Online Retailers And Segmented Email

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Internet retailers who use email to reach customers could improve their sales by using segmented email lists, according to an Internet Retailer survey analyzed by Vovici.

Around 40 percent of respondents said their email efforts returned conversion rates of 2 percent or less.

Vovici found that 43 percent of respondents did not segment their mailing lists, which may have been a factor in the low conversion rates.

Being able to break down email recipients by age, sex, annual income, past purchase history and other information can yield better campaigns.

A MarketingSherpa study supported the use of segmentation. Marketers who used email tactics such as dynamic content, A/B offer testing and segmentation by user details had more click-through rates than those who did not.

Internet Retailer pointed out that Fossil segments its email list by shopper categories and demographics, and has seen its average order increase from one item in the shopping cart at checkout to 1.5.

John DeCaprio of Fossil said, "e-mail is one of our bread-and-butter marketing tools, but we need to do a better job analyzing the messages we are sending out and the responses."

"When it comes to e-mail marketing, we were constantly looking at ways to minimize list fatigue."

"E-mail will continue to grow as a marketing vehicle, particularly as direct marketers look at even higher postage rates," says Jordan Ayan, CEO of SubscriberMail LLC, an email service provider.

"But a bigger program won’t necessarily deliver better results if a retailer just takes a one-size-fits-all approach.

"If only 60% of a campaign is being delivered, the other 40% is a huge missed opportunity."

Email marketers should also consider the type of email they send.

A survey from Skylist found that the most common type of email used by marketers were newsletters and B2B.

It suggests that promotional and transactional emails could improve sales for online retailers.


Online Retailers And Segmented Email
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