Blog
July 2, 2024
3 Klaviyo Segmentation Strategies to Boost DTC Sales
Blog
July 2, 2024
3 Klaviyo Segmentation Strategies to Boost DTC Sales
Blog
July 2, 2024
3 Klaviyo Segmentation Strategies to Boost DTC Sales
Highly segmented sends earn 3x higher earnings per recipient. This article covers the key segments, how to build them & campaign ideas.
Introduction
In the competitive landscape of direct-to-consumer (DTC) e-commerce, personalised marketing is essential for driving sales and engagement.
According to Statista, the number of emails sent daily is growing rapidly year on year. Inboxes have never been more flooded.
Statista, 2024
By tailoring your messaging to specific customer groups, you’ll stand out in the inbox, resonate more with your subscribers & drive up to 40% more revenue (McKinsey, 2021).
This guide will explore how advanced segmentation can boost your DTC sales and how to implement these strategies using Klaviyo.
What is Segmentation?
Segmentation is all about getting the right message to the right person. It’s personalisation through your email campaigns & flows.
We do this by dividing your customer base into distinct groups based on specific criteria, such as behaviour, purchase history, or engagement levels.
This enables you to send targeted and relevant messages to each group, improving the chances of conversion.
Why do we Segment?
Higher Engagement & Conversion: by delivering the right message to the right person, segmentation allows you to personalise your marketing efforts, leading to higher engagement and conversion rates. According to Klaviyo’s Segmentation Benchmark Report which analysed 2.5 billion emails, segmented campaigns led to 3x higher Earnings Per Recipient (EPR), 1.63x higher opens & 2.16x higher clicks. Segmentation helps in delivering the right message to the right audience, thereby maximising the effectiveness of your campaigns.
Better Deliverability: the same report also suggests that the unsubscribe rate for unsegmented campaigns is 2x that of highly segmented campaigns, showing that ‘batch & blast’ is not an effective way to keep subscribers on your list & protect deliverability. Segmented campaigns not only boost engagement but also improve deliverability, as outlined in our email deliverability checklist.
Klaviyo's Benchmark Table: By positively impacting positive & negative engagements, segmentation is crucial for deliverability. According to Klaviyo’s segmentation benchmark, segmented campaigns lead to 3x higher earnings per recipient.
Understanding Klaviyo Segmentation
There are three primary types of segmentation you can focus on in Klaviyo:
Engaged: sending to people who have recently opened or clicked an email.
Intent & Purchase: sending to people who have shown purchase intent or made a recent purchase.
Advanced segmentation: segments that fall outside the scope of the above (e.g. location, churn risk, holiday shoppers).
Each type serves a different purpose and targets different customer behaviours. Klaviyo's predictive analytics can help refine these segments, ensuring your messages reach the right audience.
Below we dive into these types of segmentation, along with suggested frequency of use & relevant campaign ideas for each.
Engaged Segmentation (60-70% of Campaigns)
Overview: Engaged segmentation targets customers based on their recent interactions with your brand, such as email opens & clicks.
How often: We recommend 60-70% of your monthly sends should be to these segments. They’re your most engaged so allow you to hit the widest part of your list to maximise sales without compromising deliverability.
When to Use: Use engaged segmentation for general campaigns when no specific segmentation is available, such as blog, brand updates, promotions, customer reviews, new product launches.
Engaged Segments (30, 60, 90 days): start with the 30-day engaged. If open rates are at 33% or above, gradually move upwards to a 60-day engagement. Repeat the process, gradually expanding the segment whilst opens exceed 33%.
Intent & Purchase Segmentation (20-30% of Campaigns)
The Engaged segment should be your 'go to' (given you want to maximise eyes on each of your emails). After that the below are the groups of customers that can lead to substantial boosts to your metrics, so target them 20-30% of the time.
Tailor the criteria below to your own business!
Prospects (Non-Buyers):
What are they? Prospects are potential customers who have shown interest in your products but have not yet made a purchase. Non-buyers who browse without purchasing can be re-engaged with browse abandonment examples tailored to their interests
When to Use: Use this segmentation to target non-buyers with introductory offers, educational content, or special promotions to encourage their first purchase.
Product Interest:
What are they? This segment includes customers who have demonstrated interest in specific products through browsing behaviour, wish lists, or inquiries.
When to Use: Utilise this segmentation to send personalised recommendations, back-in-stock notifications, and targeted promotions to convert interest into sales.
Product Purchase:
What are they? This segment includes customers who have previously purchased products from your store.
When to Use: Use this segmentation to cross-sell, upsell, and send personalised post-purchase follow-ups to enhance customer loyalty and repeat sales.
