How to Increase Your Revenue With Newsletter Segmentation

Posted 9 years ago by Lina Vashurina, 51视频 Team

Did you know that segmentation of听your mailing list can increase profit by听7,000%? Internet retailer Totes Isotoner Corp. increased revenue in听2010-2011听with a听fantastic newsletter by听properly segmenting their subscribers. There鈥檚 more info at听the听end of听the听article, but first we听want to听tell you how to听use email marketing segmentation to听drive your own results.

Why sending email to听the听entire subscriber base is听harmful

Let鈥檚 say you have collected an听base of听thousands of听contacts. You have an听inexpensive 补苍诲听effective channel for听communicating with customers, but you need to听make sure you are making the听most of听your subscribers.

First off, avoid spamming your entire list of听contacts. This will cause even the听most loyal customers to听unsubscribe from your newsletter. You need to听make sure that your are providing a听service 补苍诲听not an听annoyance to听those subscribers; anything else is听going to听create a听huge issue. It听stops now!

Parameters to听segment

While there is听a听difference in听the听segmentation methods for听B2C 补苍诲听B2B bases, the听principle is听the听same: your offers should be听developed for听a听specific customer group with specific interests. Check out the听following segmentation options to听see which is听right for听your business:

For retail customers

Gender

For example, you sell electronics. Know your demographics. Tablets 补苍诲听technology appeal more to听women, while PC听hardware is听purchased much more often by听men.

Geographical segmentation

If听you have multiple branches in听different cities, it听is听important to听ensure that there were appropriate contacts in听the听message body. If听you see that people from New York increasingly interested in听irons, 补苍诲听in听Washington people fell in听love with your ovens, then you should make different newsletters for听each of听these regions.

Interests

You can conduct a听survey 补苍诲听find that users of听group 聯A聰 need wallpaper for听a听child鈥檚 bedroom, 补苍诲听the听user group 聯B聰 needs wallpaper for听the听living room. Use that info to听create different letters for听these groups.

Age

What if听you sold cosmetics? Start sending the听newsletter throughout your subscriber base saying you have cosmetics for听different ages. It听won鈥檛 immediate segment your email, but it听will plant the听seeds for听that to听take off.

Purchase history

Take all the听info that you鈥檝e gathered from prior customer orders, things like purchase frequency, purchase amounts, average purchase price, 补苍诲听so听on. Segmenting newsletters based off purchase history can be听used to听encourage your customers: the听more people buy, the听bigger a听discount you can offer to听them. Purchase history can give a听hint to听what people will be听likely to听buy next time.

Readiness to听purchase

According to听HubSpot, . Therefore, there鈥檚 a听commonly used tactic of听聯lead nurturing聰: the听user is听offered different content at听each stage of听the听sales funnel. For example, the听first offer is听to听download a听free e-book with useful tips for听applying wallpaper to听a听wall, 补苍诲听then you can talk about the听types of听wallpaper adhesive. Once a听prospective customer has opened all the听previous newsletters, you might offer him a听discount on听the听wallpaper.

For wholesale customers

The value of听the听company

There is听an听option to听offer a听corporate discount for听specific companies. Let鈥檚 say you sell office supplies. The amount of听the听order a听company will make depends on听its number of听employees. Separate the听proposals for听small 补苍诲听large companies 补苍诲听follow their growth.

The authority to听make a听decision

If听you are doing corporate sales 补苍诲听get to听the听email list of听different employees, know if听a听particular person is听authorized to听make the听decision to听purchase. Rank contacts according to听their ability to听make decisions. Send useful materials about the听product to听managers, 补苍诲听send discounted offers to听the听people in听charge.

The financial performance of听the听company

This will tell you about the听likelihood that a听company will be听buying your products. There鈥檚 no听surefire method for听dissecting this, but you can judge it听by听the听volume of听their previous purchases. Keep an听eye on听your segmentation so听you don鈥檛 send exclusive offers for听large volumes to听smaller companies that they won鈥檛 be听able to听use or听benefit from. You gain nothing from this 补苍诲听stand to听irritate the听customer as听well.

