Connect with us

MARKETING

How to Reduce Customer Churn By Using Email Marketing

Published

on

How to Reduce Customer Churn By Using Email Marketing


Email is an evergreen marketing tool.

Our email address is a digital equivalent to our home address. So, we give it only to those we trust.

That is why businesses dearly cherish their lists of subscribers. It isn’t only a database of random email addresses. It is a list of people who trust your brand so much that they want to hear from you on a regular basis.

When companies monitor their marketing metrics, it becomes clear that email marketing is a very powerful promotion strategy. In this post, we are delving deeper into email marketing, trying to figure out how you can use it to stop losing customers.

Email Marketing In a Nutshell

Every experienced marketer knows that email is a promotion channel approved by tradition. Besides, the main reason email marketing campaigns are dear to marketers is that they are extremely cost-effective.

According to some opinions, each dollar spent on email marketing earns $42 in return. That is a very, very good ROI.

That being said, let’s define the strategy. Email marketing is a form of digital marketing, in which promotional content is being sent to potential customers and prospects via emails. The main purpose of such emails is to guide the prospect through all of the phases of the customer journey.

Advertisement

There are multiple ways to build a rich list of subscribers. You can use the power of social media, gated content, or a loyalty program. And you can use features such as pop-ups and forms to gain those addresses. For example, many e-commerce sites use Shopify pop-ups to get more subscribers.

It is a very old marketing technique, which is there as long as the Internet itself. However, throughout the years, email marketing lost nothing of its old charm.

On the contrary, it only improved and became more effective. The contemporary technology and automation tools are able to further boost its performance. According to some estimations, more than 51% of companies use automation. The majority of businesses agree that email marketing automation tools save time and significantly improve targeting and lead generation.

Except for automatization, another keyword for contemporary marketing is personalization. As email marketing developed, people grew tired of generic content. Therefore, today, each parameter of email content counts. Text, images, infographics, videos, etc., everything needs to match the customer’s interests and values.

See also  New Mailchimp integration automatically syncs customer data with Stripe

Reasons for Customer Churn

Simply put, customer churn is losing your subscribers. It refers to those situations in which people decide to stop receiving emails from you.

Usually, the normal unsubscribe rates are somewhere between 6 and 8%. However, if you notice you lose subscribers at a quicker rate, it means your email marketing strategy needs to change ASAP.

Unsubscription is a serious issue and costs a lot. According to some studies, businesses lose $1.6 trillion each year due to customer churn. Besides, getting a new customer costs five times more than keeping one.

Advertisement

In order to prevent and stop it, one needs to understand the reasons for customer churn.

One of the primary reasons people decide to remove themselves from your subscription list is some form of negative experience with your company or brand. It can be anything, from a buggy product to unknowledgeable customer support.

Another situation that could make your prospects leave is that your competitors have a better offer.

Finally, lack of continuous proactive support is a mistake many businesses and marketers make. Instead of reacting only when someone decides to leave, you should take care of your customers every step of the way.

There’s another aspect of churn that’s important to consider when it comes to email, and that’s your email reputation. If an above-average amount of your email bounces or is undeliverable, your company’s email reputation suffers, and your future emails could be directed to the spam folders rather than inboxes. That’s why you don’t want to be mailed to old addresses that no longer work or people who have unsubscribed. So, keeping your email list fresh and up-to-date is always a good idea.  

How to Use Email to Reduce Attrition?

Speaking about taking care of your customers every step of the way, emails are one of the most efficient ways of showing how much you care. Therefore, we compiled a list of some email marketing tips for you, to help you reduce unsubscribe rates to a minimum.

See also  5 tips for successfully switching email service providers

Reward Loyalty From Time to Time

Loyal customers are special and should be treated as such. Therefore, think of sending an email with a small gift or discount coupon after a certain number of purchases.

Or, how about announcing a referral program? You could award customers for spreading the word about your products.

Advertisement

A lot of businesses provide gifts and incentives on birthdays or special holidays. Who doesn’t like to get a gift? Happy customers mean happy business.

Proper Segmentation Enables Proper Targeting

Knowing your customer is the most important step in any marketing strategy, including email marketing.

The term email segmentation refers to a process in which you recognize the subtle differences between your subscribers. For sure, they all share one thing – interest in your brand. However, learning more about them will enable you to communicate in a better way.

When grouping your subscribers, there is a set of criteria that will help you understand them better:

  • location
  • gender
  • age
  • interests
  • budget
  • previous buying behavior

How do you know all this from a bunch of email addresses? You will need to use tools such as Google Analytics, or rely on your internal data. What you are particularly interested to know here is whose engagement dropped and why.