VIPs:
What are they? VIPs are your most loyal and high-spending customers. The segmentation can either be on total amount spend or the number of orders. We use a combination, such as the below.
When to Use: Target VIPs with exclusive offers, early access to new products, and special rewards to maintain their loyalty and increase their lifetime value.
Advanced Segmentation (10% of Campaigns)
These are segments that are either more niche (e.g. holiday shoppers), lower value or less likely to engage. Target these 10% of the time.
Again, tailor the criteria below to your own business!
Budget Shoppers (Low AOV):
What are they? Budget shoppers are customers who typically make low-value purchases. It leverages predictive analytics to predict AOV. Tailor this to your brand - it should be the bottom 20% of customers by AOV. Budget shoppers respond well to urgency tactics, such as countdown timers for email campaigns.
When to Use: Use this segmentation to promote bargain sections of the site, discounts, bundle deals, and budget-friendly product recommendations to encourage higher spending.
Churn Risk:
What are they? This segment includes customers who are at risk of not returning to your store, identified by a decrease in engagement or purchases.
When to Use: Target this segment with re-engagement campaigns, special offers, and personalised messages to prevent churn and retain customers.
Holiday Shoppers (e.g., Christmas, BFCM):
What are they? Holiday shoppers are a key audience for Black Friday Cyber Monday campaigns, as highlighted in our guide on mastering BFCM.
When to Use: Utilise this segmentation to send holiday-specific promotions, gift guides, and limited-time offers to capitalise on seasonal buying behaviour. A key use case is Black Friday Cyber Monday - some customers will only engage during this period for the heavy discounts.
Email and SMS Campaign Ideas Based on Segmentation
Timing plays a significant role in campaign success; learn about the best time to send email newsletters for maximum engagement. Here are some specific ideas for segmented email and SMS campaigns:
How to Build Segments in Klaviyo
Follow these steps to create segments in Klaviyo:
Head to 'Lists & segments' in the left tab.
Click 'Create new' in the top right & create a segment.
Use the segment builder to define criteria based on the segmentation strategies mentioned above.
If your store runs on Shopify, our Shopify Klaviyo integration guide will help you set up seamless and effective segmentation
Klaviyo's 'Audience Breakdown': Optimise Segments
When sending to multiple segments, Klaviyo automatically allows you to view a breakdown of performance by each:
Schedule an Email or SMS campaign to different segments
Navigate to ‘Campaigns’
Click on the relevant campaign & select the ‘Audience Breakdown’ tab
You’ll receive an image like the above. You can spot the audiences that are most engaged with your campaigns (in conversion & engagement).
At Titan, we send each campaign to multiple segments. If we’re running a product launch for example, we can trial including customers who’ve recently viewed a product in that category. Then, depending on performance, we know whether to include them in similar campaigns in the future. Use A/B tests to boost email conversions and refine which audience segments engage the most.
Conclusion
Highly segmented sends drive 3x higher earnings per recipient.
Segmentation is a powerful & essential tool that enables personalised marketing, driving higher engagement and sales.
By understanding and implementing engaged segmentation, intent & purchase, and advanced segmentation, you can create more effective campaigns that resonate with your audience.
Learn More About Segmentation…
Want to learn more about how segmentation can boost your campaign performance? Get your free audit today!
Introduction
In the competitive landscape of direct-to-consumer (DTC) e-commerce, personalised marketing is essential for driving sales and engagement.
According to Statista, the number of emails sent daily is growing rapidly year on year. Inboxes have never been more flooded.
Statista, 2024
By tailoring your messaging to specific customer groups, you’ll stand out in the inbox, resonate more with your subscribers & drive up to 40% more revenue (McKinsey, 2021).
This guide will explore how advanced segmentation can boost your DTC sales and how to implement these strategies using Klaviyo.
What is Segmentation?
Segmentation is all about getting the right message to the right person. It’s personalisation through your email campaigns & flows.
We do this by dividing your customer base into distinct groups based on specific criteria, such as behaviour, purchase history, or engagement levels.
This enables you to send targeted and relevant messages to each group, improving the chances of conversion.
Why do we Segment?
Higher Engagement & Conversion: by delivering the right message to the right person, segmentation allows you to personalise your marketing efforts, leading to higher engagement and conversion rates. According to Klaviyo’s Segmentation Benchmark Report which analysed 2.5 billion emails, segmented campaigns led to 3x higher Earnings Per Recipient (EPR), 1.63x higher opens & 2.16x higher clicks. Segmentation helps in delivering the right message to the right audience, thereby maximising the effectiveness of your campaigns.
