Why Customer Segmentation Makes Emails More Useful

Most small businesses have a list of email addresses and a vague sense that they should be using it. The easy option is to write one message and send it to everyone. It feels efficient, but it often means that most people receive something that has little to do with them.

Customer segmentation is the alternative. It simply means sorting your contacts into groups, called segments, based on what they need or what they are interested in, so each group receives emails that fit.

What segmentation actually means

You do not need clever software or a data specialist to start. Think of how you already talk to customers face to face. A hairdresser would not recommend the same treatment to every client, and a joiner would not send a kitchen-fitting offer to someone who only ever asked about a fence.

Segmentation applies that common sense to email. You decide a few sensible groups, note which group each customer belongs to, and write to each group accordingly.

Why blanket emails fall flat

When every email goes to every contact, a few things tend to happen. People skim the subject line, decide it is not for them, and learn to ignore you. Some will unsubscribe. Others may mark your message as junk, which can make it harder for your future emails to reach anyone's inbox.

A relevant email does the opposite. It shows that you remember who the customer is and what they asked about. That builds trust, and trust is what makes people open the next message.

Everyday examples of useful groups

The best groups are usually the obvious ones. Here are some examples from different kinds of business:

• A plumber or electrician: homeowners, landlords and commercial clients, since their worries and budgets differ.
• An accountancy or legal practice: sole traders, limited companies and charities, each with different deadlines and rules.
• A restaurant or café: regular diners, people who book for groups and customers who prefer takeaway.
• A dental or physiotherapy practice: patients due a check-up, new patients and those who asked about a particular treatment.
• A shop: customers who bought a certain type of product, and those who have not ordered for a while.
• A charity: regular donors, volunteers and people who have only attended an event.

Notice that none of these require anything complicated. They rely on information you probably already hold, such as what someone bought, what they enquired about or how they first got in touch.

How to start without overcomplicating it

Choose two or three groups

Begin with a small number of segments that clearly differ in what they need. You can always add more later. Ten groups you never write for are less useful than three you email properly.

Record the right details at sign-up

The simplest time to learn about someone is when they join your list. A short sign-up form can ask what they are interested in, using a few tick boxes. Ask only for what you will actually use.

Write one clear message per group

Each email should have a single purpose that suits the group, such as a seasonal reminder for homeowners or a deadline note for limited companies. Keep it short and make the next step obvious.

Keeping your groups tidy

Segments are only helpful if the information behind them is accurate. Customers change address, change needs and change their minds. Review your groups now and then, remove contacts who no longer engage and correct obvious errors.

A customer relationship management (CRM) system, which is a tool for keeping customer details and history in one place, can make this easier, and email marketing software can then send each group the right message. Both are optional; a well-kept spreadsheet is a perfectly reasonable place to begin.

How to tell whether it is working

Before you change anything, note how your current emails perform: how many people open them, click a link or reply. After you start sending to groups, compare. Do not expect instant transformation, and do not judge it on a single email. Look for gradual signs such as more replies, more bookings or fewer unsubscribes.

If you would like a second opinion on how your email, website and customer records fit together, On The Spot offers a free digital strategy review.

In short

Segmentation means sending people emails that match what they need instead of sending everyone the same thing. Start with a few obvious groups, collect only the details you will use, respect permission and keep your records tidy. Done sensibly, it makes your emails more welcome and easier for customers to act on.

Next steps

1. Look at your current email list and write down two or three natural groups, such as types of customer or services used.
2. Check that you have a clear record of how each person agreed to hear from you, and that every email offers an easy unsubscribe.
3. Add a short interest question or tick boxes to your sign-up form.
4. Write one email for each group and keep a note of how each performs.
5. Review your lists every few months, removing out-of-date contacts and correcting mistakes.