By Ivan Kreimer
Do you want to know the key to having a long-term profitable business? It’s not having more customers. It’s not having more traffic either. It’s repeat customers.
The reason why repeat customers matter is simple: they are worth more than one-time customers.
To increase the number of repeat customers, you need to focus on retention.
Email marketing offers an especially effective way to increase customer retention: post-purchase email automation.
Post-purchase email automation represent customer journeys sent after a customer has made a purchase with the goal of increasing engagement and loyalty.
In this post, you will see how you can use post-purchase email automation to increase your customer retention and grow the profitability of your e-commerce store.
Segment your customer list
Not all customers are alike. Even if all of them have one thing in common – the fact they bought from you – that doesn’t mean you should treat them the same way. If you treat all your customers the same way, you are likely to send them irrelevant emails, making them less interested in becoming loyal customers.
In order to improve your customer relationships, you need to segment your customer list based on their different demographic, behavioral, and geographic attributes. Segmentation will allow you to send better targeted and more relevant emails.
Unless the geography or demographics of your customers affect your e-commerce sales, one of the best ways to segment your customer list is by using engagement and transactional attributes, based on their past behavior.
The goal of segmenting your customer list by engagement is to separate the customers who are still active on your list (i.e. opening and clicking on your emails) with those who haven’t clicked on any recent marketing messages. Engaged customers have shown a positive behavior towards your brand, which makes them more likely to purchase from you. As a result, you can send purchase-focused emails to your engaged customers. Unengaged customers, on the other hand, need better nurturing and less purchase-focused emails so you can win them back before you can ask for a purchase.
There are four main attributes you can use to segment your email list based on their engagement, which are:
- Whether a customer has received an email
- Whether a customer has opened an email or series of emails
- Whether a customer has opened and clicked an email or series of emails
- Whether a customer has converted from one of your emails
While engagement lets you see how people react to your emails, transactional behavior helps you see how people shop in your store.
There are many ways you can slice your customer list based on their transactional behavior:
- Recent purchases (that can be a week, a month, a quarter, or even a full year)
- Number of purchases
- Amount of dollars spent
- Average number of products added to cart
- Category purchased
- Price range of the purchases made
- Time range between purchases
Transactional segmentation can help you find products or categories that your customers are most likely to find interesting so you can upsell or cross-sell them relevant products. You can also send your customers emails with more relevant Go to the full article.
Source:: Business 2 Community