What is Over Segmenting?
Over segmenting occurs when marketers divide their email lists into too many small segments. While segmentation is essential for delivering personalized and relevant content, over segmenting can lead to several challenges and inefficiencies.
Why Do Marketers Segment Email Lists?
What Are the Risks of Over Segmenting?
1. Resource Drain: Managing too many segments can be a logistical nightmare. It requires more time and effort to create customized content for each small group, often without a proportionate return on investment.
2. Diluted Data: With too many segments, the data becomes fragmented. This makes it harder to draw meaningful insights or make data-driven decisions.
3. Inconsistent Messaging: Over segmenting can lead to inconsistencies in your brand's messaging. Different segments might receive different messages, which can confuse your audience.
4. Reduced Deliverability: Smaller segments might result in fewer interactions per email campaign, which can negatively impact deliverability rates. Email providers may see the low engagement as a sign of spammy content.
How to Identify If You're Over Segmenting?
1. Too Many Segments with Few Subscribers: If many of your segments contain only a handful of subscribers, it’s a sign you might be over segmenting.
2. Low Engagement Rates: If your highly segmented campaigns are not yielding better engagement rates compared to broader campaigns, reconsider your strategy.
3. Content Creation Struggles: If your marketing team is struggling to keep up with the content demands for each segment, it might be time to reduce the number of segments.
How to Avoid Over Segmenting?
1.
Prioritize High-Value Segments: Focus on segments that show clear differences in behavior and have enough subscribers to justify the effort. For example, segmenting by
purchase frequency or
customer lifetime value might be more effective.
2. Test and Iterate: Use A/B testing to determine if more granular segments actually yield better results. If not, consider merging some segments.
3.
Use Dynamic Content: Instead of creating separate emails for each segment, use
dynamic content blocks within a single email to personalize sections based on subscriber data.
4. Benchmark Performance: Regularly review the performance of your segments. If certain segments consistently underperform, it might be worth combining them.
Examples of Effective Segmentation
1. Behavioral Segmentation: Group users based on their interaction with previous emails or website behavior. For example, those who clicked on a product link versus those who didn’t.
2. Demographic Segmentation: Tailor messages based on age, gender, or location. This can be particularly useful for promotions that are geographically specific.
3. Lifecycle Stage Segmentation: Customize emails based on where the customer is in their buying journey—new subscribers, active customers, or lapsed customers.
Conclusion
While segmentation is a cornerstone of effective email marketing, over segmenting can dilute your efforts and strain resources. Focus on high-value segments, use dynamic content to personalize at scale, and continuously benchmark your performance. By striking the right balance, you can deliver relevant content without falling into the trap of over segmentation.