E-commerce Link: Divide and Conquer
For example, a Boston Bruins fan who lives near Boston receives emails that feature upcoming home game schedules. However, if a Bruins fan lives in Philadelphia, he or she will get a similar email, but only when the Bruins are playing in Philly. The NHL knows this geographical segmentation strategy has increased single ticket game sales.
3. Email Behavior
Look at who regularly opens and clicks on your emails and what product categories or promotions they click on. For example, Barnes & Noble might regularly feature the latest bestselling fiction, mysteries, biographies and self-help books. If a group of recipients consistently click on mysteries—Barnes & Noble can create a mystery buff segment and market to them. The featured title might be a mystery, although the email message may also promote other genres.
American Meadows sells flowers and bulbs online, and used to regularly send one email per week. The company's email service provider (ESP), Bronto, suggested a change in strategy, and now American Meadows sends two emails per week. The first email promotes a variety of products. If recipients click on a particular product, they receive a second email later in the week featuring the product clicked. Those who did not click receive an email based on which item was the overall winner in terms of clicks.
4. Past Purchase History and RFM
Direct marketers know that if someone has purchased from you, they are much more pre-disposed to purchase from you again. This is a valuable segment. Typically, marketers will either promote other products in the same category or complementary products. For example, Amazon often sends emails based on past purchases and suggests other products based on the premise of "those who purchased this product also bought …"
Clare Florist, a U.K. company, knows if customers made previous purchases, they will buy again. Originally the florist thought a past purchaser might like to order different items. So, in addition to the product most recently ordered, the company provided two other additional items. However, sometimes simple is better; too many choices may paralyze the consumer. The florist tested featuring just the product category of the past purchase. And the test won—by a wide margin.