The Power of Segmenting: A Case Study

The Power of Segmenting: A Case Study

We talk a lot about the power of knowing your audience and segmenting your messaging. You can read our recent blog post, Personalizing Your Marketing Message, to get an overview. Today, we want to share a case study of how tailoring every interaction with your customers can result in a 200% increase in revenue over the course of just two weeks!

Our client has both an online store and a bricks and mortar location. We created a series of marketing automation emails for them which includes a welcome series, cart abandonment, and customer winback flows for customers who have previously shopped with the company but haven’t made a purchase in the last 90 days. Their previous winback series was one of their least successful flows, and we had a hunch that it was because the messages were too generic, and included a variety of products that weren’t based on the customer’s past behavior.

Segmented Vs. Generic

We set up three new winback flows which would be sent to previous customers who haven’t made a purchase in the last 90 days. We looked at their past purchasing behavior to put them into one of three segments: Spinning, Weaving, and a catchall for customers who don’t fall in either of the previous segments, which we labeled as General. Each sequence included two emails, with the second sending two weeks after the first, but only if the person didn’t make a purchase after the receiving the first email. The segments are mutually exclusive, so if a customer was already in one segment, they wouldn’t receive emails for another.

In each of the messages, the copy was slightly different, with content showing items specific to their preferred craft based on past purchasing behaviors. Each email was short, showing only products that had been selected for that segment. The General email had less specific copy, with a variety of popular products.

As shown in the chart below, segmented emails for Weaving and Spinning performed much better than the General segment, which proved our theory that tailoring your message to customer preferences results in better conversion rates. Although approximately the same number of emails have been sent for both General and Spinning, the Spinning email has generated more revenue. While the Weaving email has had fewer sends than the General email, it still has generated more revenue.

In the first two weeks of October, these three new Winback flows have generated 200% more revenue than the original generic Winback flow that the company was using throughout the month of September.

Are you convinced yet? If you’d like to harness the power of segmenting your message and connecting with your customers, contact Leanne today.

Mari Chiba Luke

Spend a few minutes with Mari and you quickly realize two things: she’s passionate about all things knitting and design, and she goes the extra mile for clients who appreciate her dedication and fresh insights. Mari also spearheads our pattern support program and manages the designer database. Mari has a BS in Economics from Northeastern University. She learned to knit while serving in the Peace Corps and began designing knitting patterns while teaching English in China. Her patterns have been published by yarn companies and Interweave Knits, Knitscene, The Unofficial Harry Potter Knits, Twist Collective, and Clotheshorse magazines. If she isn’t knitting she can be found outside frolicking in the woods or tending to her newborn. You can read her design blog at Mari Knits.

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