6 Best Practices in Crafting a Customer Retention Email Strategy

The long-term success of any business relies on loyal, engaged customers. New customers may come and go, but those who stick around and keep buying from you will see your business through many ups and downs. These customers, however, need a customer retention email strategy to keep them engaged. 

This article covers the best practices for your retention emails, from segmentation to mobile optimization. Customer retention emails may already be a cost-effective form of marketing, but there are still some essential steps you should follow to perfect your strategy. 

What is a customer retention email strategy?

A customer retention email strategy is your plan for communicating with existing customers via email as a way to encourage them to continue engaging with your business. Whether you sell clothing or AI for call centers, an effective customer retention email strategy can benefit all types of brands.

What are the benefits of a customer retention email strategy?

• Higher customer lifetime value (CLV): Retaining existing customers is often cheaper than acquiring new ones. Customer retention emails that result in repeat purchases and a longer relationship with your business means every customer has a higher CLV. 
• Reduce churn rates: Churn rates are the percentage of your customers who stop using your service and switch to another brand. If you engage with your customers regularly, you can keep them on side. 
• Strong conversion rates: Customer retention emails can be timed according to demographic or behavioral data, allowing you to perfectly time when you offer a new product to a customer. With well-placed, personalized CTAs, your retention emails can convert past customers into new purchases. 
• Cost-effective marketing: Email marketing is much cheaper than paid ads — it only requires a mailing list. Rather than spending lots on customer acquisition, you can enjoy the return on investment (ROI) of much cheaper retention emails. 

6 Best Practices in Crafting a Customer Retention Email Strategy

1. Segment your customer base and personalize emails

No two customers are alike. While it’s certainly too time consuming to write personal emails to every single customer, you can use data to split your customers into discernable groups and personalize accordingly. 

Using data from your CRM system and website analytics as well as whatever email marketing platform you use, collect data about the following:

• Demographics (age, gender, location)
• Purchase behavior (frequency, average order value)
• Engagement level (open rates, click through rates, length of relationship)
• Consumer preferences (product interests)

Next, you’ll use this data to create segments. These might include loyal customers and new customers, as well as active or inactive customers, or high-value and low-value purchasers. You should then tailor emails according to the needs and preferences of each of these segments. 

Tip: Find an email marketing platform that lets you create dynamic content blocks for your emails. These blocks can then be automatically personalized depending on the customer segment receiving the email. 

2. Create valuable content with compelling subject lines

Marketing emails should do one of the following: 1) Educate, 2) Entertain, or 3) Solve a problem. 

Relevant content such as tips and tutorials make great email content that your customers will actually read. For example, say you sell a phone software service. Your customers may be far more interested in an emailing explaining answering machine detection accuracy than a generic marketing email.

Whatever content you decide to include in your relevant emails to existing customers, make sure your email subject line is compelling and well-crafted. Subject lines should grab attention without appearing too sales-y. Try A/B testing different subject lines and measuring open rates to figure out what lands well with your email list. 

Tip: Not sure what content will educate or entertain (or solve problems for) your current customers? Customer surveys are an easy way to get a sense of pain points and preferences. 

3. Optimize for mobile users

Lots of us have email apps on our smartphones and may read emails more often using a cellphone or a tablet than a laptop. That’s why it’s vital your customer engagement emails are optimized for mobile phones and apps. 

Some simple ways to ensure your emails will display properly and engage customers on mobile apps include:

• Use a responsive design: Plenty of email marketing platforms allow you to use templates that automatically adjust according to what device the reader is using. 
• Simple, single column layout: Opt for simplicity over clutter and use a single column layout so mobile users don’t need to scroll horizontally. 
• Optimize images: If your email includes images, be sure to compress them so that they load quickly on mobiles. Add alt-text too in case images don’t load. 
• Clearly clickable CTAs: By using buttons for your calls to action (CTAs) that are clear and large as well as surrounded by white space, you’ll make it easier for mobile users to take action.
• Preview and test: Run test emails before sending to ensure full mobile optimization.

4. Get the timing and frequency right

Your promotional emails should be sent at the right time and at the right frequency so they don’t become irrelevant or annoying emails. In the first instance, avoid bombarding your customers with too many emails as this can lead to annoyance and even unsubscribes. 

Use analytics such as open rates to figure out what times of day or times of the week are the best for engaging with your customers. You can then use a scheduling tool to send out emails at set times so you never miss a peak opening hour. 

Think too about certain times an email might be especially effective. Here are some types of emails you might send at certain milestones or points in your customer’s lifecycle:

• Welcome emails: These arrive immediately after a customer signs up to your mailing list or makes a purchase, allowing you to introduce your brand. 
• Cart abandonment emails: An automated email when a customer abandons their online shopping cart without making a purchase, encouraging them to come back and buy, perhaps with an incentive. 
• Renewal reminder emails: If you offer a subscription-based product, renewal reminders might include incentives or discounts that encourage customers to renew.
• Exclusive offers: Your loyal customers will feel especially appreciated if they receive exclusive discounts or offers via email. 
• Special occasion emails: Celebrate and reward milestones with a Happy Birthday email that offers a special discount.  

5. Include social proof and testimonials

With customer testimonials and social proof of customer satisfaction, you can tell your brand story and build your brand’s overall trust and credibility during any email marketing campaign. 

Start by choosing relevant testimonials that highlight the positive experiences of your existing customers. These might come from reviews or social media comments. Ideally, you should focus on specific results and success stories that showcase the value of your brand. 

Don’t forget to include visuals and CTAs. This might mean including a photo of the customer or even video thumbnails with video reviews, both of which make testimonials far more authentic. For even more authenticity, add personal details about these customers, like their first name and city. And as with any promotional email, include a clear CTA. 

Tip: Your social proof emails should be segmented too. Use testimonials that relate to each of your segments so that your readers feel the quotes or reviews they’re reading are relevant to their own needs. 

6. Test. Monitor. Improve. 

The TMI of any marketing campaign isn’t ‘too much information’. It’s ‘test, monitor, improve’. A customer retention email strategy should never be static. Instead, always be on the lookout for ways you can optimize your approach.

Here’s a quick breakdown of these practices:

• Test: By testing out different strategies, from segmentation to frequencies, you can gather valuable data about what techniques are the most effective. 
• Monitor: As you test different approaches or whenever you schedule an email, monitor statistics like open rates and click-through rates as well as overall revenue. 
• Improve: Use the data collected from your regular testing and monitoring to make adjustments and improvements. Keep a record of changes you make so you can reflect on what’s working and what isn’t.

Email analytics can help you make big decisions like using monolithic architecture or microservices for your automated tech stack or smaller choices like which call to action phrase works best. 

Conclusion: Secure customer loyalty with a retention email campaign

As a business owner or marketing manager, you know full well the value of a loyal customer. They return for repeat purchases or keep their subscriptions for years, plus they recommend your product to friends and families.

That’s why your loyal customers shouldn’t be left in any doubt that you’re aware of them. At its most basic level, a customer retention email strategy shows customers that you’re engaging with them even after a purchase. Whether it’s a personalized happy birthday email or a relevant tips and tricks email, retention emails keep your customers in the loop about your brand.