Revenue from email marketing is estimated to exceed $9.5 billion (USD) in the current year. There are only a few, if any, marketing channels that can boast such an ROI (return on investment) on average.
Email will only grow in usage with a Statista report estimating that the number of global email users will reach 4.89 billion in 2027. This thriving usage of email makes it a popular platform for digital marketing. In a recent marketing survey, over 50% of respondents reported achieving a 100% improvement rate in the ROI of their email marketing campaigns. This is a testimony to the enduring efficiency of the classic email.
Given that email still remains an efficient marketing strategy, any technique that hones its efficiency is valuable. Email segmentation is one such technique that helps marketers improve the efficiency of their email campaigns manifold.
According to a Statista report, working individuals open their inboxes more often than their physical mailboxes. However; mass targeting seldom yields desired results. Personalization is key to making your email marketing effective, focussing on the needs of different niches of your target audience.
You can increase your business’ email open rates by 26% with personalized emails. Each segment of your target audience requires uniquely crafted messages that address their unique problems. By personalizing, you’ll be crafting such tailored communications and content instead of a uniform template covering all audience segments.
With segmentation, you get to reach targeted customers with personalized emails. The segmentation process involves placing prospects into segments based on criteria such as geography, demography, stage in the purchase cycle, etc.
When segmented this way, you get precise target audience segments that can be engaged in the way they expect businesses to interact with them. Businesses get only a few seconds of their prospects’ time and attention as 61% of recipients spend only 8 seconds to view an email.
Personalization achieved on the power of segmentation enables you to make the right impression on your prospects and establish trust-based relationships faster.
Segmentation increases the certainty of conversions as you create and target a smaller audience whose requirements can be addressed with personalization. Some key benefits of email segmentation include:
Open rates are important as they indicate prospect interest and the start of an engagement between prospects and the brand. Email open rates differ by industry. But, in general, open rates observed in email marketing campaigns worldwide are between 10% and 20% for 30% of marketers, and between 20% and 50% for 57.8% marketers, according to a Statista report.
With proper segmentation, you raise interest in prospects regarding your emails as every element from the subject line to the content, is tailored. The chances of prospects pursuing the next best actions are more with higher open rates.
With Gartner reporting that 64% B2B buyers and consumers “feel overwhelmed” by communications from brands, it is imperative that your emails stand out.
With segmentation, you get to draft emails that are highly customized. With tailored subject lines, hyper-targeted content, and strong calls-to-action, the chances of persuading prospects to click a link are more. Whether you are looking to get prospects to reach a landing page, download content, subscribe, or visit your website, segmentation-based personalization is key.
With high email open rates and click-through rates, conversions also become higher. Research shows that segmented emails deliver 30% more open rates and generate 50% more click-throughs in comparison with their non-segmented counterparts.
With personalization, buyers receive better guidance through their purchase journey. As a result, they are able to choose their next best actions promptly, which improves conversions.
It is easy to hit the “Unsubscribe” button when buyers receive too many generic emails. When personalized, prospects get emails that help them solve their existing challenges, which makes for an engaging experience. When you succeed in engaging your prospects, the chances of them wanting to unsubscribe are reduced.
With 73% of B2B buyers stating their preference for a personalized experience, segmentation is a strategy that businesses cannot afford to ignore (Statistics Via McFadyen Digital).
About 45.6% of emails are routed to the spam folder, according to a Statista report. When you send generic irrelevant emails to a mass audience, it is more than likely that these emails end up as spam. Personalized emails with tailored subject lines and hyper-targeted communications and content are rarely categorized as spam as they offer value to prospects.
Personalized communications from companies are a requirement for 71% of consumers. With 76% of consumers reporting frustration when companies do not offer personalized interactions, according to McKinsey. Personalization should be the norm for companies to convey credibility, excite interest, and generate trust.
Businesses that experience accelerated growth derive a 40% increase in their revenue from personalization when compared to their counterparts. Email segmentation is a key marketing tool as it smoothens the path to efficient personalization.
Segmentation is a challenge for marketers as it requires concrete data-backed insights. Improving personalization too remains a key challenge, according to a Statista report, with nearly 50% of marketers stating that they lack data needed for the process.
Personalization is a competitive opportunity that businesses can, and should, leverage for maximum gains. Expertise, the right tech stack, and reliable data are key to achieving successful and sustained personalization through effective segmentation.
Powered by deep manual research and effective automation, FinalFunnel’s segmentation process uncovers relevant audience groups, complex purchase patterns, and high-precision predictive buyer actions. FinalFunnel also empowers with its data management services and data-backed demand generation marketing.
We keep your pipeline active with strong leads, identify buyers that bring long-term value, and evaluate B2B purchase trends holding great business opportunities for you. Discover more about how we can help you achieve higher-quality leads!