When Might Email List Segmentation Not Be to Your Advantage?

Segmentation is a technique that is strongly recommended to marketers who want to achieve greater relevance and personalization when targeting their list. A highly effective way to ensure that the right message reaches the right person, it is a method that is commonly employed by companies big and small. On the outside looking in, segmentation may appear to be the holy grail that can do no wrong, but there are also times when it can actually work to your disadvantage. This article will explain through a few examples.

When The Means Do Not Justify the Budget

If you are working with a limited marketing budget, segmentation is something that could literally drain your financial resources. Targeting multiple groups of consumers is something that often adds to marketing expenses. In addition, the efforts made toward segmenting your list and catering to everyone's unique taste could leave with an overstocked inventory of products that are difficult to move. Depending on your product line, the inventory could also be very costly to maintain, which directly affects your ability to remain profitable.

When Subscribers Are Concerned About Privacy

The purpose of segmentation is to break your master list down into smaller groups that make it easier to target subscribers with more relevant content. However, breaking it down into too many pieces is a tactic that may not sit well with some of your audience. Despite your efforts to provide them with a personalized experience, there is a possibility that some will react in a cynical manner and respond negatively to your marketing message. Segmentation and personalized targeting both call for a decent amount of personal data to be gathered and analyzed. For those who are concerned about their privacy, demonstrating how well you know them could result in panic. This is a problem faced by some of the biggest and most successful brands today.

When Establishing Brand Loyalty Comes First

With the right execution, a segmentation strategy can work wonders for your brand. On the other hand, it could also hinder your ability to create brand loyalty. Over the years, a number of email marketers have been under fire for what the media calls stereotypical and unethical marketing practices. Various consumer and minority groups have lashed out at the online marketing industry, assuming that some brands are stereotyping email recipients by targeting them based on criteria such as location, income bracket, and race. Even though your intentions may be genuine, this is always the chance you take when your communications are so focused. If getting consumers to become loyal to your brand is most important, it may not be a gamble you are willing to take.

Segmentation definitely has its advantages, but it is also a technique that can cause more harm than good if not executed carefully. The key to getting it right is identifying your goals, understanding your audience, and executing it in a way that will not put your budget in jeopardy. If you can do this, we think you will find that the positives tower over the negatives.

Gary San is a best practices activist and advocate for full service email marketing.