Relevance: Why Segmenting Matters in Email Marketing

Per Constant Contact, for every $1 you spend on email marketing, you can expect an average return of $38. Furthermore, people are twice as likely to sign up for your email list as they are to interact with you on Facebook.

But to get the most from your email marketing efforts, you can’t just blast your entire list with the same message. You must tailor your messages to the different groups of people reading them.

This is where segmentation comes in. Segmenting your list isn’t just about grouping subscribers by interest. It’s also about categorizing them by behavior, preferences, actions taken and not taken, and so on.

Are you segmenting your list? If not, you’ll want to read up why it matters for email marketing.

The Benefits Of Segmentation

Per HubSpot, 39% of marketers who segmented their email lists experienced higher open rates. Additionally, 28% experienced lower unsubscribe rates, and 24% experienced better deliverability and greater revenue.

But the benefits don’t stop there. Other marketers also saw:

  • Greater customer retention.
  • An increased number of transactions.
  • Increased customer acquisition.
  • Lower spam complaints.
  • Improved word-of-mouth.

In effect, segmenting your list could help you drive better ROI from your email campaigns. So, if your email marketing isn’t as effective as you think it should be, it could be because you haven’t segmented your database.

Customer Acquisition & Retention

Many hotels spend large sums of money attracting leads and guests to their property. The problem is that they aren’t necessarily thinking about nurturing and retaining the leads they’ve spend so much time, effort, and money attracting in the first place!

If you don’t have a holistic marketing plan, then your customer acquisition costs are going to be through the roof. It’s less expensive to nurture a relationship with existing customers and generate business form them than it is to continually funnel resources into acquisition.

This isn’t to suggest that you shouldn’t put effort into attracting new customers. What it means is that you can increase your profitability by building a long-term relationship with new leads and past guests. A singular focus on acquisition can make your business lopsided and less profitable than it has the potential to be.

Delivering Relevant Messages

Some people on your list have already stayed with you. Others have not. Some opted in to receive updates on your website. Others opted in at your hotel. Some people want to learn about upcoming events at your hotel and in your locality. Others are simply on your list to take advantage of special offers and discounts.

Are you beginning to see why blasting your entire list with the same message is a bad idea? Let’s say a guest just stayed at your hotel last night, and they’re receiving an email about a special offer today. Don’t you think they would feel somewhat insulted knowing that if they had waited, they could have gotten a better deal?

It would make more sense to send that message to people who have yet to stay at your hotel. They may be more inclined to take advantage of an offer like that.

People want to receive emails tailored to their interests and needs. They expect them to be personalized. This level of customization doesn’t just serve their needs – it helps you generate more revenue for your hotel.

Final Thoughts

Email marketing isn’t always top of mind with hotel marketers because there are so many ways to attract guests. However, email marketing has a lot of strengths and casts a wide net to remind people how great your establishment is.

If you’re trying different things and nothing seems to be working, it could be because you’re sending messages too infrequently to your entire database. It could also be because the messages you’re sending aren’t what your subscribers are expecting from you in the first place.

Success in any endeavor – even in email – doesn’t happen by accident. You need a plan, and segmenting your list needs to be part of your overall plan.