Mastering Segmentation: How Klaviyo, Mailchimp, and Omnisend Help Target Your E-Commerce Audience

The sheer competition in today’s eCommerce landscape makes it increasingly challenging for brands to stand out.

Whether it’s promoting discounts and deals or sharing product recommendations on channels like email and SMS, every brand is following the same strategy. This has made it impossible for brands to keep their audience engaged, creating a battle of the discounts. 

That’s where marketing segmentation becomes invaluable. 

If you’re using Klaviyo, Mailchimp or Omnisend for, this post shares how you can use segmentation for better marketing. 

Understanding Segmentation and Its Importance

When you segment your audience into smaller groups based on common traits or browsing behaviors, you can send them the right message at the right time.

Here are the benefits of segmentation:

• Higher engagement: Hyper-targeted campaigns lead to better open and click-through rates.
• Improved retention: Personalized messaging builds stronger relationships, making your brand top-of-mind as they consider options for future orders.
• Increased conversions: When promotions are tailored to the segment, customers are more likely to respond.
• Lower unsubscribe rates: Irrelevant content increases audience churn and increases spam complaints, even if they had signed up previously.
• Data-backed ROI: According to Forbes, segmented email campaigns see up to a 760% increase in revenue!

Types of Segmentation and Platform-Specific Usage

How you segment depends heavily on your own brand needs.

But to start with, here are some key types of segmentation that are recommended for eCommerce brands.

We’ll also look into how tools like Omnisend vs Klaviyo or Mailchimp can help you leverage them for high impact: 

1. Behavioral Segmentation

Behavioral targeting is about categorizing users based on their past actions, like viewing products, adding items to the cart, or abandoning a purchase. This helps you tailor your message to a customer’s unique journey with your brand. 

While you can use Klavio for event-based segmentation, Omnisend provides multi-channel segmentation in case you want a more unified funnel across email and SMS. 

2. Demographic Segmentation

In demographic segmentation, you divide customers based on shared characteristics like age, income, gender, or location. This way you can create multiple variations of a base offer for different audience groups so that each campaign resonates more strongly with your users. 

For example, you can also send region-specific offers (weather, cultural events) or recommendations for a certain age group (think back-to-school bags for children). 

You can use Mailchimp or Klavio if you want to collect customer information like birthdates to send targeted campaigns or specific demographics. But if you want more demographic filters to aid location-based segmentation and age-specific offers, you can try Omnisend. 

3. Transactional Segmentation

In transactional segmentation, you filter and group customers based on their past purchase behavior. This can include a common buying frequency, average spend, or even product category preferences. 

By leveraging such a high-impact segmentation strategy, you can design more effective email and SMS campaigns for your customers. 

This is great for boosting customer retention since you’re nurturing customers who already trust you and are interested in the brand.

Using tools that support segmentation based on RFM (Recency, Frequency, Monetary value,) you can target high-intent customers based on their order history, and spending habits, and re-engage inactive buyers with personalized messages.

4. Engagement-Based Segmentation

How do you engage with the crowd that may not have purchased but is the next most likely to? By engagement-based segmentation which groups your customers based on their previous interactions with you!

This technique groups customers based on their previous interactions with your brand, even if they haven't placed an order yet. By tracking email open rates, click-through rates, SMS replies, website visits, or social media interactions, you can find a group of customers who are actively and consistently engaging with your brand. 

Since this type of customer segmentation focuses on your most responsive customers, you have a higher chance of conversions.

You can also parallelly launch re-engagement campaigns for less active users and track their engagement using tools like Klavio, Mailchimp, and Omnisend. 

Best Practices for Segmentation

Crafting a robust segmentation strategy requires intentional, strategic thinking, needs to be regularly updated, and execution using trusted tools. 

Here are a few practices we recommend following for effective segmentation:

1. Set clear objectives like increasing retention or improving engagement. 
2. Decide which KPIs (key performance indicators) will be ideal to track to show your segmentation strategy’s success.
3. For example, if you're focusing on transactional segmentation, you might want to track purchase frequency post-campaign. Whereas for engagement campaigns, you can track open rates and click-through rates.
4. Instead of wasting precious time and resources which can incur human error, use tools like Klavio, Mailchimp, or Omnisend for dynamic segmentation, which is updated in real-time based on customer actions. 
5. Always be transparent with customers about data collection and usage and ensure there are secure data management practices in place. 
6. Segmentation is never a fixed, static thing. You need to review and refresh your groups regularly to remain relevant to customers. 
7. Remember to A/B test our messages, offers and channels to see what suits your brand best. This helps fine-tune your segmentation strategy for a bigger impact. 

Conclusion

Brands cannot afford to alienate customers by treating them to generic marketing communications in their email and SMS campaigns.

Segmentation is key if you want to create effective, personalized eCommerce campaigns that drive actual sales!