Email Applied: How to Use Segmentation to Increase Email Relevance

Discount Beauty Center tried this approach. Buyers received an offer for $5 off any $25 purchase, resulting in an 8.9 percent clickthrough rate. Of those who clicked, 13.6 percent made a purchase. The second segment received a 10 percent discount. While the clickthrough rate was low (4.4 percent), the offer generated a 20-plus percent conversion rate. The third group (i.e., inactives) received a 15 percent discount, resulting in a 2.8 percent clickthrough rate and 12 percent conversion rate. Discount Beauty Center was pleased with the results and decided to send a second email to each group with a different subject line. That effort resulted in additional sales.