The Power of Segmentation

By September 15, 2009General, TFMail eMarketing

What is Segmentation?

In a few words, it means the process of dividing into groups or categories. In email marketing, we take this a step further and say that segmentation is the creation of groups of people or organizations that share one or more characteristics that causes them to have similar product and/or service needs.

So, how can segmentation help you?

I was meeting with a client of mine yesterday and we were discussing his marketing plan, or lack thereof, and we decided that he had a great opportunity to segment his email marketing list based on 14 months of enewsletter data. Segmentation will allow him to better serve the needs of his clients through email by making sure that each segment is getting the information that they are interested in receiving. This in turn keeps his enews recipients more interested and forms more of a partnership than a “hey let me blast some general info out to you”. Also, segmentation will allow him to create small lists and achieve more targeted marketing regarding specific events or products. Smaller lists that are more targeted mean lower mailing costs and a higher return on investment.

Segmentation examples:

1. current list consists of all clients
2. split current list into 2 groups: entrepreneurs and service providers (in my clients case)
3. split those 2 groups into more targeted lists: by industry or product type

So, let’s say my client has a new entreprenuer client that has developed an idea for a new product. How will he best get this product out to the market for feedback from service providers? With his lists segmented, he can now send a simple “new product” email to those service provider types that fit that product industry or type and he knows that the right people are getting the targeted message.

This is just a simple example of how to split your lists, but it should give you a basic idea on how to get started segmenting your lists. If you’d like to learn more or want help segmenting your lists, drop us a line.

Are you an entreprenuer with a product idea or a service provider? Contact Jon Speer.

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