Go back

The Importance of Market Segmentation

42m 27s

The Importance of Market Segmentation

This episode of the Email Einstein podcast, hosted by Vira Sadlek from Flowium, kicks off "Segmentation May" with guest Emil Christensen from Drip. The discussion centers on the importance of email segmentation and personalization in e-commerce marketing. Emil explains segmentation using a physical store analogy, categorizing customers into Potentials (non-buyers), Casuals (first-time buyers), Core (repeat buyers), and Champions (loyal customers). He emphasizes that personalized communication is essential, as generic emails lead to customer frustration. Strategies include tailoring messages based on purchase intent—for example, offering discounts to high-intent subscribers while educating low-intent ones about the brand. The conversation highlights using email as a dialogue to gather zero-party data and stresses a shift from transactional, channel-focused marketing to a customer-first approach that prioritizes retention and consistent omnichannel experiences. The goal is to build long-term customer relationships rather than just chasing immediate sales.

Transcription

7514 Words, 40024 Characters

English
Feel like your emails should be doing more, get a free email marketing strategy review from the experts at Flowium. We'll analyze your opt-ins, compare your conversion to industry benchmarks, and deliver actionable advice that drives growth. Start now at Flowium.com/audit. Welcome to email Einstein, a podcast by Flowium. It's time to start honoring your inner marketing Einstein, tune in for the data-driven tips that'll make you a marketing genius. Here you'll find email marketing formulas and tips straight from the brilliant mad scientists at Flowium. It's time for your emails to start earning more money. It's time to unleash your Einstein. Hello, hello everyone and welcome back to email Einstein, the podcast by Flowium. I'm your host, ViraSadlek, and I'm very passionate about email marketing. And here at Flowium because we love what we do, we want to share our insights with you. And today, it's a first episode of our segmentation may. Yes, you heard it right, segmentation. That's the months where we will be talking all things segmentation. We might have invented this holiday here at Flowium and a big shout out to our girl Lexi for coming up with this holiday. But yeah, the basic with the idea is that the entire month of May, we will be discussing all things segmentation. And I know this is like one of your favorite topics, guys. Every time we post something segmentation related, you love it. So I hope you will enjoy this one as well. We have a very special guest with us today. And I'm thrilled to say that our episode will be the perfect introduction into the months of segmentation. And today we will be talking about big stuff, about big segmentation stuff, and discussing the different email marketing segmentation strategies for various stages of your marketing funnel with Emil Christensen from Grip. Say hi Emil. Hello. Nice nice to be here. Yeah, we are very, very excited to have you here. And for those of you who don't know, Emil is a CMO of Drip and co-founder of Sleepnote, which by the way, Drip recently acquired. He's also a co-host of the biggest Scandinavian marketing podcast, marketing brief, and we will link his podcast in the description box to this podcast as well. Guys, it's going to be an exciting episode. Buckle up, grab a cup of coffee, or tea or whatever, and let's dive in. Okay, Emil, I'm really excited for today's episode. Yeah, meet you. Meet you. I feel like segmentation. Oh, it could be super nerdy. Or we could, yeah, we could talk about this for hours. We love nerdy stuff. I mean, we are the biggest email marketing nerds here. So bring it on. Before we go there, though, let's play a little this or that kind of game just to get to know you better. Okay. Let's do it. Cool. Cool, cool, cool. Let's do this. Okay, tea or coffee? Coffee. Free shipping or 10% of discount. Oh, that depends. But mostly free shipping. I'm a discount kind of girl. Yeah, give me a good discount and I'm there. Cool. Okay, Instagram or TikTok for influencer marketing? I think I'm mostly Instagram. I can't really say I'm on TikTok yet. So I think I have to go with Instagram here. Okay, rating by price or by popularity? Popularity. 100%. Yes. Okay, user-generated content or professionally shot product photography. Oh, I'm a big one for user-generated here. Always. Yeah. Yes, that's a good one. That's a good one. Email or SMS? Email, of course. I have to say email, right? You might be biased, right? Kind of biased. Both of us. Okay, if there was a song playing every time you entered the room, sort of like your theme song, what would it be? Wow. Okay, that was a new one. Apart of me, one is to say Dancing Queen, but I'm not sure if I'm. That's a good one. That's it. That's a popular one, right? It's perfect one, I think. It's amazing. It's amazing. A new being from Scandinavia. Not exactly from Sweden, but I think it's like. It's close enough, right? You know. Close enough. In some countries, like Scandinavian is one country, so I would still them. Yes, amazing. It's amazing theme song. Agreed. Agreed. Okay, amazing. So let's go to all of the juicy email stuff. So before we go there, briefly, can you explain what is drib.com and what it does in SimpleTarbs? Yeah, this doesn't have to be an ad for drib and it isn't at all. So I will make it super short. Like drib, we've existed for like nine years now. We're marketing automation platform for e-commerce. We're building mostly towards being a CIM for e-commerce. I'm sure that's something we're going to talk about today. Not in the drib context, but segmentation context. We try to help our customers kind of understand their customers. And we do truly