Drive Higher Engagement and Revenue with Advanced Segmentation Tactics
Segmenting your list is a great way to target a specific group of customers with a specific message to drive better engagement and ultimately revenue. There is a lot data that marketers can use to segment customers and deliver a targeted message: demographic, geographic, transactional, behavioral, social, loyalty and much, much more. But, sadly, many retailers today aren’t using any data to segment their lists. Instead of delivering relevant, dynamically-targeted content, many retailers are still batching-and-blasting, sending out a single message to their entire list, despite having customers with very diverse data and attributes.
Retail marketers – don’t be intimated by your data! Segmenting is easier – and better – than ever before. The key is to decide what your business goals are and then segment based on those goals. Want to increase engagement? Segment your audience into active vs. inactive subscribers. Need to capture more first time buyers? Segment the list by customers vs. non-buyers.
After you have the basics down, you can get even more granular. Try segmenting your list by new subscribers who haven’t purchased yet or customers who haven’t purchased in over six months. Or customers who have high lifetime values. There are many creative ways to segment lists and with automated personalized content, you’re guaranteed to get the right message in front of the right audience with very little effort.
Listrak’s Advanced Retail Segmentation solution lets you segment your customers and subscribers in exciting and new ways. And you can layer and combine segments to get very specific and targeted groups.
BrainMD Health, an online retailer for brain-directed nutrition, segments its list into groups including customer, non-buyers, email openers, people who have opened or clicked but haven’t purchased, people that haven’t purchased in over 3, 6 or 9 months, number of orders and AOV, to name a few:
The segments can be combined to get even more targeted. For example, the BrainMD Health's Marketing team is able to target recipients with lifetime average order values over $100 but who haven’t purchased in the last 90 days to deliver a high-value early-churn mitigation campaign. However, if they wanted to reach the customers that are still engaging with the brand, they can filter the list to only include those customers who opened an email in the past three weeks (April 1-22):
These targeted campaigns work. Here are just a few examples. The stats shown are compared to the average open, click and conversion rates of its promotional messages*
Sent to customers who purchased in a particular category:
23.75% Open rate – 58.3% increase*
2.46% Click Rate – 140% increase*
10.36% Conversion Rate – 107.2% increase*
Sent to customers who purchased three or more times:
25.16% Open rate – 67.3% increase*
2.95% Click Rate – 195% increase*
11.75% Conversion Rate – 135% increase*
21.5% Open rate – 43.3% increase*
2.1% Click Rate – 110% increase*
10% Conversion Rate – 100% increase*
30.17% Open rate – 101.13% increase*
2.08% Click Rate – 108% increase*
7% Conversion Rate – 40% increase*
Segmenting your customers to this level gives you the ability to create highly targeted and relevant email campaigns that engage customers and drive additional sales. To learn more, visit www.listrak.com/digital-marketing-solutions/email/.