Did you know that on average only about 12% of marketing emails sent from your CRM (customer relationship management system) are opened? That means that if you have an email list of 1000 people, only about 120 of them are actually even opening your email to read your message. From there, only about 10-20% of those will click on any links you include. And, according to the 80/20 rule, only about 10-20% of those will act on your offer. Some might argue that the bigger your list, the better. But what if you had a small list comprised of your target audience? Your odds of success are infinitely better! Your CRM can help you if you leverage the power of segmentation.
What is segmentation?
In terms of your CRM, segmentation is when you flag or categorize people in your database based on their purchases, interests, and sources. By utilizing segmentation, you are allowing your CRM to effectively aim your targeted messages to the perfect audience – your ideal client. This makes your email marketing strategies not only more efficient, but definitely more effective.
A good CRM will allow you to segment in a variety of ways – not just put them in a list. Email service providers like Mailchimp only allow you to create lists. Sure, you can create tons of lists but you may have to create a ton of lists to accurately segment and target the right groups. Who wants a ton of lists like that? Nobody. Why not employ a CRM that has flags/tags, categories/subcategories, and sources? This way, you can know not only where a lead or client came from but you can track what category they are in and tag them based on any purchasing or download behaviors. That’s a lot richer information about your database which means you can do so much more with them.
A much higher percentage of people will open your targeted emails. You’ve already pre-screened them. In fact, you can even say something like “I’m sending this especially to you because you expressed a specific interest in “X” in the past” to let them know that this isn’t just a general email. Since you know that they are interested, you can also rest assured that a higher percentage will open the message. The 80/20 rule is still going to take effect once they open but that’s ok. Let’s say that you only send out your message to 100 recipients. One hundred pre-selected, segmented recipients. Since they are already interested, your open rate average will likely be 50-70% so for our purpose, let’s just say it’s 60%.
Make the 80/20 Rule Work in Your Favor
Following our earlier math, we’re going to end up with 2-3 taking action. Now, let’s do that with 10 lists of 100 – in other words, our original 1000 but all targeted to their specific messaging through segmentation. That means we’ll end up with 20-30 taking action. In other words, your segmentation just made your marketing 5 times more effective.
Take a look at your database and see how you can more specifically identify them through these category, flags, and other filters. If your CRM isn’t designed to do this, it’s time to switch. If you need a new CRM or just want to investigate other options out there that won’t break the bank, we invite you to try our own My Client Dashboard. Visit today to find out more.
Customer Review of My Client Dashboard:
“I have worked in a lot of systems for clients and for myself and bar none, My Client Dashboard is the easiest to get set up and using immediately. It has all of the features I want and need that are usually only found in the big (and EXPENSIVE!) guys. I not only highly recommend this CRM to my clients, I converted to it for my own business.” Holly Kile, President, HJK Global Solutions