believe that to do good marketing, you kind of have to understand your best customers. So we kind of divide that into no, think, do, and learn. And I'm sure we're going to talk more about that later on as well. So that's kind of the brief version of it. Dripp has existed in a long time, but we're about 150 people here. We love email. We love SMS as well. We love marketing automation and kind of nerds for it. So drib is mostly built by and nerdy engineers in the beginning. And so now we're kind of trying to simplify a lot of the system for all users. Amazing. Amazing. And I've never heard this like sequence. No thing to learn. I mean, that's what we do a lot of times, but I never, I never thought of this sort of like form of it. That's interesting. So let's start with like a big picture. Email segmentation. It's like no secret that personalization hold the key to like success in email marketing, but not all personalization is equally valuable. So how do you, how do you decide on segmentation on different stages of customer journey? And how segmentation actually, yeah, how segmentation is different for different customers? And how you know what this customer is. I know it's a loaded question. So we've just started from wherever you want, but I'm just like curious to learn about your way of thinking. Yeah, sure. I think you know, this episode we're more, we probably have to kind of divide it into if you're doing segmentation today versus if you're not doing segmentation. So we kind of start at a low level and build towards my more advanced and high level. So first of all, segmentation, you know, the obvious one is like simple, the most simple segmentation that I don't see a lot of e-commerce is just this is kind of sound that simple, but companies don't do it. Like have they bought from you or they haven't bought from you yet? Customers are non-customers. Like that's start there. If you haven't done that, start there. You kind of like if you go into I always kind of talk about this as if it was a physical store. If you had a physical store, you know, the corner store, if someone walks into the store and you haven't seen them before, how would you reach out, how would you talk to them, you would talk to them in a different language, you would show them other products versus someone that's been there 10 times over the last month, right? So that's kind of how I look at segmentation. Kind of look at it as if you had a store, a physical store. How would you treat segmentation from someone walks into the store? That's how you should look at segmentation in an online world as well to some extent. There's of course some limitations, some attribution limitations as well, but at the end of the day, you can start with customer non-customers. From there, you could take it 10 ways, but how we like to do it in drip is we like to see it as potentials, cashews, call, and champions. I'll explain more. So potentials for us, someone that haven't bought anything yet. Casuals, someone that bought from you the first time, call, are you repeat purchases and champions are the loyal, high spending, highly engaged subscribers on your list. There's three segmentation, there's three segments here and all three of them, there's four total segments and three of the segments is someone that already bought from you, right? And why is that? Well, I do truly believe that we are moving towards a more customer first marketing approach in marketing and journal. So it's not all about chasing the next transaction where this is something you've heard over the last five or six years, you know, here's 10 strategies to get your next customer, yada, yada, yada. At the end of the day, I do think if you don't start to think about an e-commerce context of like keeping your customer and making the buy from you again, then we'll lose sight of what's really important and we'll kind of go back to the e-commerce growth, kind of unsustainable kind of direction that I feel like we're going into right now. True, true. And I've read the stats and I was like really shocked by this number. 60, 70, sorry, 76% of customers who receive some sort of email communication from the brand, they feel frustrated when they don't receive personalised interactions. So it's just like you said, you don't want to be talking like the same way to different people. It's like, imagine like walking into the room full of people. They're like some of your best friends, some of people you've never met, some of the people who you met maybe once and it would be really awkward if you talked to the best friend of yours the same way that you would talk to the person that you just met and the customers are being frustrated with this like one size fits all communication and I didn't even realise it was a big thing but apparently the customers they do kind of expect more personalised approach from you as a brand. So that was like interesting that you pointed it out. And mail, so like how do you treat the customers who are just the potential I guess who are just getting into your less the thing of it as a top of the final subscribers. Like how do you segment those people? Are they all the same or do you have some like recommendations to segment them as well. Calling all founders, agency owners and CMOs, you can save time and cut hiring costs by up to 75% and hire the right fit every time. Connecta is a global recruitment agency with over 15 years of experience, helping businesses like yours hire top tier remote professionals quickly and affordably. From one role to an entire team, connecta helps you hire smarter, not harder. Visit connecta.com and get started today. I think potentials again and this is this is where we could go stupid deep. So each of these four segments here, you kind of have the classic marketing fly reel of attract convert light. Right. So you want to attract