Updated: Oct 9
It Is possible to segment your newsletter to attract the right group of customers for your business and increase your revenue by promoting your products or services to the right people who might pay interest in what you have to offer.
How to Increase Your Revenue With Newsletter Segmentation
Did you know that segmentation of your mailing list can increase profit by 70% Internet retailer Totes Isotoner Corp. increased revenue in 2010-2011 with a fantastic newsletter by properly segmenting their subscribers?
In this article, I am going to reveal how to use email marketing segmentation to drive results to your business and ultimately increase your revenue over time.
It does not make sense to send the same email marketing or newsletter to your entire base of subscribers it can be harmful to your campaign and your open rate suffer and not many people are interested in the same thing. I often say it segmentation is a must a simple example of it would be: when you go to the shop do you purchase all the items in the shop? The answer is no you only get what you need.
Email marketing is an inexpensive and very effective communication channel for communicating with your customers or prospective clients. Hence, it is important to make sure you are making the most of your subscribers.
The first tip is to avoid spamming the entire contact list as this will cause your most loyal customers to unsubscribe from your newsletter.
Secondly, you need to ensure that you are providing a service and not annoying your subscribers; this can happen, and you can create a big issue.
There is a difference in the segmentation methods for B2C and B2B customer bases. However, the principle is the same your offer should be developed for a specific customer group with specific interests.
Below are options to segment your newsletter which are right for your business
For retail customers
For example, you sell electronics. Know your demographics. Tablets and technology appeal more to women, while PC hardware is purchased much more often by men.
If you have multiple branches in different cities, it is important to ensure that there were appropriate contacts in the message body. If you see that people from London increasingly interested in laptops, and in Devon people fell in love with your desktop computer, then you should make different newsletters for each of these regions.
You can conduct a survey and find that users of group “A” need a wallpaper for a child’s bedroom, and the user group “B” needs wallpaper for the living room. Use that info to create different letters for these groups.
What if you sell cosmetics? Start sending the newsletter throughout your subscriber base saying you have cosmetics for different ages. It will not immediately segment your email, but it will plant the seeds for that to take off.
Take all the information that you’ve gathered from prior customer orders, things like purchase frequency, purchase amounts, average purchase price, and so on. Segmenting newsletters based on purchase history can be used to encourage your customers: the more people buy, the bigger a discount you can offer to them. Purchase history can give a hint to what people will be likely to buy next time.
Readiness to purchase
Per HubSpot, 80% of users are not ready to buy after their first visit to a site. Therefore, there is a commonly used tactic of “lead nurturing”: the user is offered different content at each stage of the sales funnel.
For example, the first offer is to download a free e-book with useful tips for applying wallpaper to a wall, and then you can talk about the types of wallpaper adhesive. Once a prospective customer has opened all the previous newsletters, you might offer him a discount on the wallpaper.
For wholesale customers
The value of the company
There is an option to offer a corporate discount for specific companies. Let us say you sell office supplies. The amount of order a company will make depends on its number of employees. Separate the proposals for small and large companies and follow their growth.
The authority to decide
If you are doing corporate sales and get to the email list of different employees, know if a person is authorized to make the decision to purchase. Rank contacts according to their ability to make decisions. Send useful materials about the product to managers and send discounted offers to the people in charge.
The financial performance of the company
This will tell you about the likelihood that a company will be buying your products. There is no sure-fire method for dissecting this, but you can judge it by the volume of their previous purchases. Keep an eye on your segmentation so you do not send exclusive offers for large volumes to smaller companies that they will not be able to use or benefit from. You gain nothing from this and stand to irritate the customer as well.
If a company operates in a certain industry, be aware if they focus on a niche. For example, if your shop is all about bed linens for babies, there is not much sense in sending customers an offer for full-sized bed linens.
Segmentation by geography, purchase history, and readiness to purchase works with wholesale customers as well as with retail customers.
Subscribers can be segmented by activity: how long ago they have opened your emails and how often they have clicked.
All popular services (Mailchimp, UniSender, GetResponse) offer functionality that will let you track click-through. You can make a newsletter for active readers, and an alternative one for those who are looking for messages from you every 2 months.
For those who never open them, send another newsletter to find out why they do not and include the polite suggestion that they unsubscribe.
Clearing up your lists makes the segmentation more effective. How to set the segmentation should be part of your business process so you can quickly set up a campaign and choose the desired group of subscribers.
Getting an email address and a sign up for the newsletter is just the cornerstone. You need to collect as much information about the subscriber as possible, including the following:
Add an optional field to the form of subscription
Only minimal knowledge can be obtained by collecting addresses.
Find out how old your potential customer is by asking when their birthday is. Just like that, you will have 2 options for segmentation.
How much did your customer buy? How much was their purchase and what is the average order?
You can get this info from your analytics system, which will collect information on every purchase.
In Ecwid, store information about customer activity is collected automatically we use the Ecwid store on Girlfridayz. If you use Mailchimp, connect the Mailchimp app to automate the creation of subscriber segments.
Send surveys to loyal customers periodically and ask questions to open communication about their interests.
Improve your analytics system
Every single move a customer makes on your site can be analysed by analytics. To do this, use Google Analytics. It is free! It will show you where your clients came from, what they did before a purchase, or what they were doing before they abandoned it.
Segmentation by behavioural factors gives the highest results. To integrate analytics systems and email services, you will need to automate marketing.
Analyse traffic channels.
Analyse your traffic channels and conversion from every channel. Drilling down into a resource can tell a lot about your new subscriber.