In email marketing, segmentation is the practice of dividing your email list into smaller, targeted groups based on shared characteristics, behaviours, or preferences. Instead of sending the same message to everyone, segmentation allows you to tailor your content, offers, and messaging to specific subsets of your audience.
For example, you might segment your list by:
- Geographic location (sending different event invitations based on city)
- Purchase history (offering product recommendations based on past orders)
- Engagement level (targeting active subscribers differently than inactive ones)
- Demographics (tailoring messaging by age, job title, or industry)
- Interests or preferences (sending content based on stated preferences or browsing behaviour)
Segmentation ensures that subscribers receive emails that are relevant to them, which leads to better engagement, higher conversions, and a stronger overall email programme.
Why segmentation matters
Sending generic, one-size-fits-all emails to your entire list is inefficient and ineffective. People have different needs, interests, and stages in their customer journey—segmentation acknowledges these differences and responds accordingly.
The benefits of segmentation include:
- Higher open rates – When subject lines and content speak directly to a subscriber’s situation or interests, they’re more likely to open.
- Better click-through rates – Relevant content drives more clicks because it aligns with what the recipient actually cares about.
- Increased conversions – Targeted offers and personalised messaging convert better than generic promotions.
- Lower unsubscribe rates – People stay subscribed when emails feel useful and relevant rather than spammy or irrelevant.
- Improved deliverability – Mailbox providers reward engagement. Higher opens and clicks signal quality, which helps your emails reach the inbox.
- Stronger customer relationships – Segmentation shows subscribers you understand them, which builds trust and loyalty over time.
Types of segmentation for your contact list
There are many ways to segment your email list. The right approach depends on your business model, available data, and marketing goals.
Demographic segmentation
Dividing your list based on characteristics like age, gender, location, job title, income level, or company size. This is useful for tailoring tone, offers, or product recommendations.
Example: A clothing retailer segments by gender to send relevant product recommendations.
Behavioural segmentation
Grouping subscribers based on actions they’ve taken, such as:
- Past purchases or order history
- Website browsing behaviour
- Email engagement (opens, clicks, downloads)
- Cart abandonment
- Event attendance or webinar participation
Behavioural segmentation is highly effective because it’s based on demonstrated interest or intent.
Example: An online course provider sends follow-up emails only to people who clicked on a specific course topic in a previous campaign.
Engagement segmentation
Separating subscribers by how actively they interact with your emails. Common segments include:
- Highly engaged (opens and clicks regularly)
- Moderately engaged (opens occasionally)
- Inactive (hasn’t opened in 60+ days)
Engagement segmentation helps you re-engage dormant subscribers or reward your most loyal readers.
Example: A publisher sends exclusive content to highly engaged subscribers and a win-back campaign to those who haven’t opened emails in three months.
Lifecycle segmentation
Grouping people based on where they are in the customer journey, such as:
- New subscribers
- Prospects or leads
- First-time customers
- Repeat customers
- Loyal or VIP customers
This allows you to nurture people appropriately for their stage.
Example: A SaaS company sends onboarding emails to new trial users and upsell campaigns to long-term customers.
Preference-based segmentation
Letting subscribers self-select into segments based on their stated interests, content preferences, or communication frequency.
Example: A newsletter offers subscribers the option to choose topics they’re interested in—marketing, sales, or product updates—and only sends relevant content.
Firmographic segmentation (B2B)
For business-to-business marketers, segmenting by company characteristics like industry, company size, revenue, or role within the organisation.
Example: A software vendor sends different case studies to small businesses versus enterprise clients.
How to start segmenting your list
If you’re new to segmentation, start simple and build from there.
- Identify your goals – What are you trying to achieve? More conversions? Better engagement? Re-activation of inactive subscribers? Your goals will guide which segments to create.
- Audit your data – Review what information you already have about your subscribers. This might include signup source, location, purchase history, or engagement metrics.
- Start with one or two segments – Don’t overcomplicate things. Begin with a simple split, like active vs. inactive subscribers, or customers vs. non-customers.
- Use your email platform’s tools – Most email service providers offer built-in segmentation features based on tags, custom fields, or behaviour tracking.
- Test and refine – Send a campaign to a segment and compare performance against a non-segmented send. Use the results to refine your approach.
- Expand over time – As you gather more data and see results, add more sophisticated segments like behavioural triggers, lifecycle stages, or preference-based groups.
Segmentation and personalisation
Segmentation and personalisation often go hand in hand, but they’re not the same thing.
Segmentation is about dividing your list into groups. Personalisation is about tailoring the content within those groups to individual subscribers.
For example:
- Segmentation: Sending a promotional email only to subscribers in Toronto.
- Personalisation: Including the subscriber’s first name and recommending products based on their browsing history.
The most effective email programmes use both. Segmentation ensures the right people receive the message, and personalisation makes that message feel uniquely relevant.
Common segmentation mistakes
Segmentation improves results, but only when done thoughtfully.
Under-segmenting
Sending the same email to everyone defeats the purpose of segmentation. Even basic splits—like engaged vs. disengaged—can significantly improve performance.
Ignoring data quality
Segmentation relies on accurate data. If your tags, custom fields, or behavioural tracking aren’t set up correctly, your segments won’t be reliable.
Setting and forgetting
Subscriber behaviour and preferences change over time. Review and update your segments regularly to ensure they remain relevant.
Not testing
Assumptions about what will resonate with a segment aren’t always correct. Test different messaging, offers, and creative approaches to see what actually works.
Segmentation best practices
To get the most from segmentation, follow these guidelines.
- Collect the right data – Use signup forms, preference centres, and behavioural tracking to gather information that enables meaningful segmentation.
- Make it easy to update preferences – Let subscribers manage their own segments by choosing topics, frequency, or content types.
- Combine multiple criteria – Layer segments for even greater relevance. For example, target “engaged subscribers in Vancouver who’ve purchased in the last 30 days.”
- Respect privacy – Only collect and use data that subscribers have consented to share, and be transparent about how you’ll use it.
- Monitor performance – Track metrics for each segment to understand what’s working and where there’s room for improvement.
Key takeaway
Segmentation is the practice of dividing your email list into targeted groups based on shared traits or behaviours. By sending relevant, tailored messages instead of generic blasts, you’ll see higher engagement, better conversions, and stronger relationships with your subscribers. Segmentation is a cornerstone of modern email marketing and one of the most effective ways to improve your programme’s performance.