A one-time customer is good. A loyal, lifelong customer is the bread and butter of any business. It’s crucial to promote customer retention within your business and hands down the most effective way to do this is through email marketing.
Let the statistics speak for themselves: According to DMA, the ROI of email marketing is 3800%! What’s more? Business 2 Community states that 80% of brands rely on email marketing to drive customer retention. Additionally, it costs 500% more to acquire a new customer than it does to keep a current one (Destination CRM). Retaining customers through email marketing requires effort on the front end but is a cost-effective way to invest in your business.
As a business owner your biggest objective in terms of customer retention should be to create top-of-mind awareness with your customers so they will return to you the next time they are in the market for a similar product.
The key to email marketing for customer retention is to keep your customers engaged over time – a one-time email won’t cut it. Neither will a slew of generic emails help you meet your customer retention goals. Everyone longs to be known – in relationships and in business. The most effective way to retain customers and promote brand loyalty is to create that connection by getting to know your customer and his/her individual needs, interests and purchasing habits. It’s essential to segment your emails to customers based off of their previous engagement with your brand so each email that lands in his/her inbox feels personal and relevant.
Alright. Now that we have a big picture concept of customer retention through email marketing let’s put some wheels on it.
5 TYPES OF CUSTOMER RETENTION EMAILS
1. The Welcome Email: First impressions are everything. Knock their socks off with a hearty welcome and that special introductory offer code you promised. This is a great time to get your new customer jazzed about your brand. Encourage them to follow you on your social media channels which ensures top-of-mind awareness. It’s also a great time to inquire about their shopping preferences so you can send out those segmented emails down the road. Bronto quantifies that 33% of their marketing revenue comes from their welcome series!
2. The Post-Purchase Email: After your new customer makes their first purchase you can send a follow up email that includes insightful information about the product or service they purchased and include a link to live shipping information. A week or two down the road an email requesting a product review is a great way to follow up. Even if the review is somewhat negative the customer will feel valued knowing that his/her opinion matters to you and that sense of value may be the catalyst for future engagement with your brand.
3. The Friendly Reminder Email: When shopping online it’s commonplace to abandon your virtual cart and sometimes a gentle email “nudge” about an abandoned cart is all a customer needs to click and complete his/her purchase. Another friendly reminder that can keep your customer engaged with your brand is an email notifying them that their card is about to expire. It will communicate to your customer that you are looking out for their interests and it helps keep your brand top-of-mind.
4. The Loyalty Email: People love perks and are easily incentivized. (Think: Starbucks Rewards™) Having a loyalty program in place and keeping your customer up-to-date on his/her rewards status not only keeps you top-of-mind with your customer but incentivizes repeat business. A birthday gift in the form of an email discount or an email commemorating the anniversary of their affiliation with your brand and enclosed discount coupon are two more ways to encourage brand loyalty.
5. The Thumbs-Up! Email: Who doesn’t want a little praise now and then? An email reminding your customer just how awesome they really are and how thankful you are for their business can generate a profound sense of brand loyalty and promote customer retention. The Thanksgiving season is a great opportunity to send that email!
We’re all about staying top of mind for your clients, so if you’re ready to learn new ways to improve your customer retention through strategic email marketing and/or marketing automation, contact us! We would love to help you implement a strategy that not only helps improve your customer retention rate but saves you time and effort as well!
Or, sign up for our Cultivator Strategic Marketing Session where one of our marketing experts will lay out a complete plan that’s easy to implement and incorporates tactics for brand positioning to improve your customer retention rate.