How to Increase Email Marketing ROI Using Segmentation
Posted: Wed Dec 04, 2024 3:08 am
A company's marketing actions must have as their main objective the improvement of the corporation's financial results, whether through attracting potential new customers or increasing sales. For this reason, a good strategy must target ROI — Return on Investment. In this sense, increasing the ROI of email marketing is part of this process.
This indicator is able to show the net profit obtained from the email marketing campaign, unlike other metrics, such as click or open rates, which, although important, say nothing about the real return on investment.
But the challenge, without a doubt, is knowing how to increase the ROI of these campaigns and obtain better performance with an email list without incurring additional costs. Want to know how to do it? Through segmentation!
Are you curious? Then read the post and find out, once and for all, how to increase your email marketing ROI using segmentation. Let’s go!
Content
What is segmentation?
How to increase email marketing ROI using segmentation?
1. Permission to sell
2. Audience qualification
3. Segmentation means hitting the target while spending less
4. Multiple campaigns
5. Additional strategies
What is segmentation?
Segmentation is nothing more than selecting, from your database, the people most likely to purchase the product or service you sell, based on a criterion. This criterion can be either information that is already on your email list (e.g. gender, date of birth, city, state), or information based on people's interaction with your previously sent campaigns.
This way, it is much easier to increase conversion rates, after all, you will be speaking to the right audience. By segmenting customers, messages become more effective, with the correct language and — most importantly — only with content that is relevant to that audience.
There are many types of segmentation in campaigns, such as by age, gender, stage in the sales funnel or any other characteristic that may be important for your business.
How to increase email marketing ROI using segmentation?
To do this, some steps must be followed. Check it out!
1. Permission to sell
In this first step, you should be careful about something important: no one signs up for an email list without a reason to do so. What would that reason be? There could be several reasons: a promotion or even some type of reward in the form of material — e-books, infographics, online classes, etc.
When a person’s interest is piqued and they sign up for your email list, you automatically have permission to offer them products or services. This is what we call permission selling or permission marketing.
2. Audience qualification
As we have seen, there needs to be a reason for the person spain business fax list to cross this barrier and sign up. It must be very well thought out and have a strong connection with the service or product you want to sell. This is exactly where the segmentation work begins.
When it comes to your email list, always organize it based on the source of the registration, creating a list for each source of registration. To qualify or enrich your base with more data, remember that the more information you have in addition to the email, the better for segmenting. Therefore, consider asking, throughout the customer's journey, for more information about them, such as date of birth, gender, city, state and also other information that may be relevant to your business.
It is with the quality of this information, for example, that it will not offer an e-book about China to those looking for packages to the Northeast.
Or, imagine that you sell video games. If you own a Playstation 4 console, you won't want to receive offers for Xbox One games, and vice versa. Do you agree?
Through this segmentation, you can deliver more relevant content to your subscribers, increasing engagement and ensuring that that sales permission does not wear out over time. All of this will increase your chances of conversion and, consequently, your ROI.
3. Segmentation means hitting the target while spending less
There is a difference between projections and actual sales figures based on email marketing. For example, a company may project a conversion rate of 1% for a campaign without segmentation that generates 1,000 visits to the website, or 10 orders. Even if the projection is correct, this may still mean a very high cost per order.
With segmentation, imagine that a company, by sending emails only to the right people, manages to generate 400 sessions for the website, but with a conversion rate of 3%. This would mean 12 orders generated. In addition to generating more orders, since fewer emails were sent, this campaign was cheaper than the previous one without segmentation! Do you see the difference? That's exactly it: selling more while investing less .
With groups divided and qualified according to their interests, it is possible to optimize campaigns, increase opening, click and conversion rates and, as a bonus, invest less.
4. Multiple campaigns
If you follow the previous 3 steps, you will have a segmented list divided into groups. Do you know what this means? That you will be able to create multiple campaigns, that is, send more than one campaign on the same day, since the same people will not receive all the campaigns.
This is one of the great advantages of using segmentation. With multiple campaigns, you:
will sell different products and services to different people;
will increase conversion rates and ROI;
will reduce unsubscriptions, as campaigns will be more effective and targeted;
You will have the opportunity to learn more about your audience and thus optimize strategies for your next campaign.
5. Additional strategies
Segmentation is undoubtedly essential to increase the ROI of email marketing, but an efficient strategy must include other points, such as:
The design needs to be well planned. Don't forget that most emails today are opened on mobile phones. Therefore, your design must be responsive, that is, it needs to be viewed on a computer, tablet or smartphone;
theCall To Action(call to action) needs to be attractive. Using a button or link, invite the reader to take action and show the benefits they will get from doing so;
A cleanup of the registration database needs to be done every 3 months. This will ensure that segmentation remains efficient and, in addition, you can, for example, create specific promotions for those who have not opened messages for a long time.
