They’re after more buyers, new buyers, and bigger brand reach.
That’s one way to grow, but it’s not the easiest path.
New customers are tough – you’ve got to find them, establish trust, and convince them to buy.
Your existing customers, though, are a lot easier to deal with – they already know you, they trust you, and they’re usually more receptive to sales and marketing.
If you dive into the numbers, you’ll see that past buyers are probably worth a lot more than you think.
[a small group of loyal customers is likely responsible for a large chunk of your sales]
On average, people who buy more than once make up only about 8% of an ecommerce store’s total customers, but they account for 41% of total revenue.
[Conversion rates increase with each purchase]
1-3% of new visitors will buy.
27% of one-time buyers will buy again.
45% of two-time buyers will buy again.
This means the more times a customer buys from you, the easier they will be to sell to in the future.
[The more customers buy, the more people they’re likely to refer]
1st-time buyers refer 3.1 people.
4th-time buyers refer 5.4 people.
10th-time buyers refer 7.1 people.
This means if people come back a lot, they love you a lot.
The more they love you, the more likely they are to tell their friends about you.
[Most marketing budgets are disproportionately focused on acquisition > retention]
Customer retention is often overlooked, but it shouldn’t be. Your most loyal customers are probably responsible for a large amount of your current revenue and they’ll likely stick around to drive future sales as well.
How to improve customer retention with email
Customer retention email strategy #1: Add product links to transactional emails
[Add product links to your transactional emails, like order confirmations, shipping alerts, and review requests]
Transactional emails tend to be simple, automated, and one-dimensional (and pretty boring).
If you add product links to your emails, though, you’re much more likely to encourage follow-up sales.
Since transactional emails are usually sent soon after a sale, the customer is aware of your brand, likes it, and might be open to more shopping.
[Amazon’s order confirmation emails include links to related products]
[Chico’s includes product links in their shipping alerts]
[6 months after your purchase, Soom follows up with a request for feedback and offers reviewers a discount on their next order]
Customer retention email strategy #2: Send “win back” emails with incentives to buy again
Win back emails are designed to drum up business from past buyers, even if you haven’t heard from them in a long time.
[This local cafe offers a discount to customers who haven’t been in recently]
[This is an email that went out to exclusively to existing customers who’d bought a particular product, encouraging them to upgrade to a new related product]
There are all sorts of emails you can send out to past buyers, from single alerts to full-blown, members-only launch campaigns.
Whatever you choose to do, make sure you’re dedicating significant attention to your existing customers, not just searching for new ones.
If you make a few additions to your transactional and win back emails, you’ll immediately improve your customer retention rates. It can be as simple as adding a few product links in each email!