{"id":14001,"date":"2020-04-17T05:17:00","date_gmt":"2020-04-17T05:17:00","guid":{"rendered":"https:\/\/www.litmus.com\/?p=14001"},"modified":"2020-06-02T04:23:02","modified_gmt":"2020-06-02T04:23:02","slug":"5-tips-for-increasing-customer-retention-with-email-marketing","status":"publish","type":"post","link":"https:\/\/www.litmus.com\/blog\/5-tips-for-increasing-customer-retention-with-email-marketing","title":{"rendered":"5 Tips for Increasing Customer Retention with Email Marketing"},"content":{"rendered":"

It\u2019s harder than ever to win over new customers, so now is the perfect time to focus on keeping the ones you already have. Email marketers, let\u2019s make customer retention your number one priority.<\/span><\/p>\n

Even during less challenging times, <\/span>it can cost up to 16x more<\/span><\/a> to acquire a new customer than retain a current one. Retention consists of many moving pieces, channels, and metrics, but overall it boils down to one main goal: increasing engagement and deepening your customers\u2019 connection to your brand.<\/span><\/p>\n

Email is your most powerful marketing channel and one of the best ways to strengthen your bonds with customers\u2014and now, when customer acquisition is slowing down, those relationships are more valuable than ever. So let\u2019s run through five top ways you can lean on email to keep customers.<\/span><\/p>\n

    \n
  1. Audit your automated emails <\/a><\/li>\n
  2. Build your segmentation based on customer activity <\/a><\/li>\n
  3. When you can\u2019t use email to win their business, use it to win their hearts <\/a><\/li>\n
  4. Leave on a good note<\/a><\/li>\n
  5. Think about how to bring lapsed customers back when the time comes<\/a><\/li>\n<\/ol>\n
    \n

    1. Audit your automated emails<\/span><\/h2>\n

    Take a look through the copy and tone of your automated messaging to make sure it matches the tone of the current times and speaks to your existing customers. This is also a good time to evaluate your current customer journey and every outgoing campaign through the eyes of an existing customer to see if you can provide any extra support or thoughtful touches via email.<\/span><\/p>\n

    Here are some customer-first examples of emails that could take your nurtures to the next level.<\/span><\/p>\n

    Thank you and appreciation emails
    \n<\/b><\/h3>\n

    With a thought to over-cluttering inboxes, a well-timed and executed thank you note can go a long way, particularly post purchase. You can also use this opportunity to point out additional resources, highlight support contacts, or offer a discount on the next purchase.<\/span>
    \n<\/span><\/p>\n

    Here\u2019s a great example from Classic Specs: a great thank you message, handy tips for their purchase, and some helpful FAQ. 10\/10 would read again!<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    Usage digests or reports<\/h3>\n

    Letting customers know the exact value they\u2019re getting from your product through regular usage update emails is a great way to increase engagement. (Bonus points if you can tie usage metrics to a specific ROI.)<\/span><\/p>\n

    This is a fun example from Swiftype; they provide a nice and nerdy rundown of your typing activity with updates on your weekly changes:<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    Targeted campaigns based on past interaction with your brand
    \n<\/b><\/h3>\n

    Know your customers well? Show them! Use previous purchases to suggest similar products or create a tailored offer that\u2019s just right for them.<\/span><\/p>\n

    This example from Zillow is a nice way to easily bring customers back with a list of previously viewed homes:<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    Here\u2019s a good one from Crate and Barrel as well that incorporates a thank you and some recommendations for future purchases:<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    Nonpayment and dunning emails
    \n<\/b><\/h3>\n

    The last thing you need right now is losing a customer who\u2019s otherwise ready to pay because of an expired credit card, or similar issues. If you already have emails in place to address failed payment, it\u2019s a good time to check these to ensure your tone is friendly and helpful and you offer different ways to complete payments.<\/span><\/p>\n

    Putting a simple series of dunning emails in place to collect payment can save your support or finance teams lots of time, prevent your customers from losing access or service, and help you reduce churn. Consider adding a custom discount or save offer to the end of your series\u2014even if it\u2019s temporary\u2014to sweeten the deal for customers you might lose otherwise.<\/span>
    \n<\/span><\/p>\n

    This example from Benchmark has the perfect balance of support and compassion while letting you know that your credit card payment failed:<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    2. Build your segmentation based on customer activity<\/span><\/h2>\n

    We\u2019re all being inundated with emails right now. Double-check your list segmentation or adjust your levers to make sure you\u2019re not overwhelming folks who aren\u2019t as engaged with you right now. Don\u2019t worry, there\u2019s an opportunity at the other end of this to bring them back into your world, but for now, err on the side of caution. <\/span>According to research by Mailchimp<\/span><\/a>, list segmentation has an incredible effect on overall email marketing engagement and keeps your lists healthy, wealthy, and wise. There are so many ways to segment your audience, but segmenting by customer engagement can be a helpful way to slice your audience with retention goals in mind. Here are some starting points for all kinds of organizations.<\/span><\/p>\n

    Promoters, very active users, active buyers
    \n<\/b><\/h3>\n

    Your biggest fans should get the red carpet treatment with personalized emails based on their actions or purchases\u2014just like David\u2019s Tea does with this wonderful campaign:<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    Passives, semi-active users, occasional buyers
    \n<\/b><\/h3>\n

