Targeting and Segmentation

MarketingSherpa has a great case study of a retailer that got a 208% higher conversion (purchase) rate for a targeted email sent to a small segment (10%) of their list.

“These types of campaigns appeal to a specific group, and it’s important that we maintain the integrity of our list. Marketing the wrong message to our group is going to increase our unsubscribe rate and [hurt] the response to our emails,” Kimura says.

This story tells us that Artbeads.com is looking at the long term. They’ve discovered that cultivating their email subscribers and catering to their needs is as important as frequency or any other metric for sending email.

Gevalia spamming
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Customized for your profile?

With all the discussion about how daily deal emails are the silver bullet to making a profit on the Internet, I signed up for a couple of lists. Not only did I sign up for different lists, I also signed up for the same lists from different addresses.
One of those programs touts that they send me offers tailored to me. Except that the offers I get at Hotmail are different than the ones I get at Gmail are different from the ones I get elsewhere.
So how tailored is this really? In general there is no difference with how I interact with the mail in those various accounts, so that profile is the same. And, well, the person behind the addresses is all the same. If the ads were specially chosen for me, why am I getting different ones at different accounts? Is this particular marketer simply randomly assigning offers and claiming they’re targeted? How many other mailers claim to send ads tailored to my profile, and then just throw the profile out the window and send whatever they want to send today?
This isn’t to say that there aren’t a some marketers that do pay attention to recipient profiles. But I’m starting to wonder if the majority of “targeting” is more lip service than reality.
What do other people think?

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Now you know…

The key to email marketing, at least if you read blogs and talk to experts who blog about such things, is to segment your lists. But what does segmenting your lists really mean? Ken touches on it in a recent article about engagement and segmenting.
Segmenting your list means, quite simply, knowing your audience. It means tailoring your message to them, in order to extract as much money from them as possible. It means knowing which subscribers you can push with volume and which you will lose if you increase things too far.
In short, it means not treating all your subscribers the same, instead treating them slightly differently based on how they interact with your message.
To some people, this is too difficult. Ken even quoted someone in the industry as saying

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Spam isn't a best practice

I’m hearing a lot of claims about best practices recently and I’m wondering what people really mean by the term. All too often people tell me that they comply with “all best practices” followed by a list of things they do that are clearly not best practices.
Some of those folks are clients or sales prospects but some of them are actually industry colleagues that have customers sending spam. In either case, I’ve been thinking a lot about best practices and what we all mean when we talk about best practices. In conversing with various people it’s clear that the term doesn’t mean what the speakers think it means.
For me, best practice means sending mail in a way that create happy and engaged recipients. There are a lot of details wrapped up in there, but all implementation choices stem from the answer to the question “what will make our customers happy.” But a lot of marketers, email and otherwise, don’t focus on what makes their recipients or targets happy.
In fact, for many people I talk to when they say “best practice” what they really mean is “send as much mail as recipients will tolerate.” This isn’t that surprising, the advertising and marketing industries survive by pushing things as far as the target will tolerate (emphasis added).

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