Lead segmentation for better campaign outcomes

Lead segmentation is important for lead nurturing. Read how well-planned lead segmentation leads to higher campaign outcomes and the dos and don’ts to keep in mind.


To successfully make a sale or achieve any other conversion, you need to understand the needs of the buyer. To understand the need, you must know who your prospects are, and that includes identifying their characteristics and things that define them as prospects. That brings us to lead segmentation.

Lead segmentation is an important requirement for effective lead nurturing. Having said that, let’s start with the basics


What is lead segmentation?

When you segregate the leads from a larger group into smaller segments based on similar characteristics, it is called lead segmentation. This exercise is aimed at making messaging more relevant to the audience; it is a personalized approach rather than sending one generic message to all.


Whichever marketing automation or email marketing tool you are using (such as HubSpot, Marketo, Eloqua, or Mailchimp), each of them offers lead segmentation, as it is an essential step in ensuring that your campaigns are targeted towards the right audience.


Factors for lead segmentation 

Leads are segmented based on geographic, demographic, technographic and behavioral factors. This includes age, job profiles, company, interest, internet usage pattern, the software they use, their status in the buyer journey etc. Lead source is another important factor to consider, as it will help you create a more tailored campaign.


In a real scenario, when you are segmenting, you may not go with one kind of segmentation only but use a combination. For example, say you got some leads from a recent mega-conference where you showcased your newly launched product. You could categorize them as new prospects or existing customers. You can then segment them as per job titles, which will help you understand who the decision-makers and the influencers are, which in turn will be your guiding light for sharing relevant messaging. Also, an end-user of a product would like to see content different from what someone in a higher management position would like to see.


Why is lead segmentation important? 

Between getting a lead and making a sale, several things can happen. The lead’s interest can pique further or wither away, which is why lead nurturing is necessary. By showing the right kind of content, you nurture the lead and move closer to conversion.


And how do you know what content they would appreciate? That’s where lead segmentation matters. It helps you understand the things that motivate and drive actions in the leads. Once that happens, you can deliver content that is relevant to them.


Campaigns based on segmented leads perform better than non-segmented campaigns. In a survey conducted by MailChimp(1), the email open rate was 14.31% higher than a non-segmented campaign, and the clicks were 101% more.


Dos and don’ts for lead segmentation:

  • Segment larger groups of leads into smaller ones, but avoid making too many small groups; otherwise, it will be time-consuming.
  • Allow segments to keep changing based on the recent actions of the leads. This will ensure you stay relevant in the messaging.
  • - Don’t hesitate to remove those leads who are consistently not engaging with your content. That will save your time and effort.
  • - The copy you write for each segment doesn't have to be very different from the others, but the main message should be relevant. For example, while describing a product to your leads, somebody in a managerial position may want to learn about the efficiency of the product, while an end-user may be interested in details of features.


Two steps are important in this process. Review and revision Review the performance of the campaign to learn if the segmentation is working. If it is working, you would see improvements in metrics such as CTR, clicks, subscriptions, and demo requests. If there are no improvements, you could try a different combination of lead properties to create more effective segments.


As you learn more about your leads and their response to your content, you can further fine-tune the segments and truly nurture the leads.


Reference and Citation-


1. https://mailchimp.com/en-gb/resources/effects-of-list-segmentation-on-email-marketing-stats/ 





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