Question: In your opinion, what’s the most effective way for retailers to succeed at customer retention?
Answer: According to a WBR survey of retail businesses, the answer is overwhelmingly email. In fact, 80% of those surveyed say they rely on it for customer retention. Furthermore, Gigaom Research discovered that 56% of marketers prefer using email for customer retention. Why? Check out the six reasons below:
6 Benefits of Email Marketing
1. It’s very affordable – As Get Response points out, “Even a small-scale email program can communicate with its customers for a fraction of a penny per email. That makes for a super-high return on investment.”
2. It’s customizable – You can customize the emails your subscribers get in a way that even online display ads can’t come close to by sending personalized emails based on past purchases, birthdays, gender, geography, browsing habits, and more.
Targeted marketing campaigns result in increased sales conversions because they are, by nature, specific. In other words, you’re putting the most relevant message in front of customers who are the most likely to respond to it, which is the essence of good marketing.
3. It offers more timely communication – Email takes less time to create and send than other forms of marketing and advertising channels do, suggests Comm100. This allows you to communicate with your customers more frequently. Instead of only being able to send them a flyer or catalog once a month or once a quarter, you can easily send them offers once a week.
In a few short hours, in fact, you can send “day-of” messages to promote limited time specials as needed. Additionally, you can send out personalized, real-time messages to customers that are scheduled to arrive on their birthdays or anniversaries. “With email marketing,” says Comm100, “short time frames are your friend, not your enemy.”
4. It’s the preferred method of commercial marketing messages – Overwhelmingly, email was the number one channel (at approximately 72%) by which individuals preferred to receive their promotional messages, according to a survey by Marketing Sherpa.
5. It’s simple – In a 2014 survey of which digital marketing methods were the most effective and most difficult, email scored first place for effectiveness and came in last for difficulty. Email doesn’t require advanced coding skills or a lot of training in order to create attractive and effective marketing messages.
Typically you can drum up a marketing piece in less than two hours. And if you use recurring email templates, you can simply approve the copy for the email, use your customer database to decide whom to send to, and then click send. With a single employee and a few hours of work, you can churn out lots of great customer retention messages that might otherwise take weeks.
6. It’s easy to test – As with any good marketing, you need to test your emails! Fortunately, it’s fairly easy to test what messages your customers respond best to. Using the tracking tools that email marketing offers, you can determine which messages work better to convert sales or prompt user actions.
“Understanding ways you can use email to increase your customer retention will lead to a direct increase in the amount of money you make from your customers.”
Source: The Daily Egg
Despite modern “threats” to email communication, this “old-school” marketing method is not dying. Especially when it comes to being an effective customer retention strategy.
Not only do marketers believe that email marketing is the most effective method of reaching customer retention goals, but a large majority of U.S. adults prefer communication with companies to come through email (see stats above).
When you optimize for customer retention using email marketing, not only will you save time and money, but you’ll also grow your business and increase sales.