Interests

If听a听company operates in听a听certain industry, be听aware if听they focus on听a听particular niche. For example, if听your shop is听all about bed linens for听babies, there isn鈥檛 much sense in听sending customers an听offer for听full-sized bed linens.

Segmentation by听geography, purchase history, 补苍诲听readiness to听purchase works with wholesale customers as听well as听with retail customers.

Plus, subscribers can be听segmented by听activity: how long ago they have opened your emails 补苍诲听how often they have clicked. All popular services (Mailchimp, UniSender, GetResponse) offer functionality that will let you track click-through. You can make a听newsletter for听active readers, 补苍诲听an听alternative one for听those who are looking for听messages from you every 2听months. For those who never open them, send another newsletter to听find out why they don鈥檛, 补苍诲听include the听polite suggestion that they unsubscribe. Clearing up听your lists makes segmentation more effective.

How to听set the听segmentation

Segmentation should be听part of听your business process so听you can quickly set up听a听campaign 补苍诲听choose the听desired group of听subscribers. Getting an听email address 补苍诲听a听signup for听the听newsletter is听just the听cornerstone. You need to听collect as听much information about the听subscriber as听possible, including the听following:

1. Add an听optional field to听the听form of听subscription

Only minimal knowledge can be听obtained by听collecting addresses. Find out how old your potential customer is听by听asking when their birthday is. Just like that, you will have 2听options for听segmentation.

1. Track purchases

How much did your customer buy? How much was their purchase 补苍诲听what is听the听average order? You can get this info from your analytics system, which will collect information on听every purchase. In听51视频, store information about customer activity is听collected automatically. If听you use Mailchimp, connect it听to automate the听creation of听subscriber segments.

1. Conduct surveys

Send surveys to听the听loyal customers periodically 补苍诲听ask questions to听open up听communication about their interests.

1. Improve your analytics system

Every single move a听customer makes on听your site can be听analyzed by听analytics. To听do听this, use Google Analytics. It鈥檚 free! It鈥檒l show you where your clients came from, what they did before a听purchase, or听what they were doing before they abandoned it. Segmentation by听behavioral factors gives the听highest results. To听integrate analytics systems 补苍诲听email services, you will need to听automate marketing.

We听don鈥檛 have the听time to听cover it听here, but there are plenty of听resources to听help you do听that on听the听blog.

1. Analyze traffic channels.

Analyze your traffic channels 补苍诲听conversion from every channel. Drilling down into a听particular resource can tell a听lot about your new subscriber.

How segmentation boosts revenues

Now it听is听time to听tell you more about that 7,000%. In听2010, the听online retailer Totes Isotoner Corp. carefully looked at听their analytics 补苍诲听saw that many visitors wandered around the听site for听a听long time 补苍诲听left without a听purchase. However, the听loyalty of听those visitors was enough to听leave their email addresses in听the听subscription form.

Marketers of听the听company developed a听trigger newsletter (automatic distribution when prepared letters are sent if听the听user did some action on听the听site). Segmentation of听users was conducted by听two parameters:

the听number of听viewed products
the听number of听viewed categories.

Once the听number of听viewed products reached a听certain number, the听client got an听email with an听offer pertaining to听the听category of听goods they had just viewed. Emails with dynamic content were created (such messages can be听set up听to听automatically substitute different pictures 补苍诲听texts), 补苍诲听they also set up听a听tracking system (fix the听number of听actions on听the听site).

It听worked: a听customer was looking through the听7-8听items 补苍诲听left the听site without buying, then they got a听newsletter featuring the听goods they just checked out. This helped motivate the听customer to听make the听purchases they were eyeing.

As听a听result, the听yearly revenue from email marketing increased by听7,000%.

Conclusions

Never start spamming your whole list.
The initial segmentation can be听enough to听use the听information that a听subscriber leaves when signing up. Then with the听help of听creativity 补苍诲听attention to听analytics you can improve your segmentation.
Use web analytics for听your site. Many of听them are free, but the听information that they give is听priceless.

听

About The Author

Lina is a content creator at 51视频. She writes to inspire and educate readers on all things commerce. She loves to travel and runs marathons.

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