    Those folks who aren\u2019t super connected to your brand might need to learn more about you, and this gives you the chance to learn more about them, too. What would make your passives turn into loyalists? This email from Prezi does a great job presenting a new template and makes it easy for the reader to dive into the product\u2014and that might bring inactive users back to Prezi.<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    Detractors, inactive users, infrequent buyers
    \n<\/b><\/h3>\n

    People who haven\u2019t had a chance to get to know you or might be a little skeptical need a special touch. Using education to drive people back to your site is an effective strategy for all types of businesses. Remind your subscribers of the value of your product and how easy it is to get started\u2014just like Google does in this email for Google ads:<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    It may also be the time to decrease communications to this group; everyone is getting a lot of communication right now and your less engaged customers may need a break\u2014and that\u2019s ok.<\/span>
    \n    <\/a><\/p>\n

    3. When you can\u2019t use email to win their business, use it to win their hearts<\/span><\/h2>\n

    As a brand marketer, it\u2019s important to remember that while your subscribers and customers might not be buying right now, everyone is listening and learning<\/a>. If the current times make it hard for you to drive revenue, think about ways you can use email to pay-in on the brand trust bank. Build an emotional connection with your subscribers that keeps current customers from leaving and makes prospects <\/span>want<\/span><\/em> to support you whenever budgets are available again.<\/span><\/p>\n

    Provide helpful resources that go beyond your product
    \n<\/b><\/h3>\n

    What content can you provide that helps your customers navigate these challenging times? This email from Asana offers helpful, relevant, and timely resources that their customers need right now:<\/span>
    \n<\/span><\/p>\n

    \"\"<\/figure>\n

    Show how your brand takes responsibility
    \n<\/span><\/h3>\n

    What does your brand do to support your team and the community in these trying times? Customers are less likely to leave you if they support your mission, so use the power of email to show how your brand is making a difference. This email from Everlane is a wonderful example:<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    4. Leave on a good note<\/span><\/h2>\n

    Whether you\u2019re in SaaS, hospitality, travel, or retail, many companies are losing customers right now. And while seeing a customer leave might hurt now more than ever, it\u2019s crucial you\u2019re handling this step of your customers\u2019 lifecycle with grace and empathy.<\/span><\/p>\n

    Optimize your cancellation confirmation emails
    \n<\/span><\/h3>\n

    You never want your customers to leave with a bad taste in their mouths, so ensure your cancellation confirmation emails are friendly, thoughtful, and offer opportunities for your customers to get in touch with you.<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    Give your customers the chance to let you know why they\u2019re leaving
    \n<\/span><\/h3>\n

    Having good insights into cancellation reasons is the first step to successful win-back campaigns. Are your customers leaving because of budget cuts caused by COVID-19, or are they leaving because your product didn\u2019t meet their needs? Knowing this will heavily impact future reactivation campaigns.<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    5. Think about how to bring lapsed customers back when the time comes<\/span><\/h2>\n

    Here\u2019s the good news though: Some of that churn <\/span>will<\/span><\/em> come back. <\/span>
    \n<\/span>
    \n<\/span>What\u2019s your plan for turning churned customers into active buyers again? When the time comes, having a strategy already in place to bring back your customers in a thoughtful, compassionate way gives you a chance to quickly ramp up your business again, providing a good cushion when retention or activation goals might still be less than desirable.<\/span><\/p>\n

    The best winback or reactivation campaigns are founded on good segmentation. You may want to use the general lists detailed out earlier in this post<\/a> as a starting point; or, if you have cancellation reasons that folks select when they leave, you may want to segment your communications by those reasons.<\/span><\/p>\n

    Here are some good examples of winback emails based on segment.<\/span><\/p>\n

    We miss you
    \n<\/span><\/h3>\n

    Sometimes just a gentle reminder, with an incredibly easy way to sign back up or make a repeat purchase, is a great way to bring customers back whenever they\u2019re ready.<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    Incentives and discounts
    \n<\/span><\/h3>\n

    This works great for folks who were high purchasers. If you\u2019re a SaaS company, consider an incentive or discount for someone that selected cost as a reason for cancelling.<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/figcaption><\/figure>\n

    Product updates
    \n<\/span><\/h3>\n

    If you\u2019ve made a big update or addressed customer feedback, why not let them know? This might be the nudge a lapsed customer needs to come back.<\/span><\/p>\n

    \"\"
    Source: Really Good Emails<\/a><\/p>\n<\/figcaption><\/figure>\n
    \n


    \nKeeping customers is tough, but moving forward with empathy and reminding your customers that you\u2019re here for them in trying times is the first step towards building goodwill. Building a strong email program to support customers has to start with making tough decisions to put your customers first\u2014and then you can back that up with first-class marketing.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    Along with Mark Robbins from Salesforce, Marcel Becker from Verizon Media, and Jon Harmer from Google, we shared how the inbox is adapting to changing customer expectations and moving towards a more dynamic experience. We covered how topics like AMP, interactive email, privacy requirements, design trends, and more are changing the inbox experience today and in the years to come.<\/p>\n

    Didn\u2019t have a chance to watch the webinar live? Don\u2019t worry. You can access the full recording and read the Q&A.<\/p>\n","protected":false},"author":3,"featured_media":14002,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"tags":[],"blog_category":[78,53],"class_list":["post-14001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","blog_category-inspiration","blog_category-tips-resources"],"yoast_head":"\nLitmus Blog: 5 Tips for Increasing Customer Retention with Email Marketing<\/title>\n<meta name=\"description\" content=\"It\u2019s harder than ever to win over new customers, so now is the perfect time to focus on keeping the ones you already have. 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