Email list segmentation is a strategy used by email marketers. It involves categorizing subscribers into different groups, so as to send them more relevant and personalized email content. Segmentation allows businesses to tailor their email campaigns to specific portions of their audience.
This ensures that recipients receive messages that are most likely to resonate with their interests, preferences, or behaviors. According to Campaign Monitor, segmented email campaigns increase revenue by over 700%.
Because email segmentation is so important for your marketing strategies, let’s take a look at the different segmentation categories you can use to divide your email list:
Demographic Segmentation
Demographic segmentation involves dividing the subscribers on your email list into different groups or segments based on demographic characteristics, such as age, gender, and other relevant factors. Demographic segmentation focuses on observable, measurable factors that are easy to access, obtain, and verify. That’s why it’s one of the most popular categories for audience segmentation.
With demographic segmentation, you can send email campaigns based on your customer’s tangible needs or preferences. For example, a clothing retailer might customize their email campaigns based on gender, showcasing different product lines or promotions to men and women.
Some groups under this category include:
- Age
- Gender
- Location
- Occupation
- Income
- Education level
- Marital status
- Language
Psychographic Segmentation
Psychographic segmentation focuses on dividing a target audience based on their attitudes, values, beliefs, interests, behaviors, and lifestyle choices. Unlike demographic segmentation (which focuses on measurable characteristics), psychographic segmentation delves deeper into the psychological and emotional aspects of the individuals. It aims to understand the motivations, aspirations, and preferences that drive consumer behavior.
Psychographic segmentation goes beyond basic demographic information to provide a more nuanced understanding of consumer segments. It helps email marketers identify shared interests, values, and lifestyle choices that influence purchasing decisions and brand preferences.
Some groups under this category include:
- Personality traits
- Lifestyle
- Values
- Attitudes
- Interests
- Hobbies
- Behavioral patterns
- Opinions
Behavioral Segmentation
Behavioral segmentation categorizes customers based on their actual behaviors, actions, and patterns of interaction with a brand, product, or service. It focuses on understanding how consumers behave, what actions they take, and how they engage with a company.
Unlike psychographic segmentation, which relies on inherent traits or attitudes, behavioral segmentation looks at observable, measurable actions. These actions help identify high-value customers, understand purchase patterns, and customize marketing messages accordingly. For example, an e-commerce retailer might segment customers based on their purchase frequency, such as frequent buyers, occasional shoppers, or those who browse but don’t buy anything. Each segment can then be targeted with different incentives or recommendations to encourage desired behaviors.
Behavioral segmentation also focuses on evolving consumer actions. While demographic and psychographic traits tend to be relatively stable, behaviors can change over time. Marketers can analyze behavioral data to identify shifts in customer preferences, adapt their strategies accordingly, and deliver timely and relevant messaging to encourage continued engagement.
Some groups under this category include:
- Past purchase behavior
- Purchase frequency
- Purchase value
- Product preferences
- Brand loyalty
- Website browsing behavior
- Email engagement behavior
- Social media behavior
Lifecycle Segmentation
Lifecycle segmentation, also known as customer lifecycle segmentation or customer journey segmentation, divides email lists based on their stage in the customer lifecycle. It recognizes that customers go through different phases and interactions with a brand, from initial awareness to first purchase and beyond. For example, a retailer might develop specific campaigns for new customers to encourage repeat purchases, while offering loyalty rewards or personalized recommendations to retain existing customers.
Unlike other categories, which focus on isolated moments or specific characteristics or actions, lifecycle segmentation considers the broader context of the customer’s relationship with the brand. It takes into account the different interactions and experiences that customers have with the brand throughout their journey.
Some groups under this category include:
- New subscribers
- Active subscribers
- Inactive subscribers
- Lapsed subscribers
- VIP customers
- Frequent purchasers
- Infrequent purchasers
- Abandoned cart users
Preference Segmentation
Preference segmentation categorizes individuals based on their stated preferences, interests, and opinions. It focuses on understanding the unique tastes, desires, and choices of customers. One key distinction of preference segmentation is its focus on the subjective and individualistic aspect of consumer preferences. It recognizes that individuals have unique tastes and desires, and by understanding these explicit preferences, marketers can deliver more relevant and engaging experiences.
Preference segmentation relies on self-reported information directly provided by customers. It aims to understand what customers explicitly express as their preferences, whether it’s their favorite colors, preferred styles, specific product features, or desired experiences.
Preference segmentation helps identify customer segments with similar preferences and interests, allowing email marketers to develop tailored messaging, product recommendations, or customization options. For example, an online music streaming service might segment users based on their preferred music genres. In doing so, it provides customized playlists or recommendations that cater to their specific taste.
Some groups under this category include:
- Content preferences
- Email frequency preferences
- Channel preferences
- Product preferences
- Discount preferences
- Communication preferences
- Device preferences
By using these categories, you can separate your audience into the right sections and market to them more effectively.
