List segmentation is the process of dividing a list of potential customers into smaller, more homogeneous groups for the purpose of targeting them with more relevant marketing messages.
This can be done in a number of ways, including by demographics (e.g. age, gender, income), interests (e.g. sports, fashion, cars), or purchase behavior (e.g. frequency of purchases, amount spent).
The benefits of list segmentation for small businesses include:
- Increased response rates – By targeting specific groups with relevant messages, you’re more likely to get a positive response than if you try to market to everyone at once.
- More efficient use of resources – By dividing your marketing budget among different segments, you can target each one with tailored messages that are more likely to resonate.
- Greater customer engagement – When you know your customers’ interests and needs, you can create content and offers that appeal to them, resulting in a more engaged audience.