We call it Customer Loyalty
The average company loses 10% of its customers each year!
And here are few more interesting facts:
- Acquiring new customers can cost five times more than satisfying and retaining current customers
- A 2% increase in customer retention has the same effect on profits as cutting costs by 10%
- A 5% reduction in customer defection rate can increase profits by 25-125%,
depending on the industry
- The customer profitability rate tends to increase over the life of a retained customer
So often we see companies spending significant budgets both online and offline to win new business.
However they are often ignoring upsell opportunities in their existing customer base and more importantly they are ignoring the opportunity to stay “top of mind” with existing customers. How often have your customers said:
“Oh I never realized you offered that service…”
Email Marketing is a great way to stay in touch with your customer and remind them about your products and services. With advances in technology, rather than sending out a boring text based email you can now send out an email that looks like it came direct from your website – In fact, in essence, an email can now be viewed as another page of your website, except you can send it directly to your prospect or customer’s inbox.
Although Email Marketing can work well on its own, you typically see the best results when it is tied into an overall Internet Marketing Strategy.
How do I get an Email List?
Clients often ask us how they can get a mailing list to start an email campaign. The reality is that there is no easy way to get a readymade list. Internet Marketing is all about developing trust. If you buy a list of email addresses you first need to make sure that it is a “permission based” list – In other words did the person selling the list get permission from each of the email addresses to send them unsolicited email?
If the list isn’t permission based, then it is in violation of the spam laws which is a complete “no-no”. However even if the list is “permission based”, it is unlikely to yield great results since the recipient doesn’t know your company and more often than not the email will be filtered into the person’s junk mail. The email open rate for a list like this is typically very low.
So how do you start your Email distribution list?
Here are some tips:
- Include an Email Registration form on your website. When we started running email campaigns, it was often sufficient to promise to subscribe a web visitor to your regular newsletter in return for their email. However people are receiving so much junk into their inbox these days, they are much more reluctant to part with their personal information unless there is something in it for them! This could take the form of a special offer or a white paper which they could download.
- Collect email addresses as part of your ongoing offline marketing activities. For example, if your company operates in a retail environment, you have an opportunity to sign up store visitors for your eclub and be in with a chance to win a prize in a sweepstakes type draw.
- If you already have a prospect or a customer list and you are unsure if it is permission based, we recommend sending out what we call a “list cleaning” email. The email is simply a short message asking the person if they would like to be included in your newsletter – The email would have a very clear link at the top of the message enabling them to “opt-out” if they prefer not to receive email from you.
- Think about segmentation. Email marketing is much more effective when the message is relevant to your audience. When you are compiling lists think carefully about what “bucket: the customer or prospect belongs in. Learn more about segmentation and Email marketing trends
What are the Benefits of a good Customer loyalty program?
Customer loyalty goes a lot deeper than just sending out newsletters and updates. However if used correctly, email marketing is a very powerful tool for executing a customer loyalty program. Some benefits include:
- Customers stay with the company longer
- Customers deepen their relationship with company
- Customers demonstrate less price sensitivity
- Customers recommend company’s products or services to others