Black Friday and Cyber Monday are just around the corner. Planning for your email campaign should have started weeks ago. If not, this is the time to jump in and get ready. This holiday season is positioned to be extremely competitive. The election advertising bombarding people today will be replaced with promotions trying to squeeze every dollar out of a tough economy.
The holiday season provides two opportunities for enterprising marketers. The first, and most obvious, is the opportunity to increase sales. Bargain hunters everywhere will be snatching up the best deals across all channels. The company with the lowest prices will win their attention—and possibly their business—until a lower price appears at the next store. This opportunity works best for companies with killer price negotiators and heavy volume.
Creating and solidifying relationships between customer and company is the second opportunity. Connections can begin with deep discounts but there has to be a strategy in place to move customers from discount shoppers to loyal buyers. The process starts with understanding how people become loyal to your company. What path do they follow from first purchase to long time customers?
The answer to that question is most likely, “it depends,” because the path is dependent on the customer type and what motivated the first purchase. Discount promotions attract bargain hunters, hit and run shoppers, and active customers. Bargain hunters tend to watch for discounts before buying again while hit and run shoppers buy once and disappear. Active customers stay around during the off-sale season and build lifetime value. Only a small percentage of customers acquired during high promotion periods will become active customers without intervention.
Email is an excellent tool for converting bargain hunters and hit-and-run shoppers into active customers. It is inexpensive and effective when used to strategically move people into the buying cycle. Here are some tips to get you started:
- Review newly acquired customer data from the last three to five holiday seasons to identify bargain hunters, hit-and-run shoppers, and active customers. Bargain hunters rarely buy full price items. Hit and run shoppers buy once or twice, usually within a thirty day period, and disappear. Active customers are the ones who predictably buy throughout the year.
- Define the path from original source to last purchase. This is where you’ll start seeing some patterns. For example, hit-and-run shoppers typically originate as online shoppers that found your site using search engines or social networks. Identifying them early and adapting your strategy accordingly reduces the resources that will be invested in additional marketing unlikely to generate a return.
- What paths do the active customers follow from first purchase to their current buying activity? How do they differ from the bargain hunters and hit and runners? Did the people who became active customers receive different marketing promotions? The answers to these questions will help design new campaigns to keep new customers coming back.
- Create test campaigns that personalize the shopping experience. Holiday time is hectic for some, crazy for others. The easier you make it for your customers, the more likely they will return. Use transactional emails to keep people informed every step of the way. Instead of the perfunctory “your order number 123 shipped today and will arrive in 3-5 business days,” try using more friendly language. Your copywriters can make transactional emails informative, engaging, and entertaining.
- Follow up after the sale. If the products or services aren’t used, there will never be a second order. Personalized emails that ask about the items and service are a rarity. They will stand out in a sea of incoming messages. In addition to establishing successful relationships, you’ll learn about problems that need resolution.