Will Segmenting Your Subscrbers Bring You More Profits?

My rule is; make sure I am selling a high value product at a fair price (makes for happy buyers). Take those buyers add add them into a new list. Continue to provide them with valuable content for free with offers every now and then. The more they trust you, the more they will buy from you and at a higher conversion. Non-buyers will just continue to want to get free content so they remain in a separate list until they buy.

I've done some work with some major companies in the offline world and learnt a hell of a lot about segmenting and its advantages.

The basic reason to segment is to split the high frequency buyers from the low frequency ones. The reason for this is to save costs, and make the high frequency people feel special by giving them exclusive offers (and telling them they only get this offer as they are a regular buyer - providing of course it is true)

90% of buyers make 10% of profits in almost every large company I have consulted for so segmenting allows them to keep those customers close and make them feel special.

Internet marketers miss this trick, and simply assume that since it is cheaper to send emails, that they do not need to segment.

My recommended segments for people I coach (not a final list but a get started list):

Segment 1) Buyers

Split Buyers into :
1) High Frequency - Once a week or one out of every 2 products you promote

2) Mid frequency - Once out of every 5 or 6 products you pr0mote

3) low - Have only brought once

You do exactly the same thing with segment 2) Click response for non buyers

The idea is to treat those that click regularly better, so that they feel special and have a reason to keep clicking. If you do not give them motivation to keep clicking they will simply fade away.

The other advantage of segmenting is that it reduces costs, and those that click less are mailed less so ratio of clicks to sends remains high.

Its a little complex then this, and I usually spend a few hours with IM clients helping them segment but I hope you get a basic idea.

I segment my lists whenever possible.

The big reason for doing this is... relevance.

If you send people more relevant messages more
of them will tune-in to what you have to say and
what you have to offer.

Conversely, if you send people less relevant e-mails,
they'll begin to tune-out of what you have to say
and your list response will decrease.

People who don't segment their lists are sloppy
practitioners of Internet Marketing.

Pros segment their lists.

The goal is to send the right message, to the right
person at the right time.

You can't do that by treating everyone on your list the
same way.

I segment by the subject interest and behavior of the
subscriber.

This improves the relationship and buying behavior of
my subscribers because I'm responding to them directly
based on their specific interests and behavior.

I send them more of what they want, when they want it.

Dedicated to mutual success,

Shaun