Best Types of Targeted Email Marketing for SaaS Businesses

Email marketing is one of the most effective ways to connect with customers and drive conversions. According to OmniSend, email marketing drives more than twice higher ROI than Google ads and an 80% higher ROI than SEO. Even though the average SaaS small business owner might not be able to afford the top-tier email marketing services, there are some free email platforms that can help you get started.

Note though that there are many different types of email marketing, each with its own benefits and drawbacks. Each has its own strengths and weaknesses, so it’s important to choose the type of email marketing that will work best for your business. This article will focus on three of the most common types of email marketing.

What Is a Targeted Email Marketing 

Email marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience.

 Most email marketing services offer templates that you can use to create your targeted email campaign. You can then send the campaign to your entire list, or you can segment your list and send different campaigns to different groups of subscribers.

 When you send a campaign, the service will automatically track the number of people who open it, click on links inside it, and unsubscribe from your list. This information helps you to gauge the effectiveness of your campaign and make adjustments for future campaigns.

Why Should SaaS Businesses Use a Targeted Email Marketing Campaign

Email marketing is a great way to connect with customers and keep them updated on your SaaS business. It’s a personal way to reach out to them and can help you build relationships that result in more sales. 

When you use email marketing, be sure to target your audience carefully. Make sure you have a good understanding of who your customers are and what they’re interested in. then create content that’s relevant to them.

 Sending targeted emails will help you get better results from your marketing efforts.  Your customers will appreciate getting information that’s relevant to them, and you’ll see more engagement with your content. According to a study by Propeller, the open rate of targeted emails are 45% higher than those that are not.

 By using email marketing, you can keep your SaaS business top of mind for your customers and increase the chances of making a sale.

Types of Targeted Email Marketing

Here’s a look at five of the most popular types:

Demographic Targeting:

Demographic targeting is a form of audience segmentation that involves dividing a population into groups based on factors such as age, gender, income, education level, and occupation. Marketers can use this information to create targeted messages that resonate with specific groups.

 Below are some of its benefits:

• Demographic targeting allows businesses to reach potential customers who are more likely to be interested in their product or service. This increases the likelihood of conversion and helps businesses save money on advertising costs.
• It allows businesses to create custom audiences. This means that businesses can target individuals who have already shown an interest in their product or service by visiting their website or subscribing to their email list.
• Demographic targeting is a valuable tool for businesses of all sizes.
• SaaS companies can use demographic targeting to improve their email marketing efforts. This involves identifying the demographics of their customer base and then tailoring content and offers to appeal to these groups.
• Demographic targeting can be used to create more relevant content, which can lead to higher engagement rates and better conversions. It can also help companies to build more targeted lists, which can result in higher response rates and ROI.

 However, there are some drawbacks to this approach.

• It can be expensive. Depending on the size of your customer base and the sophistication of your targeting algorithms, you may need to invest in marketing automation software that can identify and segment customers by demographic characteristics.
• There is no guarantee that targeting specific demographics will be effective. Even if you have a good understanding of your customer base, there is always the risk that your assumptions about what appeals to different groups of people may be wrong.
• There is the potential for backlash if customers feel that they are being singled out based on their age, gender, or ethnicity. This can damage relationships with customers and lead them to unsubscribe from your mailing list.

Geographic Targeting:

Geographic targeting is a process that allows businesses to target potential customers in a specific geographical area. 

This can be done through email marketing, AI tools, or other online marketing methods. 

 Below are some of the benefits of geographic targeting:

• Businesses can use this process to improve their chances of reaching new customers in specific areas, and to better understand the needs of those customers. 
• Geographic targeting can also help businesses more accurately measure the results of their marketing campaigns, by allowing them to track how many new customers were reached in each area.
• Geographic targeting is a powerful way to improve the effectiveness of your digital marketing campaigns. By focusing your efforts on a specific region, you can target customers who are most likely to be interested in your product or service. SaaS providers like SendGrid offer powerful tools for targeting email campaigns by geography. You can segment your list by country, state, or even city, and send messages that are relevant to your target audience.
• Focusing on a specific geographic area can help you achieve a higher response rate and better return on investment from your marketing campaigns. It also allows you to build awareness and credibility in new markets, which can help you attract new customers in the future.
•  When you’re considering a geographic targeting strategy for your SaaS company, it’s important to be aware of the potential drawbacks: 
• You may be excluding potential customers from other parts of the world who could be interested in your product. 
• It can be expensive to target specific countries or regions, and you may not see a return on your investment. 
• It can be difficult to keep up with changes in regulations and compliance requirements in different countries.
•  Cultural differences can affect how people respond to marketing messages. 
• If your product is aimed at businesses, you may find that the decision makers are located in a different country than the ones you’re targeting.

Behavioral Targeting:

Email marketing is an important part of any online business. It’s a great way to keep in touch with customers, promote new products or services, and increase sales. But what if you could make your email marketing even more effective by using behavioral targeting?

 Behavioral targeting is a process that allows online marketers to target their ads and email content to individuals based on their browsing history.