Better Deliverability: the same report also suggests that the unsubscribe rate for unsegmented campaigns is 2x that of highly segmented campaigns, showing that ‘batch & blast’ is not an effective way to keep subscribers on your list & protect deliverability. Segmented campaigns not only boost engagement but also improve deliverability, as outlined in our email deliverability checklist.
Klaviyo's Benchmark Table: By positively impacting positive & negative engagements, segmentation is crucial for deliverability. According to Klaviyo’s segmentation benchmark, segmented campaigns lead to 3x higher earnings per recipient.
Understanding Klaviyo Segmentation
There are three primary types of segmentation you can focus on in Klaviyo:
Engaged: sending to people who have recently opened or clicked an email.
Intent & Purchase: sending to people who have shown purchase intent or made a recent purchase.
Advanced segmentation: segments that fall outside the scope of the above (e.g. location, churn risk, holiday shoppers).
Each type serves a different purpose and targets different customer behaviours. Klaviyo's predictive analytics can help refine these segments, ensuring your messages reach the right audience.
Below we dive into these types of segmentation, along with suggested frequency of use & relevant campaign ideas for each.
Engaged Segmentation (60-70% of Campaigns)
Overview: Engaged segmentation targets customers based on their recent interactions with your brand, such as email opens & clicks.
How often: We recommend 60-70% of your monthly sends should be to these segments. They’re your most engaged so allow you to hit the widest part of your list to maximise sales without compromising deliverability.
When to Use: Use engaged segmentation for general campaigns when no specific segmentation is available, such as blog, brand updates, promotions, customer reviews, new product launches.
Engaged Segments (30, 60, 90 days): start with the 30-day engaged. If open rates are at 33% or above, gradually move upwards to a 60-day engagement. Repeat the process, gradually expanding the segment whilst opens exceed 33%.
Intent & Purchase Segmentation (20-30% of Campaigns)
The Engaged segment should be your 'go to' (given you want to maximise eyes on each of your emails). After that the below are the groups of customers that can lead to substantial boosts to your metrics, so target them 20-30% of the time.
Tailor the criteria below to your own business!
Prospects (Non-Buyers):
What are they? Prospects are potential customers who have shown interest in your products but have not yet made a purchase. Non-buyers who browse without purchasing can be re-engaged with browse abandonment examples tailored to their interests
When to Use: Use this segmentation to target non-buyers with introductory offers, educational content, or special promotions to encourage their first purchase.
Product Interest:
What are they? This segment includes customers who have demonstrated interest in specific products through browsing behaviour, wish lists, or inquiries.
When to Use: Utilise this segmentation to send personalised recommendations, back-in-stock notifications, and targeted promotions to convert interest into sales.
Product Purchase:
What are they? This segment includes customers who have previously purchased products from your store.
When to Use: Use this segmentation to cross-sell, upsell, and send personalised post-purchase follow-ups to enhance customer loyalty and repeat sales.
VIPs:
What are they? VIPs are your most loyal and high-spending customers. The segmentation can either be on total amount spend or the number of orders. We use a combination, such as the below.
When to Use: Target VIPs with exclusive offers, early access to new products, and special rewards to maintain their loyalty and increase their lifetime value.
Advanced Segmentation (10% of Campaigns)
These are segments that are either more niche (e.g. holiday shoppers), lower value or less likely to engage. Target these 10% of the time.
Again, tailor the criteria below to your own business!
Budget Shoppers (Low AOV):
What are they? Budget shoppers are customers who typically make low-value purchases. It leverages predictive analytics to predict AOV. Tailor this to your brand - it should be the bottom 20% of customers by AOV. Budget shoppers respond well to urgency tactics, such as countdown timers for email campaigns.
When to Use: Use this segmentation to promote bargain sections of the site, discounts, bundle deals, and budget-friendly product recommendations to encourage higher spending.
Churn Risk:
What are they? This segment includes customers who are at risk of not returning to your store, identified by a decrease in engagement or purchases.
When to Use: Target this segment with re-engagement campaigns, special offers, and personalised messages to prevent churn and retain customers.
Holiday Shoppers (e.g., Christmas, BFCM):
What are they? Holiday shoppers are a key audience for Black Friday Cyber Monday campaigns, as highlighted in our guide on mastering BFCM.
When to Use: Utilise this segmentation to send holiday-specific promotions, gift guides, and limited-time offers to capitalise on seasonal buying behaviour. A key use case is Black Friday Cyber Monday - some customers will only engage during this period for the heavy discounts.