more of them. You want to convert those potentials that's there to being a first time purchaser. You want also to delight them to kind of create a like a positive experience from that entire journey that you're building for potentials. So how I look at potentials in general is like you can kind of see it as high intent low intent. That's the classic way of doing it in an e-com case as well. So high intent could be someone they had something in the card they didn't buy from you but they signed up to the newsletter. That's a classic example. Like high super high intent. It's kind of like you walked into the store, you had everything and you were actually ready to buy but it's like oh shoot I'm out of time. I'm going to come back another day. I'm sorry. Can you put it back on like that's kind of that's kind of high intent right. Versus someone you kind of just you know what a brand is we don't really know what they stand for. You don't really know you know maybe just comparing prices you signed up to a 10 percent discount code but you don't really know why. All you sign up to a competition somewhere on Facebook, a TikTok, through a leader that's very low intent. You probably want to fruit them that you want to probably have them through a different automation and a different journey than high intent potentials. Right that's actually what we do internally as well. We kind of call it like a welcome flow for people with low purchase intention and like a separate variation of the welcome flow like an exit intent. So basically the main difference is that a person is going to say like a product page or like has this product in their cart or if they express some sort of interest towards the product and having purchased then we can serve the discount. If they don't express any like interest toward the product directly but they just more hang out on your like home page or about us page or something. We try to serve them more with like about the brand information like something to get to know the brand better just because we kind of don't want to train our customers to expect the discount codes from us all the time. So that's like the strategy that I'm using for like a lot of mic lines and that's interesting that you mentioned that you guys are like recommending something similar as well in a way. Yeah and a little bit like we can we can dive super deep on it but I do also think of course we can move on here but one final thing to the potentials which you know is all of the segments is like you can ask questions the other way around right? It's a I think most people are most companies these days see emails as a monologue communication and dialogue it's like it's not it it should be a dialogue right? As you you know emails created for people to reply to it so invite them to reply to emails and maybe get away from all of the HTML classic emails that everyone is sending out you know a classic thing that our sales team are doing these days are if a potential lead signs up to drip and it's like high end typical I'll kind of take typical one fashion you kind of take your logo you remove the logo you remove the colors and they can't recognize their own email versus the five competitors that you found. So how do you differentiate and how do you make it a dialogue instead of a monologue? And it's okay to ask questions in an email where it's based on survey or they can click on something in an email and they hope you understand them better like that's a part of the potential part here and casual and call on champions all of them it's like you can ask questions in the emails and let people either click on something or reply to something or go to a form where they fill out more information about themselves that's not easy to get people to do but click on something it's fairly easy we've done this in a B2B contact as well I remember back in the days which league note we had we had of course we had a blog you sign up to a blog post and a constant upgrade where we say you know that's probably talking about email marketing and do you want to download 99 email examples? Yes I want to download that okay our next problem is was it an agency was it a B2B was it e-commerce or ICPS e-commerce but we also like agencies right because we have a partner program but we need to know who they are we can't really know that from a low intent sign up but we can ask them in one of the first emails hey we do want to send you emails that's personalized to you so can you help us kind of know who you are? And we saw that about over 40% was clicking on an email because we kind of spent a lot of time formulating the email is all about them and not about us it's not about us wanting to do better segmentation but them getting better constant from us and then we we knew who they are and you can do the same in an e-commerce yeah definitely definitely and there's like a ton of different really cool apps for collecting that like zero-party data that I mean in Clavia we can like integrate a bunch of them um those like quizzes to collect that uh first or zero-party data as well but I really like the aspect of email and being like a two-way communication tool so with drip um how do you actually like collect the data on the top of the final stages and how do you how do you organize it and how can it be used for the segmentation purposes in the future do you like record it somewhere on the background of their profile like what's the um what's the process there yeah I think it's it's similar to a lot of the other email marketing tools out there right like we have something called on-site it is more or less a pop-up and slide-in solution but you can also embed it on the side but a part of this is where you can have you gamification as you talked about a second ago that's a part of the platform so you can kind of do your segmentation you can