For example, if you know that someone has recently visited a website about cars, you can target them with an ad for a car dealership. The approach uses cookies to track a user’s web activity and then delivers ads or content that is relevant to them. This type of targeting is often used by SaaS companies that want to target their email marketing campaigns more effectively.

 Below are some of its benefits:

• By using behavioral targeting, you can ensure that your ads are being shown to the right people.
• You’re not wasting money on ads that no one will see

 Many businesses are using behavioral targeting to increase their website traffic and sales. However, there are some drawbacks to using behavioral targeting as follows: 

• It can be expensive. Behavioral targeting services like Ad Roll or Google AdWords require a monthly subscription fee, and the price goes up as your audience size increases
• It can be time-consuming. You need to set up tracking codes and create targeted ads or content, which takes time and expertise. If you don’t have someone on staff who knows how to do this, you may need to hire a third-party vendor.
• Behavioral targeting can sometimes be inaccurate. There are many factors that can affect how a particular user behaves. For instance, a user could be in the middle of a transaction when their behavior is tracked. If behavioral targeting is based on the previous purchase history of your customers, you may not get accurate data.

Interest Targeting:

Interest targeting is a form of email marketing that allows businesses to send targeted messages to customers based on their interests. This type of marketing is especially useful for SaaS businesses, which can use it to increase customer engagement and loyalty.

 There are several ways to target customers’ interests, including using demographic data, browsing history, or past purchase data. businesses can also use “interest clusters” to target groups of people with similar interests.

 Once businesses have collected this data, they can use it to create custom segments of customers who would be interested in their product or service. They can then create targeted email campaigns specifically for these segments. 

 Interest targeting is a powerful tool for increasing customer engagement and loyalty. By sending targeted messages based on customers’ interests, businesses can improve their chances of converting leads into customers.

• Interest targeting is a powerful tool that can be used to improve the effectiveness of your email marketing campaigns. When you target interests, you are able to send messages that are more relevant to your subscribers, which can result in higher click-through rates and conversion rates.
• Interest targeting allows you to reach a larger audience. It can help you reach people who are not currently subscribed to your list, as well as people who have unsubscribed from your list.
• Another advantage of interest targeting is that it helps you create more targeted lists. When you target interests, you are able to segment your list based on the interests of your subscribers. 

Email marketing is a powerful way to reach and engage customers, but when it comes to targeting interests, there are some drawbacks.

• It can be difficult to target interests accurately. Interests can change over time, and they vary from person to person. What you think is an interesting topic may not be of interest to someone else.
• Using interests as the sole criterion for email campaigns can lead to ineffective messages. People who are not interested in the topic being targeted may still receive the message, while those who are interested may not get it. This can lead to lower response rates and less engagement overall.
• Relying on interests can exclude potential customers. If your campaign is based on a topic that someone is not interested in, they will not see your message or be likely to click through.

Retargeting:

Retargeting is a form of online advertising that helps you reach people who have already shown interest in what you do. When someone visits your website or interacts with one of your ads, retargeting allows you to show them relevant ads across the web as they continue to browse the internet. Retargeting is a great way to keep your SaaS brand top-of-mind and drive more conversions from people who have already demonstrated interest in what you do.

Retargeting works by placing a small piece of code on your website that tracks visitors’ activity. Once a visitor’s cookies are collected, they will start seeing your retargeted ads. Retargeted ads can be displayed as banners, text links, or even product images on other websites.

• Retargeting is a powerful tool for online marketers. It allows you to target people who have already shown an interest in your product or service. Retargeting works by adding a small piece of code to your website. When someone visits your website, that code drops a cookie on their computer. That cookie tells retargeting services like Ad Roll or Facebook Ads that the person has been to your website. Then, those services show ads for your product or service to the person on other websites they visit.
• Retargeting is effective because it allows you to target people who are already interested in what you have to offer. It also allows you to target people who have already visited your website. This increases the chances that the person will buy from you. Retargeting is also effective because it allows you to reach people who are not reached by other types of online advertising.

 When it comes to retargeting, there are a few key drawbacks to consider.

• Retargeting can be expensive. For example, if you’re using a software for your retargeting efforts, you’ll likely be paying a monthly fee. Additionally, if you’re targeting email marketing recipients, the cost of acquiring those email addresses can be high.
• It can be time-consuming. You’ll need to create custom ads and target specific audiences based on their past behavior. If you’re not careful, this process can quickly become overwhelming.
• It may not yields results as expected. It’s important to remember that retargeting is most effective when used in conjunction with other marketing efforts. If you rely solely on retargeting to reach your target audience, you’ll likely be disappointed with the results.

Final Thoughts

Email marketing is an effective way to reach out to potential and current customers of SaaS businesses. When done correctly, email marketing can result in more conversions, higher customer loyalty, and improved brand awareness. There are a variety of different types of email marketing that can be used to achieve these goals, and the best type of email marketing depends on the needs of each individual business. If you need more tips on growing your SaaS business, don’t forget to check our blog.