This indicator is able to show the net profit obtained from the email marketing campaign, unlike other metrics, such as click or open rates, which, although important, say nothing about the real return on investment.
But the challenge, without a doubt, is knowing how to increase the ROI of these campaigns and obtain better performance with an email list without incurring additional costs. Want to know how to do it? Through segmentation!
Are you curious? Then read the post and find out, once and for all, how to increase your email marketing ROI using segmentation. Let’s go!
Content
What is segmentation?
How to increase email marketing ROI using segmentation?
1. Permission to sell
2. Audience qualification
3. Segmentation means hitting the target while spending less
4. Multiple campaigns
5. Additional strategies
What is segmentation?
Segmentation is nothing more than selecting, from your database, the people most likely to purchase the product or service you sell, based on a criterion. This criterion can be either information that is already on your email list (e.g. gender, date of birth, city, state), or information based on people's interaction with your previously sent campaigns.
This way, it is much easier to increase conversion rates, after all, you will be speaking to the right audience. By segmenting customers, messages become more effective, with the correct language and — most importantly — only with content that is relevant to that audience.
There are many types of segmentation in campaigns, such as by age, gender, stage in the sales funnel or any other characteristic that may be important for your business.
How to increase email marketing ROI using segmentation?
To do this, some steps must be followed. Check it out!
1. Permission to sell
In this first step, you should be careful about something important: no one signs up for an email list without a reason to do so. What would that reason be? There could be several reasons: a promotion or even some type of reward in the form of material — e-books, infographics, online classes, etc.
When a person’s interest is piqued and they sign up for your email list, you automatically have permission to offer them products or services. This is what we call permission selling or permission marketing.
2. Audience qualification
As we have seen, there needs to be a reason for the person spain business fax list to cross this barrier and sign up. It must be very well thought out and have a strong connection with the service or product you want to sell. This is exactly where the segmentation work begins.
When it comes to your email list, always organize it based on the source of the registration, creating a list for each source of registration. To qualify or enrich your base with more data, remember that the more information you have in addition to the email, the better for segmenting. Therefore, consider asking, throughout the customer's journey, for more information about them, such as date of birth, gender, city, state and also other information that may be relevant to your business.
It is with the quality of this information, for example, that it will not offer an e-book about China to those looking for packages to the Northeast.
Or, imagine that you sell video games. If you own a Playstation 4 console, you won't want to receive offers for Xbox One games, and vice versa. Do you agree?
Through this segmentation, you can deliver more relevant content to your subscribers, increasing engagement and ensuring that that sales permission does not wear out over time. All of this will increase your chances of conversion and, consequently, your ROI.
3. Segmentation means hitting the target while spending less
There is a difference between projections and actual sales figures based on email marketing. For example, a company may project a conversion rate of 1% for a campaign without segmentation that generates 1,000 visits to the website, or 10 orders. Even if the projection is correct, this may still mean a very high cost per order.
With segmentation, imagine that a company, by sending emails only to the right people, manages to generate 400 sessions for the website, but with a conversion rate of 3%. This would mean 12 orders generated. In addition to generating more orders, since fewer emails were sent, this campaign was cheaper than the previous one without segmentation! Do you see the difference? That's exactly it: selling more while investing less .
With groups divided and qualified according to their interests, it is possible to optimize campaigns, increase opening, click and conversion rates and, as a bonus, invest less.
4. Multiple campaigns
If you follow the previous 3 steps, you will have a segmented list divided into groups. Do you know what this means? That you will be able to create multiple campaigns, that is, send more than one campaign on the same day, since the same people will not receive all the campaigns.
This is one of the great advantages of using segmentation. With multiple campaigns, you:
will sell different products and services to different people;
will increase conversion rates and ROI;
will reduce unsubscriptions, as campaigns will be more effective and targeted;
You will have the opportunity to learn more about your audience and thus optimize strategies for your next campaign.
5. Additional strategies
Segmentation is undoubtedly essential to increase the ROI of email marketing, but an efficient strategy must include other points, such as:
The design needs to be well planned. Don't forget that most emails today are opened on mobile phones. Therefore, your design must be responsive, that is, it needs to be viewed on a computer, tablet or smartphone;
theCall To Action(call to action) needs to be attractive. Using a button or link, invite the reader to take action and show the benefits they will get from doing so;
A cleanup of the registration database needs to be done every 3 months. This will ensure that segmentation remains efficient and, in addition, you can, for example, create specific promotions for those who have not opened messages for a long time.