According to Wikipedia Customer Retention refers to the ability of a company or product to retain its customers over some specified period. Itâ€™s different from customer acquisition or lead generation because youâ€™ve already converted the customer once.Â Your best customers donâ€™t just buy one product or use your service once. They come back again and again for more. Customer retention increases your customerâ€™s lifetime value and boosts your revenue.
The significance of Customer Retention for an Online Business
Itâ€™s much easier and less money to retain the customers than to acquire them. You will spend five times less money on customer retention.
The probability of selling to an existing customer is at least 40 percent more likely than converting someone who has never brought from you before.
Improve Customer Retention with these Email Marketing Strategies
Segmentation and Personalization of emails
Segmentation and personalization are both important elements of email marketing.
On a fundamental level, segmentation is defined as the dividing of something into separate sections or groups. Within email marketing, segmentation is defined as dividing your audience into several groups instead of working with one mass audience for every mail send.
Here are the best ways marketers use to segment their audience:
Â·Â Â Â Â Â Â Â Â Demographics, e.g. Age, Gender, Location, Occupation, Income
Â·Â Â Â Â Â Â Â Â Their level of email engagement e.g. opened the last 10 emails or hasnâ€™t engaged for 5 months
Â·Â Â Â Â Â Â Â Â Personas â€“ what motivates your subscriber to engage with your email e.g. do they only engage with discounts and sales or do they make regular purchases?
With Personalization, the marketer is communicating with their audience on an individual and deeper level. The message is tailored to them backed by their specific data.
The ability to deliver unique & personalized messages improve the effectiveness of your email marketing and boost metrics such as conversion rates, website bounce rates, cost per acquisition, and customer lifetime value.
Know 0r Learn about your Customers
How do you know or learn about your customers when you have a million other things to do?
Email Automation is the answer.
There are numerous ways to connect with your customers, but one of the simplest and efficient ways is setting up automated emails.
The important aspect of automated emails is to set up the trigger points and continue to go out to individual subscribers when they meet the trigger conditions youâ€™ve defined (such as joining the list, reaching a particular date, etc.)
Here is a step by step rundown:
1.Â Â Â Â Â Â Add each customer to your email list
2.Â Â Â Â Â Â Set up an automated email
3.Â Â Â Â Â Â Setup a time to interact
To conclude, email marketing is one of the best and efficient strategies available to retain your customers â€“ the cost is low, and the retention percentage is high.