Email Marketing Segmentation: The Game-Changer for Personalised Messaging

Email marketing is a powerful tool for reaching customers, but many businesses in Malaysia struggle with low email open rates and engagement. One key reason? Sending the same email to every subscriber. A generic approach often leads to emails being ignored, deleted, or even marked as spam.

Customers today expect relevance in their inbox. Whether they’re shopping for a product, subscribing to updates, or engaging with your brand, they want emails that speak directly to their interests. Businesses need a more strategic approach –  email marketing segmentation – instead of mass emails that get lost in the clutter.

This guide will explore how businesses can refine their email marketing strategy effectively by segmenting their audience. We’ll explain the difference between segmentation and personalisation, discuss various segmentation methods, and provide actionable strategies to help you implement email segmentation successfully.

Key Takeaways

• Email marketing segmentation divides an email list into targeted groups to send more relevant and personalised content.
• Having segmentation in email marketing improves engagement, increases conversions, reduces unsubscribe rates, and strengthens customer relationships.
• Identify goals, collect and organise data, choose segmentation criteria, use email marketing tools, and monitor performance.
• Implement strategies like welcome series, re-engagement campaigns, purchase-based emails, and location-based promotions for better results.
• Keep segments updated, avoid over-segmentation, personalise within segments, test campaigns, and ensure compliance with data privacy laws.

What is Email Marketing Segmentation?

Email marketing segmentation is the practice of dividing an email subscriber list into smaller, targeted groups based on shared characteristics, behaviours, or preferences.

Instead of sending a one-size-fits-all email to your entire audience, segmentation ensures that each subscriber receives more relevant and engaging content.

Email Audience Segmentation vs. Personalised Email Marketing: What’s the Difference?

Many businesses assume that email segmentation and personalisation are the same, but they serve different purposes in email marketing.

Aspect	Email Segmentation	Email Personalisation
Definition	Dividing an email list into smaller groups based on shared characteristics.	Customising the content of emails for each individual subscriber.
Purpose	To send relevant content to specific groups of people.	To make emails feel personal and engaging for each recipient.
Basis for Targeting	Group-based (e.g., location, purchase history, behaviour).	Individual-based (e.g., name, recent email activity, preferences).
Example	A retail store segments emails by shoppers in KL vs. Penang and sends localised promotions.	A retail store sends an email saying “Hi Ali, your favourite sneakers are back in stock!”
Customisation Level	Moderate – Messages are tailored for groups but not individuals.	High – Content is customised for each person based on their data.
Best Used For	Targeting the right audience for promotions, newsletters, and campaigns.	Building deeper engagement with subscribers through individualised messaging.

While both improve engagement by delivering relevant content, they work in complementary ways rather than being interchangeable.

Why Does Segmentation Matter in Email Marketing?

Email marketing can be a powerful tool, but its effectiveness depends on how relevant the content is to the recipient. Without segmentation, businesses often send the same email to all subscribers, leading to low engagement, high unsubscribe rates, and poor conversion rates.

Segmentation helps businesses send targeted emails that resonate with different groups of subscribers, improving overall email marketing performance.

1. Higher Open and Click-Through Rates

When subscribers receive emails that align with their interests, they are more likely to open and engage with them.

A segmented email list ensures that recipients receive content they find useful, increasing the likelihood of higher open rates and more clicks on links.

Businesses can achieve better conversion rates by reaching the right audience with the right message.

2. Better Conversion Rates

Segmentation allows businesses to create personalised email campaigns that directly address the needs and preferences of different customer groups.

This level of relevance makes it easier for businesses to guide subscribers toward taking action, whether it’s making a purchase, signing up for an event, or engaging with the brand.

By reaching the right audience with the right message, businesses can achieve better conversion rates.

3. Reduced Unsubscribe Rates and Spam Complaints

Sending irrelevant emails can frustrate subscribers, prompting them to either unsubscribe or mark emails as spam. High unsubscribe rates and spam complaints can negatively impact a brand’s email reputation, affecting future deliverability.

Segmentation helps prevent this issue by ensuring subscribers receive only the emails that matter to them, reducing the likelihood of them disengaging from the mailing list.

4. Stronger Customer Relationships

Consumers are more likely to stay connected with brands that understand their preferences and provide valuable content.

Segmentation helps businesses send more meaningful emails that build trust and long-term relationships with their customers.

By consistently delivering relevant content, businesses can strengthen customer loyalty and encourage repeat engagement over time.

5. More Efficient Marketing Spend

Email marketing segmentation allows businesses to focus their resources on subscribers who are most likely to engage with their content and take action.

This targeted approach ensures that marketing efforts are more cost-effective, as businesses are not wasting resources on sending mass emails that may not resonate with their entire audience.

With better email segmentation, businesses can optimise their campaigns to improve engagement, conversions, and overall email segmentation ROI.

