Whether you’re in the giftware category, hobbies, automotive, or business machines, increasing the lifetime value of your customers is key to business success. Analysis from 2016 shows that there are five types of emails that can grow that customer lifetime value at an unprecedented rate.
1. Customer Status
Your target segment starts being a consumer after the first purchase, a customer after the second Your target segment starts being a consumer after the first purchase, a customer after the second. For each milestone, drop them an email. A/B test the context, copy, and offers of your emails for conversion rate optimization. Offers made can have timers on them or an expiry date to encourage swift action.
To improve the customer lifetime value, set a timer that sends out a special promotion (represented as complimentary with the purchase made) 2-3 days after the purchase. Not all product categories merit a second purchase (cars, homes, TV’s), so it’s important to cross-sell complementary or add-on products. The goal here is to achieve high returns on the marketing investment as early as possible.
2. Celebrate Them
Segment customers by the ones whose birthdays you are unaware of. Rope them in on a milestone of your company and offer them a coupon in return for them sharing the dates for their birthdays, anniversaries, and special occasions. Stand out from the crowd and align your brand communications with an occasion outside of birthdays and anniversaries , such as a promotion, job anniversary, business deal, or even graduation anniversaries.
3. Brand Currency
At least once a month, preferably during the first week, let your customers know how many loyalty points they’ve racked up and what it means in availing special gifts such as branded merchandise & apparel. Create and track events, then email segments that have taken the actions that qualify them for special deals and gift cards. To encourage shareability, offer rewards associated with your product or service while tying it to a milestone your audience is proud of.
4. Serenade Them
On the infrequent chance of an order being returned or a bad review, reach out to the customer with a heartfelt apology email and show empathy that is specific to the occasion. Follow up with emails that show that steps have been taken to rectify the issue raised while ensuring your emails make no attempt to sell the service or make an offer. This approach is effective in turning around churn rates and growing the customer lifetime value.
5. Segment Behaviors
Leave problematic targeting out of the equation by emailing customers about their purchases to understand whether they are the intended consumer. By understanding the context of the purchase and building a behavioristic profile around the customer, offers can be made that reflect an understanding of whether the registered customer is the assistant of the CEO that wants to gift a bouquet to his wife or the CEO himself.
Segmenting customers in this way paves the way for B2B opportunities as well. After deliveries are made, email the customer with an offer for cash back (don’t worry, the cash back is only valid for the site you sell through) in their account, in return for filling out a form that gives your marketers an insight on the buyer.