Email Remarketing: Segmentation Basics

Email Segmentation

Email remarketing is an e-commerce strategy that has rapidly gained popularity due to its effectiveness in generating conversions. With proper forethought and a good dose of creativity, an email remarketing campaign creates a longer, more complete shopping experience for the consumer, offering causeways to purchase at multiple points along the conversion funnel.

Email Segmentation

However, as is the case with nearly every marketing tool, a remarketing campaign is only as useful as you make it. After building a list of contacts and brainstorming messaging strategies, the first step towards making your email efforts more effective is segmentation.

 

Remarketing 101: What is Segmentation?

Segmentation is the process of using visitor information to divide lists of email contacts into smaller groups in which members have one or more shared qualities. Forming these groups, called segments, allows you to send relevant messages to specific, interested parties.

 

Why Segment?

Simply put, segmented lists perform better.

According to studies done by MailChimp, on average, email marketing campaigns with any sort of segmentation were opened 14.44% more often and achieved click-through rates 14.99% higher than unsegmented efforts. Our own analysis shows that these numbers become even more impressive when looking exclusively at remarketing efforts.

If you have experience selling products, then these numbers shouldn’t be surprising. A big part of making a sale is ensuring your customer feels special; who doesn’t enjoy a healthy amount of personalized attention? Proper segmentation gives your email remarketing copy the perfect audience, making each reader feel as though the message was crafted just for them.

With this relatively young marketing technique, the only limitation is your creativity. So, to get you started on the path to perfectly remarketed recipients, here are a few segmentation suggestions:

 

Remarketing and Basic Segmentation

Location, Location, Location

The moment someone lands on your website, you’re given a crucial piece of information: user location. Analyze your traffic and extract your most popular regions. Are you getting a lot of international attention? Segment visitors by country and draft emails in languages native to the region to maximize engagement.

Are certain parts of the country more active than others? Use location to sell products that are region-appropriate. For example, an outdoor apparel company is more likely to successfully market snow gear to visitors from the Northeastern United States than to those from Southern California. User location is a great way to contextualize a sales effort.

Visitors New and Old

E-commerce is an industry that’s ripe with window shopping. Most customers don’t make a purchase on their first visit without some sort of encouragement. Keep this in mind and create a new segment for first-time email recipients. Offer new readers an introductory look at your company and highlight impressive shipping offers or dispense a small purchasing incentive.

You know what makes your site the best place to buy, use email remarketing to let potential customers in on the secret.

 

Remarketing 201: Advanced Strategies

Cart Contents

Email remarketing sees its best results when targeting users with existing intent to purchase. Typically, site visitors who add products to the cart are more likely to purchase, making users with active carts a very lucrative segment. Within this segment, getting even more specific can yield great results:

Dispensing a different incentive to those with cart values over a certain threshold is a great way to close big sales. This kind of segmentation helps you hit optimal price points with every sale.

If you’re looking to move more units of a specific item, create a new segment for users who browse or add that product to their cart. Creative filtering and an email remarketing strategy based around the sale of a specific product establishes immediate relevance and typically performs well.

Offer Matching

In our recent work with Lenovo, we had to get a little creative in order to give the best possible offer to visitors without competing with the company’s existing efforts. To do this, we segmented clients based on the contents of the “Coupon Code” field on checkout pages.

Those who left the coupon code field blank received a generic code offering 10% off their purchase. Those who entered a coupon before abandoning received an offer that mirrors the value of the entered coupon with a fresh expiration date. By changing the coupon dynamically, we ensured that each customer received the best deal for which they’re eligible. The campaign achieved a sales rate of 33.11%, a clickthrough rate of 19.18%, and a massive open rate of 45.25%.

Segmentation isn’t a perfect science; certain email remarketing strategies work better for some industries than others. However, with a good amount of knowhow and ongoing optimization, segmentation becomes one of the most powerful tools in an email marketer’s arsenal. For more information on email remarketing and other abandonment solutions, contact UpSellit.

 

Written by Joe Rosenthal


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