Latest / The Email Marketing Podcast with Fexingo: Newsletters, Open Rates, and Subscriber Growth / Why Email List Segmentation Boosts Open Rates
Transcript
- Lucas: So we've talked a lot about deliverability and list quality on this show, but today I want to focus on something that's right in the middle of those two: segmentation. Specifically, why splitting your list into smaller, more targeted groups actually boosts open rates and click-through rates. Luna: And I think a lot of marketers hear 'segmentation' and assume they need fancy tools or a data scientist. But the reality is simpler than that. Lucas: Right. Mailchimp published data in early 2025 that still gets cited a ton: segmented campaigns averaged a 14.3 percent higher open rate than non-segmented ones. And that's across all industries they track. Luna: Fourteen point three percent — that's not trivial. But what's driving that? Is it just better targeting, or is there something psychological? Lucas: I think it's both. When you send a message that clearly speaks to someone's specific role or interest, they feel like you actually see them. That's basic reciprocity — they reward you with attention. Luna: And the flip side is, broad blasts feel like noise. People unsubscribe faster when they get irrelevant stuff. Lucas: Exactly. So let's make this concrete. There's a B2B SaaS company called WorkflowPro — they make project management software. About a year ago they had a 50,000-person list and they were sending the same monthly newsletter to everyone. Open rate hovered around 18 percent. Luna: Ouch. That's below industry average for B2B. Lucas: Way below. So they decided to segment by two things: industry and job role. They used the data from their signup form — which only asked for email, industry dropdown, and job title. Nothing fancy. They ended up with twelve segments: like 'construction project managers', 'healthcare IT directors', 'freelance creative directors'. Luna: And then they tailored the subject line and the first paragraph for each group. Lucas: Yeah. The construction segment got a case study about a contractor who saved twenty hours a week. The healthcare segment got a compliance feature. Six months later, their open rate was up to 24 percent, click-through rate jumped 22 percent, and unsubscribes dropped by 12 percent. Luna: That's a huge win from just two data points. And they didn't need any expensive automation. Lucas: They used Mailchimp's basic segmentation, which is included in most plans. But here's the thing I want to push back on: a lot of marketers worry that segmenting will shrink their 'active' list because they'll only send to a subset each time. Luna: Right, the fear is that you're leaving money on the table by not emailing everyone every time. Lucas: But the data shows the opposite. When you send more relevant content, overall engagement goes up, so your sender reputation improves, which means more of your emails land in the inbox. And engaged subscribers are more likely to buy. So you actually get more revenue per email, not less. Luna: And that's even more true for e-commerce. I saw a case from a small brand — let's call them 'Canvas & Thread', a print-on-demand shop — they had about 8,000 subscribers and were doing a weekly 'new arrivals' blast to everyone. Their revenue per email was around $0.12. Luna: They segmented by purchase history: past buyers, window shoppers, and non-buyers. Past buyers got a 'you might also like' based on their last purchase. Window shoppers got an abandoned cart reminder with a 10 percent discount. Non-buyers got a brand story and a first-purchase offer. Lucas: And what happened? Luna: Within three months, their revenue per email hit $0.18 — that's a 50 percent increase. And they didn't spend a dime on new tools. They used Google Sheets to tag subscribers and their ESP's native segmentation. Lucas: That's exactly the kind of thing I love hearing. Low lift, high impact. And it ties back to something we've said on this show before: your list is not a megaphone; it's a collection of conversations. Luna: If these marketing conversations have sparked something you've actually used in your own campaigns, consider supporting the show. Listener support is what keeps this podcast ad-free and independent. You can do that at buy me a coffee dot com slash fexingo. Lucas: And we really appreciate that. It helps us keep bringing you deep dives like this one. Luna: So back to segmentation — what about behavioral vs. demographic? Which one should a newbie start with? Lucas: Great question. Demographic segmentation — things like age, location, job title — is easier because it's usually captured on the signup form. But behavioral segmentation — past purchases, email clicks, website visits — tends to be more predictive of future action. Luna: So if you're just starting, would you recommend going with demographic first, or jumping straight into behavioral? Lucas: I'd say start with one behavioral segment: people who clicked on a specific link in your last three emails. Create a segment for that and send them a follow-up with related content. That alone can lift engagement fast. Luna: And you're not overcomplicating it. You're just following the data trail. Lucas: Exactly. You don't need a perfect system. You just need one or two segments that make your emails feel less generic. Luna: Alright, so practical takeaway: pick one behavior — say, 'clicked on last week's email' — and create a segment. Send them one tailored email. Measure open and click rates against your non-segmented benchmark. Lucas: And if you see improvement — and you almost certainly will — then add a second segment. Maybe by product interest or by how long they've been subscribed. Build from there. Luna: I like that. Small wins compound. Lucas: They really do. A lot of marketers think segmentation is an all-or-nothing overhaul. But it's more like adding a few spices to a dish. A little can change the whole flavor. Luna: And it keeps people from unsubscribing, which is the ultimate win. Lucas: Next time, let's talk about dynamic content — personalizing the body of the email beyond just the subject line. That's where segmentation really gets powerful. Luna: Can't wait. For now, start with one segment, one test, and see what the data tells you.