However, some marketers are much better at understanding their customer personas and doing the right kind of research than others.
What is comes down to is that delivering a single message to your entire customer base is an inherently flawed strategy. High-value customers, frequent browsers, seldom purchasers, brand enthusiasts and first-time visitors are all differently characterized and must be engaged uniquely.
This is where customer micro-segmentation comes into play.
When trying to boost conversions, whether it’s on a signup screen or a landing page, it’s a default for many optimizers to generate hypotheses based on best practices and what’s generally “known” to be a problem.
A landing page that doesn’t display well on mobile is a perfect example. Someone might shout “it’s not responsive” and then resize the page properly for mobile use.
But that won’t solve the real issue… because the truth about most low converting landing pages on mobile isn’t just that they don’t resize properly, but that they have been written, designed, built… with no mobile context in mind.
In his famous novel, 1984, George Orwell wrote, “Big Brother is Watching You.”
When you’re browsing around online, someone is watching you, too. Actually, a lot of someones. Sites collect plenty of data about each and every visitor that passes through. “The more data, the better,” they say.
But you’re already well aware of that because all smart optimizers are watching their visitors (and customers) as closely as possible.
All of that data is now being used for website personalization in an effort to increase conversions. But, by their own admission and according to consumer opinion, it seems that companies are getting personalization all wrong.
The two main reasons behind losing subscribers are:
They change their email address.
Your content is no longer relevant to them, so they stop opening your email or they unsubscribe.
The first case is just your bad luck. Perhaps the subscriber was using their work address and got a new job, or they got bored with their username and got a new one. Not much you can do about that.
But, you do have control over email engagement & how relevant your content is.
Cassie Lancellotti-Young – VP of Client Optimization for Email service provider Sailthru.com – says their data shows email engagement is mission critical in the first 30 days. That’s when subscribers learn if your email strategy aligns with their expectations & decide if you’re really worth their time.
Because of this, Sailthru recommends developing a compelling customer onboarding series within those first 30 days, and aim keep unsubscribes under 3%.
In this article, we’ll discuss a 3-step framework and 5 strategies to help you keep email engagement up in those first 30 days and beyond.
Along the way, we’ll explore research and relevant case studies to help you get those hard-earned leads back into your marketing funnel.
Let’s get started.
Step 1 – Simplify Your Entire Email Messaging
Let’s start by considering this Princeton study titled “Decision Making and Avoidance of Cognitive Demand” that confirms people are inherently lazy: we have a tendency to choose the action that requires the least energy.
How does this relate to your emails?
Nowadays, the inbox is a very crowded place. In a “limited & biased toward gMail” study on PandoDaily an analysis of 38,000 inboxes found that 30% of people have between 10k – 21k emails in their inboxes.
That requires a lot of attention to manage. So know that when your reader opens your email, they’re already suffering from some degree of email fatigue.
Simpler emails are more suited to the smaller screen sizes of mobile devices. You can no longer assume that everyone is using a desktop computer.
Sidenote: Research from Litmus also shows that 97% of people read emails only once & on a single device.
If 2/3rds of people are opening on mobile & your email strategy is grounded in people reading free content (like this article) wouldn’t that mean the phone isn’t necessarily the best device for article consumption?
Increase the chances of your mobile email openers to return to your content by including a “read later” icon like Instapaper or Pocket.
Recalling that people are inherently lazy, simplify your emails by reducing everything down to the absolute essentials – including an easy way to come back to the content later if they want to.
Step 2 – Create Targeted Segments Around Individual Experiences
A few years ago, CRM enjoyed a brief moment in the spotlight when a father revealed that Target knew his daughter was pregnant before he did:
Let’s put the alarmist tone aside for a moment and put on our marketing hats: this is Target putting segmentation to work.
Let’s also view it from the customers’ perspective: imagine yourself as someone who is newly pregnant.
You need pregnancy products. Target sends you a package with coupons for the pregnancy products that you need. Is that relevant? Does it align with your interests? Do you open the package?
People have different expectations based on the relationship they have with your product, so when your list is big enough, you should tailor your communications accordingly. Some ideas:
Send exclusive content to big spenders
Send offers related to previous purchase history
Send discounts and coupons to people who haven’t purchased anything (but actively browse the site)
Send demographic-appropriate content
Create segment for inactive subscribers
While it can be time-consuming to set up segments, doing it successfully means that you’ll enjoy a metrics boost across the board:
Every email list is different, so be wary of using other peoples’ data to plot your strategy. You can, however, use your own data to make educated decisions about when to send.
