Connecting With Customers: Segmentation vs Personalization

To segment on a basic level, you need customer details like:

1. Age,
2. Gender,
3. Location,
4. Income level,
5. Designation at a company.

With additional data, you can segment your list based on a variety of factors, including:

• Online behavior: Segmenting based on how subscribers interact with your emails, website, or products. For example, you can create segments for frequent purchasers, inactive subscribers, or those who have clicked on specific links.
• Purchase history: Segmenting based on past buying behavior or the types of products or services customers have previously purchased.
• Engagement: This involves segmenting subscribers based on their level of engagement with your emails. For instance, you might have segments for highly engaged subscribers, occasional openers, or those who haven’t opened an email in a long time.
• Preferences: Segmenting based on subscribers’ preferences, such as content type (like blog updates or product announcements) or communication frequency.

Here are common ways to use personalization in your emails:

1. Instead of using a generic greeting like “Dear Customer,” you can address recipients by their first name. This simple touch can make the email feel more individualized.
2. Merge variables let you insert contact-specific information, such as names, email addresses, or any other data. At Campaign Refinery, you can easily use this feature by selecting a merge variable from a drop-down list.
3. Use dynamic content blocks within your emails to display different content based on the recipient’s preferences, behavior, or other characteristics. For example, you can show product recommendations based on their past purchases or browsing history. 
4. Set up automated email campaigns triggered by specific user actions, such as abandoned cart emails or follow-up messages after a purchase. This ensures your emails are timely and relevant to the recipient’s recent behavior.
5. Provide personalized product recommendations based on the recipient’s past purchases or browsing history. This can be an effective strategy for e-commerce businesses looking to upsell or cross-sell products.
6. Customize content based on the recipient’s location. This can include local promotions, events, or store information relevant to their geographical area.
7. Craft subject lines that resonate with the recipient by incorporating their name, location, or other personalized elements. This can increase the likelihood of the recipient opening the email.

Implementing segmentation to your email list can bring you these benefits:

1. Email segmentation allows you to send relevant content to specific groups of subscribers based on their characteristics or behavior.
2. Subscribers are more likely to engage with emails that are tailored to their interests, resulting in higher open and click-through rates.
3. By understanding and addressing the unique needs of different segments, you can build stronger relationships with customers and improve loyalty.
4. Segmentation enables you to analyze the performance of different segments separately, helping you refine and optimize your overall email marketing strategy.
5. Targeted messages lead to better conversion rates as these messages align better with the preferences and needs of your subscribers.
6. Email segmentation can also teach you about the general preferences of your customers and help shape your focus as a company.

Here are the top benefits of implementing personalization in your email marketing efforts:

1. Personalized emails create a more engaging and positive experience for subscribers, enhancing their perception of your brand.
2. Personalized subject lines and content increase the likelihood that recipients will open and interact with your emails.
3. Fine-tuning individual preferences and needs through personalization contributes to higher customer satisfaction and loyalty.
4. Email personalization allows you to set up automated campaigns triggered by specific customer behaviors, such as abandoned carts or recent purchases.
5. Relevant and personalized recommendations can lead to better ROI, as customers are more likely to convert if they see offers tailored to their interests.
6. Personalization enables the use of dynamic content that adapts to individual preferences, creating a more dynamic and engaging email experience. You can even extend this experience to your website, using dynamic web pages.

Here are several effective methods of lead generation you can use:

1. Design dedicated landing pages with clear CTAs to encourage visitors to subscribe to your email list. Make sure the landing page content resonates with your audience.
2. Create valuable content like blog posts, video tutorials, ebooks, and webinars to appeal to your target audience. Offer this content as gated resources, requiring users to provide their email addresses to access the material.
3. Run contests or giveaways on social media or your website. Require participants to submit their email addresses to enter the contest or receive updates.
4. Place opt-in forms strategically all over your website. Clearly communicate the value of subscribing to encourage signups.
5. Run lead-generation ads on social media platforms like Facebook, Twitter, or Instagram, and wherever possible, include a lead form that users can fill out directly on the platform.
6. Create quizzes, puzzles, or interactive tools on your website. Require users to enter their email addresses to receive personalized results or insights.
7. Offer a free email course that provides valuable information over several days. These work remarkably well, and you should use them to collect email addresses at the start of the course and continue to nurture these leads with an email drip campaign.
8. Use surveys or feedback forms on your website to collect user opinions. Include an option for participants to provide their email addresses for additional information.

