4 Effective Ways to Increase Customer Retention through Email

Customer retention is truly the backbone of any business. Companies have a 60-70% chance of selling to an existing customer but only a 5% to 20% chance of converting new customers, yet 44% of businesses are focusing on customer acquisition, while only 18% focus on customer retention. 

So...something’s not adding up.

The lack of nurturing towards existing customers is especially perplexing when companies have so much to gain by using relatively simple tactics, like basic email marketing. 

Below, we’ll delve into why customers leave in the first place and how you can get them to stay by using emails efficiently.

Let your customers know when items are back in-stock

Every shopper has been in the position of seeing something they really wanted on a site and being filled with disappointment once they realized it was out of stock. Companies lose over $1 trillion every year due to out of stock items, and this number has only been exacerbated by the COVID-19 pandemic. For many businesses, a lack of inventory is out of their hands, but what isn’t is letting customers know when items are back in-stock. 

Most customers won’t religiously check to see if a product is available again unless they really, really want that product. And even though it would be ideal for most customers to be so enthusiastic, this is simply not the case. However, by introducing in-stock notifications, you can catch both committed customers and new visitors with a quick email update. On the product page, you’d only need a short and sweet message telling the customer that if they leave their email below, you’ll notify them as soon as the item is back in stock. In addition to this, you can also email them about similar products that are available to keep their attention and eventually get them to convert.

Less can be more with Emails

People are busy—as a business owner, marketing manager, or assistant, you’re always trying to catch your breath while also constantly putting out fires. But your customers are living, working beings as well, with lives and jobs of their own and inboxes packed to the brim. Even with all the value your business has to offer, people only have so much time in the day. Which is why less can be more. 

Of course, the frequency and quantity of your email-sending will depend on your business, but it’s important to ask yourself: “Is sending this email the best way to reach my customer?” When I say reach here, I don’t mean simply contacting your customer. I mean connecting with them. Every email you send to your customer should serve a specific purpose—these purposes can include nurturing your leads with a link to a webinar to give them more information, or letting them know about a new product release that comes with 15% off for the first week. But if you find yourself sending out similar emails regularly that aren’t converting, you should rethink your strategy. This is why planning out a proper email campaign with a goal in mind is so important. It will save you time and keep your customers and leads from growing bored or even annoyed. 

Ask for feedback

The best way to figure out what customers want is by asking them. And if you really want to up the incentive, try offering something you know your customers will value, such as a discount. While you may get a good amount of empty feedback from people who just want whatever you’re offering, a decent percentage of people who go out of their way to give feedback feel strongly enough to say something substantial—whether positive or negative. Gathering feedback through surveys or reviews lets you see what you’re doing right and helps you catch issues with the customer experience before they start to affect your churn rate. 

Only 1 out of 26 customers will go out of their way to complain—the others will just leave. But by asking for feedback, you can extend a hand to these customers to feel heard and potentially solve any problems in the customer journey. 

One example is sending a follow-up email to your customers or leads after they complete a purchase or subscribe to your newsletter. You can ask them about the quality of your product, about if the buying process was smooth, about if navigating the website was easy, or even about the customer service agent who helped them. Include whichever metrics are most important to your business. The best practice would be to have emails dedicated solely to calls for feedback, particularly after a major action, like a purchase. But it could be beneficial to have a generalized request for feedback at the bottom of any other emails you send.

Get Serious about Customer Service

Customers have high expectations for how they’re treated. According to Gartner, more than two-thirds of businesses compete mostly or completely on the basis of customer service. That means most businesses see just how important providing stellar customer service is and unless your business is a monopoly, you can’t afford to lose out to competition due to an insufficient customer experience model. 

But what are some practices that contribute to less-than-perfect customer service? One is not being easily available. Nothing will frustrate a customer more than not being able to find a contact for whichever needs they have. Another is the amount of time it takes for customer service to follow up. Having to wait days or even weeks to hear back, especially concerning a pressing question or problem, not only makes customers feel like they’re not a priority, but it gives them more time to seek out your competitors. 

Use emails to make it easy for your customers to get in touch with you. Have an email address that’s dedicated specifically to interacting with customers, along with a person or team whose job is to either communicate with customers through email or direct customers to the right department. Even something as simple as regularly updating your customer on the progress of their orders (especially if your product or service takes a long time to be produced and delivered), or letting them know you’re working on fixing a problem, will save frustration. Sometimes all customers want is just to know what’s going on and they’re more likely to be understanding if you’re communicative during the buying process.