In this blog, we will discuss why customer segmentation is crucial for email marketing, major segmentations, and re-target strategy that you should consider for your email marketing.
What is the purpose for customer segmentation?
In today's eCommerce environment customers come in different shapes and sizes. Hence, offering identical emails to all your customers each time will be a missed opportunity. For instance, if you have to target children, you don't need to send out emails to teens or adults. Therefore, segmenting your customers will help you target a group of customers based on their characteristics and behavior.
The foremost thing you do is to list your segments. Because, for an email repurchase strategy it becomes important you check your customer's purchase behavior history. Below are the major segmentation you should consider:
1 - FTP (first time purchasers)
They are the ones who are your new customers who have just made a purchase from your online store. It becomes crucial that you do not overlook the importance of this segmentation, as you can make them your loyal ones with your repurchase strategy.
2 - LAP (least active purchasers)
They are the ones who have made a purchase once in a longer period of time. While determining this segmentation consider a suitable period of time to track such purchasers with similar interest.
3 - MAP (most active purchasers)
These are your frequent purchasers. Many marketing experts overlook the importance of this segmentation, just because they regularly purchase from the site. But, targeting such customers in your email marketing strategy becomes equally important to ensure that your brand's name comes first in their mind whenever they want to shop online.
4 - Unique customers
They can either be the ones who at a point of time were unsatisfied with your service and have stopped shopping from you, the ones who may have unsubscribed from your newsletter, or the ones who have cancelled their account with your store. This is important, because targeting your existing customers is less expensive. Always remember, your purchasers are your potential leads, hence it becomes easy to retain or re-target them instead of spending more to divert new ones to your store.
The above are the major segmentation that you should consider while deciding an email marketing strategy. Also, it is beneficial to track them by their purchase behavior rather than demographics to bring out effective results from your campaigns.
What repurchase strategy can I use?
- For first time purchasers, target them with emails to make your products categories visible to them. From their first purchase, recommend them with relevant products or products that you know will entice them to buy it. Your email for first time purchasers should highlight more about your offerings in order to infuse more information about your brand in their mind.
- For least active purchasers, target them with emails that will entice them to re-purchase from your site. It is a good idea to provide more information about free shipping benefits, quick delivery services or offer promotional discounts. These factors will be an addition to what the purchaser will receive apart from the product you send. Discount coupon codes are widely used to encourage one-time purchaser for making another purchase from your store.
- For most active purchasers, target them with emails highlighting your newest products or products related to their purchases which will encourage them to continue shopping from your site. These are the ones who will have maximum purchase history which makes it easy for you to target them sending effective emails.
- For unique customers, target them with emails more about your improved service, changes that you have brought in your site, or other factors that could bring a trust in their mind and encourage them to return to your store. Your email should be personalized that can bring a sense of apology for the bad experience they had earlier. Your incentives have to be strong to divert such customers back to your store.
Always infuse a feedback link in your email marketing campaigns that will help you gain better insights about their needs and behaviors.
Keeping in mind the above segmentations and implementing the re-purchasing tactics will make your email marketing campaigns effective and churn more revenue for your business. But, that is not all! You also need to measure your email marketing campaigns in order to check your customers behavior. Did your first time purchasers make a second purchase? Was promotional discount effective to entice your one time purchasers? Are your regular purchasers influenced and do they follow the same pattern to frequently purchase from your store? And, did your unique customers respond to your feedback link or return to your store?