The guide to email list segmentation that can boost your online

business revenue

Introduction
Marketers want to get their numbers up by one way or another. On a daily basis, you
receive loads of emails from different brands and businesses promoting their product by
offering you a hefty discount, buy-one-get-one-free offers, and many other ways to seek a
clientele. But how many of these automated emails do you actually read and act on? My
guess would be from zero to none.

Email
is

Outdated, OR IS IT?
Reaching out to customers with the help of contemporary communication methods like
chat-bots and social media influencers may seem a new norm to you, but the stats, to our
surprise, are still in favor of email. According to HubSpot, daily email users has risen to
almost 3.9 billion and is expected to rise in coming years.

Now, if you delve into it further, your view on the brands where you buy from regularly and
are a paying client of is completely different. You read their emails with more interest and
you act on it as well. As a business, you have to have these clients in a different segment
and the emails sent to this segment should be different from the one you send to the
potential customers who are yet to buy a product or service from you.

That is where email list segmentation gets in the picture. If done well, it can increase and
improve your open and click-through rates. HubSpot, data shows that, “When businesses
use email list segmentation for marketing and engagement, they see an astounding
increase of 760% in email revenue, on average. ”

But What is Email List Segmentation?

Email list segmentation is a technique used by marketers to intentionally divide their

email list into smaller parts called segments. These segments are sent highly targeted and
unique emails.
This technique is all about reaching out to the right people, at the right time, with the right
content, which can further your relationship with them.

In case you are a small business, then you may think that this technique is an extra burden
for your business. As small businesses have to focus on day-to-day operations with limited
personals. You might be wondering how you are going to bring expertise for this task as
you do not have the time and resources like big firms do, they have their own marketing
teams to properly apply this segmentation technique and much more.

But you can still benefit from email list segmentation without having any disruptions in
your normal operations.
In case you have not given a try to email list segmentation, this article will give you a
complete guide to develop an understanding of email list segmentation, why is it
important for business, what are the best practices and how it can boost your
revenues like the big players. (meta description)

Why is Email List Segmentation Important for Business?

Most people like a customized touch. If the email you send to your customers is irrelevant
to them, it will end up unread or deleted, bringing your numbers down. The evidence of
this is provided by Experian, according to the which, customization helps to increase email
open rate or click through rates by at least 26%. [CITATION CMG20 \l 1033 ]

Drives a Significant Increase in the Revenue

The concept of one-size-fits-all is not applicable anymore in the modern world. The fast
emergence of new digital technology has forced marketers to revolutionize and change but
when it comes to marketing they are still using one of the oldest channel in email.
The reason is the unreal numbers that are in favor of this channel. For a decade now, email
has generated the highest ROI for the businesses. According to VentureBeat, on average,
every $1 spent on email list segmentation by marketers leads to $38 in ROI.

According to DMA and HubSpot, when marketers opt for email list segmentation, the email
revenue increases by 760% on average.

Segmentation Uplifts Your Brand Image

Segmentation allows you to know your customers better. You can easily make new
products and offer them services that can cater to their needs. As you get to know your
customers better, they will start to know you too. Your effort will not be overlooked by the
customers; it strengthens your brand name.
Creates a Competitive Advantage
It gives you a competitive edge over the market, as it allows you to have an increased
client retention. You are giving value to your customers by sending them highly tailored
and relevant offers creating a positive interaction with them.

Numbers in favor of Segmentation

Here are some key statistics pulled from HubSpot, showing the importance of client list
segmentation for business.
Now you understand the importance of email list segmentation, let’s get a look at some of
the best practices used by the marketers for applying this technique.