January 16, 2023

Article at Kate on Authory

Using Segmentation to Optimize Holiday Email Campaigns

Email is one of the most popular channels for holiday marketing campaigns because of its strong ROI

That’s why it’s crucial to think strategically about how your holiday email campaigns can stand out from all holiday messaging your leads are getting from various brands.

Let’s dive right in to explore effective means of holiday marketing and the best ways to optimize your email campaigns with segmentation.

What is Segmentation, and How It Increases Conversions?

Segmentation divides a broad audience into smaller subsets based on various factors like geography, demographics, or interests. This type of division makes it easier for you to reach a specific group of people who are more likely to purchase your products or services.

With the right segmentation strategy, you can reach an ideal audience for your business and increase your conversion rates.

Different Types of Segmentation

There are four main types of audience segmentation you should consider: geographic, demographic, psychographic, and behavioral.

Geographic Segmentation

Geographic segmentation is the simplest type of audience segmentation. It basically categorizes customers based on the geographic borders they’re located in.

Examples of geographic market segmentation include:

  • Country
  • City
  • Zip code
  • Radius around a specific location
  • Urban or rural area
  • Climate 

Demographic Segmentation

Demographic segmentation is definitely one of the most popular and frequently used types of audience segmentation. It gives you statistical data about a specific audience.

Examples of demographic audience segmentation include:

  • Gender
  • Age
  • Education
  • Ethnicity 
  • Family situation
  • Income 
  • Location

For example, a luxury car brand may choose to target an audience aged 35+ with high income.

Psychographic Segmentation

Psychographic segmentation classifies customers based on factors related to their characteristics and personalities.

Examples of psychographic audience segmentation include:

  • Interests
  • Motivations
  • Priorities
  • Lifestyles 
  • Personality traits
  • Attitudes
  • Psychological influences
  • Conscious or subconscious beliefs

Compared to demographic segmentation, psychographic segmentation factors are a little more difficult to identify as they can be subjective. Psychographic segmentation isn’t data-driven and requires research to understand it.

For example, a brand selling luxury cars may choose to target customers who prioritize comfort and status.

Behavioral Segmentation

We’ve seen that demographic and psychographic segmentation focus on who a customer is. On the other hand, behavioral segmentation focuses on customers’ actions – it requires you to understand your customer’s actions.

Examples of behavioral audience segmentation include:

  • User status
  • Spending habits
  • Purchasing habits
  • Brand interactions

These activities usually relate to how a customer interacts specifically with your brand or to other activities happening outside of your brand.

For example, a brand selling luxury cars may choose to focus on customers who have purchased an expensive vehicle in the past four years.

Create Automated Workflows for a Holiday Season

Understanding different segmentation types and creating a strategy around it is one thing, but actually implementing it is another.

What’s good, targeting different segments of your email contacts is much easier than it sounds. In fact, most email marketing platforms help you easily create segments out of your email list and create automated workflows to target your segmented audiences.

Let’s move on to discover three of the most effective targeted holiday automation workflow ideas you can use right now.

3 Best Holiday Targeting Automation Workflow Ideas

But what are some specific examples of holiday targeting automation workflows, you may ask. Here are three of the best ideas you can implement to get the most out of your email campaign this holiday season.

1. Set Up Abandoned Cart Workflows

Setting up an abandoned cart email workflow is more crucial than ever during the holiday season. It’s a way to retarget those people who have previously abandoned their carts and convert them into sales before your competitors do.

2. Target Warm Leads Using Lead Scoring

Most email marketing platforms automatically track user actions like email opens and clicks and let you enable lead scoring based on this data. Lead scoring gives you information about which contacts are most engaged so you can tailor your holiday email content accordingly.

3. Use a Seasonal Welcome Email

You’ll probably get new email subscribers during the holiday season too. To get the most out of your email marketing, set up a welcome email with a special holiday theme and discount. This can help customers decide to shop with your company.

Ready to Use Segmentation to Optimize Holiday Email Campaigns?

Now that you know what segmentation is and how powerful it is, it’s time to act upon this information and optimize your holiday email campaigns.

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