List segmentation is an important part of any modern content strategy as it enables brands to build better relationships with leads, customers, and loyal patrons. By aligning marketing messages and campaigns to the interests of targeted groups, brands are more likely to convert them.
What Is List Segmentation?
List segmentation refers to the practice of categorizing a broad contact into highly-specific and targeted groups based on common characteristics. For instance, contact lists can be grouped based on demographics, industry, profession, business needs, and more. The data marketers gather, as well as data from online interactions, influence what these lists are.
The goal of list segmentation isn’t to generate leads but to drive revenue through personalization. Simply put, this approach can apply to everyone in the marketing funnel – from leads to recurring customers.
The Advantages of List Segmentation
If done correctly, list segmentation can be advantageous for modern businesses. After categorizing contacts into unique profiles, brands can enhance different marketing endeavors, including:
- Sending personalized content
- Nurturing leads down the marketing funnel
- Identifying untapped market opportunities and segments
- Improving email marketing return on investments (ROI)
Types of List Segmentation
There are different ways to segment a contact list. Here are four different ways to segment a target market:
- Demographic Segmentation
Demographic data refers to a broad range of socioeconomic information, such as ethnicity, age, income, education, and employment.
- Behavioral Segmentation
The practice of classifying consumers based on how they interact with the brand, website, products, or apps is called behavioral segmentation. Brands can use a wide range of behavioral data, including buying frequency, purchase interests, browsing activity, cart abandonment, and more.
- Geographic Segmentation
Geographic segmentation is the approach of dividing contact lists based on country, state, and zip code. Brands can use more specific geographic data to segment audiences from a single country, climate or population density. They can also segment consumers based on the characteristics of their locations, such as rural, urban, and suburban.
- Psychographic Segmentation
Psychographic data focuses on consumers’ mental and emotional traits. It can refer to personality traits, lifestyles, goals, hobbies, and values. By using this type of data to segment consumers, brands will be able to engage with their audience on a more personal level.
Why Is List Segmentation Important?
Modern consumers prefer brands that pay attention to their interests, needs, and wants. That’s where the practice of list segmentation comes in. It enables brands to tailor offers, experiences, and messages based on the unique profiles of their audiences.
Here’s why list segmentation is important:
- Not all buyers are the same
Segmenting contact lists makes it easier for brands to define and understand their target audience. They can use this practice to effectively identify the types of content and offers that interest each segment. More importantly, it enables them to deliver the content that audiences want, whenever they want it.
- Buyers are at different stages of the sales funnel
Brands can tailor marketing campaigns to fit the unique needs of consumers at different stages of the buyer’s journey. For example, brands can enhance lead nurturing by offering visitors free downloadable resources. Instead of promoting branded offers, the content should be focused on helping visitors solve a problem.
Promotional content should be reserved for audiences who are further down the funnel. To nudge consumers toward conversion, brands can offer demos, special deals, or promotions.
- Brand engagements can improve
Using segmented lists, brands can send customers information that is relevant to them. The more tailored and relevant the messages are, the more likely the audience will continue to engage with the brand.
- Brand loyalty can be maintained
Segmenting contact lists makes it easier for brands to identify the active users from the inactive ones. They can maintain brand loyalty by giving active users special vouchers and access to company-sponsored events, for example.
- Not all subscribers will stay actively engaged with the brand
Aside from identifying and sending tailored messages to loyal subscribers, list segmentation also gives brands the ability to re-engage with their most inactive subscribers. These users have been on the brand’s contact list for a significant period but are no longer opening or clicking email communications.