Increasing Customer Lifetime Value and Retention with Email

What is Email Marketing?

When it comes to success, email marketing is 56% more effective than any other method, making it one of the most effective marketing strategies for customer retention.  Email marketing is a form of direct marketing using email to communicate with potential and existing customers to promote your brand or product. Email marketers often use data to help personalize and segment their messages based on criteria like demographics and shopping behaviors. Since the average return on investment (ROI) is $35 for every $1 spent, email marketing remains the most cost-effective channel for retaining customers and powering loyalty programs.

Types of Data You Can Collect

Collecting data based on actions taken like placed order, added to cart, and viewed products help produce powerful segmentation. As you scale your strategy, use first-party data collected over time, like location, birthday, and reward points, to provide a more personalized, high-value experience. With personalized and segmented email campaigns in place, companies could see approximately a 760% increase in revenue.

As open rate metrics become more inflated, brands are turning to lower-funnel metrics, such as clicks, site visits, conversions, and purchase behavior, to build out engagement segments and focus on gauging results by customer actions.

What Makes a Good Email Strategy?

Nine out of ten customers report that email is their preferred method of brand communication. If you’re starting off, build a mix of automated and one-off emails to ensure that those in your funnel have a steady stream of marketing touchpoints via email across the journey.

Frequency

A good rule of thumb is to send emails that provide engaging, high-value content to your audience. Content could include product education, news, or innovative insights. Additionally, the more products you have, the more content you have. A/B testing variables like the day of the week, time of day, or the number of sends per week, help you determine what fits best for your brand.

As a best practice, MuteSix recommends that brands stick to two to three emails per week to stay relevant without overwhelming consumers (which can lead to unsubscribers).

Content

Keep in mind that most people scan emails for the most relevant information. Make sure your important points stand out by using icons, images, or short headlines that convey the main message.

Here are three features to keep in mind when creating your email.

Templates

Reallygoodemails.com and milled.com house stunning templates that often spark inspiration. You should also sign up for industry, competitor, and like-minded brands' email lists to stay ahead.

Success Story

Fur, a natural skincare company, increased customer retention by hiring MuteSix, optimizing their emails with strategic segmentation and creating personalized messaging based on engagement behaviors. With the help of new customer loyalty tiers and incentivized perks, Fur increased engagement and created a community around its brand.

Conclusion

Relying on customer retention can be a powerful way to drive ROI and increase customer lifetime value or LTV. Email marketing can be a way to connect with your customers on a personalized level, providing useful and engaging content that can increase their willingness to interact with your brand. Reach them at the right moments and you can look forward to higher engagements. Want some help creating a customer retention strategy that will boost your ROI? Mutesix and Attentive have you covered!

Do you need more spend to test out the strategies provided in this guide? Ampla can help by providing non-dilutive, flexible capital that many of our brands use to ramp up their marketing efforts. Contact us today.