How to Improve Home Builder Email Results by 700%

Are you still sending one-size-fits-all eBlasts to your list of prospective home buyers? If so, you might be leaving money on the table. According to a recent study marketers who used segmented email marketing saw a 760% increase in revenue from email compared to one-size-fits-all eBlasts. Email marketing beat social media by 40% for new custom acquisition.

Segmented email marketing delivers personalized content to a specific group of prospective home buyers based on their preferences. In our work with home builder clients we regularly see segmented email campaigns earn more than twice the open rate and click through rate of eBlasts sent to the same list.

Can segmented email campaigns increase your sales? Let’s look at the numbers.

The ROI of Segmented Email Marketing

Let’s assume that you are a home builder with a list of 2,500 email addresses of prospective home buyers. An average email open rate in the real estate industry is about 25%. Personalized content to a segmented audience typically earns double the open rate.


  • eBlast list of 2,500 leads has an open rate of 25% = 625 potential home buyers see your message
  • Segmented list of 500 leads has open rate of 50% = 250 potential home buyers see your message

At first it seems like the segmented email list reaches fewer potential buyers and is less successful. But if you divided your list of 2,500 prospective buyers into 5 different audiences at just 50% here is how that would look:

  • List A: 500 prospects with open rate of 50% = 250 
  • List B: 500 prospects with an open rate of 50% = 250
  • List C: 500 prospects with an open rate of 50% = 250
  • List D: 500 prospects with an open rate of 50% = 250
  • List E: 500 prospects with an open rate of 50% = 250
  • Total prospective buyers that see your message: 1,500 (60% of total list)

It gets even better. Because a segmented email campaign includes content that is personalized for the specific needs of each group, prospects are likely to click on your call-to-action and take the next step in the buying process. Just like the email content, the call-to-action in each email is personalized based on the buyer’s unique needs.

Here’s an example of a segmented email marketing strategy:

  • List A is a group of prospective buyers that have already visited your sales office and been pre-qualified with a lender. Your email might contain a call-to-action to select a preferred homesite location that has just been released.
  • List B is a group of buyers that have a home to sell. Your email might include advice about buying a new home when you have a home to sell. Your call-to-action might be to schedule an appointment with a salesperson or engage by Live Chat.
  • List C is a group of first-time home buyers with very tight financing. Your email might include information about low down payment programs with a call-to-action to complete a pre-qualification form.

You can segment your email list however it makes sense for you. Here are some examples of effective ways that you can divide your list into groups and deliver personalized content:

  • Plan preference
  • Timeframe
  • Lot size preference (large or small)
  • Location (local or relocation buyer)
  • Lifestage (first home, empty nester, growing family)
  • Single story or two-story preference
  • Primary buying motive (safety, prestige, commute, schools)

If you are not already collecting this data about your buyers this is a great time to start. Invest in a good Customer Relationship Management (CRM) tool and training to give your sales team the ability to easily update and sort buyer preferences. Task your sales team with following up with existing prospects and updating information about timeframe, preferences, and hot buttons.

Start small, test often, and watch your sales grow.

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Need help with your email marketing strategy? We’ve been managing successful email strategy for home builders for nearly a decade. Contact us for more information about digital marketing services for home builders.

Dawn Sadler

Dawn Sadler is the Founder and CEO of Builder Target. She is also a speaker, author, and content strategist.

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