Email segmentation statistics that prove why targeted emails perform better — Stripo.email

Do you still send the same marketing emails to your whole contact list? In this case, you may be missing out on email engagement, revenue, and conversion rates. While some marketers attempt to benefit from generic messages, 84% of buyers purchase from companies that offer personalized experiences. Automated emails no longer grab attention as customers’ expectations continue to rise.

What makes email segmentation an effective practice? And how exactly does segmentation impact your campaign results?

Top 10 email segmentation statistics you should know

You have probably heard that segmentation significantly improves performance and overall customer satisfaction. However, numbers always speak louder than words. 

I suggest that we review the 10 key email segmentation statistics and discuss the reasons later on.

1. List segmentation is a top marketing technique for about 51% of professionals.
2. Email marketing campaigns with segmented contact lists increase revenue by 760%.
3. Segmented campaigns show 50% better click-through rates than non-segmented ones.
4. 39% of marketing professionals who use email segmentation manage to improve their open rates.
5. Segmentation makes businesses 130% more likely to understand their target audience.
6. Only 13% of email marketers use segmentation for different audiences, with 53% not targeting their contact list at all.
7. Implementation of email segmentation results in a 86% improvement of engagement rates.
8. Subscriber list segmentation generates approximately 58% of revenue.
9. Around 49% of customers have bought something impulsively if it was presented in a personalized way through segmentation.
10. 45% of business leaders believe that AI chatbots are the future source of automated segmentation.

How segmentation affects core email marketing metrics

Now that we have discussed segmentation’s impact in numbers, it is time to answer the next question: Why does it influence email campaigns?

Let’s examine each affected metric and study the reasons.

Open and click-through rate

The subject line is a gateway to the message but becomes irresistible when tailored specifically for the email recipient. Segmentation enables marketers to create subject lines that speak directly to clients’ needs.

According to recent studies, segmented email campaigns receive 14.31% better open rate results and 101% more clicks than non-segmented ones. Why? The more relevant content you create, the more likely your audience is to open and click, and it starts with a subject line.

(Source: Email from Readeat)

Conversion rate and ROI

While email subject lines encourage recipients to open the email, content plays the next part: it shows recipients value and encourages conversions. When customers receive tailored messages based on their activities, interests, and demographics, they see more value, and so are more likely to purchase. 

In fact, segmented sequences are 6x more likely to convert. This means more purchases, sign-ups, and loyal customers thanks to a focus on quality rather than quantity.

Unsubscribe and complaint rates

The impact of email segmentation does not end with engagement. While tailored marketing messages improve customer experience, generic ones cause frustration and disappointment with the brand.

The result? Customers flag these emails as spam and unsubscribe, as they see no value or effort in the subscription. Not only does this lead to low customer satisfaction, but it also causes deliverability issues.

Segmentation methods backed by data

The right segmentation method is key to high levels of engagement and conversion. Whether you prefer to work with demographics, behaviors, or lifecycle segmentation, the data proves each method effective.

Let’s take a closer look at the numbers.

Geographic segmentation

31% of marketing teams still do not use language-based segmentation, while around 42% send most emails in local languages. However, the value goes beyond understanding.

(Source: Mailmodo)

Consider seasonal promotions, local holidays, and language nuances that vary based on your customers’ location. Travel, eCommerce, and event-based industries usually benefit most from geographic segmentation.

Behavioral segmentation

29% of email recipients stopped using their mailboxes because they received too many marketing messages. Behavioral segmentation is a clever way around this situation. The goal is the same — to create relevant marketing emails — and it’s the approach that differs. 

While geographic segmentation focuses on location, language, culture, or country, behavioral studies analyze customers’ interactions with the brand.

There are a few key types of behavioral segmentation strategies:

As a result, customers keep their subscriptions thanks to relevant messages, and email marketers see high engagement and conversion rates. 

Demographic segmentation

Basic grouping based on gender resulted in a 121% higher click-through rate, an example of what demographic segmentation can do. Why does this approach work? Age, gender, occupation, income, or job role enable marketers to understand who their customers are. 

For example, eCommerce marketing teams can create personalized emails by suggesting cosmetics based on the recipient’s age. Segmentation based on income can help professionals consider a pricing range to make offers not only relevant but also accessible. 

AI and automation in segmentation

64% of email marketing specialists use AI for better segmentation and targeting. Furthermore, 51% of professionals believe that segmented campaigns exceed expected results. 

The main benefit of AI lies in real-time personalization. Equipped with predictive analytics, email marketers can create unique experiences and suggest services or products that match the audience’s needs. In addition to improved recommendations, AI automates the process and improves productivity. The result? Better suggestions and less time spent on manual research.

Challenges of using AI in segmentation

61% of companies believe that inaccurate data compromises the effectiveness of using AI tools for segmentation. Furthermore, the development of AI is a top factor influencing security-related decisions for 47% of professionals.

While AI continues to optimize workflows by reducing repetitive tasks, it comes with complications, with security and data being the top concerns. So, how can you minimize the risks?

Let’s examine 3 simple yet practical tips that will help you use AI safely and effectively:

• email list hygiene: Remove inactive or bounced subscribers, validate email addresses and remove invalid or risky ones, confirm subscriptions with your customers, and let them choose the desired frequency;
• respectful data usage: Treat customer data with respect and be clear about the source. Never purchase data lists and only gather them from prospects or buyers with their explicit consent;
• security regulations: Check whether the chosen AI software has compliance documents and meets security regulations to ensure the customer data is safe.

  

  (Source: Segura)

These tips address key AI-related concerns and ensure your campaigns will perform without affecting security or privacy.

Wrapping up

Email segmentation lets marketers speak directly to the interests or pain points of their target audience. With the right approach, you can adjust the marketing campaigns based on geographic, demographic, or behavioral data and make emails relevant and desirable. The key? Ensure data accuracy and security, and implement AI tools to optimize content quality.

I hope this article has helped you navigate the topic and see the value of email segmentation in numbers. Good luck with your next campaign!