Targeted Email Marketing Strategies to Increase Revenue

Sending a generic email is often the reason your campaigns aren’t delivering the results you expected. Your subscribers aren't all the same, so why should your emails be?

Personalization is on the rise among companies looking to increase sales and revenue. A recent McKinsey survey showed that an increasing number of brands are using data and analytics to craft more relevant experiences for their users. These users, in turn, expect companies to deliver personalized experiences – and 76% of them are getting frustrated when it does not happen.

And this approach has real benefits: personalization is increasing revenues by 5 to 15 percent for brands. Also, businesses with a fast growth rate see 40 percent more revenue from personalization compared to competitors.

In this article, we’ll look at the importance of targeted email marketing. You’ll learn how to segment your audience, with proven strategies that will transform your campaigns, and practical examples.

What is Targeted Email Marketing?

Targeted email marketing is a strategy that focuses on building meaningful, personalized connections with users. 

It involves sending relevant messages to different segments of your audience. This approach uses the information you have about users, such as their interests and demographics.

As Penny Wilson, former Chief Marketing Officer at Hootsuite Media, highlights:

“No longer will people accept viral marketing. What consumers are expecting and craving is a more personalized, curated experience.”

Creating targeted email campaigns may sound easy. But it goes beyond sending an email with your subscriber’s name. The half-hearted approach of  “Hello {firstname}!” and nothing more doesn’t count as targeted messaging.

Customers want to be at the center of every message you send. With targeted email marketing, you curate content specifically to the needs of the recipient. 

Benefits of Targeted Email Campaigns for Your Business 

Email marketing stands out from other marketing channels because you’re speaking to people who are interested in your brand. They opted in to hear from you, and this makes it an incredible tool for growing your business.

Here are the benefits of sending targeted email campaigns to these subscribers:

Stronger customer relationships: When you send targeted emails, subscribers feel valued and heard. This encourages deeper connections and customer loyalty. You get customers who will likely come back for more and even advocate for your brand.

Increased customer engagement: Delivering content that resonates with the recipient boosts engagement. Because they are getting messages that matter to them, you notice higher open and click-through rates. In fact, data shows that segmented emails drive 50% more click-through rates than unsegmented ones.

Higher conversions: Targeted email campaigns ensure your communication matches the recipient’s interests. As a result, it makes a significant impact on your conversion rate. This could be anything from buying a product to clearing an abandoned cart or registering for a webinar.

Enhanced user retention: GetApp’s Advertising Preferences Survey shows that 4 in 10 U.S. consumers unsubscribe from emails and texts weekly. 49% of these people state irrelevant content as the primary reason to unsubscribe. 

Users will stay with you if they feel they’re getting something valuable. You also improve your deliverability, since high engagement rates lower the chance of triggering the spam filter. However, if you clutter people’s inboxes with generic content, they’ll hit the unsubscribe button faster than you think.

Targeted Email Marketing Cost

We’ve seen the importance of targeted email for businesses. Email campaigns delivered to segmented audiences can boost your email revenue by up to 760%. 

But what does it cost to set up a targeted email campaign?

The biggest expense is usually the email marketing platform you use to send and manage your campaigns. If you already have a solid email solution in place, you’re off to a strong start.

There are plenty of email marketing tools available, so focus on choosing one that provides:

• Automation: Look for tools that let you set up triggered email sequences, such as re-engagement flows. This helps you deliver timely, relevant messages without constant manual effort.
  
• Customizable templates: With ready-made templates, you can create your campaign faster. It also saves you money by eliminating the need for a designer.
• Testing features: Look for functionalities that allow you to preview how your email will render, and troubleshoot deliverability issues without any hassles.
• Analytics and reporting: You should be able to track key metrics, such as opens, click-through rates, and conversions.
• Personalization: Choose tools that allow you to tailor your content to different segments.

Aside from the email marketing solution, other expenses, if you don’t have them already, include:

• An email hosting service
• Customer relationship management (CRM) system
• A tool for tracking customer activities on your website and apps, such as Google Analytics, Amplitude, or Mixpanel.

The total cost of a targeted email campaign varies widely, depending on the tools you use. What can be compared more directly, however, are the costs of sending emails. 

Here are the top reliable platforms for targeted email marketing and their starting prices:

	UniOne	Mailtrap	Mailchimp	ActiveCampaign	Brevo	Constant Contact
Pricing	$6/month for 10,000 emails	$15/month for 10,000 emails	$13/month for 5,000 emails	$15/month for up to 10,000 emails	$9/month for 5,000 emails	$12/month for up to 5,000 emails

Keep in mind that pricing may vary depending on features and email volume. Certain features may be unavailable on lower tiers. However, with platforms like UniOne you get full access to all the features right from the start, without complicated pricing schemes.

