Database segmentation is the division of contacts into groups according to characteristics or behaviour so that each receives a more relevant message. Basic criteria are customer type, purchase history, interest shown through clicks, recent activity and region. The benefit is twofold: higher response and fewer unsubscribes, because people don't receive content that isn't relevant to them. Segmentation also protects deliverability, since sending to inactive contacts damages the sender's reputation. Dozens of segments aren't needed – dividing contacts into active customers, inactive customers, and prospects without a purchase covers most of a smaller company's needs. Segments should be updated automatically based on conditions, not manually, otherwise they quickly go out of date and fall out of use. The effectiveness of segmentation shows up fastest in reactivation campaigns, where the difference in response between groups is most pronounced.
See also: RFM segmentation, Contact list hygiene, Email personalisation.