do segmentation based on checkmarks you can do segmentation based on what they did on the site so transactional or behavioral data that's all recorded in the platform and from there you can do the segmentation it's the platform is built on top of a segmentation with kind of the vision at the time eight years ago was closer to being a CDP than it was to being a ESP and so it's very data heavy which we actually try to get away from a little bit but from a segmentation standpoint I do think and I'm very biased but I do think we're behind another areas but we're definitely one of the leading ones on a segmentation area and that's where our customers thrive as well as like from a segmentation if they're heavy into segmentation we do have one of the best engines and one of the best data layers on top of it as well and that's kind of how we look at it is just okay can we simplify segmentation and make it to be advanced if you want to so simplify it into those four buckets of potential cash on core on champions and from there you can split those into 20 segments and you can divide that into the marketing form of the classic attract convert the lights so you want to expand your and that's what it's all about right you want to expand your call and your champions right you want to expand that as much as possible because many people to buy from you again and again and again and I think that's one of our I wouldn't say a vision but that's kind of what I especially want to go on podcasts like this I think marketers these days over rely on kind of focusing on the next sale and I think that that just leads us to kind of this transactional tactics that will you focus on the channels and not the journeys so each channel has its own kind of set of rules I think you mentioned example earlier where the classic one is you you send a discount code out on an email and someone buys from you an email and the next day you get a Facebook ad with a discount code that's 5% higher right that's a shitty experience and that's channels over journeys true true yeah no I I see that more and more brands are kind of doing that omnichannel marketing approach where it's all like no matter where the customer is like coming from or where they meet you as a brand they would still be served like a proper portion of the experience so meaning that this like channels they do not compete with each other but you like marry them together and they help each other that's definitely the approach that we're using with like a lot of our brands that we work with but yeah the omnichannel experience is huge and the more data you have obviously the better so in the just like to summarize everything that we talked about briefly here discussing that like the top of this funnel subscribers or like subscribers who are just becoming a new to your channel like what do we do here at phloem is like a lot of segments are based on obviously the demographic sign-up source engagement and like on your blog a dream a drip I learned that you guys have this like segments maybe like let me know if you know what I'm referring to but you guys have the segments that you can basically set up a lead scoring system almost that will help you to determine where in the final age of your subscribers are and like how you should approach them based on that like score number do you know what I'm talking about or is it like something that like some of your brands using and not like everyone yeah I think you know lead scoring is is a thing but I do think lead scoring for the most part is something we left the little bit behind us a few years ago to some extent I think it's very much a thing in B2B but in e-commerce I think it's so behavioral and transactional focused that putting a score based on it I don't believe in it that much that's why we simplified it to okay you know at the end of the day to have a sustainable business in e-commerce like it is someone that someone if someone is buying from you that's kind of what you want to get to is like someone buys from you and they want to buy from you again and not just the first purchase but the second purchase so I think it's kind of not to sidetrack this but but I do think that's more what you should look at so flip the funnel a little bit don't change new subscribers but chase customers who buy from you more than twice and that's your lead scoring that's your scoring system can you expand that call and because I do think the lead scoring system in itself there's so much that's broken in today's attribution wall that I won't even get started talking about it but from a segmentation standpoint I think you could simplify segmentation a whole lot and you could just have it super advanced and multiple segments in each of these four groups but at the end of the day if they're buying from you more than once you're doing something right and that's what you should look at interesting interesting so let's talk a bit more about those customer those people who just like subscribe to your list but right now they are in between like those stages so they are basically they are ready to purchase but they haven't purchased yet how do you segment those people based on what do you segment those those customers here's the classic one is of course a behavioral here so what did they look at they look at X amount of products which products did they look at you want to show them products that you want to introduce them more to why they should buy from you again it depends on the products are you selling sucks are you selling a product that's you know a couple of thousands of bucks you know it's kind of a low and 10 high in 10 products as well so something's done if it's a low in 10 product if you're selling sucks well you should probably just throw a discount code at them right at the beginning but if you're selling a product that's above a