How to Build and Maintain a Targeted Email List

While it may be tempting to rent or purchase an email list, doing so hurts you almost immediately, triggering numerous spam complaints that kill your deliverability. It goes against anti-spam policies and privacy laws that require explicit consent before sending marketing emails. 

Moreover, the idea of targeted email campaigns is to engage users with relevant content. The people in a purchased or rented email list usually have no interest in your brand.

If you don’t have a contact list yet for a targeted email marketing campaign, here’s how to build one:

Optimize your website: The most common option when building an email list is to optimize your website and landing pages. Place sign-up forms where visitors can easily find them. Think of your high-traffic web pages, sidebars, headers, footers, or a dedicated sign-up page.

Create lead magnets: People are more likely to share their emails with you if they’re getting something in return. Offer valuable magnets like e-books, exclusive content, and discounts to encourage sign-ups.

Leverage social media: Start promoting your lead magnets and sign-up forms on social media. You could also add your sign-up links to your profile or pinned posts. Another option is to host social media contests that require email addresses for participation.

Host webinars: Hosting online events is an opportunity to collect email addresses. Offering valuable information to people who are interested in your industry also helps build a community around your brand. 

What if you already have a list, and it's not segmented?

The first step is to clean up your email list. Start by removing fake addresses and irrelevant contacts to ensure you have an active, healthy subscriber base you can segment. You can also make it a point of duty to clean your email list regularly.

Key practices for maintaining email list hygiene include:

• Use double opt-in to ensure subscribers confirm their interest.
  
  
• Remove inactive or unengaged subscribers. Define what "inactive" means for you (could be 12 months of no-opens), and send re-engagement campaigns before removing them.
  
  
• Monitor bounce rates. Hard bounces indicate invalid email addresses which should be removed from your list. Repeatedly sending to invalid addresses damages your sender reputation.
  
  
• Use the built-in email validation tool from your email service provider to get rid of fake or mistyped addresses.
  
  
• Honor unsubscribe requests immediately.
  
  
• Follow global compliance laws, such as GDPR and CAN-SPAM, regarding consent and data privacy.

What data should you collect for targeted email marketing?

The data you have influences the effectiveness of your campaigns. To collect the necessary data, start by defining your goals and marketing objectives. These determine the type of information you’ll need for audience segmentation. 

After defining your goal, the next step is to gather data. A survey of more than 11,000 consumers across 10 countries shows that people are willing to share their data for a more personalized experience.

The key is asking for the right information. You may be tempted to ask for everything up front. But a better option would be collecting data progressively. Start with essentials and gather more over time.

You could collect customers' data in different ways, including:

• Track engagement metrics such as opens, clicks, and conversions, to isolate an actively engaging cohort. 
• Send out surveys and polls with questions about their interest, demographics, how they use your service, and so on. Remember to keep your surveys short and to the point.
• Check website and app interactions. Tools like Google Analytics allow you to track visitor sources, customers’ behavior, and page views. 

When choosing an email service provider, go for platforms that allow seamless integration with other tools. For instance, UniOne integrates with CRMs and other customer data platforms. This way, you can sync subscriber information across your marketing tools. 

How to Segment Your Email List

Once you have enough data to work with, it’s time for segmentation. Here are several ways you can group your audience for targeted email marketing:

1. Demographic segmentation

This is based on demographic data like age, company position, gender, income, and occupation. Many marketers begin segmentation with this data because it’s easier to gather from the audience during sign-up.

You don’t want to scare people off by asking too much information. Only collect the data you’ll use. 

Example: If you are a clothing brand, gender is an extremely valuable demographic. If you are a software development company, occupation and company position are important. 

2. Psychographic segmentation

You can segment your target email marketing list based on their lifestyle and motivations. You will need surveys and behavioral cues to get the type of data used here.

Psychographic segmentation goes deeper to understand what drives customers to make certain decisions. Using this grouping helps you send messages that resonate with the user’s values.

Example: A clothing brand can identify customers who are committed to sustainability. Send them campaigns specifically highlighting eco-friendly materials.

3. Geographic segmentation

Location-based targeted email marketing is particularly useful for brands with a physical presence. It’s equally important for businesses that cater to users in certain geographic areas. You can use geographic segmentation to promote local events and even adjust send times to match subscribers' time zones.

Example: A coffee company can send weather-based promotions using this information. Customers in cities experiencing a heat wave might receive discounts on iced coffees. Another example would be a restaurant sending emails about new menu items available only at certain locations.

4. Behavioral segmentation 

Here, the focus is on how the customer interacts with your product. It is one of the most powerful types of segmentation because it's based on customers’ actions. 

