Higher conversion rates mean higher profits and more customers. Find out how targeted email marketing can increase conversions and improve your bottom line.The Internet of Things (IoT) continues to change the way businesses connect.More and more companies are turning to digital marketing to engage customers, build their brand authority, and convert prospects to leads.One of the most popular methods is email marketing. In a nutshell, this form of marketing involves using email as a means of corporate communication. It’s popular because it’s a cost-effective and quick way to reach a large audience.Did you know that more than 75% of consumers crave personalized, custom content over a generic message?Because of this, targeted email marketing is quickly taking the place of the more traditional alternative methods, in which the same content is delivered to customers, without any step in place to tailor the data to the recipient.Today, we're breaking down how targeted email marketing can improve your conversion rate, helping you reach the people you need quicker and more effectively than ever before.Ready to get started? Let's dig in!1. Targeted Email Marketing Makes It PersonalThink about it. How many emails in your inbox are from the same company, broadcasting a new promotion, sale, or update? Chances are, you may have been intrigued the first time, following the link to learn more about the offer.After a while, all those emails start to read like a generic "Look at my business!" Without offering any depth of customer understanding non-personalized emails often fail to survive the inbox.The reason?Simply put, your outreach lacks a personal connection. Regardless of how impressive your offer is, if you're extending the same one to all your customers, you reduce your power of attraction.What appeals to one shopper might not appeal to another. Taking a one-size-fits-all approach is not all that meaningful to your customers and consequently they equate it to spam reducing your rate of conversion.On the other hand, targeted email marketing turns the table on this type of messaging. It uses advanced analytics to determine what each shopper is most likely to listen to, be interested in, and ultimately -- buy. Companies who opt for this more personalized form of email marketing often track their customers' activity through a Recency, Frequency, and Monetary (RFM) model. This measures customer value by determining how recently they visited your site, how often they visit and/or buy from you, and how much they spend.Then, they use these insights to tailor their message to each one, and when the customer opens the email, he or she receives the data that's most pertinent. And the e-mail opening experience? It becomes much more personal -- and much more profitable.2. RFM Models Identify OpportunitiesIn the same vein that RFM models help companies gain deeper insights into their target audience, they also help them identify which customers need the most attention.For instance, you may see that a customer visits your site once a day, browses around and clicks for about 15 minutes, but fails to ever make it to checkout. On the other hand, someone may have only visited you once in the past six months, but made a hefty buy worth the average of several customers combined.In this case, both lead types need extra attention. You'll need to craft your email marketing campaign to encourage the chronic browser to actually buy an item. Then, you'll need to find a unique angle to pull your big spender back into your online shop.How Do I Build My RFM Model?Great question. Essentially what you’re going to be doing is filtering your database based on (recency - purchase date), (frequency – number of orders), and (monetary analysis – total revenue generated). Feel free to use this RFM Model Template to help filter your results.Batch email blasts that send out the same message can't offer this type of flexibility. Targeted email marketing helps you identify the holes in your campaigns. It also shows you how you can fill them to boost your customer connections -- and your bottom line. If you want to take this approach a step further, check out this post on Kissmetrics about how you can easily segment your email marketing list.3. Strategic Messaging Boosts Response RatesConsider this: Would you send the same promotional email to a CFO that you would to a student?A targeted email marketing campaign allows you to tailor each message to fit the person's title or role. This way, you can make sure it's appropriate and as influential as possible.This type of customization is one way to make the reader feel special. Yet, some companies are taking targeted messaging a step further. They're using geolocation technology to determine where their most high-impact customers are.This technology can be used in many ways. Two of the most popular are to determine when a customer is physically near your store and to determine which geographical areas have the highest spending rates compared to others.Companies often use the first method with a brick-and-mortar presence. They use it to attract potential leads with offers as they approach a storefront (often through SMS messaging).Yet, the second is commonly used by online businesses to determine which cities or areas around the world have the highest number of customers per capita.For instance, if you know your product is highly popular in Denver, Colorado, you can target specific messages to this audience. You can also adjust them to hit during peak office hours in the Mountain Time Zone, rather than risking popping up in their inbox at 1 a.m.With both title-specific and location-specific targeted email marketing, the aim is the same. You're seeking to establish a 1:1 relationship with the reader, catering to his or her duties, environment, and interests.Moving Forward: Tracking Your CampaignAfter kicking off a targeted email marketing campaign, it's important to track its progress.Doing so won't just help you check whether you're seeing a direct profit increase. It will also help determine which strategies are leading customers to your site, and which could use some change.As you move forward, it's important to set Key Performance Indicators (KPIs) to keep track of progress. What is your average clickthrough rate? How quickly is your leads list growing? Are you seeing improvement in your SEO rankings?Taking note of the above factors, as well as much more, will help ensure top ROI on your campaign investment. After all, the first step in converting leads is to get them interested in your brand in the first place.Delivering the right content to each customer is essential to boosting your conversion rate. So think before you press "send" and consider the value of your readership. They're worth the extra time it takes to target your message!Originally Posted on RankWatch Blog
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