Segmentation Strategies to Increase Your Email Marketing ROI
Email marketing remains one of the most effective channels for driving conversions. However, if your emails aren’t reaching the right people with the right message, your return on investment will suffer, and this is where segmentation comes in. Segmentation allows you to target specific groups within your audience, resulting in higher engagement and increased ROI. Here are some segmentation strategies you can implement to make your email campaigns more effective.
Demographic Segmentation
The most basic form of segmentation is demographic based. Segmenting your audience by factors such as age, gender, location, and income allows you to tailor your messaging to specific groups. For example, a retail brand could send different offers to customers based on their location or gender.
This strategy allows businesses to speak directly to the needs of their target audience, improving relevance and response rates. Personalising the message ensures it resonates with the reader, increasing the likelihood of conversions.
Behavioural Segmentation
Behavioural segmentation is based on how customers interact with your brand. You can segment your audience based on their past actions, such as purchases, browsing history, and engagement with previous emails.
Examples:
- New subscribers
- Frequent buyers
- Basket abandoners
- Engaged readers who haven’t purchased yet
Why it works:
This strategy helps you send more personalised content that feels relevant and timely. For example, an email offering a discount to someone who abandoned their online shopping basket can drive immediate action.
Engagement-Based Segmentation
Engagement is one of the most powerful metrics for segmentation. If a customer has opened and clicked on your emails in the past, they’re more likely to engage with future content. On the other hand, if someone hasn’t opened your emails in a while, it’s time to re-engage them with a different message.
Tactics to consider:
- Target highly engaged users with exclusive offers or loyalty rewards.
- For inactive subscribers, send re-engagement campaigns to restore their interest.
Why it works:
Segmenting based on engagement ensures that your emails are always relevant. Active subscribers receive content they’re likely to appreciate, while less engaged users are given a reason to reconnect with your brand.
Purchase History Segmentation
Segmenting based on purchase history allows you to send highly relevant emails. For instance, sending follow-up emails with complementary product recommendations or special discounts for repeat customers can boost conversions.
Why it works:
Customers who have already bought from you are primed for future purchases. By tailoring your emails to their previous buying habits, you show them that you understand their needs and can offer products or services they’ll love.
Lifecycle Stage Segmentation
Another effective segmentation strategy is based on where the customer is in their buying journey. Segment your list according to lifecycle stages such as awareness, consideration, purchase, and post-purchase.
Examples:
- Awareness stage: New leads who are just getting to know your brand
- Consideration stage: Leads who have shown interest but haven’t purchased yet
- Purchase stage: Recent buyers who may need upsells or cross-sells
- Post-purchase stage: Customers who need nurturing and follow-up
Why it works:
Tailoring your messages to the customer’s journey makes them feel like they are receiving relevant content at the right time. It can increase conversion rates at each stage and build long-term customer loyalty.
Psychographic Segmentation
Psychographic segmentation involves dividing your audience based on their lifestyles, values, interests, and attitudes. For example, you might segment your list based on whether they prioritise sustainability, tech innovations, or luxury products.
Why it works:
Psychographic segmentation can drive deeper emotional connections with your audience. When your emails align with their values or interests, they’re more likely to engage, trust your brand, and make purchases.
Segmentation Based on Email Preferences
Let your subscribers dictate the kind of content they want to receive. By giving them options to select preferences, whether it’s frequency, types of content, or product categories, you can send more personalised emails.
Why it works:
When people can choose what they want to hear about, they’re more likely to engage with your emails. It also reduces unsubscribe rates, as recipients feel they’re getting content that matters to them.
Putting It All Together
To truly maximise your email marketing ROI, you need to go beyond simple segmentation. Use a combination of strategies to create a finely tuned campaign. This could mean tailoring content for your high-engagement audience while using re-engagement tactics for less responsive subscribers.
Make sure your email marketing platform supports complex segmentation, so you can manage these strategies effectively. Platforms like Klaviyo offer tools for advanced segmentation and personalisation, helping you track subscriber activity and automate tailored campaigns.
Top Tip: Don’t be fearful to experiment with different segments. You may find that smaller, more targeted groups produce better results than broad audiences.
Conclusion
Email marketing segmentation is a necessity for increasing ROI in 2025. By segmenting your audience based on demographics, behaviour, purchase history, and lifecycle stages, you can send more personalised and relevant messages that drive higher engagement and conversions.
Let us help you start implementing these strategies today and watch your email marketing performance soar.
Get in contact today.