5 Steps to Create Email List Segmentation

Creating effective email segmentation requires a strategic approach to organising and targeting your subscriber list.

By following a structured process, businesses can ensure that their emails are delivered to the right audience, increasing engagement and conversions. Below are the key steps to successfully implement email segmentation.

Step 1: Identify Your Segmentation Goals

Before segmenting an email list, businesses must define clear objectives for their email marketing campaigns. Common goals include:

• Increasing engagement – Sending relevant content to boost open and click-through rates.
• Boosting conversions – Targeting subscribers with personalised offers to drive sales.
• Re-engaging inactive subscribers – Creating campaigns specifically for dormant customers.
• Improving customer retention – Strengthening relationships with loyal customers.

By understanding the desired outcome, businesses can determine the best segmentation criteria to use.

Step 2: Collect and Organise Subscriber Data

Successful segmentation depends on the quality and depth of subscriber data. Businesses should collect relevant information through:

• Sign-up forms – Gathering essential details like name, email, location, and preferences.
• Purchase history – Tracking past orders to understand customer buying behaviour.
• Website activity – Monitoring browsing behaviour to identify interests.
• Email engagement – Analysing open rates, click-through rates, and responses to previous emails.

Once the data is collected, businesses should organise it using CRM (Customer Relationship Management) systems or email marketing platforms to segment their audience effectively.

Step 3: Choose the Right Segmentation Criteria

Based on the collected data, businesses can create segments by categorising subscribers into specific groups.

For Malaysian businesses, segmentation can be customised to reflect local consumer behaviours, shopping habits, and festive trends. Below is a table outlining the different types of email segmentation commonly used in Malaysia.

Type of Segmentation	Description	How It Helps Malaysian Businesses
Demographic Segmentation	Dividing subscribers based on age, gender, income level, or job title.	Allows businesses to tailor messages to different customer segmentation, such as young professionals, families, or retirees.
Geographic Segmentation	Grouping customers based on their location (state, city, or even neighbourhood).	Useful for promoting location-specific deals, events, and store openings (e.g., KL vs. Penang customers).
Behavioural Segmentation	Categorising customers based on past purchases, website visits, or email interactions.	Helps businesses send targeted recommendations and promotions based on browsing and buying history.
Engagement-Based Segmentation	Identifying subscribers who frequently open emails, click links, or remain inactive.	Allows businesses to send re-engagement campaigns to inactive users while rewarding loyal subscribers.
Interest-Based Segmentation	Grouping customers based on the type of content or products they engage with.	Enables brands to send personalised content, such as beauty tips for skincare shoppers or food deals for F&B lovers.
Purchase History Segmentation	Classifying customers based on their previous purchases or spending habits.	Helps in upselling, cross-selling, and sending replenishment reminders for frequently bought items.
Festival-Based Segmentation	Creating segments for major Malaysian festivals (Hari Raya, Chinese New Year, Deepavali, etc.).	Ensures that promotional emails align with cultural events and seasonal buying trends.
Loyalty-Based Segmentation	Grouping subscribers based on their status as first-time buyers, repeat customers, or VIP members.	Helps businesses offer exclusive discounts and rewards to high-value customers to increase retention.

Choosing the right segmentation method ensures that email content is highly targeted and relevant to each group.

Step 4: Use Email Segmentation Tools

Email marketing platforms simplify segmentation by allowing businesses to filter subscribers and create automated workflows. Some widely used tools include:

• Mailchimp – Offers list segmentation based on demographics, engagement, and purchase behaviour.
• MoEngage – AI-driven customer engagement platform with omnichannel marketing, advanced segmentation, and personalised automation.
• ActiveCampaign – Provides automation and dynamic segmentation for personalised email campaigns.
• HubSpot – Suitable for corporate businesses with CRM-based email segmentation.

Using these tools ensures that segmentation is automated, efficient, and scalable for businesses of all sizes.

Step 5: Monitor and Refine Segments Over Time

Segmentation is not a one-time task—it requires ongoing analysis and adjustments. Businesses should regularly:

• Analyse performance metrics – Open rates, conversions, and engagement levels for each segment.
• Refine segmentation criteria – Adjust segments based on customer behaviour and market trends.
• A/B test segmented campaigns – Experiment with different email variations to see what resonates best with each audience.

By continuously monitoring and improving email segmentation strategies, businesses can ensure that their campaigns remain effective, relevant, and impactful.

Effective Email Segmentation Marketing Strategy: How to Target the Right Audience

A well-planned email segment marketing strategy ensures businesses send relevant content to different audience groups, leading to higher engagement, better conversions, and stronger customer relationships. Below are seven key strategies for implementing effective email segmentation.

