5 Segmentation Strategies for Re-Engagement Campaigns

Segmentation is the key to successful re-engagement campaigns. Instead of sending generic win-back emails, divide your audience into specific groups based on behavior and preferences. Why? Segmented campaigns can increase revenue by up to 760% and generate up to $36 for every $1 spent. Here’s a quick overview of the five strategies to re-engage inactive subscribers:

• Time Since Last Email Open: Target subscribers based on how long they’ve been inactive (e.g., 90, 120, or 180 days).
• Past Customer Orders: Use purchase history to send personalized offers, replenishment reminders, or cross-sell recommendations.
• Customer Age and Location: Tailor content to age groups and geographic preferences for higher relevance.
• Shopping Pattern Analysis: Leverage Recency, Frequency, and Monetary (RFM) data to create targeted campaigns.
• Length of Subscriber Inactivity: Adjust incentives and messaging based on how long someone has been disengaged.

Email Segmentation - Best Ways to Segment Your Emails

1. Time Since Last Email Open

Divide your subscribers based on when they last opened an email to create targeted re-engagement campaigns. Email lists naturally lose engagement over time, so tracking opens can help you pinpoint levels of inactivity among your audience.

However, with MPP inflating open rates, it’s smarter to focus on clicks. For re-engagement campaigns, prioritize subscribers who haven’t clicked in three months.

Here’s a quick guide to segment subscribers based on inactivity:

Timing-based segmentation works wonders. For example, Island Olive Oil Co. used timing-based automations for their "at risk" subscribers and achieved a 27% conversion rate .

"Segmentation takes email from a promotional broadcast into a targeted conversation. Every customer gets messages that genuinely matter to them, driving a better ROI for your business." - Evaldas Mockus, VP of Growth at Omnisend

Key Tactics to Get Started

• Resend within 24 hours: If someone doesn’t open your email, try sending it again within a day. According to Mailchimp, waiting longer than 48 hours could lead to higher unsubscribe rates .
• Track clicks, not just opens: This helps you identify genuinely engaged subscribers.
• Tailor your incentives: Adjust offers based on how long someone has been inactive. The longer they’ve been disengaged, the stronger the incentive you may need to bring them back.

Spotify nailed this approach by combining email verification with segmentation. They reduced their bounce rate from 12.3% to 2.1% in just 60 days and generated $2.3M in extra revenue through improved deliverability.

2. Past Customer Orders

Using purchase history can significantly improve the success of re-engagement campaigns. Data shows that remarketing to previous customers has a success rate of 60-70%, compared to just 5-20% for acquiring new customers. This makes order history a powerful tool for reconnecting with inactive subscribers.

Personalization Strategies Based on Purchase Data

Analyzing purchase history allows businesses to create messages that feel tailored to each customer. Here are some ways to put this data to work:

For example, Adidas combines data from its ESP (Email Service Provider) with e-commerce insights to recommend items that "complete the look" based on past purchases. This approach strengthens their segmented re-engagement efforts and keeps customers interested .

"Pulling information and crafting personalized messages means your customers are going to see more than just an abandoned-cart email. It can let them know about price drops, loyalty rewards, related products, and local deals - all things that matter specifically to them."
– Liz Froment, Content Writer at Zembula

Timing and Frequency Optimization

Purchase data also helps fine-tune the timing and frequency of re-engagement efforts. Understanding customer buying habits is key. For instance, frequent buyers may respond well to updates about new products, while occasional shoppers might be more drawn to big promotions .

Tips for Effective Purchase-Based Segmentation:

• Use purchase frequency to determine how often to send messages
• Align promotions with seasonal trends for better timing
• Focus on specific product categories for targeted cross-sells
• Adjust offers based on the value of previous purchases

A great example is Burberry, which uses past order data in its abandoned cart emails. By showcasing complementary products, they keep customers engaged without overwhelming them .

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3. Customer Age and Location

Relevance is a major driver of email revenue, accounting for 58% of it. In fact, targeted campaigns based on demographics can increase revenue by up to 760% .

Age-Based Targeting Strategies

Different age groups respond to distinct styles of messaging. Here's a quick breakdown of how to approach each group:

Accenture reports that 91% of consumers are more likely to shop with brands that offer personalized recommendations and remember their preferences . Adding geographic context to this mix can make your campaigns even more tailored.

Geographic Personalization

Geography is another powerful way to make your emails more relevant. Smart location-based targeting can boost click-through rates by 13% . When segmenting by location, try these tactics:

• Regional Climate: Suggest products suited for local weather conditions.
• Cultural Context: Reference local holidays or traditions in your messaging.
• Language Preferences: Send content in the subscriber's preferred language.
• Local Events: Promote nearby store locations or region-specific deals.

"When you speak to everyone, you speak to no one." - Meredith Hill

This quote hits the nail on the head - generic campaigns often fail to connect. Combining age and location data lets you craft messages that feel personal and relevant.

