Jul 30, 2008 6:01 AM, PROMO Xtra

(Direct Newsline)—Data segmentation and personalization significantly increases e-mail campaign effectiveness, according to new research data findings released by Aberdeen Group. 


Personalization techniques yield 57% higher average orders in comparison to non-personalized e-mail, according to a study entitled, “E-mail Marketing: Get Personal with Your Customers.”



Companies that do personalize e-mail are more than twice as likely to target smaller customer segments, using data collected about customers.


“Perhaps the most significant finding is the impact segmentation can have on e-mail performance,” Ian Michaels, senior research analyst in Aberdeen’s customer management group, said in a statement.



Some companies improved average customer retention rates by 5% and opt-in rates by 18% as a result of segmenting customer data for targeting with e-mail.



The top 20% of companies in terms of performance achieved an average 51% increase in e-mail open rates, a 42% average increase for click through response and a 26% average increase in conversion rates.



The study found that although 96% of companies recognize the importance of personalization, they often lack the data to use for personalizing e-mail promotions.



Only 16% of companies surveyed used customer profile, demographic, purchase history and other database information for personalization. For 37% of companies surveyed personalization is nothing more than using a person’s name. About 44% of companies simply send out e-mail in mass.

For more coverage on research

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