5 Proven Ways To Use Email For Customer Retention

Here’s why email marketing is an underrated retention strategy

Email requires a certain level of expertise in order to be effective, whether it’s being used for acquisition or retention purposes. Many businesses approach their customer email retention strategy without proper knowledge, leading to unsuccessful outcomes. However, businesses that utilize email correctly can harness its potential as a powerful retention tool.

Customers cost more to acquire than retain

Research has indicated that obtaining a new customer requires up to five times the financial investment compared to keeping an existing one. Consequently, if a comprehensive strategy for retaining customers is not implemented, you will essentially waste money attempting to replace customers who could have been kept at a lower cost.

One of the customer retention strategies available to you is the retention email strategy, which is considered to be cost-effective. Its return on investment is $42 for every dollar spent. Additionally, it can be automated, making it a hassle-free and effective retention strategy.

Open and click-through rates can be higher

Triggered emails, which are automated responses to a user’s action or inaction, are heavily utilized in a sound retention email strategy. According to a 2012 study, the probability of these reminder emails being opened is 95% higher compared to mass sent emails.

When considering the sequential process, triggered emails boast a click-through rate that is twice as high as mass emails. When taking into account the statistic that 40% of users appreciate receiving emails from their preferred brands, the potential to establish and nurture a connection with existing customers through triggered emails becomes an outstanding opportunity.

Email allows for personalization

This is a significant task. Nowadays, there are numerous advertising options available that will ensure your message reaches customers. You can even tailor these ads to target your existing customers. However, to personalize your message for a particular customer, a more accurate delivery method is required.

Email is a great tool for this purpose. There are various reasons for customer churn, and using email to focus on addressing the specific threat of churn allows for precise targeting. Additionally, it is important to avoid sounding unemotional or robotic. Treating people as individuals is preferred. Personalized emails are also more distinctive and have a higher chance of being opened and clicked on.

Tips to build a customer retention email strategy that engages customers

We have concluded that email can be an effective method for retention, but it must be executed correctly. So what does it mean to do it correctly? How can you ensure that your email retention strategy is successful? Honestly, you cannot be certain until you test and improve it. However, you can follow some suggestions to begin on the right path, making the refinement process faster and yielding quicker results.

1. Identify customers who are in limbo

If a customer is not experiencing the benefits of your product, they are more likely to stop using it. This can occur with a customer who has not logged in recently even though they are paying for the product, or with a user who has not upgraded to a paid version because they have not actively used the product. Regardless of the reason, the user is not gaining value from your product, therefore it is necessary to send them a customized email focused on customer retention, in order to assist them in comprehending the value.

If there is a lack of engagement, it can be beneficial to personally contact individuals with an offer to assist them in resolving any issues, even though you should already have welcoming and onboarding emails in place to help new customers understand how to use your product.

2. Communicate product value clearly

When communicating with customers, especially those in a state of uncertainty, it is important to consistently and explicitly communicate the value of your product.

Inform the customer about the specific pain points you can assist them in resolving, highlight the distinguishing factors that differentiate you from competitors, and, importantly, direct them to available resources that can assist them in fully utilizing your product’s potential and obtaining maximum value from it. Continuously emphasize the value they are receiving from your product.

3. Leverage what’s working for existing customers

When you receive feedback from your customers, particularly your satisfied ones, you have the opportunity to learn what aspect of your product brings value. It is important to regularly gather input from users, and when doing so, focus on the features of your software and aspects of your business that they appreciate the most. This information can serve as a foundation for your communication with customers who may be at risk of leaving.

4. Keep a consistent cadence

When considering your retention email strategy, the cadence is not only determined by the frequency of emails and follow-ups. Although frequency is a component, cadence also encompasses the purpose of sending emails, the types of emails, and the triggers for sending them.

Your customers should have a general understanding of when they can anticipate receiving an email from you, whether it is a regular onboarding email meant to bring them up to date, a cart abandonment email, or an email sent during a period of inactivity.

5. Get your subject line right

If your customer doesn’t open your email, it cannot contribute to retention. Subject lines have a significant impact on whether an email is opened or deleted right away. Ensure subject lines are concise.

Creating Clear and Engaging Subject Lines to Communicate the Message and Value of Your Product.

