Dividing an email subscriber list into smaller groups based on criteria like interests, location, or purchase history is called _____.

The correct terminology for dividing an email subscriber list into smaller groups based on specific criteria such as interests, location, or purchase history is email segmentation. This process allows marketers to tailor their messages to distinct subsets of their audience, ensuring that the content resonates more effectively with each group's unique preferences and behaviors.

By utilizing email segmentation, businesses can improve engagement rates and conversion by sending more relevant and personalized content to each segment. For instance, a clothing retailer might send different promotional offers to customers based on their previous purchases, such as targeting winter sports gear to those who have bought ski equipment in the past, while sending summer apparel promotions to other segments.

Email targeting, while related, refers more to the practice of reaching specific groups rather than the initial segmentation process. Email distribution focuses on the actual sending of emails to subscribers, and email personalization involves customizing the content within email messages based on individual subscriber data. Therefore, email segmentation is the most precise term for the activity described in the question.