Take this graph of “open times” for example. It’s fairly obvious that 4pm, 9am and 8pm are prime times for emailing people on this list.
This is why it always comes back to knowing your customers. Let’s say you run site that caters to business women with young children.
Instead of saying “Send to them all at 9am because studies show that’s the best time to mail!”, you’d say:
“This segment is mostly American working mothers who have 2 school-age kids, so their mornings are probably spent driving their kids to school then hurriedly getting to the office.
They already have high stress levels when they get into the office and have work emails to attend to. However, they’ve got a few minutes to themselves after lunch. I’ll test sending my email at 1230pm EST.”
In a “send time” experiment by MECLABS last year, they A/B tested which time of day would get the most response from a finance client’s email list.
They hypothesized that sending at 3:00am would be effective because it was taking advantage of being first in the inbox whereas sending at 3:00pm subscribers would be deep in the “work” mindset.
Everything about the AM & PM emails for each day, except the time of day they were sent. What they found was that the 3:00pm email consistently outperformed the early morning email.
For more in-depth detail on this experiment, go here.
Here are a few more strategies to consider when creating segments to keep your lists active.
1. Test Sending Immediately After They Subscribe
Lumosity observed their conversion rates as they tested two email cases: the first, where they sent an email on the same day as registration; the second, where they scheduled the emails for Tuesdays or Thursdays – days commonly tagged as the best days to send emails.
This “I want it now” behavior is reflected in a lead contact by phone analysis done by InsideSales that found response time to phone calls drops dramatically between the 5-10 minute mark.
Could it be that when someone signs up by email, they’re signaling they want something right away?
If we promise & deliver instant gratification on our email optins, might we also see a boost in responsiveness? The data seems to indicate “yes”
2. Personalize Content Based On Usage History
If you’re a CXL reader, I imagine you’re probably already using at least some of the basic email segmentation tactics we’ve already talked about (big spenders, unengaged, etc)
“(The study) also found that product personalization, in which customers are directed to products that their past purchasing patterns suggest they will like, triggered positive responses in 98 percent of customers.”
Spotify, for example, does this whenever someone adds music to a playlist you follow, or when an artist you like adds new music to the service.
Modcloth does this by letting you know items in your abandoned cart are nearly out of stock.
3. Separate Work Emails From Personal Emails & Experiment With Send Times
Do This: Segment your list into corporate and personal domains (Gmail, Yahoo, etc).
Now, experiment with sending to the corporate domains during business hours and personal domains on weekends and non-work hours.
Pacific Shaving Company tried this stagger strategy for their Christmas and Valentines campaigns and saw tremendous results in their conversion rates: 87% and 58%, respectively.
This can be extremely effective if you’re respecting the environment your subscriber is in when they receive the message.
Moreover, separating your “business” clients from your “consumer” clients can help you to identify even more profitable segments (or partnerships) further down the road.
Imagine how much more effective an email like the one below could be if it were sent only to branded email addresses.
4. “Re-activate” Inactive Email Subscribers Then Clear Out Non-Responders
Earlier, we talked about SwayChic’s reactivation campaign and how it contributed to 40% increase in overall opens, but what impact does reactivation have on revenue?
They also found that the costs associated with re-activating customers were significantly lower than acquiring new ones, making the margins on a reactivation significantly higher.
What about the customers who don’t reactivate?
Ask them to unsubscribe. Though it may seem counter-intuitive, your open rates will be higher, you click through rates will be higher & your marketing metrics will be more reflective of your efforts. Not to mention you won’t be paying for people who won’t actually convert to buyers.
5. Consider Switching Your Email Marketing Provider
Choosing a vendor that’s a good fit allows you to focus more on your content, resulting in higher-quality emails that drive results.
How do you know it’s time to consider switching?
You spend too much time trying to use it
You need functions they don’t offer, or it’s a pain to use the functions you need. For example, scheduling and staggering emails is incredibly easy for some vendors, and incredibly difficult in others.
You have outgrown “standard” email marketing solutions
Your segments are getting out of control, or you have the problem of having “too many” leads. In this case, you’ll want to look into marketing automation software like Hubspot, Infusionsoft, Eloqua or Marketo.
Don’t be complacent, always look at the best fit for your needs.
Conclusion -To Keep Your List From Shrinking, Always Be Testing
As we’ve seen from the above examples, successful companies take the time to deeply understand their customers’ behavior. Armed with that knowledge, they then constantly run experiments to improve their email metrics.
Always test and get your own data. It’s useful to use frameworks such as these and look at results from other companies, but treat them as a general guideline. Your list will have its own unique characteristics that you can use to your advantage.