10% of your entire email list, list segmentation allows you to craft marketing emails that would resonate with more of every single subcategory you have.
4. It improves your open rate. When you send relevant emails, people are naturally more likely to open them.
5. It cuts your unsubscribe rate. By allowing you to send usefully, relevant content to every segment of your list more easily, list segmentation also allows you to significantly reduce your unsubscribe rate. After all, why would people unsubscribe when they are getting helpful content from you, right?
6. It keeps your audience engaged. Another benefit of segmenting your list and being able to send helpful, relevant content is that it makes your audience eager to hear more from you and actively participate in the conversation instead of just letting your emails go straight to their promotions folder.

Question #3: How do I segment my email list?

You can segment your email list by categories such as:

1. Age. If your audience consists of people from different age groups, then you can break up your email list by age to make it easier for you to craft tailored, relevant, and age-appropriate content.
2. Gender. This one is particularly useful if, for example, you sell products (or create content) that are designed for specific genders.
3. Geography. This one is perfect if you serve a global audience and want to create region-specific content.
4. Interest. This is your best bet if your audience consists of people with vastly different interests (but all are related to what you are selling or the content you are creating).
5. Buying behaviour. Segmenting your list in terms of buying behaviour would allow you to do things such as:

• Sell high-ticket items to big spenders
• Encourage shopaholics to keep buying from you
• Give indecisive shoppers the push they need to pull the trigger on a particular product or service
• Present limited-time offers to people who make a lot of impulse purchases