Acquiring long-term platinum customers is much harder today than it was even a decade ago. The globalization of the marketplace created an environment where people have access to multiple choices for every product or service they want to buy. This availability has created an environment where long-term customer loyalty has been replaced by hit-and-run shoppers. The only way to offset this to create a relationship with your customers that makes them want to stay with your company even when the competition offers lower prices and faster service.
Acquiring long-term platinum customers is much harder today than it was even a decade ago. The globalization of the marketplace created an environment where people have access to multiple choices for every product or service they want to buy; a simple search on Google for any item or service will reveal a multitude of choices at a variety of prices.
This availability has created an environment where long-term customer loyalty has been replaced by hit-and-run shoppers. The only way to offset this to create a relationship with your customers that makes them want to stay with your company even when the competition offers lower prices and faster service.
Relationships begin at the first contact point. Prospects who sign up for your email list have different expectations than your customers. Sending them the same promotional emails may convert a few, but it will not create the foundation for a long-term lasting relationship. People need to know they’re valued. The best way to communicate that is by creating customized emails designed to woo prospects into becoming customers. The same technological advances that increased your competition also make it easier and more economical to connect with people.
Every email marketing strategy needs a triggered systematic campaign designed to convert prospects into customers. Most companies have a welcome email automatically triggers when someone subscribes to their email list but very few businesses follow-up with additional emails that communicate information about the company products and services. It’s as if they presume that everyone knows everything there is to know about their company.
People subscribe to email lists for a variety of reasons. Some are simply looking for discount offers, others want to learn more about the products and services. Failure to take advantage of the opportunity to share information with people who have indicated they want to know more is a waste. The cost is minimal. The potential return is huge. If you do not have a customized prospect conversion strategy, you are squandering an opportunity to build a foundation for long-term customer loyalty.
It’s almost impossible to identify the prospects with long-term customer potential. The only information you have available is the original source and what people choose to share. Requiring additional information to better qualify subscribers is counterproductive—long sign-up forms yield fewer subscribers. The objective of your sign-up form is to gain permission to email prospects. The trigger emails following subscription can be used together additional information as well as convert the subscribers.
Start with a welcome email that thanks people for subscribing. Ask if they will share their preferences so you only send relevant emails. Be very careful with this. Do not ask what the subscribers want if you are not going to honor their wishes, it will alienate your prospects. If you choose to ask the questions, limit them to five. Keep them on one page above the fold with the save button in clear view. People’s eyes start to glazing over when they see a long list of questions.
The emails following the welcome letter need to build trust, provide relevant information and match the preferences indicated earlier. Don’t presume your prospects know about your top-notch service, liberal return policy or special promotions. If they do, the emails will serve as a reminder. If they don’t, providing the information is a service. Including customer testimonials and product reviews provide social proof and help establish trust.
Here are some do’s and don’ts for creating a triggered welcome email campaign:
- Do include an added bonus in every email. This can be as simple as providing tips. For example, a B-to-C business selling cookware could offer recipes and cooking tips. A B-to-B company selling office supplies could offer productivity tips.
- Don’t overwhelm new subscribers by bombarding them with emails. Test different delivery times and spacing to find the best strategy.
- Do provide links to your website and additional information in every email. Always gives people a place to go and easy way to get there if they want more.
- Don’t include icons for social media sites without providing a call to action. Give people a reason to connect with you on the other channels.
- Do test everything. What works for your competitor may fail for you and vice versa.
- Don’t think of your welcome email campaign as “set it and forget it” marketing. Strive for continuous improvement to maximize your return.
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.
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.