Foresee and Prevent Dropping Interaction

Be proactive in keeping awareness. You can always use emails to wake up dormant prospects. However, you need to pay special attention to your emails’ content.

To begin with, you need to make sure to write good email subject lines. Most promotional emails are disregarded by people. So, sometimes, a good email subject line is what stands between your emails and the trash folder. Subject lines should be:

  • short
  • personalized
  • unambiguous
  • just a little mysterious

On the other hand, they should not be:

  • pushy
  • imprecise
  • grammatically incorrect

Furthermore, try to sound helpful.

Also, sending content from social media, created by other happy customers, is a good strategy as well. It could generate a bit of FOMO, and inspire people to come back in the game.

It goes without saying that personalization and customized recommendations work like a charm here as well.

Advertisement

The Content of Your Emails Should Be Useful

Think of it this way: if you want to get value from your customers, you need to offer something in return. For example, you can create useful and engaging email content and give it for free.

See also  One of the Best Reasons for Content Marketing

Value comes in many forms. Money is one of them. However, as we live in an information age, useful tips and rare tricks are highly valued as well. Thus, you can surprise your dormant customers with a free course or webinar they might be interested in.

Or, you can share interesting case studies or educational content they can’t find elsewhere.

Also, you can use emails as a means of educating people about the amazing features your product and services have. You can show how to use your product more efficiently. Finally, you can remind them of all the different problems they could solve with it.

Ask for Feedback

Asking for feedback on time is one of the best ways to prevent customer churn. For example, you can kindly ask recent buyers to

  • rate your services
  • tell you how much they enjoy your product
  • give ideas on how you could improve
  • recommend you to a friend

We all live busy lives, so make sure that feedback forms are easy and quick. You can always send an email with a short fill-out form, thanking the prospect for their time in advance.

Also, remember that chat apps are another great way to come closer to customers and collect feedback.

According to some email marketing guides, feedback is of such importance that it should be analyzed along with the KPIs. It is the best way of learning about and from your customers.

Never Lose a Subscriber Again

To reduce churn and prevent unsubscriptions, you need to know your customers inside out. Only then will you be able to provide them with useful content. So, keep your customer data up-to-date and use new information to keep your email clean and segmented. Finally, asking for feedback and awarding loyal customers are great ways to make your customers feel recognized, valued, and interested in staying with you for a long time.

Advertisement



Source link

MARKETING

Excellent Tips To Optimize Your Sales Funnel With The Help Of Heatmap Tools

Published

on

Excellent Tips To Optimize Your Sales Funnel With The Help Of Heatmap Tools

The lives of enterprises are growing increasingly tough as people’s lifestyles change. People are increasingly turning to internet retailers to meet their needs, resulting in increased market rivalry.

Continuous conversion funnel and conversion rate optimization have become critical for the successful functioning of online enterprises, which is no longer as simple as it may appear.

Don’t worry, you can learn how to perform this optimization procedure quickly and easily with the help of heatmap tools in the sections below.

A few words about the conversion funnel

The conversion funnel depicts the journey from a casual visitor to a paying customer. Consider it a funnel or filter through which all of your visitors pass, with just the consumers emerging at the other end.

It’s vital to remember that just 4-9% of your visitors will make it to the end of the funnel on average, so don’t be alarmed if your measures reveal that you have considerably fewer customers than visitors. This is very normal.

There are three parts of the conversion funnel:

However, various tactics must be used in each part. It makes no difference whether you use a top-down or bottom-up marketing strategy or analytic procedure.

Advertisement

If you don’t take these factors into consideration, you’ve already committed the most basic mistake in the optimization process.

You can find a different segment in each stage.

Simple visitors are found in the top funnel. They may have arrived with the goal of making a purchase, but they could also want to read your blog post. Of course, even if they didn’t mean to, you want them to purchase from you.

Because this stage comprises a huge number of people, you must pay special care to pique their interest and establish confidence. You risk failing at the first hurdle if you don’t examine these variables.

People that are interested in your goods and are familiar with you and your purpose are generally present in the middle part. This is one of the most difficult assignments since it has the highest chance of failure.

Information retrieval is frequently the most important aspect of this stage of the conversion funnel. Your prospective clients will compare you to your competition and seek reviews and information.

See also  How much does acquiring a customer cost?

People that wish to buy your goods are in the bottom funnel. They have already made a choice, nevertheless, a terrible action might cause them to reconsider.

Here, strive for genuineness. You must structure everything so that potential purchasers are not put off from making a purchase.

Advertisement

But how you can optimize these stages? What analytics tool do you have to use and how?

Let’s see the answer.