Privacy-Conscious Personalization

When using demographic data, it's crucial to maintain trust. Campaign Monitor advises: "Be sensitive with demographic data. Use it only when truly relevant and always in a way that makes subscribers feel understood, not stereotyped" .

To balance personalization with privacy, follow these best practices:

• Collect only the demographic data you actually need.
• Use data to improve the experience, not to exploit it.
• Regularly update subscriber preferences to keep them accurate.
• Test different strategies for each segment.
• Track engagement metrics to fine-tune your approach.

4. Shopping Pattern Analysis

To re-engage customers effectively, consider using RFM analysis. This method - focused on Recency, Frequency, and Monetary value - is a proven way to segment inactive shoppers and develop targeted strategies .

RFM Segmentation Framework

The RFM approach helps categorize customers based on their shopping behavior. Here's how it works:

Tools like Mailchimp simplify this process with predefined segments like "High-value customers" and "Lapsed Customers", making it easier to target specific groups .

Customizing Incentives for Shopping Habits

Not all customers respond to the same approach. Adjust your re-engagement strategies based on their shopping patterns. For example:

• Glow Recipe uses past purchases to suggest personalized recommendations. When data is limited, they highlight best-sellers .
• Native fosters a sense of belonging by offering unique status levels like "cucumber connoisseur", giving customers a sense of exclusivity .
• Outdoor Voices creates memorable touchpoints with offers like personalized half-birthday discounts, adding a creative twist .

These tailored strategies can be further enhanced with advanced segmentation tools.

"Segmenting empowers personalized, high-performing campaigns and preserves profit margin. RFM Analysis provides a rubric to score each customer and identify high ROI segments." – Barilliance

Advanced Segmentation Techniques

Platforms like Twilio Segment allow businesses to create custom audiences, perfect for lookalike targeting (requires at least 1,000 customers) . This approach builds on RFM analysis by using precise purchase patterns to refine targeting.

To make the most of these techniques:

• Define clear RFM thresholds (e.g., use quartiles).
• Factor in product lifecycles for better timing.
• Continuously track performance and adjust tactics as needed.

One Barilliance client saw a 20% revenue boost after introducing targeted popup campaigns based on shopping behavior . This shows the power of combining segmentation with data-driven insights.

5. Length of Subscriber Inactivity

Targeting subscribers based on how long they've been inactive can fine-tune your re-engagement strategy.

Segmenting by inactivity helps you adjust the urgency and type of incentives in your messages.

Inactivity-Based Segmentation Framework

Different inactivity periods require different approaches. Here's an example framework:

Aligning Messages with Inactivity Duration

Adjust the tone and intensity of your messages based on how long subscribers have been inactive. Tools like Mailchimp allow segmentation using contact ratings and interaction data to create more precise campaigns .

To implement this effectively:

1. Define inactivity through metrics like open rates, clicks, purchase history, and site visits.
2. Ensure consistent messaging across multiple platforms .

"It's helpful to identify and segment your inactive subscribers, so you can send a re-engagement email or text message to win back their interest."
– Mailchimp

Advanced Strategies for Re-engagement

For subscribers who've been inactive for a while, consider these tactics:

• Preference Updates: Allow subscribers to adjust their email preferences .
• Feedback Surveys: Gather insights on why they've disengaged .
• List Cleanup: Remove subscribers who remain unresponsive after multiple attempts .

Evaluating Re-engagement Efforts

Keep an eye on these metrics to measure the success of your campaigns:

• Open rates segmented by inactivity period
• Click-through rates
• Conversion rates from re-engagement campaigns
• Improvements in engagement after cleaning up your list

Conclusion

Segmentation has the power to increase re-engagement revenue by up to 760% . It’s a game-changer for reconnecting with inactive subscribers.

Impact on ROI and Customer Retention

Did you know it’s up to 25 times cheaper to retain a customer than to acquire a new one ? As consumer behavior evolves, personalization has become a key factor. Today, 60% of consumers become repeat buyers after experiencing tailored shopping interactions - up from 40% in 2017 .

Measuring Success

To evaluate how well your re-engagement strategies are performing, keep an eye on these metrics:

These numbers highlight how segmentation can dramatically improve the outcomes of your campaigns.

Tools and Implementation

Using modern email service providers (ESPs) and resources like the Email Service Business Directory can simplify the process of segmentation. The Directory helps you identify the right tools to efficiently implement the strategies outlined here.

"Relevance is one of the most powerful ways to organically boost engagement. That's because content that matches readers' interests stands out and attracts more clicks and conversions." – Campaign Monitor

With advanced ESPs, segmentation becomes easier to execute, improving both deliverability and engagement. Automating these processes allows you to scale personalization and run highly targeted re-engagement campaigns with precision.

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• 10 Ways to Segment Email Lists by Engagement
• How to Target Email Campaigns by Engagement Metrics
• Best Practices for Re-Engagement Subject Line Testing