thousand bucks or 200 even like you should educate them out about the challenge of the problem you're solving with your products all your brand is solving and then you can show them products based on what they look at already but at the end of the day I don't think we are doing a self-a favor by just sending a discount code right away which I see most people are doing trying to convert them right out of the gate I don't think that's the right approach anymore I think it was the right approach a couple of years ago but now everyone is sending a discount code out of the gate and it's not converting as well as a this that a couple of years ago so I would change that approach a little bit and I would have it earlier in the process if I had a low intent product as selling sucks so I don't know 10 bucks product or whatever of course you can have it early there right right no the classic example is like socks versus mattress obviously like the customer journey for this to groups of customer will be very different and we normally see that this like purchasing cycle for people who spend more money are obviously like longer you need to take some time like convincing them that this is the product that they need they need to spend some time like educating them on this product like maybe using more user-generated content just like to convince them that this is the product they need and people tend to be less spontaneous with with this kind of purchases right so yeah definitely I agree I agree with you that want to discover how much money your email marketing can actually bring you if that the case let our team of email marketing experts show you how with our free email marketing audit will conduct a comprehensive analysis of your email marketing efforts provide you with action plan and show you how to effectively segment and convert your audience simply go to flowwim.com/audit and book your audit today what do you think of like segmenting different cart abandonment journeys like what's your take on that oh yeah I think you know abandon browse flow car abandon price drop and product recommendations in general if you take car abandon first I would definitely do it based on like again it kind of goes back to the first principle did they buy it from you before should you even send the email that's that's number one should you even send the email like ask yourself that question please because you don't always have to send a just 10% discount code if someone had something in the car and they didn't buy from you two days later maybe they're buying from you in seven days maybe that's okay and maybe it's worth it for you that 2% doesn't buy from you but you don't give 10% discount code to everyone else so kind of ask yourself those business critical questions and I would say yes there's a lot of segmentation that needs to be done on car abandonment and one of them is definitely did they already buy something from you or what are the products that they have in the car right now so what is their order value in the car I think that's a classic one to do segmentation based on so it's about 500 500 or whatever you kind of average order value is and there's different approaches there so some are sending a discount code to those that's a high value and sending kind of just a reminder to everyone that's a low value that's a classic one but my opinion is to be straight here it's like fairly simple ask yourself the business critical questions first do you need to do it and then go from first principle like okay did they buy from you yes no okay maybe you don't have to do it maybe it's different and from there you can make automation based on it yeah I agree with you there definitely ask yourself whether or not you want to like be aggressive with your abandonment card emails but I do you think like personally with brands that I work I do think that you still need to deliver some thing if they haven't purchased from you within the few days it doesn't have to be the discount but we sometimes customize they are journey based on the product that they have in their cart so say if they have like a specific model of the I don't know like a device in their cart and we know that this is the product they have in the cart then we sort of like create an educational content around that and we deliver like reviews of that product to the customer we customize the email with like reviews or like recommendations on how to use that or stuff like that but I mean so many so many cart abandonment can actually be recovered that like not addressing them like to me it sounds like leaving the money on the table you know but I do agree that you don't always want to like serve the discount codes especially to those who are your return buyers right you don't want to train them to expect the discount code every time they are putting something into their cart because that's what I do honestly like working in the e-commerce industry I never purchase anything without the discount like unless it's like something that don't get on discount at all like I normally put it on the cart wait for like 24 hours or whatever and then like I get the discount code and then I purchase because I know that I will receive the discount code but you don't want to train your customer to expect the discount code from you that's for sure yeah let me be clear I do think cod abandonment like that's a no brainer and something and probably one of the first things you have to do after a welcome flow you kind of have to have cod abandonment but there's just different versions of it there's a reminder versus a discount code versus help versus questions there's there's so many versions of a cod abandonment that you don't what my opinion is just please ask yourself the question of the discount code because most people don't think they just think about top line but not bottom line