Heatmap tools in the optimization process

Let’s take a look at how it works in practice now that we’ve gone over the basic components and functionalities.

Continuous measuring is a necessary aspect of the procedure. Unfortunately, the procedure cannot be carried out successfully without it.

When you think about analytics, you probably think of a big chart or a lot of statistics, but you’ll need a far more creative and efficient approach here. Heatmaps are a good way to do this.

Heatmap analysis is a method for determining how effective a website is. You may use heatmaps to see how your visitors interact with your website, which subpages they visit, and which buttons they click.

Warm colors indicate high-performing areas of your website, whereas cold colors indicate low-performing elements. If you want to optimize your conversion funnel, you’ll need this information.

Advertisement

But, because you’re probably curious about how heatmap tools may be used in the optimization process, let’s get right in.

Upper funnel part

You must reach three elements at the top of the funnel:

  • A structure that is visible
  • Content of high quality
  • Personal information

Let’s get this party started. You must offer your website a clear structure in order for your visitors to spend more time on it and not depart after a few seconds.

We suggest that you examine the most popular portions of your website with heatmaps and then put each of the key subpages accordingly. This is significant because you may post them in a location where your visitors will be likely to locate them.

Also, keep in mind that these visitors will most likely arrive at your landing page first. You must only list subpages that are relevant to the upper funnel group.

See also  Tourism Ireland bets on marketing partnership with IMAX producer to bring back tourism

Using heatmaps to discover these might also be a useful approach to do so since the analysis will reveal which pages you visit frequently. You can rely on this information.

You should disclose as much information about yourself as possible at this point of the conversion funnel. You should be able to tell who you are, what your aim is, and what you’re dealing with right away on the landing page.

By doing so, you establish trust and assist your visitors in becoming prospective clients from the start. But where should you store this data?

Don’t worry, a heatmap will tell you all you need to know.

Advertisement

When it comes to optimizing your upper funnel, one last thing to think about is displaying high-quality content. Based on the facts you provide, visitors may figure out what you’re doing and how you evaluate your items. But how can they be sure it’s true?

Share some blog post data about you and your items on your landing page to give your visitors the impression that you’re speaking the truth.

If you don’t want this to happen, create a subpage on your blog where your readers may find these articles.

Feel free to utilize a heatmap to assist you to put this as well, since this will allow you to place your blog’s subpage in the best possible location.

As you can see, improving the top of your conversion funnel is a quite involved procedure. However, don’t panic you’ve already completed the most difficult of the three sections.

Middle funnel part

The deeper down the conversion funnel you go, the more specialized work you’ll have to undertake. This implies that while the number of jobs you have will reduce, you will have to cope with an increasing number of them.

Visitors have already turned into prospective consumers by the time they reach the middle stage. In this step, the most crucial thing is to persuade them to buy your goods.

See also  Best Goal Setting Worksheet to Help You Plan & Achieve

In this instance, there are two little things you should keep in mind:

Advertisement
  • Your products’ location
  • Building a foundation of trust

Use heatmap tools to make some basic analysis before you cut into it.

Determine which of your items is the most popular. Put these items or services near the top of your subpage so that potential purchasers don’t have to scroll too far to locate them.

We have the items and have been provided everything we need to purchase them. What may the issue be?

The danger. When making purchases, keep in mind that this influence is constantly there.

Make a scroll heatmap analysis of your website and put customer reviews depending on the measurement to remove this.

The scroll heatmap displays how long customers spend scrolling across your website, allowing you to strategically post reviews. This will lower the perceived risk and make it easier for your goods to be added to the cart.

Lower funnel part

Your product is already in the cart at the bottom of the funnel. The only thing that separates a potential buyer from being a buyer is this one stage. What kind of issue might arise?

If a potential buyer refuses to buy or cannot pay, the response is straightforward.

In the study of the cart, the use of heatmap tools is quite important. Examine how your customers utilize your cart, where they frequently click, and what they do.

Advertisement

Based on this data, you can set the payment CTA in the appropriate location and provide a clear, safe structure to your cart. If you want your conversion funnel to be well-optimized, these criteria are critical.

Also, make sure to include cash-on-delivery, as some consumers are still wary of online payment methods.

Conclusion

Heatmap tools are used throughout the conversion funnel optimization process, as you can see. Do not begin the procedure in any way unless you have this tool.

Other measuring methods, such as session replays, can, of course, be used in addition to a heatmap. This can also improve process efficiency.

We hope we can help.

Source link

Continue Reading

DON'T MISS ANY IMPORTANT NEWS!
Subscribe To our Newsletter
We promise not to spam you. Unsubscribe at any time.
Invalid email address

Trending