Email and SMS Campaign Ideas Based on Segmentation
Timing plays a significant role in campaign success; learn about the best time to send email newsletters for maximum engagement. Here are some specific ideas for segmented email and SMS campaigns:
How to Build Segments in Klaviyo
Follow these steps to create segments in Klaviyo:
Head to 'Lists & segments' in the left tab.
Click 'Create new' in the top right & create a segment.
Use the segment builder to define criteria based on the segmentation strategies mentioned above.
If your store runs on Shopify, our Shopify Klaviyo integration guide will help you set up seamless and effective segmentation
Klaviyo's 'Audience Breakdown': Optimise Segments
When sending to multiple segments, Klaviyo automatically allows you to view a breakdown of performance by each:
Schedule an Email or SMS campaign to different segments
Navigate to ‘Campaigns’
Click on the relevant campaign & select the ‘Audience Breakdown’ tab
You’ll receive an image like the above. You can spot the audiences that are most engaged with your campaigns (in conversion & engagement).
At Titan, we send each campaign to multiple segments. If we’re running a product launch for example, we can trial including customers who’ve recently viewed a product in that category. Then, depending on performance, we know whether to include them in similar campaigns in the future. Use A/B tests to boost email conversions and refine which audience segments engage the most.
Conclusion
Highly segmented sends drive 3x higher earnings per recipient.
Segmentation is a powerful & essential tool that enables personalised marketing, driving higher engagement and sales.
By understanding and implementing engaged segmentation, intent & purchase, and advanced segmentation, you can create more effective campaigns that resonate with your audience.
Learn More About Segmentation…
Want to learn more about how segmentation can boost your campaign performance? Get your free audit today!
Highly segmented sends earn 3x higher earnings per recipient. This article covers the key segments, how to build them & campaign ideas.
Introduction
In the competitive landscape of direct-to-consumer (DTC) e-commerce, personalised marketing is essential for driving sales and engagement.
According to Statista, the number of emails sent daily is growing rapidly year on year. Inboxes have never been more flooded.
Statista, 2024
By tailoring your messaging to specific customer groups, you’ll stand out in the inbox, resonate more with your subscribers & drive up to 40% more revenue (McKinsey, 2021).
This guide will explore how advanced segmentation can boost your DTC sales and how to implement these strategies using Klaviyo.
What is Segmentation?
Segmentation is all about getting the right message to the right person. It’s personalisation through your email campaigns & flows.
We do this by dividing your customer base into distinct groups based on specific criteria, such as behaviour, purchase history, or engagement levels.
This enables you to send targeted and relevant messages to each group, improving the chances of conversion.
Why do we Segment?
Higher Engagement & Conversion: by delivering the right message to the right person, segmentation allows you to personalise your marketing efforts, leading to higher engagement and conversion rates. According to Klaviyo’s Segmentation Benchmark Report which analysed 2.5 billion emails, segmented campaigns led to 3x higher Earnings Per Recipient (EPR), 1.63x higher opens & 2.16x higher clicks. Segmentation helps in delivering the right message to the right audience, thereby maximising the effectiveness of your campaigns.
Better Deliverability: the same report also suggests that the unsubscribe rate for unsegmented campaigns is 2x that of highly segmented campaigns, showing that ‘batch & blast’ is not an effective way to keep subscribers on your list & protect deliverability. Segmented campaigns not only boost engagement but also improve deliverability, as outlined in our email deliverability checklist.
Klaviyo's Benchmark Table: By positively impacting positive & negative engagements, segmentation is crucial for deliverability. According to Klaviyo’s segmentation benchmark, segmented campaigns lead to 3x higher earnings per recipient.
Understanding Klaviyo Segmentation
There are three primary types of segmentation you can focus on in Klaviyo:
Engaged: sending to people who have recently opened or clicked an email.
Intent & Purchase: sending to people who have shown purchase intent or made a recent purchase.
Advanced segmentation: segments that fall outside the scope of the above (e.g. location, churn risk, holiday shoppers).
Each type serves a different purpose and targets different customer behaviours. Klaviyo's predictive analytics can help refine these segments, ensuring your messages reach the right audience.
Below we dive into these types of segmentation, along with suggested frequency of use & relevant campaign ideas for each.
Engaged Segmentation (60-70% of Campaigns)
Overview: Engaged segmentation targets customers based on their recent interactions with your brand, such as email opens & clicks.
How often: We recommend 60-70% of your monthly sends should be to these segments. They’re your most engaged so allow you to hit the widest part of your list to maximise sales without compromising deliverability.
When to Use: Use engaged segmentation for general campaigns when no specific segmentation is available, such as blog, brand updates, promotions, customer reviews, new product launches.
