Email marketing is a must for businesses to reach and connect with their target market. Personalization and relevance are the key factors for success in email marketing. The more personal and relevant the emails are, the greater the chances of conversion. One way to enhance personalization and increase conversions is through email segmentation.

What is email segmentation? It is simply dividing your email list into smaller groups based on specific characteristics, such as demographics, purchase history, or interests. This enables you to send tailored and relevant messages to each group, instead of sending generic emails to your entire list.

Email segmentation is a smart way to increase conversions. A study by Epsilon found that segmented and targeted emails bring in 58% of all revenue. That’s a substantial number, and it highlights the positive impact email segmentation can have on your financial outcomes.

So, how do you go about segmenting your email list and creating targeted campaigns? Follow these steps:

Define your segments

The first step is to define the segments you want to create. You can segment your email list based on a variety of criteria, such as demographics, purchase history, or interests. For example, you could segment your list based on age, location, or product interest. One of out methods internally to identify a segment is based on our own JJGCRII segmentation model. For example, a segment following our framework would produce the following:

Segment: High-Level Sales Directors in Mid-sized SaaS Companies in the US with a focus on Intent to Purchase.

• Job Title Cluster: Sales Director, VP of Sales, Chief Revenue Officer
• Job Seniority: Director-level and above
• Geography: United States
• Company Size: Mid-sized (100-500 employees)
• Revenue: $10 million – $100 million
• Industry: Software as a Service (SaaS)
• Intent: Expressing interest in purchasing a new SaaS solution

Comprised of top-performing sales executives from mid-sized SaaS companies in the US, this segment has demonstrated a keen interest in acquiring a new solution. By tailoring their email campaigns to this specific group, the company can effectively highlight the unique benefits and features of their solution, illustrate the success of similar companies within their industry, and even provide personalized demos and consultations.

It’s no secret that targeted and segmented campaigns perform better than generic, non-segmented ones. According to a study by Epsilon, segmented and targeted emails drive a whopping 58% of all revenue, while non-segmented campaigns can only claim a measly 14%. The results clearly indicate the crucial importance of personalization and relevance in the success of any email marketing campaign.

Pros of Segmented Targeted Campaigns:

1. Increased personalization: Segmented campaigns allow you to tailor your messaging and content to specific groups, making your emails more personal and relevant.
2. Higher open rates: Targeted campaigns typically have higher open rates, as subscribers are more likely to open emails that are relevant to them.
3. Improved engagement: With more personalized and relevant content, subscribers are more likely to engage with your emails, increasing the chances of conversions.

Cons of Segmented Targeted Campaigns:

1. Increased effort: Creating segmented campaigns requires more effort than non-segmented campaigns, as you need to collect data and create unique campaigns for each segment.
2. Risk of segmentation errors: If your segmentation criteria are incorrect or not up-to-date, you risk sending irrelevant or incorrect messages to your subscribers.

Pros of Non-Segmented Blanket Campaigns:

1. Easier to create: Non-segmented campaigns are easier to create as you don’t need to segment your list or create unique campaigns for each group.
2. Lower effort: Non-segmented campaigns require less effort, as you can send the same message to your entire list.

Cons of Non-Segmented Blanket Campaigns:

1. Lack of personalization: Without segmentation, your emails are not personalized and may be irrelevant to some subscribers.
2. Low engagement: With a lack of personalization, subscribers are less likely to engage with your emails, reducing the chances of conversions.

By leveraging the power of AI technology, such as ChatGPT, companies can elevate the efficiency and effectiveness of their email marketing campaigns. With the ability to generate personalized subject lines, email content, and calls-to-action, ChatGPT streamlines the production process for micro-campaigns, maximizing their impact through effective segmentation and personalization.

Additionally, AI-powered tools can simplify the segmentation process, ensuring that campaigns are targeted and relevant to each specific group. The benefits of this approach are clear – by using AI-powered resources, companies can save valuable time and effort while still achieving high levels of personalization and relevance in their email campaigns. The result? An increased likelihood of driving conversions and overall campaign success.

Importance of Collecting First-Party Data in Email Marketing

Collecting data is a crucial step in creating a successful email marketing campaign. The information collected can come from various sources and having accurate data is essential in creating targeted and personalized campaigns. Companies are now prioritizing collecting first-party data, as it provides a more accurate picture of their target audience, allowing them to create effective campaigns.

