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THE ROLE OF SEGMENTATION IN E-MAIL MARKETING
Filip Šinko Morandini
; Faculty of Organization and Informatics, University of Zagreb, Varaždin, Croatia
Damir Dobrinić
orcid.org/0000-0002-8489-2688
; Faculty of Organization and Informatics, University of Zagreb, Varaždin, Croatia
Abstract
E-mail marketing is considered the fastest growing form of communication technology in history, while the globalization and the accelerated development of technology have managed to bring Internet and e-mail services to a broad range of the world population. The latest trends show that the importance of e-mail marketing will grow even further with a significant usage of personalization in promotional campaigns. Thus, a quality segmentation of existing and potential customers is highlighted as a necessary element of today's marketing activities. Segmentation represents a process of dividing the market on different groups (segments) of customers considering some of their common characteristics. Many studies have shown that well segmented campaigns generate greater return on investment and achieve better open rates, click through rates and conversion rates. As two popular analytical segmentation techniques, RFM method and customer lifetime value (CLV) are presented in this paper. RFM method is a three-dimensional way of ranking customers according to the time since their last purchase, frequency and total value of their last purchases. Customer lifetime value (CLV) is the net present value of all future profits generated by the existing or potential customers of the company. The goal of this paper is to present the theoretical assumptions of the role of segmentation in e-mail marketing and to show the results of the research about the use of customer segmentation in e-mail marketing at Croatian companies.
Keywords
personalization; segmentation; marketing; e-mail; direct marketing
Hrčak ID:
234499
URI
Publication date:
1.3.2018.
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