and you take away 10% of your bottom line by offering a discount code and you don't always have to do that you can just send a reminder and ask if there's any questions so as you said ratings and reviews and why you really should buy this product exactly and so I don't think that 10% discount code hopefully that is not what kind of make it a break it in most cases but the emails and reminder and then you can test your different messages in those emails but it is a no brainer and one of the first things you have to do and segmentation wise please do segment it and please make sure you have the trigger when someone bought something and it's removed from the cut it's removed from the automation have seen that too often and the companies don't have that definitely definitely okay awesome so we kind of discuss those customers who are getting into your into life cycle emails getting into the customer journey we kind of covered people who have purchased from you but what about those people who are like inactive customers so they came into your list they never purchased anything from you and they're just like sitting them they're still engaging with your emails though but they are not purchasing would you segment that group of people or would you just segment them based on engagement what's your take there I think first of all there's there's a there's a segmentation based on if you bought something and you and and you're kind of engagement in the emails well so if they're highly engaged in your email well it might be a high-intend product you're selling and you okay with it so it really is depending on the case but yes I would I would do a little bit of segmentation but I don't want to overwhelm people that's listening to the podcast and think that I need to do for the segments because at the end of the day they really don't like simplify your segmentation and do better with your emails and you're messaging in your email I think that's one of the key takeaways I hopefully people will get from this podcast here you can get far which is having those false segments potential casuals and colon champions and if we take the potentials who never bought something from you because that's all of them like they haven't bought anything yet but those that not really reacting to anything you can segment them and really see if they want to be on the list or you can just see it as this is going to take a while to convince them and segment them in a different way and send them different messages based on this is going to take a while so maybe I shouldn't pitch my product right off the out of the gate like maybe we should go down a different route here and I thought a casual segment I do think there's a lot to talk about there because I think that's kind of the someone that bought from you one time but didn't buy again that's where when you can get that's what a real magic happens for me in e-commerce if you can take a casual someone that bought from you once into the call someone that that's buying from you again and again that is where the sustainable kind of business come into the picture in my opinion and I think that's where a lot of the value of course the entire funnel has to follow but that's where the value of SMB e-commerce is in my opinion because you oftentimes if you're kind of mid-market SMB whatever e-commerce you found a way to attract customers but it's very difficult for you to get them to buy again as of course that's what we see from our data with our customers that is the biggest challenge right now in today's markets and I think that's where we could spend a lot of time I'm sure you have a lot of experience as well with what are the kind of the automations and flows you activate and how do you segment them based on that as well yeah yeah I mean is it definitely interesting topic and I wouldn't want to go like too too deep into it but like just briefly a meal how this like customer journeys are different say the post purchase journey how is it different for one time buyer versus like repeat purchases versus that like champion or like VIP how is their post purchase email sequence or post purchase segmentations are different from each other I think for me it's much more about if you're casual it's okay to be promotion it's okay to be a little bit more promotional if that makes sense they bought from you ones but they didn't buy from you again so it's okay here's okay to talk about discount codes and kind of just getting them to convert one more time and and maybe talk about some of the other products that's relevant to what they already bought but if you look at the call and from a segmentation standpoint for me it's much more about upselling cross-selling and the post purchase flow and that's different in a way from what they bought so here's all of the transactional data that comes into picture you have to make sure that you know what they bought and what they didn't buy and how it's all combined and which products should they buy now and that's a little bit different from the cash rolls where you can be a little bit more promotion promotional I think the call you don't need to be as promotional but more educational and talk about some of the other products or related products upselling cross-sell whatever you kind of call it back-end stock notifications price drop you have all of those segmentation triggers which you definitely use to that segment yeah and I think one of the big mistakes that I've seen anyways across the industry correct me if I'm wrong because that brands work really hard on like conversion of that like first customer right they put a lot of thoughts and a lot of work into turning that like no buyer into first-time buyer they spend some time into converting first-time buyer into return customer but then they almost like a lot of brands they almost like stop communicating