Email segmentation: definition, types, and best practices

Personalize, personalize, personalize. We all know it’s the key to great email marketing, but it’s one thing to know it and another to do it. That’s where email segmentation comes in. By grouping your email list properly, you set yourself up for targeting the right people with the right content. But what exactly is segmentation in practice, what email marketing software do you need, and how do you make sure you’re doing it correctly? Let’s break it down.

What you’ll learn

• What is email segmentation?
• Why is email segmentation important?
• What are the primary types of email segmentation?
• What are the key tools for email segmentation?
• What are the best practices for segmenting your email list?
• How can AI help you improve your email segmentation efforts?
• What’s next for email segmentation?

Email segmentation is when you organize your email recipients into smaller groups with the purpose of sending them relevant information. These targeted groups are typically based on behavioral or demographic data, such as geographical location, previous purchases, or specific actions taken on your website.

Let’s say I’m an avid fitness enthusiast living in California who recently subscribed to a fitness newsletter. The segmentation possibilities are numerous: California residents, new subscribers, fitness enthusiasts, and perhaps even those who have shown interest in specific types of workouts.

As someone in this segmented group, I could receive emails offering exclusive California-based fitness events, personalized workout plans for beginners (considering my recent subscription), or promotions on fitness gear tailored to my interests. This targeted approach creates a more engaging and relevant experience for me.

Segments can also be broad; for example, all the people who purchased a product through your business’s Instagram site. Either way, segments allow for more personalized and targeted content. Getting it right means more conversions and ultimately, a more satisfied customer base.

Imagine email segmentation as your marketing GPS — it guides your message directly to the right destination. By tailoring content to specific segments, you’re ensuring that your audience receives information that aligns with their interests, behaviors, and preferences.

If you’re a large fashion retailer with an upcoming sale on sneakers, you can send that announcement exclusively to the segment of your audience that has shown interest in athletic footwear. But don’t discount small businesses – they are players, too.

My local bakery, for instance, recognized that I loved their cinnamon rolls. What I noticed was that instead of inundating my inbox with irrelevant promos, they sent me a coupon for a free treat during my birthday month. Whereas I used to be a casual customer, now I’m a loyal one, and if I’m honest, it’s mostly because I felt as though they cared about who I am and what I’m into.

Segmentation allows you to speak the language of your customers. Different segments might respond better to various tones, styles, or even promotional offers. Loyal customers might appreciate an exclusive early access sale, while new subscribers might appreciate a welcome discount. Have you ever had an appointment reminder from your healthcare clinic? That’s segmentation. Shopping tips and other relevant content arrives in your inbox or via text message because of your history and preferences.

Email segmentation is about having a meaningful conversation with each member of your audience. And in the world of digital marketing, meaningful conversations translate to lasting connections and business growth. 

There are a few different types of email segmentations to get familiar with as you get started.

Demographic segmentation is sorting your email list based on attributes like age, income, gender identity, language, ethnicity, and more. Let’s take travel as an example. While it might sound like an oversimplification, one strategy is to start segmenting your list based on data about age groups. Younger subscribers could receive emails highlighting adventurous backpacking trips, while more mature subscribers could receive offers for relaxing cruises.

Behavioral segmentation is when you categorize your email recipients based on their actions and interactions – purchase history, website interactions, and engagement with previous emails. Let’s say your customer is a frequent purchaser of running shoes on your website. You’d segment them in a “Running Enthusiasts” category and then send emails featuring the latest running gear or exclusive promotions for the kinds of athletic shoes they like.

Now let’s say another subscriber is the opposite. They haven’t opened an email or made a purchase in a while. Once you’ve identified them as inactive, you have a chance to re-engage them through special offers aimed at reigniting interest. Now, if a customer consistently opens emails, clicks on links, and makes regular purchases, they might be placed in a “VIP” segment. This means you can send them exclusive access to sales, early product launches, or special discounts.

Geographic segmentation is when you tailor your email based on the location of your audience so that the content is (hopefully) relevant to local interests and events. If it’s wintertime, a clothing retailer might segment their audience by sending promotions to customers in extra cold regions. Shoppers in Alaska during November are likely more interested in down coats than shoppers in Miami, right? These types of targeted campaigns can lead to greater customer engagement and inspire recipients to take action.

Psychographic segmentation is all about lifestyle, interests, values, attitudes. If you’re a tech sales company and you’ve discovered a segment of gamers and another segment of professionals, you’ll want to tailor emails promoting the latest devices and accessories relevant to the gaming enthusiasts while sending updates on productivity tools and software to the segment interested in business applications. Each group feels “seen” as the content they receive resonates with their specific technology-related interests.

Customer lifecycle segmentation is about recognizing where your subscribers are in the customer journey. For new subscribers, the focus is on welcoming and onboarding, providing information about your products. First-time buyers may receive targeted emails about products similar to their purchase — they view items within their price range but with encouragement to explore.

For loyal customers, the emphasis shifts to appreciation and retention, offering exclusive rewards, early access to sales, or personalized content, all of which strengthens the buyer-seller bond by rewarding their loyalty and making them feel like VIPs.

Waterfall segmentation prioritizes segments based on importance, placing customers in one segment at a time. To avoid annoying customers with too many messages, individuals move through segments sequentially, starting with the highest-priority segment.

For instance, a software company might prioritize segments such as “Free Trial Users,” “Active Subscribers,” and “Upcoming Renewals.” By taking one step at a time, you won’t overwhelm anyone, and your messaging stays on point for the people who matter the most.