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Improve sales conversions with segmented email lists

May 8, 2007

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According to an Internet Retailer study performed by Vovici, eCommerce merchants and eTailers could greatly improve their online sales and conversion rates by utilizing segmented email lists.

Overall, about 40 percent of respondents said that their email campaigns yielded conversion rates of only 2 percent or less.

Additionally, Vovici also noted that approximately 43 percent of respondents didn't segment their email mailing lists, which could have contributed to the lower conversion rates.

Correctly identifying email recipients by age, gender, annual income, previous purchase history and other criteria can generate substantially better marketing campaigns.

Furthermore, a Marketing Sherpa study underlined the usefulness of segmentation in today's competitive eCommerce segment. Online marketers who used advanced email techniques such as dynamic content, A/B offer testing and list segmentation by user details had significantly higher CTRs (click-through rates) than those who didn't.

Also, Internet Retailer noted that Fossil segments its email lists by shopper categories and demographics, and that its average order now has about 1.5 items in the shopping cart at checkout compared with a previous average of about one.

"Overall, email lists constitute one of our bread-and-butter marketing tools, but we also need to do a more effective job at analyzing the messages we are sending out and the responses," said John DeCaprio of Fossil. He added "when it comes to email marketing lists, we were constantly looking at different ways to minimize list fatigue."

Another point for email marketers to carefully consider is the type of email they send. If the goal is to make sales, which is especially important for online retailers, then a campaign may need more transactional emails.

A Skylist survey found that among all U.S. email marketers, promotional and transactional emails were far down the list of the most common types used today.

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Source: eMarketer

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