What if you could convert email campaigns at 30% or higher and the only thing you needed to do was take a closer look at your audience? If you’re looking to increase your conversion rate with email marketing, keep reading.
We’ve all heard the stats that say it costs 7x more to attract a new customer than to retain an existing one, so why aren’t more businesses investing in customer retention?
Acquisition vs. Retention: The ROI Tug of War
Don’t get me wrong, increasing your customer base is a driving force towards growing your business, but it’s not the only factor.
When it comes to revenue, customer retention is vital to the consistent growth and financial planning of your business. After all, the more committed customers you have, the easier it is to make budgetary decisions.
According to research done by Invesp, 44% of companies admit they focus more on acquisition than retention, and only 18% claim to focus more on retention. When it comes to customer retention, the most effective digital marketing tactic is email marketing.
Statista provided stats showing that in 2017, global email users amounted to 3.7 billion and this number is predicted to grow to 4.3 billion users by 2022. This powerful marketing tool is here to stay and is the cornerstone of any successful retention marketing strategy.
Customer Retention Tactics that Work
Below is a look at how to use email marketing to retain your current customers.
Keep them coming back for more
The success rate of selling to a customer you already own is 60-70%, while the success rate of selling to a new customer is 5-20%. To keep your customers coming back for more, you’ll need to retain, upsell and cross-sell your customers to get the most out of your customer lifetime value (CTV).
Staying top of mind is crucial here in our ever-evolving world of competition on the internet. Luckily, email is still the preferred method of communication that most people would like to be reached.
Referrals make all the difference
Keep in mind, each time a customer purchases from you, they’re becoming more comfortable with your brand and, in turn, are more likely to refer you to someone else.
Did you know?
After 10 purchases, customers refer 50 more people to a business than a one-time purchaser. These repeat customers can then actually increase profitability by attracting more customers through word of mouth.
You’re probably thinking, “That all sounds terrific, but what’s the ROI?”
According to an article from Campaign Monitor, for every $1 spent, email marketing generates $44 in ROI. That’s a 4400% increase in ROI, all without breaking the bank. Pair that with increasing customer retention rates by at least 5% and you can see an increase in profits by 25-95 percent%.
Work smarter not harder
No matter your industry, you can’t go wrong incorporating a customer retention strategy. Even something as small as sending your new customers a welcome email, is incredibly effective. On average, 320% more revenue is attributed to them on a per email basis than other promotional emails.
So, if you are interested in increasing your profits by 25% – 95%, consider incorporating a customer retention email campaign into your digital marketing strategy.
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The post Customer Retention and the Power of Email Marketing appeared first on Vertical Measures.
source https://derekpackard.com/customer-retention-and-the-power-of-email-marketing/
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