Are you looking for an effective way to retain your customers and decrease the churn rate in your business? Then email marketing may be the solution you are looking for.
What is the Churn Rate?
It is an indicator that measures the number of customers who abandon a service or product during a given period. In other words, it is the rate of customer churn.
Understanding that it is impossible for this percentage to be zero, as a certain number of churn is natural, the churn rate helps us understand the dynamics between new entries and exits so that a company can always keep the relationship under control.
All you need is a simple formula to calculate the churn/abandonment rate: take the total number of customers lost over a period of time and divide by the total number of customers your company has (Customers at the beginning of the month – Customers at the end of the month) / Customers at the beginning of the month.
Email marketing tips to retain your customers and decrease churn rates
Through retention email marketing, companies can engage their customers and strengthen their relationship with the brand, offering utility and added value.
Let’s look at some retention techniques applied to email marketing.
Design a product newsletter
A product newsletter in email marketing is a strategy that consists of sending periodic emails to a list of subscribers, presenting a selection of products or services that the company offers.
These are the macro-topics around which the product newsletter could be detailed:
- What’s New
- What’s next
- Current Projects
- Upcoming Events
Leverage the potential of important emails
In an email marketing strategy, there are several types of important emails that can help a company build stronger relationships with its customers and increase conversion rates. One example could be emails that celebrate some kind of result, a recurring event or an “anniversary” between the customer and the company. This is another opportunity that helps users feel important.
Engage inactive customers
Since a certain churn/cancellation rate is natural, so is a certain rate of inactivity: this means that as the days and weeks go by, some customers stop interacting and using the service or product. In many cases, inactivity is the precursor to abandonment, so it becomes essential to succeed in reactivating these inactive customers.
Here is an example of a reactivation email:
- We noticed you haven’t visited our online store in a while and wanted to make sure everything is okay. Is there anything we can do to help you have a better shopping experience with us?
- As a thank you for choosing us in the past, we’d like to offer you a 10% discount on your next purchase. Just use the code REACTIVA10 at checkout.
- Also, we want to remind you that we offer free shipping on all purchases over $50. Take this opportunity to get your favorite products at a discount and free shipping!
- We hope to see you soon in our online store and we are here to help you at any time.
- The team of (Name of the store) (name of the person)