Wondering how to increase your customer retention strategies? There are a few email campaigns that can make a huge difference to your results. Even a simple welcome email can help to make the right impression, right from the very start.
While there is no doubt that email offers a powerful tool for retention, many brands are so focused on customer acquisition that they do not invest enough time and resources into customer retention strategies. According to Bain & Company, even a small increase in retention strategies of just 5% can result in a profit increase of 25%. When you build relationships, that profit potential grows even more. Some of the biggest advantages of customer retention include:
- Reduced costs. The cost of customer retention varies according to industry, but whatever the cost may be for your specific niche, it will invariably be lower than the cost of acquiring a new customer. It costs far less to keep an existing customer than it does to attract a new customer. To see this benefit, you will need to have a solid after-sales strategy in place that includes thoughtful gestures and personalised emails that show customers how much you appreciate their support and reward them for their business.
- Increased sales. Over and beyond being cheaper to retain customers, you can also enjoy a higher ROI, too. Loyal, happy customers typically spend more than brand new customers. This comes down to a greater sense of trust in your brand and in your services and products. Loyal customers frequent retailers that they prefer and often make larger purchases as their loyalty and trust increase. Repeat customers will also often enjoy a wide selection of your products and services. Providing an optimal buying experience is key to build relationships and drive trust.
- Brand reputation. That loyalty translates into an increased brand reputation over time. When you are able to retain customers, you are showing potential customers that people love your brand. This can often be one of the most powerful tools available. Creating a positive brand experience is essential in order to boost your reputation and keep customers happy enough to sing your praises.
As you can see, there is no doubt that customer retention offers plenty of value. How you approach retention is key to how well you succeed in retaining customers. One of the best ways to retain customers is to use email marketing to connect with your customers from the moment they make a purchase or become a customer.
Using Email to Drive Customer Retention
Some of the ways that you could boost customer retention with the help of email marketing include the following types of email message.
Welcome emails are one of the simplest yet most effective ways to make connections from the very start of your relationship. This type of email is typically sent as soon as anyone signs up for your newsletter, subscribes to your services, downloads any free content or signs up for a free trial. This message essentially gives people an instant reminder of the main reason that they have signed up. It helps to separate your email from spam and it also helps to start the relationship on a positive note.
This type of email also gives you the opportunity to introduce your brand to your new lead, giving them a bit of information on your business, products, services, and features. You will be able to make a friendly, low-key introduction, welcome new leads, subtly point out help links and contact information, highlight key services or features and let them know that you appreciate their support.
Your subscribers may easily forget about items they have left in the cart, emails they received a while ago, and even your entire brand. If you send a welcome message and then never get in touch again, you are for all accounts not making a connection in a way that keeps people interested. Reminders are used often by online shops. They are sent when products are left in the cart but also when new products are added, bonuses are left unclaimed, services are being promoted and various other instances, too. They can even be used to cross or upsell products or services.
This type of email is great for any type of business. Subscription-based services and products can use reminders to tell customers about recurring payments, let people know that they should upgrade after using free trials, offer coupon codes or gently encourage audiences to convert.
Rewards and Exclusive Offers
Rewards and other exclusive offers can also be sent via email to increase customer retention. A number of people will subscribe to get emails from brands if they are looking for special promotions and deals. You can reward loyal customers by emailing them special offers during holidays or events such as New Year, Valentine's Day, Easter, Christmas, or even birthdays and anniversaries of first purchases. Once-off sales, mid-month deals, stock clearances and other events can also be sent to subscribers.
Whether you offer a prize for customers who download specific content or sign up for designated services or purchase certain products, or you find another way to encourage loyal customers to make a purchase and continue supporting your business, these emails should be done carefully to offer an incentive to customers.
Review or Feedback Requests
You can also prompt customers to send their feedback on your business and to show them how much you appreciate their input. There are a few benefits to this type of email. One is that you keep customers engaged. The other is that you get constructive feedback that helps you grow your business. As a result, you will be able to keep customers happy for many years to come.
Ways to use this email include sending out requests for product reviews if your business is B2C or sending surveys on customer services if your business is B2B. However you use these emails, they help to engage your followers while collecting information that improves your marketing messaging even further. You could also ask customers to review your goods on platforms such as Amazon, Google or Yelp. This helps your SEO and reputation, while also giving subscribers more assurance that their input is valued.
What happens when previously loyal customers vanish? For one thing, you will need to re-engage in a way that brings them back and keeps them happy before they disappear forever. These emails are a little more strategic as they specifically target segments of your mailing list that have not purchased or interacted with your business in a specific time period. When aligned with your CRM tool, you will be able to plan strategic emails that are sent to those who have not engaged in a while.
You could also use these emails when anyone unsubscribes from your list, provided you approach these carefully. Ideally, you will want to include a special offer such as a limited time discount or a free subscription or some other incentive that helps to bring people back to your list.