Why first party data matters

For example, a SaaS company that uses gated content and newsletter sign-ups to collect first-party data can tailor their campaigns to their audience’s specific pain points and preferences, resulting in a higher conversion rate. On the other hand, relying solely on third-party data can lead to generic campaigns that miss the mark.

Challenges in generating high quality leads from email marketing

With over 60% of companies struggling to generate quality leads through their own channels, it’s important to consider ways to generate first-party contact data. Some effective methods include gated content and newsletter sign-ups, but it’s important to remember that driving traffic to these locations is also critical and may require an advertising budget. Whether through social media or Google ads, a solid strategy for generating first-party data is crucial for a successful B2B marketing strategy.

Strategies for collecting first party data

1. Gated Content and Downloadable Templates: Offer valuable resources such as whitepapers, e-books, and templates in exchange for contact information like email addresses or phone numbers. This is a great way to build your first-party data while also providing valuable content to your target audience. An example of template that we would provide you, our readers would be sales scripts, statistics on trending sales techniques, sales metrics guides and sales reports.
2. Newsletters: Encourage your website visitors to sign up for your newsletter by offering exclusive content, industry insights, and promotions. Use a sign-up form or pop-up to collect their email address, and ensure that you have a clear and easy opt-out process. The best way to generate loyal and loving subscribers is to really double-down on a niche within your market. For us, for example, we might look exclusively at every single way you can lower your CAC costs.
3. Podcast Series: Offer a podcast series that provides industry insights and thought-leadership. Promote the series on your website and encourage listeners to sign up for more content. Collect their email address and other contact information through a sign-up form. Again, like above, focus on a niche. For us, we are considering starting a podcast which exclusively talks to sales leaders about ABM campaign conversion rates.
4. Surveys and Feedback Forms: Use surveys and feedback forms to gather data on your target audience’s preferences and needs. Ask for their email address and permission to follow up with them in the future. We love to use Pollfish here to create and distribute surveys, however bare in mind, most people don’t have the time or motivation to fill out a survey so it’s ideal that you can offer some value in return either in the form of an incentive or a freemium upgrade to your service if the participant is an existing customer.
5. Events and Webinars: Host events and webinars to engage with your target audience and collect their contact information. Offer exclusive content, hands-on demonstrations, and opportunities for interaction.
6. Social Media: Utilize social media platforms to engage with your target audience and collect their contact information. Offer exclusive content, promotions, and opportunities for interaction.
7. Referral Programs: Encourage your current customers to refer friends and colleagues by offering incentives. Collect the contact information of the referred individuals and follow up with them to build relationships.

Alternative options to first-party data

In addition to these first-party data sources, you can also use third-party data sources to supplement your data collection efforts. However, it’s important to ensure that the data you collect complies with privacy laws and regulations, such as the GDPR and the CCPA.

By using a combination of these methods, you can build a comprehensive database of first-party data and better understand your target audience. Hence, this information can be used to create more personalized and effective marketing campaigns, resulting in higher conversion rates and increased revenue.

Use an email marketing platform

Consequently, the next step is to use an email marketing platform that allows you to segment your list and send targeted emails. Some of the most popular email marketing platforms include Mailchimp, Constant Contact, and Campaign Monitor. Here’s our list on email marketing platforms and what they offer.

• Mailchimp: Mailchimp is a widely popular email marketing platform that offers a user-friendly interface and a wide range of features, including automation, A/B testing, and analytics.
• Campaign Monitor: Campaign Monitor is a powerful platform that offers a range of email marketing tools for businesses of all sizes, including automation, A/B testing, and advanced analytics.
• Constant Contact: Constant Contact is a well-established platform that provides a wide range of features, including email design templates, automation, and analytics.
• ConvertKit: ConvertKit is an email marketing platform that is designed specifically for bloggers and online creators, offering a range of features to help them build and grow their audience.
• GetResponse: GetResponse is an all-in-one marketing platform that offers a range of features, including email marketing, automation, landing pages, and webinars.

Create targeted campaigns

Furthermore, with your segments in place and your email marketing platform set up, it’s time to create targeted campaigns. You can create unique campaigns for each segment, tailoring the messaging, subject line, and call-to-action to each group.

