It is OK to be obsessed with โgetting new customersโ but you must not ignore the existing ones.
Improving customer retention by just 5% can increaseย profits by 25 to 95%.
Yes, you read that right.
Besides, getting a new customer isย 5 times more expensiveย than retaining an existing one.
This is why investing on customer retention is as important as traffic generation or conversion optimization.
You must have heard of the 80/20 rule. Itโs a common adage that suggests 80% of business comes from 20% customers.
Loyal customers are your biggest asset.
How do you build customer loyalty?
A researchย reportย by Rosetta suggests that engaged customers are 5 times more likely to buy in future.
That means you need to connect and engage with your customers.
Guide them when they are stuck. Show them how to make the most of your product. Listen to them when they talk and help them when they need.
Sounds like a lot of work?
Luckily, you can do all that and more, with the use of good old email.
Hereโs how:
Send the right welcome email:
Think of a physical store that attends to its customers only when they are about to leave.
The best time to engage these customers is the moment they walk in. Thereโs no point running after when they have made their mind to leave.
Itโs the same with online businesses.
Customer retention strategy must kick in from day one. Donโt wait for the signs of exit.
Engage your customers with aย welcome emailย straight away and take it from there.
Set the right triggers:
21% of email revenueย comes from triggered emails. When it comes to retention, setting the right triggers is half the battle.
The right message must reach the right people at the right time.
Send it early and you will confuse the customers. Send it late and you will lose the customers.
Take the example of customers who are interested but not sure that they want to continue. These customers are the ideal targets for retention emails.
But how do you identify them?
Itโs easy.
Look for the users who have signed up but didnโt go through the setup. Or the ones who added a product to cart but didnโt complete the checkout process.
All they need is a nudge and you will have them in the pocket. Consider giving some incentive or a special deal.
Highlight quick wins:
You might think that using your product or service makes perfect sense.
You might have the reasons to believe but your customers are not aware of these reasons. This is especially true for SaaS companies and startups offering novel ways of doing things.
They donโt know the product like you do and they will not spend hours to understand how it works.
Donโt wait for them to discover the benefits. Highlight the quick wins. Show them how to make the most of your product.
Even better, show them how one of your clients has taken advantage of your product.
This is what we do atย Sleeknote.
Hereโs an email for customers who have not tried our โblankโ Sleeknote feature.
Hereโs another example fromย Thrive Themes.
Subject line:ย Are you using ActiveCampaign?
Bonus tip:ย Psychology suggests that the pain of losing is twice as powerful as gains. You can get even better results by focusing on what they will lose if they donโt stay.
Check this example fromย Authority Hacker.
Subject line:ย AH PRO closes in 12 hours
Guide them when they are lost:
Many customers get stuck in the middle because they canโt get a hang of things. This is where a โgetting startedโ or onboarding email can be handy.
Try to make it as simple as ABC. As earlier mentioned, focus on the quick wins. Once they are hooked, send another one to explain the advanced features.
Look at howย Canvaย is doing it.
Shopifyย does it by inviting these users to a free webinar.
Subject line:ย Free interactive training: Setting up your Shopify store
Also, when thereโs an upgrade or improvement in your product, or a new collection, donโt forget to reach out to inactive users.
Make an offer they canโt reject:
If ever there was a time to offer a special discount or deal, it is now.
If itโs possible, offer a free trial. The word โfreeโ can do wonders. It can remove doubts and uncertainty from customersโ mind.
Look at this example fromย TimeDoctor.
Subject line:ย Iโll pay you 100 bucks if you try Time Doctor and it doesnโt improve productivity
Hereโs another example fromย CoSchedule.
Subject line:ย 100% complete for an *entire* month
Once they are in, thereโs every chance that they will stay (given that your product delivers what it promises).
Customer service โ Show them you care:
Talking of customer retentionโฆ poor customer service is one of the biggest factors behind customer churn.
86% of consumers would abandon a trusted brand after just two negative customer experiences. Make sure that your retention strategy includes timely response to customer emails.
An easy way to show that you care is to send personalized messages. Take advantage of whatever information you have about their needs or preferences.
75% of customers are more likely to buy based on personalized recommendations
Courseraย does it by sending new courses that match your interest.
Subject line:ย Recommended courses for you
Nobody likes to spend their time with menial tasks, so what you can do for your client is to automate password reset whenever needed.
Great customer service can turn disgruntled customers into fans and brand ambassadors.
Part of excellent customer service is also customer appreciation. Take the time to send an appreciation email to your clients to show them you care even when they arenโt currently buying from you.
Now itโs your turn:
Employing all these techniques will not bring your churn rate to zero. Some customers will leave despite your best efforts but theย retention emailsย will surely bring the rate down.
And thatโs all that matters.
What are you doing to engage and retain your customers through emails? Please share your strategy in the comments.
The best email clients and email alternatives (2023)
Email alternatives like help desk and ticketing software are becoming increasingly popular among businesses because of their ability to improve workflow and collaboration. These alternatives offer features such as shared mailboxes, automatic tags, multiple departments, and advanced automation rules to ensure that incoming emails are assigned to the best-equipped agent, saving businesses time and avoiding negative customer experiences. Canned responses, customizable email templates, and integrations with other communication channels and tools are additional features provided by these alternatives. Moreover, email alternatives are more secure, private, and encrypted compared to traditional email clients such as Gmail or Yahoo.
Reminder emails are important in email marketing campaigns as they can increase engagement and encourage specific actions among customers. Marketers can use reminder email templates for various occasions, such as reminding users of trial expiration, renewing subscription or membership, and notifying clients of overdue payments or upcoming events. The templates offer subject lines and content for inactive user reminders, trial expiration reminders, upcoming payment reminders, overdue payment reminders, credit card expiration reminders, and account cancellation reminder emails. Best practices include keeping the emails short and professional, including an obvious call to action, and sending a series of emails for maximum effectiveness.
Follow up email after no response
The article discusses the frustration of not receiving a response from a company and provides tips for writing effective follow-up emails. It's important to follow up to remind the recipient that you still want to pursue the topic and give them a chance to tell you if they aren't interested. The subject line should be clear and concise, and the follow-up email should be polite, reminding the recipient of your key experience and including a call to action. Several examples of follow-up email templates are provided, and common mistakes to avoid include being too pushy.
7 tips how motivate your customer service team
The article focuses on customer service and provides tips for ensuring exceptional customer support. It includes quotes to motivate teams, characteristics to look for when hiring representatives, and advice on conducting customer surveys. The article also emphasizes the importance of key customer service skills and highlights the features of LiveAgent software. The article concludes with contact information and subscription details.
