Many Australian SMEs know email marketing is valuable, but aren’t getting the results they deserve. Often, the issue isn’t *that* you’re emailing, but *who* you’re emailing and with what message. Segmenting your email list – dividing it into smaller, more focused groups – is the key to dramatically improving customer retention and boosting your return on investment.
Think about it: a loyal, repeat customer doesn’t need the same email as someone who just signed up for your newsletter. Sending irrelevant content annoys people and leads to unsubscribes. Effective segmentation ensures you’re delivering the right message, to the right person, at the right time. Here’s how we approach it with our clients:
- Purchase History: This is a powerful starting point. Segment customers based on what they’ve bought. Someone who regularly purchases premium products should receive different offers than someone who only buys sale items. We often see a significant lift in average order value when we target these groups with relevant upsells or cross-sells.
- Engagement Level: How often do people open your emails and click on links? Segmenting by engagement – highly engaged, moderately engaged, and unengaged – allows you to tailor your approach. Highly engaged customers might appreciate exclusive previews, while unengaged customers might need a re-engagement campaign to win them back.
- Lifecycle Stage: Where are customers in their journey with your business? New subscribers, first-time buyers, repeat customers, and lapsed customers all require different messaging. A welcome series for new subscribers is crucial, while a win-back campaign can reactivate those who haven’t purchased in a while.
- Demographic & Geographic Data: If you collect this information (and you should, ethically and with consent!), use it to personalise your messaging. Location-based promotions or offers tailored to specific demographics can be very effective.
Don’t feel you need to implement all these segments at once. Start with purchase history and engagement level – these provide the quickest wins. Most email marketing platforms (like Mailchimp, Campaign Monitor, or Klaviyo) make segmentation relatively straightforward. The important thing is to continually analyse your results and refine your segments based on what’s working. As you head into 2026, remember that customer expectations will only continue to rise, making personalised communication even more critical.
The outcome? A more engaged customer base, increased sales, and a stronger return on your email marketing investment. Your next step should be to log into your email marketing platform and identify the data you already have available for segmentation. Then, start building those lists!