1. Welcome Emails Segmentation

New subscribers should receive emails based on how they signed up—whether through a website, social media, referrals, or in-store events.

This approach creates a strong first impression and ensures recipients receive information tailored to their interests.

Example: A retail brand can send different welcome offers to subscribers who signed up from an in-store event vs. those who joined online.

2. Re-Engagement Campaign for Inactive Subscribers

Subscribers who haven’t interacted with emails in a while should receive targeted email campaigns encouraging them to reconnect.

This could involve exclusive discounts, reminders about past purchases, or requests for feedback.

Such campaigns help recover disengaged users while refining the email list by removing subscribers who no longer find value in the content.

Example: Sending a special discount, a reminder of past purchases, or a “We miss you” email to bring them back.

3. Purchase History-Based Segmentation

Customers’ buying behaviour offers valuable insights for tailored promotions and product recommendations.

Sending reminders for frequently purchased items, suggesting complementary products, or offering loyalty rewards to repeat buyers enhances the personalised shopping experience, increasing customer retention and satisfaction.

Example: A skincare brand can send reminders to restock a serum after 30 days of purchase.

4. Cart Abandonment Emails for E-Commerce

Many potential customers abandon their shopping carts before completing a purchase. 

By sending timely reminders, businesses can recover lost sales and address potential concerns such as pricing or shipping costs.

Offering incentives like free delivery or a limited-time discount can further encourage customers to complete their transactions.

Example: Sending a reminder email within 24 hours, followed by a second email offering an incentive if the cart remains abandoned.

5. Location-Based Segmentation for Regional Promotions

Targeting subscribers based on their location ensures emails remain relevant to their surroundings.

Businesses with physical stores can promote in-store events, while e-commerce brands can offer regional discounts or delivery-specific deals.

This strategy is particularly useful for businesses with different pricing, availability, or services across various locations.

Example: A restaurant chain sending exclusive dine-in offers to customers in Kuala Lumpur while promoting delivery discounts in Penang.

6. Festival and Seasonal Campaign Segmentation

Festivals play a major role in Malaysian consumer behaviour, making seasonal email segmentation essential.

Businesses can tailor promotions based on previous festive shopping trends, ensuring customers receive timely deals that match their interests.

Example: An online fashion retailer offering personalised Baju Raya discounts to customers who purchased traditional attire in previous years.

7. Engagement-Based Segmentation for VIP Customers

Customers who frequently interact with emails or make repeat purchases deserve exclusive perks.

Businesses can build stronger relationships by offering VIP access to sales, loyalty program benefits, or personalised recommendations.

Rewarding top customers boosts retention and encourages higher spending.

Example: Sending early access to sales, personalised thank-you emails, or special rewards to top customers.

Want to take your email marketing to the next level? Discover more effective email marketing strategies to boost engagement, drive conversions, and grow your business. 

6 Email Segmentation Best Practices for Better Engagement

Effective email segmentation ensures your marketing efforts are targeted, relevant, and impactful. Follow these best practices to optimise your segmentation strategy.

• Keep Segments Updated – Regularly adjust segments based on customer behaviour and engagement.
• Avoid Over-Segmenting – Focus on key categories to keep segmentation manageable.
• Use A/B Testing – Test subject lines, content, and offers to optimise engagement.
• Personalise Within Segments – Add names, product recommendations, and tailored offers.
• Monitor Performance Metrics – Track open rates, clicks, and conversions to refine strategy.
• Ensure Data Privacy Compliance – Follow PDPA regulations and provide opt-out options.

Boost Your Business with Newnormz Email Marketing Services

Newnormz offers powerful email marketing solutions to help businesses engage customers, increase conversions, and build lasting relationships. Whether you need targeted promotional campaigns, automated email sequences, or abandoned cart recovery, we provide customised strategies to drive results.

With flexible options like fully managed services, one-time setups, and expert consulting, Newnormz ensures your email marketing is optimised for success. We also enhance email segmentation, deliverability, and personalisation to maximise engagement.

Did you know that Newnormz is recognised as one of the top email marketing agencies in KL, Selangor, as well as in Penang? Discover how we can elevate your email marketing with crafted impactful campaigns.

Conclusion

Implementing a strong email segmentation strategy is key to delivering targeted, relevant, and high-converting email campaigns. By segmenting your audience based on demographics, behaviour, location, and engagement levels, businesses can ensure that each subscriber receives content that truly matters to them.

From welcome series and re-engagement campaigns to purchase-based emails and festival promotions, segmentation allows businesses to improve engagement, increase conversions, and build stronger customer relationships. Pairing segmentation with best practices such as regular list updates, A/B testing, and personalisation further enhances email marketing performance.

Want to maximise your email marketing potential? Leverage the right tools and strategies with Newnormz and see the impact of well-executed segmentation. Learn more or contact us today for a free consultation with the proposal.