Today we’ve published our email segmentation benchmark report analyzing the effectiveness of targeted email campaigns. Spoiler alert: smaller, more highly targeted campaigns triple the returns of unsegmented email! After proving we’ve been on to something with our email segmentation focus, we also made a deep dive into the highest performing target definitions to show you how to create audience segments that deliver.
By studying the performance of over 2.5 billion emails delivered by Klaviyo customers October – December, 2017, we were able to determine the value of these small targeted communications across all industries, and review performance within specific industries as well.
Some of the key findings:
- Revenue per recipient is 3X higher for highly segmented email campaigns.
- The unsubscribe rate for highly segmented campaigns is 50% lower than for unsegmented ones.
- Top performing campaigns across all industries are those sent to less than 5% of the total email list.
- Definitions of the highest performing segments are based on past behaviors of the email recipient.
We’re not saying you have to break down your list into hundreds of small segments. We ARE saying that your highest value customers – that 20% of your base who make up 80% of your revenue – should receive email communications that are relevant and personalized to their behaviors and needs. And that happens when you’re deliberate with your email marketing, creating a smart segmentation strategy.
Sending the same email to everyone on your list is the equivalent of grabbing a bull horn and yelling “COME TALK TO ME” on a busy street corner. People tend to not gather round to hear more. They actually move away at varying rates of speed, and then the nice officers who remove your bull horn inform you that the majority of your audience has “unsubscribed” from hearing any more of your messages.
Contrast that with the smart marketer who not only knows the message and offer she wants to deliver, but identifies who she wants to affect with that information, and where to find them. This marketer gives a specially prepared presentation at a gathering of her small audience. Lo and behold, not only is she not removed from the premises, but a high percentage of this smaller audience agrees with the message, takes the action, and comes back to hear more. That marketer has discovered the value of targeting a small segment of people with the right message at the right time.
To access the complete report, including actionable next steps, check out our email segmentation benchmark report.