I mean they reach out with some campaigns still but as far as automation goes like a lot of brands they neglect that post-purchase journey for those like champions and I think it's a big issue with a lot of brands because this are your most loyal customers right this are the people the 80-20 rule this are the 20% of people who will bring you like 80% of your business have you have you not as anything like this with with the brands that do you work with or with the brands that you've seen across the industry this is our entire pitch for why the rep is becoming SCIM instead of an ESP like we want to be a platform that just helps you identify and multiply your best customers because you have to understand your best customers and then multiply them like just find a way to multiply them and you do that by knowing your best customers first so that comes back to the no thing do learn it's like okay you got to know your best customers you got to think how to strategy that's where you come into the picture of agencies that's helping think for you because the biggest challenge out there is resources and time right and but if a platform like ours or any platform and not promotional but you got to know your best customers then think about strategies and journeys for them then do which is what most companies start with when they enter a platform and any ESP is like okay well I'm going to start sending emails like that's what I'm going to stop doing well you should actually you should start by knowing your best customers and figure out a way to multiply them and then you should have strategies so that's the thing part that deploys all of your knowledge from the no part and then the learners in the end is like you got to learn from what you're doing and which most companies are actually at this point I feel like most companies are getting better at it but they're starting with doing things without understanding their best customers and I think that's one of the biggest mistakes that I've seen these days and what I see with segmentation as well as like you start by just sending emails to different segments instead of just okay just let's take the basics of marketing it's like understand your best customers know them segment them think about journeys based on where they are and don't pull automation split journeys yeah yeah I like how you guys summarize it no no thing to do learn and it's like a circle like no first thing then do then learn about this customer's based on what you've just done and then go all over again I love it I love it awesome well thank you so much Emil it was very insightful I know there are like so many topics that we could go like deep into unfortunately we don't have like enough time to discuss each and every one of them but if people want to learn more about your approach or about what you guys do where should they go of course after go to drip I think that drip.com see what we do it's not a promotion for drip but we are trying to do something different we're not trying to be an ESP we are trying to be a CM and we will have the capabilities and have the capabilities to understand your best customers the latest one is you can do an RFM which just basically means that you can connect with shall we find see who your best customers are and fun facts there's like we see that the 2% if we look at a basic kind of e-commerce company 2% of your customer stands for what 20% of your revenue that's kind of some benchmarking there for basic RFM like look it up on google if you don't know what RFM is like that could be an hour episode but an RFM is just a way to look at your customers and what kind of percentage of your customers are buying from you and which aren't and who is in the call and who is the champions and kind of look at where and how you can expand that call and that's kind of an approach that we are taking right now so go to drip.com check it out and yeah you can always write to me as well we have a book that I want to offer to people for free as well if they want to like we have a book about pop-up and slide-ins it's call subscribe and that's about lead generation more but yeah it is actually a book not not not not an e-book anything it's a real book that I'll send to you and don't worry there's no kind of sleazy sales trick or anything I'll just send you the book so I'll just send me an email at eke at drip.com and I'll send you send you kind of a copy of the book amazing thank you so much you guys will mention all of the links we'll put all of the links that were mentioned in this episode in the description box to this episode so definitely go and check out the their website definitely check out the all of the exciting segmentation strategies that drip offers and as always if you guys like what we do please leave us a review really appreciate your your interest we appreciate your help and if you leave us a review then send us a screenshot of your review we will send you some surprise gift from phloem it might it might be socks we do have this amazing phloem socks or it might be something else so we'll see in mail it was amazing and thank you so much for coming to today's episode there's like so much we can learn from you thank you for making it happen today thank you so much for having me thank you we'll talk to you guys next Tuesday bye take care thanks for listening to email Einstein can you feel that your marketing brain just got a little bit bigger we ask that you please use it wisely you've got all the theory you need to get out there and start boosting your sales because great emails equals revenue squared guesswork doesn't grow your business a free email marketing audit includes a comprehensive strategy review industry based conversion comparisons and targeted ways to improve opt-ins all tailored to your brand make every send count at at floweam.com/audit.