Engaged Segments (30, 60, 90 days): start with the 30-day engaged. If open rates are at 33% or above, gradually move upwards to a 60-day engagement. Repeat the process, gradually expanding the segment whilst opens exceed 33%.
Intent & Purchase Segmentation (20-30% of Campaigns)
The Engaged segment should be your 'go to' (given you want to maximise eyes on each of your emails). After that the below are the groups of customers that can lead to substantial boosts to your metrics, so target them 20-30% of the time.
Tailor the criteria below to your own business!
Prospects (Non-Buyers):
What are they? Prospects are potential customers who have shown interest in your products but have not yet made a purchase. Non-buyers who browse without purchasing can be re-engaged with browse abandonment examples tailored to their interests
When to Use: Use this segmentation to target non-buyers with introductory offers, educational content, or special promotions to encourage their first purchase.
Product Interest:
What are they? This segment includes customers who have demonstrated interest in specific products through browsing behaviour, wish lists, or inquiries.
When to Use: Utilise this segmentation to send personalised recommendations, back-in-stock notifications, and targeted promotions to convert interest into sales.
Product Purchase:
What are they? This segment includes customers who have previously purchased products from your store.
When to Use: Use this segmentation to cross-sell, upsell, and send personalised post-purchase follow-ups to enhance customer loyalty and repeat sales.
VIPs:
What are they? VIPs are your most loyal and high-spending customers. The segmentation can either be on total amount spend or the number of orders. We use a combination, such as the below.
When to Use: Target VIPs with exclusive offers, early access to new products, and special rewards to maintain their loyalty and increase their lifetime value.
Advanced Segmentation (10% of Campaigns)
These are segments that are either more niche (e.g. holiday shoppers), lower value or less likely to engage. Target these 10% of the time.
Again, tailor the criteria below to your own business!
Budget Shoppers (Low AOV):
What are they? Budget shoppers are customers who typically make low-value purchases. It leverages predictive analytics to predict AOV. Tailor this to your brand - it should be the bottom 20% of customers by AOV. Budget shoppers respond well to urgency tactics, such as countdown timers for email campaigns.
When to Use: Use this segmentation to promote bargain sections of the site, discounts, bundle deals, and budget-friendly product recommendations to encourage higher spending.
Churn Risk:
What are they? This segment includes customers who are at risk of not returning to your store, identified by a decrease in engagement or purchases.
When to Use: Target this segment with re-engagement campaigns, special offers, and personalised messages to prevent churn and retain customers.
Holiday Shoppers (e.g., Christmas, BFCM):
What are they? Holiday shoppers are a key audience for Black Friday Cyber Monday campaigns, as highlighted in our guide on mastering BFCM.
When to Use: Utilise this segmentation to send holiday-specific promotions, gift guides, and limited-time offers to capitalise on seasonal buying behaviour. A key use case is Black Friday Cyber Monday - some customers will only engage during this period for the heavy discounts.
Email and SMS Campaign Ideas Based on Segmentation
Timing plays a significant role in campaign success; learn about the best time to send email newsletters for maximum engagement. Here are some specific ideas for segmented email and SMS campaigns:
How to Build Segments in Klaviyo
Follow these steps to create segments in Klaviyo:
Head to 'Lists & segments' in the left tab.
Click 'Create new' in the top right & create a segment.
Use the segment builder to define criteria based on the segmentation strategies mentioned above.
If your store runs on Shopify, our Shopify Klaviyo integration guide will help you set up seamless and effective segmentation
Klaviyo's 'Audience Breakdown': Optimise Segments
When sending to multiple segments, Klaviyo automatically allows you to view a breakdown of performance by each:
Schedule an Email or SMS campaign to different segments
Navigate to ‘Campaigns’
Click on the relevant campaign & select the ‘Audience Breakdown’ tab
You’ll receive an image like the above. You can spot the audiences that are most engaged with your campaigns (in conversion & engagement).
At Titan, we send each campaign to multiple segments. If we’re running a product launch for example, we can trial including customers who’ve recently viewed a product in that category. Then, depending on performance, we know whether to include them in similar campaigns in the future. Use A/B tests to boost email conversions and refine which audience segments engage the most.
Conclusion
Highly segmented sends drive 3x higher earnings per recipient.
Segmentation is a powerful & essential tool that enables personalised marketing, driving higher engagement and sales.
By understanding and implementing engaged segmentation, intent & purchase, and advanced segmentation, you can create more effective campaigns that resonate with your audience.
Learn More About Segmentation…
Want to learn more about how segmentation can boost your campaign performance? Get your free audit today!
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Check our other project Blogs with useful insight and information for your businesses