Now that you’ve got the basics of email segmentation covered, let’s dive into some examples of how you can structure your emails for maximum impact.

Welcome emails

Moreover, welcome emails are a great way to start a relationship with your subscribers and set the tone for your future communications. In your welcome email, be sure to introduce yourself, provide a brief overview of what your subscribers can expect from your emails, and include a call-to-action.

Here’s an example of a welcome email:

Hi [Name],

Welcome to [Company Name]! We’re thrilled to have you as a subscriber, and we can’t wait to help you [insert company’s mission or value proposition].

As a valued member of our community, you can expect to receive regular updates on [insert the type of content you’ll be sending, such as industry news, tips, and exclusive offers]. Our goal is to provide you with the information and resources you need to succeed in [Industry].

We understand that your time is valuable, so we promise to only send you relevant, high-quality content that will help you achieve your goals.

In the meantime, we invite you to check out our [insert a link to a resource or product that is relevant to the subscriber, such as a blog post, guide, or demo].

And if you have any questions or feedback, don’t hesitate to reach out. We’re here to help!

Best,

[Your Name]

P.S. Don’t forget to follow us on [insert social media channels, if applicable].

[Company Name]

[Industry]

[Website]

Abandoned cart emails

Abandoned cart emails are sent to subscribers who have added items to their cart but have not completed the purchase. These emails can be highly effective in recovering lost sales and can be segmented based on the items left in the cart.

An example of a cart abandonment email:

Hi [Name],

We noticed that you recently added some items to your cart on [Company Name], but you haven’t completed your purchase yet. We wanted to remind you that these items are still waiting for you!

[Insert a brief description of the items left in the cart]. We’re sure you’ll love them as much as we do, and we want to make it as easy as possible for you to complete your purchase.

To make things even easier, we’ve included a special discount code just for you: [insert discount code]. Use this code at checkout to save [insert the discount amount or percentage].

Don’t let these items slip away. Head to [Company Name] now to complete your purchase and enjoy your new items in no time.

Best,

[Your Name]

P.S. If you need any help or have any questions, just reply to this email and we’ll be happy to assist you.

[Company Name]

[Website]

Re-engagement emails

Re-engagement emails are sent to subscribers who haven’t opened or clicked on your emails in a while. These emails can be used to rekindle the relationship and encourage subscribers to stay engaged.

Examples of a re-engagement email

Hi [Name],

We hope this email finds you well. We’ve noticed that you haven’t been opening or clicking on our emails lately, and we wanted to check in and see if everything is okay.

We know you’re busy, but we want to remind you of all the valuable content and resources we’ve been sending your way. From [insert a brief overview of the type of content you’ve been sending, such as industry news, tips, and exclusive offers], our goal is to provide you with the information and resources you need to succeed in [Industry].

If there’s anything specific you’d like to see more of, or if there’s anything we can do to improve your experience, please don’t hesitate to let us know. Your feedback is always valuable to us.

In the meantime, we’ve included a special offer just for you. [Insert a brief description of the offer and a call-to-action to redeem it, such as “Take advantage of this exclusive offer and save 20% on your next purchase. Simply use the code REENGAGE20 at checkout.”]

We’d love to hear from you and see you back in our inbox soon.

Best,

[Your Name]

P.S. If you no longer wish to receive emails from us, simply click the unsubscribe link at the bottom of this email.

[Company Name]

[Industry]

[Website]

Win-back emails

Win-back emails are sent to subscribers who have unsubscribed from your list. These emails can be used to persuade subscribers to re-subscribe and remain engaged with your brand.

Example of a win-back email

Hi [Name],

We hope this email finds you well. We noticed that you recently unsubscribed from our email list, and we wanted to reach out and see if there was anything we could have done differently.

At [Company Name], we value your relationship and your feedback. If there was something specific that made you decide to unsubscribe, please let us know. We’re always looking for ways to improve our communications and make sure they’re valuable and relevant to you.

But, if you’re just taking a break, we wanted to remind you of all the great content and resources we’ve been sending your way. From [insert a brief overview of the type of content you’ve been sending, such as industry news, tips, and exclusive offers], our goal is to provide you with the information and resources you need to succeed in [Industry].

If you’d like to stay in the loop, we’d be more than happy to welcome you back to our email list. All you have to do is [insert a call-to-action to re-subscribe, such as “click this link to resubscribe and start receiving our emails again.”]