Podcast Summary

Key Points:

  1. The podcast introduces "Segmentation May," a month-long focus on email marketing segmentation strategies.
  2. Segmentation is framed as treating customers differently based on their relationship stage, similar to a physical store, with categories like Potentials, Casuals, Core, and Champions.
  3. Personalization is critical, as generic communication frustrates customers; strategies include differentiating high-intent vs. low-intent subscribers and using email as a two-way dialogue to collect data.
  4. Effective segmentation involves moving beyond transactional tactics to a customer-first approach, focusing on retention and omnichannel journey consistency over just acquiring the next sale.

Summary:

This episode of the Email Einstein podcast, hosted by Vira Sadlek from Flowium, kicks off "Segmentation May" with guest Emil Christensen from Drip. The discussion centers on the importance of email segmentation and personalization in e-commerce marketing. Emil explains segmentation using a physical store analogy, categorizing customers into Potentials (non-buyers), Casuals (first-time buyers), Core (repeat buyers), and Champions (loyal customers).

He emphasizes that personalized communication is essential, as generic emails lead to customer frustration. Strategies include tailoring messages based on purchase intent—for example, offering discounts to high-intent subscribers while educating low-intent ones about the brand. The conversation highlights using email as a dialogue to gather zero-party data and stresses a shift from transactional, channel-focused marketing to a customer-first approach that prioritizes retention and consistent omnichannel experiences.

The goal is to build long-term customer relationships rather than just chasing immediate sales.

FAQs

Flowium is an email marketing agency that offers a free strategy review to analyze your opt-ins, compare conversions to benchmarks, and provide actionable growth advice.

Email Einstein is a podcast by Flowium that shares data-driven tips, email marketing formulas, and insights from experts to help listeners improve their email marketing strategies.

Segmentation involves dividing your email list into groups based on behavior or characteristics, allowing for personalized communication that improves engagement and reduces customer frustration.

Begin by separating customers from non-customers, as this simple distinction allows for tailored messaging, similar to how you'd interact differently with new versus returning visitors in a physical store.

The segments are Potentials (non-customers), Casuals (first-time buyers), Core (repeat purchasers), and Champions (loyal, high-spending, engaged subscribers).

High-intent potentials, like those who abandoned a cart, may receive targeted offers, while low-intent ones, such as contest entrants, benefit from brand-building content to foster familiarity without discount reliance.

Chat with AI

Loading...

Pro features

Go deeper with this episode

Unlock creator-grade tools that turn any transcript into show notes and subtitle files.