In email marketing, sending the right message to the right person at the right time is the key to driving engagement and increasing revenue. One of the most effective ways to achieve this is by segmenting your email newsletter list. List segmentation helps you tailor content, personalize communication, and ultimately, improve your email performance while maintaining strong sending practices.  Segmentation is the ‘backbone’ of a solid email marketing strategy.

Why Segmentation Matters

Segmentation is the practice of dividing your email list into smaller, more targeted groups based on shared characteristics or behaviors.  Instead of sending the same email to your entire list, segmentation allows you to deliver more relevant content that resonates with specific subsets of your audience. This approach leads to higher engagement rates, stronger customer relationships, and, most importantly, increased revenue.

Key benefits of segmentation include:

• Increased Relevance: When emails are personalized to reflect a subscriber’s interests or recent behavior, they’re more likely to engage with your content.
• Higher Engagement: Segmented emails tend to see better open and click-through rates, as they’re more aligned with what your audience cares about.
• Lower Unsubscribe Rates: When subscribers receive relevant content, they’re less likely to opt out of your mailing list.
• Improved Deliverability: Sending targeted, high-performing emails contributes to maintaining strong sending practices and prevents your emails from being marked as spam.
• Revenue Growth: The more tailored your messaging, the more likely it is to drive conversions, whether that’s purchases, sign-ups, or other key actions.

Using Behavioral Attributes for Segmentation

To create highly engaged audiences, you can use specific behavioral attributes like last open, last click, and last purchase to tailor your email campaigns. These data points give you insight into how subscribers are interacting with your brand and allow you to target them based on their engagement level.

1. Last Open

What it is: This refers to the most recent time a subscriber opened one of your emails.

How to use it: Segmenting your list by last open allows you to target subscribers based on their recent engagement. For example, those who opened an email within the last week are considered active, while those who haven’t opened an email in months may need a re-engagement campaign.

Revenue Impact: By sending tailored content to recently engaged users, you’re more likely to drive conversions, as these subscribers have shown a willingness to engage. For those who haven’t opened in a while, you can send re-engagement campaigns with special offers or incentives to bring them back.

Example: “We noticed you haven’t opened our emails in a while. Here’s a 10% off coupon to welcome you back!”

2. Last Click

What it is: This refers to the most recent time a subscriber clicked a link within one of your emails.

How to use it: If a subscriber has clicked on a product or offer in a recent email, they’re likely interested in that specific product or service. Segmenting by last click allows you to follow up with relevant product recommendations, content, or offers.

Revenue Impact: Subscribers who clicked a link are already showing strong intent. By following up with targeted emails based on their click behavior, you can move them closer to conversion. These targeted follow-ups often see higher conversion rates than blanket promotional emails.

Example: “You clicked on our new fall collection. Here’s a sneak peek at similar styles we think you’ll love!”

3. Last Purchase

What it is: This refers to the most recent time a subscriber made a purchase.

How to use it: Segmenting based on last purchase helps you identify different stages of the customer lifecycle, such as first-time buyers, repeat customers, or lapsed customers. For each group, you can send targeted emails designed to encourage further purchases or re-engage those who haven’t bought in a while.

Revenue Impact: Sending tailored offers based on purchase history increases the likelihood of repeat sales. For lapsed customers, a well-timed reminder with an exclusive offer can win them back. For repeat buyers, personalized recommendations and loyalty rewards can boost their lifetime value.

Example: “Thank you for your recent purchase! Here’s a 15% discount on complementary items you might like.”

Revenue-Boosting Segmentation Strategies

Here are some segmentation strategies that have been proven to increase revenue:

1. New Subscribers Welcome Series: When someone joins your list, segment them into a welcome series that introduces your brand, showcases popular products, and offers a first-time purchase discount.
2. VIP Customers: Create a segment for your top customers (those with a high purchase frequency or spend) and send them exclusive offers, early access to new products, or personalized recommendations.
3. Product Interest: Segment based on product preferences or categories subscribers have shown interest in (e.g., clothing vs. accessories) and tailor promotions to those interests.
4. Geographic Segmentation: Segmenting based on location allows you to tailor content for regional sales, events, or shipping promotions.
5. Re-Engagement Campaigns: Create segments for inactive subscribers and target them with re-engagement emails, offering discounts, or reminding them of what they’re missing out on.

Maintaining Strong Sending Practices

Segmentation not only boosts revenue but also supports best sending practices. Here’s how:

• Improved Deliverability: By targeting the right audience with relevant content, you’re more likely to get high engagement rates, which ISPs consider when determining email deliverability.
• Healthy List Maintenance: Segmenting allows you to identify inactive subscribers and run re-engagement campaigns or remove them from your list, maintaining a clean and active subscriber base.
• Lower Spam Complaints: Sending targeted, relevant emails reduces the likelihood of subscribers marking your emails as spam, preserving your sender reputation.

Final Thoughts

Segmentation is a powerful tool in email marketing that drives revenue and supports strong sending practices. By leveraging behavioral attributes like last open, last click, and last purchase, you can create highly targeted campaigns that resonate with your audience. As a result, you’ll see increased engagement, higher conversion rates, and a healthier email list that contributes to long-term success.