List building is one of the fundamentals of email marketing. It practically guarantees the long-term survival of your business. But like a beggar sitting on a box filled with gold, you may be unaware of your greatest treasure — your existing customers.
The facts about repeat purchases
In a 2015 report, RJ Metrics analyzed the likelihood of customers making repeat purchases. Their research revealed that there is a 32% chance that a customer who has purchased once will purchase a second time. And for customers who have purchased twice, there is a 53% chance they will purchase again.
And it gets better and better. By the time a customer has purchased for the tenth time, there is an 83% chance they will purchase again. That’s why customer loyalty programs are so popular.
Using email for customer loyalty programs
The easiest, most effective engine for a retention program is email marketing. Here’s why:
1. Email is affordable.
Each email costs a (tiny) fraction of a penny, making for a super-high return on investment. By comparison, retargeting ads tend to be expensive, and pay-per-click advertising (PPC) can cost $10 or more per click.
2. Email is personalized.
Yes, you can include each customer’s name in the greeting. But beyond that, you customize an email campaign based on past purchases, birthday, gender, geography, browsing habits, buying habits or even links they’ve clicked.
3. Email is timely.
Optimize your marketing based on how recently each subscriber bought. The shorter the time, the more likely they are to buy again. Use email marketing to send something enticing a week after their order. You can get up to three times as many orders than if you mail months later.
4. Email is preferred.
MarketingSherpa received 2,057 responses from American adults when they asked, “In which of the following ways, if any, would you prefer companies to communicate with you?” Over 70% chose email as their preferred choice.
5. Email is easy.
An August 2014 survey by GetResponse found that marketing professionals rated email first for effectiveness and last for difficulty. So you don’t need coding skills or extensive training to create beautiful, effective emails.
6. Email can be tested.
Testing is not only easy — it’s practically free. And with email, your results are available fast. That means you can run more tests and have more opportunities for improvement.
Top 5 ways to get started
Not sure what kinds of emails to send? Try these first.
1. Cart abandonment emails
E-commerce companies use cart abandonment emails and get great results. GetResponse integrates with Zoho, Shopify, Sugar, BigCommerce, PayPal, Google Checkout, Amazon Payments, ClickBank, and others.
2. Follow up emails
Send a simple request for feedback on a recent purchase. Suggest products or services that complement what they just bought. Solidify a purchase with information on how to use it. Your imagination is the only limit.
3. Welcome emails
New subscribers are interested in your business — that’s why they subscribed. So strike while the iron is hot. Send a warm, friendly welcome email offering a bestselling item that’s too special to turn down.
4. Reactivation campaigns
Good customers can lose interest and stop responding to your offers. How about grabbing their attention with an unbeatable offer? You might make some sales, move some inventory, and rekindle their interest.
5. Keep-in-touch newsletters
You keep in touch with friends and loved ones. So give your customers some love too. If you can create top-of-mind awareness, you’ve got a shot at staying top of wallet, too.
Want extra credit? Segment and personalize your emails based on each subscriber clicks. You’ll get more click-throughs and better conversions.
A customer loyalty programs is good for business — and good for your customers too. For more info, download free Loyalty Program Success Guide by GetResponse.
Source: GetResponse Blog post by Pam Nealy
GetResponse is a worldwide leader in Email Marketing and Online Campaign Management, offering a complete suite of simple yet powerful solutions, scaled and customized for small and large companies.
GetResponse marketing tools, including responsive email design, landing pages, forms, autoresponders and in-depth statistical analysis tools are designed for organizations that want to implement effective, high-impact campaigns that drive marketing ROI.
Image Credit: Yoel Ben-Avraham