Editor’s note: The following video and transcript are the 4th in a series of excerpts from Agata’s presentation on advanced segmentation from our New York City Workshop. This final installation wraps up email segmentation skills learned with a real-world example of email targeting success.
A report we did last year took a look at the difference between people who are sending to all their lists, or even the majority of the list, and people who are sending to specific portions of their list, or highly targeted lists.
We found there’s a 55% increase in the revenue per recipient for people who are sending to a targeted segment.
I can share another story from my own career way back in the day, when I was working with a media company. We were trying to make the move from sending to everyone who had opted into our newsletter, to taking a look at what people were doing on our site, and sending to like behavioral based segments.
We were doing it because, as a media company, we had inventory issues. We could only send so many emails on any given day. We were trying to figure out how we could send more emails to people, because it meant we could sell more advertising, but not completely burn out our list.
We cut our lists in half by using the behavioral based tracking. We improved our response rate on each of those half by 10% relative to what was happening with the overall population before.
When you get to that sweet spot of really being able to match up your message with the audience on the other end, you will absolutely end up making more money overall, driving more sales overall, than you will with the batch and blast approach. That’s because you’ve hit the stride of relevance. You’ve started really communicating to people on the other end with something that they care about, and they’ll reward you for it.
Segmentation Success Story: Taylor Stitch
Taylor Stitch is a great example of this. They really moved over to Klaviyo for the segmentation possibilities in the platform.
The very first thing they did was start experimenting with sending to engaged lists versus unengaged lists. They weren’t at the point where they were going to take into account what people looked at and different products, or anything like that. They were just saying, “Hey, what happens when we send people who are engaged with our brand and not engaged without brand?”
Their not engaged list was twice the size of the population of their engaged list. When they sent out that first ad campaign with Klaviyo, they got 40 orders off of roughly – I’m rounding up – 40 orders off of their engaged population. Guess how many they got off the non-engaged population?
Zero, that’s right. Zero.
That unengaged population – there was no sort of hidden goldmine in there at all. That population was straight up losing them money. Every time they were sending to the unengaged population, Taylor Stitch were chipping away at their center of reputation.
So that was step one for them. Step two was “okay, now that we’ve done this and we have this engaged population, let’s start talking about segmenting even further. We’ve got a new product coming up. Let’s start taking a look at this group and sending different messages to people who have looked at similar products in the past, or have somehow given us an indication that this is a product that they’re interested in.”
They had the two different groups again. Everyone was engaged here, but they had folks who were engaged specifically with the content of their message, versus people who weren’t. The people who had already looked at similar products in the past ended up performing better – 9x better.
These stories, these anecdotes, and the overall stats that we have on our base is why I feel really confident in saying “segmentation doesn’t work” is not a thing,
“When you segment…it’s like becoming SMARTER overnight”
– Mike Grasewicz, Taylor Stitch
Mike over at Taylor Stitch has some great quotes, and this is one of my favorite ones.
Becoming smarter about the person that you’re communicating o at the other end. It’s indicating that you know who that person is. It’s being able to really have a more meaningful kind of interaction with them as a brand, and that’s important. It fundamentally means better results for your business – more sales and better results.
Hopefully you’ve had a chance to read/watch through this entire advanced email segmentation series, learning the segmentation building blocks, how to map your segmentation strategy, and how to launch and run segmentation strategies. I’ve recapped above some of the key takeaways to keep the information top of mind as you get targeted with your email marketing.
To see Agata’s entire presentation and related resources visit the Klaviyo Help Center’s 9 Rules of Effective Segmentation page.Back to Blog Home