We hope to hear from you soon.

Best,

[Your Name]

P.S. If you have any questions or concerns, please don’t hesitate to reach out. We’re always here to help.

[Company Name]

[Industry]

[Website]

Post-purchase follow-up emails

Post-purchase follow-up emails are sent to customers after they have made a purchase. These emails can be used to thank customers for their purchase, provide additional information about the product, and encourage customers to make another purchase.

Example of a post-purchase follow-up email

Hi [Name],

We wanted to take a moment to say thank you for your recent purchase from [Company Name]. We appreciate your business and are so glad you chose us to be a part of your [insert type of product purchased, such as “home improvement” or “technology”] journey.

We hope you’re enjoying your

, and if there’s anything we can do to help make your experience even better, please don’t hesitate to reach out. Our customer service team is here to assist you 24/7.

We’d also love to hear your thoughts on your purchase. If you have a moment, please consider leaving us a review on [insert review platform, such as “Google” or “Amazon”]. Your feedback helps us continue to improve our products and services.

And, if you’re interested in staying up-to-date on the latest [insert type of product, such as “home improvement” or “technology”] trends, be sure to sign up for our newsletter. You’ll be the first to know about new products, exclusive offers, and more.

Thank you again for choosing [Company Name]. We look forward to serving you again soon.

Best,

[Your Name]

[Company Name]

[Industry]

[Website]

Benchmarks for email marketing

Finally, let’s talk benchmarks. Benchmarks are vital as it sets the stage for what you should be aiming for. Without reviewing benchmarks you could be expecting to much or to little. For example, I once had a boss who used to expect a 15% conversion rate from cold-emails, except he didn’t look at benchmarks which showed that you should only expect a 1-2% conversion rate or less. It was safe to say that not many people lasted as the email specialist until we decided to actually look at the benchmarks and realise our expectations were severely over-inflated. Anyway, without further ado, here’s a list of 20 benchmark stats on average or by industry of email marketing campaigns.

Statistics for email marketing

The average open rate for all industries is approximately 20-30%. (Source: Mailchimp)

The average click-through rate (CTR) is around 2-5%. (Source: Mailchimp)

The average conversion rate for email campaigns is around 2-5%. (Source: Mailchimp)

The retail industry typically has the highest open rates at around 25%. (Source: Mailchimp)

The technology industry typically has the highest CTR at around 4%. (Source: Mailchimp)

The finance and insurance industry typically has the highest conversion rate at around 4%. (Source: Mailchimp)

It takes, on average, 7-12 touches to convert a lead through email marketing. (Source: Hubspot)

The open rate for B2B email campaigns is around 20-30%. (Source: Campaign Monitor)

The CTR for B2B email campaigns is around 1-3%. (Source: Campaign Monitor)

The conversion rate for B2B email campaigns is around 1-3%. (Source: Campaign Monitor)

The open rate for B2C email campaigns is around 30-40%. (Source: Campaign Monitor)

The CTR for B2C email campaigns is around 4-7%. (Source: Campaign Monitor)

The conversion rate for B2C email campaigns is around 2-5%. (Source: Campaign Monitor)

The average email bounce rate is around 2-5%. (Source: Mailchimp)

The average unsubscribe rate is around 0.5-2%. (Source: Mailchimp)

The average spam complaint rate is around 0.1-0.5%. (Source: Mailchimp)

Personalized emails have an open rate that is 26% higher compared to non-personalized emails. (Source: Experian)

Personalized emails have a CTR that is 41% higher compared to non-personalized emails. (Source: Experian)

Personalized emails have a conversion rate that is 15% higher compared to non-personalized emails. (Source: Experian)

The use of emojis in subject lines can increase open rates by 56%. (Source: Campaign

Is email marketing right for your business?

In conclusion, email marketing is a powerful tool for businesses to connect with their audience and drive conversions. By understanding benchmark statistics such as open rates, click-through rates, and conversion rates, businesses can measure the success of their campaigns and make informed decisions to improve their strategy. Personalization is also a crucial aspect of successful email marketing, with personalized emails yielding higher open rates, click-through rates, and conversion rates compared to non-personalized emails. By utilizing these benchmark statistics and personalization techniques, businesses can effectively engage with their audience and drive results through their email marketing efforts.