List segmentation is the process of dividing consumers on marketing mailing lists into groups based on demographics, interests, or shopping behaviors.
Sending the same exact offer, promotion, or product information to all the hundreds — if not thousands — of consumer contacts on a mailing list is no longer the most effective way to build loyalty and drive conversions.
Instead, consumers expect content tailored to their particular needs, which is why brands increasingly use list segmentation to divide and group list contacts based on consumers’ interests, needs, wants, buying habits, backgrounds, locations, or demographics.
List segmentation allows for more personalized marketing to occur, in which marketing materials resonate more directly with consumers in particular segments.
A sporting goods brand that groups customers by athletic intensity, for example, can promote basic products to beginners and more premium products to veteran athletes.
By grouping segments of customers, brands also gain access to group-specific data that can help them better understand and connect with their shopping habits.