Here’s a step-by-step guide on using segmentation on your email lists:

1. Define segmentation criteria: Identify the criteria you will use for segmentation. 
2. Create segments: Based on your defined criteria, create different segments within your email list. For example, you might create segments for new subscribers, like leads that attended a certain webinar, high-value prospects, location-specific leads, or inactive subscribers.
3. Use segmentation tools: Email marketing platforms and CRMs provide segmentation tools or features. Use these to segment your list based on various criteria. You may have to create rules or conditions that automatically place subscribers into specific segments.
4. Personalized emails: You can also add personalization steps to your segmentation process. Tailor your email content to each segment to create different versions of your emails or dynamically insert content based on the segment.
5. Automated campaigns: Implement automated campaigns triggered by specific events or actions. Like welcome emails for new subscribers or abandoned cart emails for users who leave your website before completing a purchase.

Here are steps to nail email personalization:

• Clearly outline your objectives for personalization. Whether it’s increasing open rates, improving click-through rates, boosting conversions, or enhancing customer loyalty, having specific goals will guide your personalization efforts.
• Segment your email list into smaller, targeted groups before you think about personalization. This allows you to tailor content to the unique characteristics of each segment.
• Write personalized subject lines to grab your reader’s attention. Address the recipient by name or use their location, or incorporate any other relevant information to make the email feel more individualized.
• Use dynamic content in your emails to automatically change certain elements based on the recipient’s data. A good example would be an offer or discount that is specific to their location.
• Map out the customer journey and identify points where personalized interactions can enhance the overall experience. This includes pre-purchase, purchase, and post-purchase stages.
• You can set up automated email campaigns triggered by specific user actions. A good example would be emailing a customer with a product recommendation or special discount a day after they spend some time browsing that product’s page on your website.
• Implement real-time personalization where possible. For example, dynamically update the content of your emails based on the latest interactions a subscriber has had with your website or app.

Here are several list segmentation best practices to consider:

• Conduct thorough market research and analyze your existing customer data to understand the characteristics, preferences, and behaviors of your audience.
• Clearly define the criteria for segmenting your audience. This may include demographic information, behavioral data, location, purchase history, or engagement level.
• You can also combine different criteria for a more nuanced list segmentation. For example, you might create segments based on both demographics and behavior to target a specific group of high-value customers.
• Good email list management dictates you keep your segments up-to-date by regularly refreshing the data. 
• Use automation tools to dynamically update segments in real time based on user interactions, ensuring your campaigns are always targeting the most relevant audience.
• Consider creating segments that align with the different stages of the customer lifecycle. This could include new subscribers, active customers, lapsed customers, and loyal customers.
• Regularly test the effectiveness of your segments by comparing the performance of segmented campaigns against non-segmented ones. Use A/B testing to fine-tune your list segmentation strategy.
• Allow subscribers to manage their preferences and opt out of certain segments if they choose. Respect user choices to maintain a positive relationship.

Here are the best practices to implement so you execute personalization successfully:

• Be diligent about data collection. The effort you put into collecting accurate data will pay off in the long run.
• Start off slow. If you’re new to email personalization, start with basic elements such as addressing recipients by name in the email and using personalized subject lines. As you gain confidence, gradually introduce more sophisticated personalization techniques.
• Don’t over-use personalization. Set your objectives clearly — whether it’s improving open rates, increasing click-through rates, or driving specific actions, having clear objectives will guide your personalization strategy.
• Test your triggered campaigns so you can understand your customer’s mindset better. Conduct A/B testing to optimize email personalization elements such as subject lines, content variations, and CTAs. Use data-driven insights to refine your personalization strategy continually.
• Obtain explicit permission from users before collecting and using their data for personalization. Be transparent about how you use their information and allow them to manage their preferences. This is not only important for compliance, but your customers will appreciate you for it.