Email campaigns to increase your customer retention rates

1. Welcome emails

Begin your relationship on the right foot by giving a warm reception. Among all the emails sent by marketers, this particular one has the highest likelihood of being read, boasting an open rate of 34%. (That is 42% higher than other emails!) Moreover, it establishes the atmosphere for your interaction with the customer, making it crucial to ensure the messaging is on point.

Subject line: “Welcome! Introducing myself and my purpose.” In order to make a positive first impression and avoid the risk of being deleted or marked as spam, I suggest starting the email with a clear and engaging subject line. A subject line that begins with the word “welcome” can effectively convey friendliness while ensuring the purpose of the email is evident to the recipient. As a new visitor in their inbox, it is crucial to establish an immediate connection and establish the intention of the email.

When composing the email, ensure that you establish the expectations for future messages. You can provide a brief explanation about the types of emails that will be sent, provide some information about your company, or highlight the advantages of being a subscriber. Keep it concise and simple, as this is just the initial phase. (Seriously! Ideally, you will continue with a compelling onboarding email sequence.)

Here are some additional suggestions to make a warm welcome even more special:

• Encourage the first purchase with a new customer discount code. Placement matters: welcome emails that mention small discounts in the subject line get less engagement. This may seem counterintuitive. But with the overabundance of promotional emails out there, it may well be reflex to ignore or dismiss a subject line that’s overtly selling something. The takeaway? Include your discount in the body of the email instead, and make sure your welcome email has more to offer.
• It’s never too early to start personalizing your emails! If you collected first names during the sign-up process, add that greeting to the welcome email.
• The design of your welcome email should reflect your company website for a seamless experience. This will start building brand recognition and make that first email feel familiar.

2. Follow-up emails

One way to go above and beyond in your service is by following up after a customer interaction. This may involve sending an automated email after a webinar attendance or a purchase.

In addition to its usage in conversational marketing to engage visitors and drive conversions, follow-up emails are also crucial after a live chat session. By sending a follow-up email, you can enhance customer satisfaction by providing the necessary information and addressing any outstanding questions they may have.

There are various ways to utilize follow-up emails.

• Providing customer education after purchasing a new product or service.
• Gathering feedback or reviews on a recent purchase.
• Ask for feedback on an interaction! Ninety-three percent of customers are happy to provide it, if requested.

3. Customer feedback emails

Customer feedback is extremely valuable because it not only acts as social proof for other customers, but also enables your company to gain knowledge and progress. Additionally, people have a tendency to express their experiences willingly. To clarify, post-purchase emails generate a response rate of 8.1%, which is significantly higher compared to the average rate of 1% for other emails.

To create an effective customer feedback email, it is important to consider a few essential elements.

• Include a strong subject line. This should be engaging but clear. Remember, customers like writing reviews. You don’t need to trick them into opening.
• Make it personalized. Instead of “Review your latest purchase,” try, “James, how are you enjoying your new shoes?”
• Send it at the right time. This will depend on the type of survey. For a support interaction, you want to send it right away, while it’s still fresh in their mind. For a product review, it should be within a month of the purchase.
• Make it easy. Short surveys get more responses than long ones for obvious reasons. Better yet, you can embed the feedback form in an interactive email template! Interactive forms get more than five times as many responses.
• Don’t forget to say thank you. Now that you know how important good service is to customer retention, this one speaks for itself.

4. Customer engagement emails

Every email you send has the potential to be considered as customer engagement.

In this case, we are specifically talking about emails that offer value to your customers by containing interesting, informative, or helpful content. This assists in fostering customer loyalty by establishing a deeper connection between them and your company beyond their most recent purchase or billing cycle.

Here are some additional suggestions for creating captivating emails:

• Offer educational tips to help your customers get more out of your products, or teach them about new features.
• Share fun and informative content, like blog posts or letters from your founder. One of my favorite local retailers, Eugene Choo, sends an impeccable monthly newsletter with links and a few subtle product recommendations.
• Reinforce new routines. If you offer a product or service, encourage your customer to get the most of it. Peloton sends personalized summaries of activity to users, which are both interesting and motivating.

5. Customer appreciation emails

One way to make your customer feel special is by offering them a token of appreciation. An email campaign designed to celebrate them can accomplish this in a simple manner. It is important to seize these chances to delight your customer and acknowledge their loyalty, ensuring that they do not feel ordinary or predictable.