How Can You Improve Customer Retention With Email Automation?

Posted by Marketing & PR on 10 Oct 2018

How Can You Improve Customer Retention With Email Automation?

To succeed in growing your business it is essential that you focus heavily on new customer acquisition. But retaining the customers you have already secured is as equally important and can be a more effective use of your marketing budget.

There are many benefits of having a strong customer retention strategy, such as:

Improve customer experience - demonstrating to your customers that you care about their feedback and making sure they are happy with their purchase will go a long way to build a good relationship with your customers and will improve their experience.

Better use of marketing spend - it is up to five times cheaper to retain customers than it is to attract new customers, meaning your marketing budget will go further when focussed on customer retention.

Increase customer lifetime value (CLV) - a strong customer retention strategy provides greater opportunities to cross-sell and upsell other products and services to existing customers to increase the revenue potential from each customer.

According to Invesp, 44% of companies have a greater focus on customer acquisition vs. 18% that focus on retention.”

When it comes to planning your customer retention strategy, email is one of the most effective platforms and with Email Automation, you can ensure your customers receive the right emails at the right time to help improve customer retention. Here are five types of email you should consider including as part of your customer retention and Email Automation strategies.

Welcome Emails

When a customer signs up to your newsletter, opens an account or subscribes to your service it is good practice to send them a welcome email. This not only opens the lines of communication with your customers it is also a good way of reminding them why they signed up and how you can help them.

With Email Automation, you can automatically set welcome emails to send when the required action is triggered on your website such as opening a new account or signing up to your newsletter.

Friendly Reminders

These types of email act to nudge the customer to take action, whether it is triggered from an abandoned shopping basket on an e-commerce site, as a reminder to order more products that they may be running low on or to upsell and cross-sell other products and services.

For example, a marketing agency may send its design customers an email that informs them of the other services they offer such as SEO or Marketing Automation. Email Automation helps you send these emails automatically based on actions taken or not taken by your customers.

Increasing customer retention rates by 5% can increase profits by 25% to 95% and existing customers are 50% more likely to try new products than new customers.

Rewards and Offers

These are one of the most effective types of emails for customer retention, after all, who doesn’t like to receive a reward or a discount? Rewarding customers in this way can help build customer loyalty and improve customer retention.

Email Automation makes it easy to schedule these types of email and they can even be triggered by certain events, such as seasonal events, if a customer has not purchased from you in a while or based on the actions they have taken on your website.

Request Reviews and Feedback

Asking your customers for feedback or reviews shows you value their opinion and also demonstrates that your business is open and willing to adapt and change to provide a better service for its customers. This not only helps keep customers engaged with your business but also provides you will valuable information that can help you improve your business.

Displaying these reviews online whether through Google My Business, on your website or on social media platforms also helps new customers when they are deciding whether to make a purchase from you. Online reviews are great for your online reputation and can help improve your SEO.

Re-Engagement Emails

If a customer hasn’t engaged with your business for a while it may not be because they don’t want to, they may have simply forgotten you exist because they haven’t heard from you.  These emails are designed to reconnect with customers you have not heard from in a while.

With Email Automation you can set these emails to be sent out when a customer hasn’t engaged with your business for a while, taking the time out of sending these emails manually and improving the efficiency of your email marketing and customer retention strategies.

If you would like to find out more about developing your customer retention strategy and how Email Automation can help, request your free SharpSpring Demo.

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