5 Tips to Increase Customer Lifetime Value with Email Marketing

Most marketers spend lots of time focusing on acquiring new customers as compared to retaining the older ones. While acquiring new customers is very important for every business, smart marketers understand that retaining customers is even more important as it can drive your profit up exponentially. Stats say, “It’s 5 times more expensive to acquire new customers than it’s to retain current ones.”

If you want to retain your customers email marketing can be your valuable asset, it can help you to stay top of mind with your customers. But, with the batch & blast approach, email marketing too is not going to give you desired results. It’s very important to send timely & targeted campaigns to your customers at critical points in their consumer lifecycle to increase their lifetime value.

Here are some proven email tactics to keep your customers coming back for more and increase your conversions. 


1. Always Remind Them Their Replenishment Time

Reorder emails are a great way to drive customers back to your site without coming across as too sale-sy. These highly personalized emails are based on individual historical purchase data making them super effective to increase customer loyalty towards your brand. So, if you sell products that run out on a regular basis like lenses, cartridges etc., use this as an opportunity to drive repeat revenue and improve your customer lifecycle value.

2. Reward Customers for Their Loyalty

Every ecommerce marketer knows that acquiring customers involves lots of efforts and resources, and it would be crazy not to try and retain them in your funnel. Research by SumAll shows that if someone makes one purchase, they have a 27% chance of coming back again; however a second-time customer has a 54% chance of returning for a third purchase.

Rewarding your customers is a great way to build their loyalty towards your brand and drive more conversions. No matter what type of rewards you’re giving, be sure they offer value to your customer and have a single clear purpose of making shopping more rewarding for them. For example, giving a special discount, points or offer to your new or loyal customers, exclusive invites to events or a sale before you open it up to all your customers works really well to make them feel a part of your community and build customer loyalty towards your brand in turn. Ecommerce sites like Guild.com rewards their loyal customers by sending them early invites to the sales before going public.

3. Upsell & Cross Sell Emails

In this information age, your customer has already researched his way to make an informed buying decision and it’s not easy to sell him, Instead of spamming him with non-targeted products & offers to squeeze more out of his wallet, it’s important that you use his behavioral data and purchase history to send personalized recommendations & offers.

Campaigns like Thank You, Birthday, Anniversary & Post Purchase emails can help you drive more revenue through upsell & cross sell. Amazon does up-selling & cross selling effectively in its marketing campaigns making it the King of email marketing.

4. Collect Feedback

Once customers have purchased products from you, don’t forget to follow-up with them. Ask them if they enjoyed their purchase and encourage them to rate & review it. This will help you in two ways:

Increase customer loyalty: Customers will appreciate the effort that you are interested in serving them instead of just selling to them, this will increase their loyalty towards your brand which in turn will increase your retention rate.

Social proof: Product reviews will help you in gaining more customers as they will help new customers in deciding on whether or not to buy from you. Social proof & word of mouth is one of the biggest motivators of purchasing decisions without spending a ton on marketing.

5. Implement Win Back Campaign for Inactive Users

If someone has purchased from you once, but haven’t done that again, don’t be discouraged, use email marketing to bring them back. Win back campaigns are the perfect way to follow-up and bring back your inactive customer base back to your site. To get desirable results from your re-engagement campaigns keep these things in mind:

  • Use a direct and personalized subject line.
  • Keep the emails short and direct.
  • Personalize the message. Generic emails are not going to entice people to come back. Use recipients buying history to spark engagement and incite the purchase cycle.
  • Instead of sending a single email send a series.
  • Use a clear and focused CTA.

The key is to segment your customers to ensure you are not sending the same offer to your entire customer base. Whatever strategy you may adopt, make sure you’re keeping your customers engaged at every step of the customer lifecycle funnel. Aim at building long term relationships and it will ultimately lead to more sales.