It is a well-known observation in marketing that keeping a customer costs less than adding a new one. As such, ‘retention marketing’ is vital for any business, as its aim is to keep customers happy and loyal to the brand.
Here we take a look at some of the best retention marketing strategies:
Segmenting your customers into useful groups is invaluable for online businesses. Consider the following questions when segmenting your audience:
- What is their purchasing activity? If it has been a long time since their last purchase, perhaps email them the new catalogue as a reminder.
- Did they use a coupon for their last purchase? If so, then send another promo code
- Do they tend to buy similar products? If so, use this information to recommend other products that they may like.
- Did they abandon their cart? If so, send a reminder email to jog their memory
- Who are your highest-value customers? Consider thanking them for their brand loyalty, and send an exclusive deal, code or coupon…
Make the most of each email in your mailing list. Email is very low cost, so we take a look at the different types of email that make up a retention marketing strategy:
This email should introduce the company, restate the value that its products/services add, and establish a friendly and human tone. The email subject should make it clear that it is a welcome to the brand, so make sure to use the word ‘welcome’ or ‘hello’.
Remember to personalise the email where possible, let the customer know what to expect from the mail-outs and emphasise the importance of your customer support service.
This email is not aiming to make a sale, instead it is meant to build your business’s brand. Send information and educational materials, reinforce the value proposition of the products and make your business seem relatable and friendly.
The goal of these emails is to make a conversion, so design the email so that the promotional offer is the focus – and include a call-to-action button.
A countdown or limited availability offer creates excitement and urgency, and make sure to let customers know the reason for the offer (a celebration, a milestone or a thank you).
Abandoned cart email
This email aims to recover some of the lost sales through cart abandonment. Send the first email shortly after the cart has been left as a reminder for those who were distracted during the payment process.
Send a follow-up with a discount code or free-shipping offer as this may clinch the deal.
Watch your Competition
An important part of your strategy is to understand what your competition is doing. Identify your competition and sign up for their mailing list (perhaps set up a dedicated folder in the inbox to receive these).
Examine the good and bad of your competitions email strategy, and adapt your own to reflect these insights.
Some further steps to consider include:
- Emails that are optimised for mobile
- Sending mail at the right time of day for your customers
- Remember not to bombard people on your mailing list – often, less is more