Email Marketing Strategy to Not Let Go of Your High CAC Customers

If you sending same email content to every customer, it's time to rethink your approach. Learn the email strategy to get customers to spend more in this article. Don't let the customers you've invested heavily in competitors!
Apr 21, 2024
Email Marketing Strategy to Not Let Go of Your High CAC Customers
 

Time to tailor your emails based on purchase cycles

“Still sending every customer the same email content?Sending the same email doesn’t work anymore. To provide a personalized experience based on each customer’s unique purchasing cycles. let’s explore email marketing strategies to keep our valuable customers from competitors and get them to buy again in our brand!

The right calculation for customer retention

To calculate retention accurately, you need to understand each customer’s unique purchasing cycle from their own first purchase. The simple approach, defining retention as 'customers who purchased this month and also last month', can lead to misleading conclusions. Let’s imagine the situation.
  • You’re the owner of Shampoo DTC
  • The shampoo can be used for 2 months
If consumer A bought the shampoo last March, and you check the April retention. Is consumer A churned? or retention?
 
The consumer A can still use the shampoo. In April, consumer A can be considered in a retention status. However if you just check the monthly retention without considering the purchase cycle, consumer A could be understood to have churned from your brand.
 
This is why you need to check your customer retention exactly based on purchase cycles.
 
example of Ready buyers in Retentics
example of Ready buyers in Retentics
 

How can be applied to email campaign?

It’s simple! Sending the right email at the right time, when they are likely to repurchase. It is one of the most powerful strategy to increase email conversion rates. In theory, Just need to send emails to customers when their purchase cycle comes around. Of course, figuring out when to send email and what content works best needs to do A/B test.
But if you find your brand’s best practice, it will be get higher synergy with loyal customers or those likely to become loyal, it should increase brand loyalty as well as revenue from emails. By reaching out to our best customers just before they are ready to repurchase, both customer retention and revenue generated from email campaigns will improve.
To do this email strategy, it is important to be able to target the customers whose purchase cycle is coming and to segment your customer based on customer loyalty. For this, You may need a dashboard designed by a data analyst, or directly analyze individual customer purchase cycle by using data analysis tools.
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If you want to know details of Retentics’ segment, please let us know!
 

Time to add dynamic product recommendation

Now that you know who to target and when, you need to prepare various content to attract your customers - like bringing a child to the toy aisle of a store. Personalized product recommendations can help with this.
 

Turning One-Time Buyers into Repeat Customers

Of course, all of marketers want their customers to buy more things from their store. When customers repeat purchases in your brand or buy more, two good things happen:
  1. You earn back the money(CAC; Customer Acquisition Cost) you spent to get new customers. > It called ROI; Return On Invest
    1. How to estimate CAC
  1. Your profits become much bigger over months and years as customers keep buying without marketing expenses. > It called LTV/CLV; Customer Life Time Value
 
At first, you need to understand your customer journey.
Losing too many new customers quickly is a problem. It may mean something is wrong with the products or sales. Looking at customer "cohorts" can help understand this. A cohort is a group of customers who signed up during the same promotion or time period.
For example, everyone who bought during a June with certain item promotion is one cohort. People who bought in July 2022 during normal sales are a different cohort.
By comparing cohorts, you can see which promotion or which item experience leads to customers buying more over time. This shows what works to keep customers coming back.
 
example of Item Journey in Retentics
example of Item Journey in Retentics
 

[Retentics’ Use cases] Optimizing Email Marketing Through Personalized Purchase Cycle Analysis

Let us share our one of use cases of DTC brand.
We worked with an online grocery store that sends regular food boxes. We noticed customers who joined in May 2023 bought different items at first compared to other months. Their early purchases did not match the normal pattern.
So we split new May customers into two email groups to test:
  • Group 1: Getting emails recommending items based on what long-time members typically buy.
  • Group 2: Getting the usual new member recommendations.
 
After 3 months, Group 1 kept buying much more than Group 2.
This shows that even new customers may buy more if recommended items existing loyal customers purchase. But you need the data to spot patterns first. Then test to confirm what emails work to turn one-time shoppers into repeat buyers.
 
In summary, personalized emails to each customer's interests takes work. For online stores with no data or marketing experts, this is hard in real. Sending the right recommendations is key to getting customers to spend more over time.
 
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With Retentics, you can set up hyper-personalized emails to right target at the right time! Want to know more about Retentics, feel free to ask anytime.
 

Written by: Ssong Kim
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