Behavioral segmentation includes factors such as:

Past purchases: When you know what a customer bought in the past, you can suggest similar items or make recommendations that go well with their purchase.

Email engagement: You could segment based on how often users interact with your emails.

Website activity: Segment and send a targeted email based on which pages users visit, how long they spend on your site, and which products they view but don't purchase.

Example: An online course platform notices that some users browse multiple course categories but never enroll. They create a targeted email campaign offering a limited-time discount specifically to browsers who haven't purchased.

5. Lifecycle stage segmentation

You should send targeted email campaigns depending on where a customer is in the sales journey. New users may benefit from onboarding sequences and educational content that builds trust. Conversely, a long-time customer might appreciate loyalty discounts and early access to products.

Example: A SaaS company might send new customers implementation guides and success stories, while long-term users get advanced tips and exclusive beta access.

How to Create Targeted Email Content

It’s time to start crafting your targeted emails for each segment of your audience. Here’s how to get started:

Write a good subject line: An effective targeted email marketing campaign starts with a compelling subject line. If this part of your email doesn’t appeal to the recipient, they won’t open it.

The best subject lines are short and descriptive. Limit punctuation and use emojis carefully. We recommend you use no more than 60 characters.

Personalize your content: Personalization in email marketing makes sure you speak directly to the recipient’s interests. For targeted email marketing, you utilize the data you have to personalize the content and recommend offers.vThe most basic form is using the customer’s name a few times in the email.

Add a clear CTA: The right CTA nudges readers to take action. Never leave your customers wondering what step to take next. Use direct, actionable language that tells them exactly what to do.

A/B testing: Before you send out your campaign to everyone, run A/B tests on a smaller part of your list and pick the best version. It’s not enough to create targeted email content and trust your gut about it. With A/B email testing, you can tweak subject lines, CTA buttons, and content length to see what works best with your audience. 

Launch automated targeted campaigns: Automation takes targeted email marketing to the next level. It allows you to send relevant content at exactly the right moment based on subscribers’ behavior.

Examples of targeted email content you can automate include:

• Onboarding sequences
• Abandoned cart emails
• Educational drip campaigns
• Re-engagement campaigns
• Milestone and anniversary emails

Examples of successful targeted email campaigns

Let’s look at some real-world implementations of targeted email marketing.

Netflix’s recommendation based on customer interest

Source 

Netflix provides curated lists of new shows based on each customer's watch history. This approach increases the likelihood of clicks.

Netflix also maintains consistent branding throughout. This makes the email experience feel like an extension of the streaming platform itself.

Alo’s cart abandonment email

Source

Alo uses behavioral targeting to send timely emails that encourage customers to complete their purchase. The real-time inventory count ("6 LEFT") creates genuine fear of missing out.

Spotify’s Wrapped

Source

Spotify Wrapped is an iconic example of targeted marketing. It works because users get unique content based on their listening habits. It’s based on behavioral data, such as the user’s top songs, genres, and favorite artists.

By celebrating each person’s journey, Spotify strengthens its emotional bond with listeners.
People feel the content is designed just for them.

Conclusion

Targeted email marketing is a data-driven strategy that allows you to build strong relationships with your customers. Moving beyond generic messages to strategic segmentation turns email from a broadcast channel into a conversion tool.

Targeted email delivers better results than one-size-fits-all approaches. Higher open rates, improved click-through rates, increased revenue, and stronger customer loyalty. All these benefits come from treating subscribers as individuals rather than anonymous entries in your database.

If you're ready to start sending targeted email campaigns, consider UniOne. You can book a demo to see how you can collect useful data for sending targeted content that converts.

Related Services

Email Automation Software: Automate emails based on user behavior, preferences, and other pre-defined triggers.

API for Email Marketing: Easily connect UniOne to your existing software and customer data tools.

Email Testing: Test emails before sending to ensure higher deliverability rates.

Transactional Email Templates: Use customizable templates for order confirmations, shipping notifications, password resets, account updates, and more. 

FAQs

Why is targeting so important for email campaigns?

Targeted email marketing ensures your emails are relevant to each recipient. Sending personalized content increases open rates and conversions while also reducing unsubscribes.

How do I set up and send targeted email campaigns?

Start by building a quality email list and collecting relevant subscriber data. Then, segment your list based on factors like demographics, behavior, or engagement level. Create personalized content for each segment with compelling subject lines and CTAs.

How do I set up automated targeted emails?

First, choose an email service provider that supports automation. Next, define your trigger: what action will start the automation (new signup, abandoned cart, inactivity for 6 months, etc). Select which segment receives the automation and create your email sequence with tailored content.

What's the difference between segmentation and personalization?

Segmentation is dividing your email list into groups based on shared characteristics like demographics, behavior, or location. Personalization is customizing the email content for individual recipients or segments.