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Email Marketing intermediate 45-60 minutes

How to Segment Your Email List for Better Results

Learn how to divide your email list into targeted groups to increase open rates, boost conversions, and reduce unsubscribes.

Emma 25 January 2026

# How to Segment Your Email List for Better Results

Sending the same email to every single person on your list is like trying to sell a surfboard to someone living in Alice Springs—it’s a waste of your time and theirs. Email segmentation allows you to group your subscribers based on their interests, behaviours, and demographics so you can send them content they actually care about.

By the end of this guide, you’ll know how to organise your database to improve your open rates, drive more sales, and keep your Aussie customers engaged for the long term.

Prerequisites

Before we dive in, ensure you have the following:
  • An active Email Marketing Platform (e.g., Mailchimp, Klaviyo, or ActiveCampaign).
  • An existing list of subscribers (even if it’s small).
  • Basic data about your customers (purchase history or location).

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Step 1: Audit Your Current Data

Before you can segment, you need to see what information you already have. Export your contact list into a spreadsheet or look at your CRM dashboard. Look for common data points like 'Postcode', 'Last Purchase Date', or 'Product Interest'.

Screenshot Description: You should see a table or grid view of your contacts with columns representing different data fields like Email, First Name, City, and Date Added.

Step 2: Define Your Segmentation Goals

Don't segment just for the sake of it. Ask yourself: "What am I trying to achieve?"
  • Goal A: Re-engage customers who haven't bought in 6 months.
  • Goal B: Send a VIP offer to your highest-spending customers.
  • Goal C: Send a location-specific invite for a Brisbane-based event.

Step 3: Segment by Demographics

This is the most basic form of segmentation. Group your audience by age, gender, or location. For Australian businesses, segmenting by State or Postcode is vital for managing shipping expectations or promoting local store events.

Step 4: Segment by Purchase Behaviour

This is where the real money is made. Create a segment for "Past Customers" versus "Leads (Never Purchased)". Within your customers, you can further segment by:
  • Product Category: People who bought 'Work Boots' vs. 'Running Shoes'.
  • Average Order Value (AOV): High spenders vs. bargain hunters.

Step 5: Segment by Engagement Level

Identify your "Super Fans"—those who open every email—and your "Ghosts"—those who haven't opened an email in 90 days. You should treat these two groups very differently. Send the Super Fans early access to sales, and send the Ghosts a "We Miss You" discount code.

Step 6: Create Your First Segment in Your Platform

Log into your email tool and find the 'Segments' or 'Lists' section. Click 'Create New Segment'. You will need to set a rule. For example: "Match contacts where 'Last Opened' is within the last 30 days."

Screenshot Description: A pop-up window showing a 'Rule Builder' where you select a category from a dropdown menu and define the logic (e.g., 'is', 'is not', 'contains').

Step 7: Use 'Tags' for Granular Control

Tags are labels you apply to contacts manually or automatically. If someone clicks a link in your email about 'Commercial Solar', tag them as 'Interested in Commercial'. This allows you to follow up with specific information without bothering your residential customers.

Step 8: Set Up Automated Tagging

Most modern platforms allow you to automate this. Set a rule that says: "If a user clicks [Link X], apply tag [Interest Y]." This keeps your segments updated in real-time without you lifting a finger.

Step 9: Use Sign-up Forms to Gather Data

The best time to segment is at the point of entry. Instead of just asking for an email address, add a simple checkbox or dropdown to your sign-up form. For example: "What are you interested in? (Residential / Commercial / Wholesale)".

Step 10: Clean Your List Regularly

Segmentation only works if your data is clean. Remove 'Hard Bounces' (invalid emails) and consider unsubscribing people who haven't engaged in over a year. A smaller, highly engaged list is worth much more than a large, dead one.

Step 11: Personalise Your Subject Lines

Now that you have segments, use them! Instead of a generic subject line, use the segment data. Generic:* "Check out our new arrivals!" Segmented:* "Hey [Name], new [Category] gear just landed in Brisbane!"

Step 12: Test and Compare Results

Send one email to your whole list and another targeted version to a specific segment. Compare the 'Open Rate' and 'Click-Through Rate' (CTR). You will almost always see significantly higher engagement on the segmented version.

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Pro Tips for Aussie Small Businesses

  • Respect the Privacy Act: Ensure you are compliant with Australian privacy laws. Only collect data you actually need and always provide a clear 'Unsubscribe' link.
  • Use ABN/Company Data: if you are B2B, segmenting by industry type (using their company name or ABN lookup) can help you tailor your professional advice.
  • Time Zone Awareness: If you have customers in Perth and Brisbane, remember the time difference! Segment by state so your "Morning Coffee" email doesn't arrive at 5:00 AM in WA.

Common Mistakes to Avoid

  • Over-segmenting: Don't create 50 segments if you only have 500 subscribers. You'll end up writing 50 different emails for 10 people each. Start with 3-4 broad groups.
  • Static Segments: Ensure you use "Dynamic Segments" (which update automatically) rather than "Static Lists" (which require manual updates).
  • Ignoring the Data: If a segment isn't performing, don't keep forcing it. Re-evaluate why that group isn't responding.

Troubleshooting

  • My segment shows 0 contacts: Check your logic. You might have set it to "Match ALL rules" (e.g., lives in Brisbane AND is a cat owner AND hasn't bought in 2 days) which might be too specific.
  • The data is wrong: This usually happens if your sign-up form fields aren't mapped correctly to your email platform. Double-check your integration settings.
  • Low open rates despite segmentation: Your subject line might still be too generic, or your emails might be landing in the 'Promotions' tab. Try testing a plain-text version.

Next Steps

Now that you've segmented your list, it's time to automate your communication.
  • Set up a Welcome Sequence for new subscribers.
  • Create an Abandoned Cart flow for customers who leave items behind.
  • If you need help setting up complex automations or cleaning your database, contact the team at Local Marketing Group.
Email MarketingSegmentationCustomer RetentionDigital Strategy

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