According to Wikipedia
Customer Retention refers to the ability of a company or product to retain its
customers over some specified period. It’s different from customer acquisition
or lead generation because you’ve already converted the customer once. Your best customers don’t just buy one
product or use your service once. They come back again and again for more.
Customer retention increases your customer’s lifetime value and boosts your
revenue.
The significance of Customer
Retention for an Online Business
It’s much easier and
less money to retain the customers than to acquire them. You will spend five
times less money on customer retention.
The probability of selling
to an existing customer is at least 40 percent more likely than converting
someone who has never brought from you before.
Improve Customer Retention with these
Email Marketing Strategies
Segmentation and Personalization of
emails
Segmentation and personalization
are both important elements of email marketing.
On a fundamental
level, segmentation is defined as the dividing of something into separate
sections or groups. Within email marketing, segmentation is defined as dividing
your audience into several groups instead of working with one mass audience for
every mail send.
Here are the best ways
marketers use to segment their audience:
·       Â
Demographics,
e.g. Age, Gender, Location, Occupation, Income
·       Â
Their
level of email engagement e.g. opened the last 10 emails or hasn’t engaged for
5 months
·       Â
Personas –
what motivates your subscriber to engage with your email e.g. do they only
engage with discounts and sales or do they make regular purchases?
With Personalization,
the marketer is communicating with their audience on an individual and deeper
level. The message is tailored to them backed by their specific data.
The ability to deliver
unique & personalized messages improve the effectiveness of your email
marketing and boost metrics such as conversion rates, website bounce rates,
cost per acquisition, and customer lifetime value.
Know 0r Learn about your Customers
How do you know or
learn about your customers when you have a million other things to do?
Email Automation is
the answer.
There are numerous
ways to connect with your customers, but one of the simplest and efficient ways
is setting up automated emails.
The important aspect
of automated emails is to set up the trigger points and continue to go out to
individual subscribers when they meet the trigger conditions you’ve defined
(such as joining the list, reaching a particular date, etc.)
Here is a step by step
rundown:
1.     Â
Add each
customer to your email list
2.     Â
Set up an
automated email
3.     Â
Setup a
time to interact
To conclude, email
marketing is one of the best and efficient strategies available to retain your
customers – the cost is low, and the retention percentage is high.