Segmentation is not an option in email marketing

At the end of the year 2005, e-mail is one of the marketing tools most used by marketing managers [1]. It has also been named the best Internet tactic by AD:TECH 2004, exceeding the purchase of keywords and affiliation [2]. On the other hand, many companies didn’t seize the complexity of this communication channel and therefore did not integrated it to their internet strategy.

E-mail marketing is a sensitive communication method that should be used with precision and precaution. For example, it is impossible to recover an error made via e-mail. Once sent, the sender of the e-mail loses control.

E-mail marketing should also fight to differentiate itself from spamming, thereby carrying its message to targeted customers. Over 20% of requested marketing campaign e-mails are blocked by different anti-spamming filters [3]. As for the remainder, a vast amount will be deleted by the receiver, due to lack of interest or catch.

An e-mail marketing campaign should therefore be thoroughly prepared. In fact, it requires more work than many other marketing approaches, it is however more effective. The figures speak for themselves. There are those who use it, but put little energy in it. These are happy with the 1% conversion rate that they obtain or fall a few points short of each month. Then there are those who make it the focal point of their relaunch strategy and who obtain increased results, often reaching conversion rates of 15% and higher. Which of these groups are you in? Do you want to stay there?

The key to a successful campaign is segmentation. Too many companies with databases rich in information decide to send only one e-mail to all subscribers without worrying about invaluable information that Internet users have provided them with. Many readers think that segmentation has been around for years, that it is nothing new and that most companies already use it. How then does one explain why airline companies, with extremely detailed databases, are still not capable of sending a Special Deal e-mail with the departure point being the recipient’s city? [4] Nothing can justify this situation that causes them irremediable damage.

To succeed in correctly segmenting a database, you must constantly evaluate your campaign results. Many companies do not take these results into account, usually because their mailing tool offers far from exhaustive statistics. As a matter of fact, the number of opened e-mails or even clicks on a link is good, but what does this do to help us improve the next e-mail campaign? Too many companies still cannot merge the results of their e-mail campaigns with the data on their website or within their call centre, this data is however the key to successful segmentation. Try it! Segment a section of your list and send mail to the other section. The results will surprise you.

Finally, SPAM will not kill e-mail marketing as people believe. This strategy proved reliable and will continue to provide very good results. However, those who don’t put enough effort and precision into their campaigns could make it die in their company…through bad results.

[1] CMO Magazine, April 2005

[2] Marketing Sherpa, January 2005

[3] Return Path, October 2005

[4] Enterprise Usability , Jakob Nielsen’s Alertbox, 7 November 2005