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.

Advertisement

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.

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.

Advertisement

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.

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.

Advertisement

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.

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.

1645542133 637 How to Reduce Customer Churn By Using Email Marketing

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:

Advertisement
  • 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.

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.

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.

Advertisement

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.

1645542133 239 How to Reduce Customer Churn By Using Email Marketing

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.


Source link
Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

MARKETING

Streamlining Processes for Increased Efficiency and Results

Published

on

Streamlining Processes for Increased Efficiency and Results

How can businesses succeed nowadays when technology rules?  With competition getting tougher and customers changing their preferences often, it’s a challenge. But using marketing automation can help make things easier and get better results. And in the future, it’s going to be even more important for all kinds of businesses.

So, let’s discuss how businesses can leverage marketing automation to stay ahead and thrive.

Benefits of automation marketing automation to boost your efforts

First, let’s explore the benefits of marketing automation to supercharge your efforts:

 Marketing automation simplifies repetitive tasks, saving time and effort.

With automated workflows, processes become more efficient, leading to better productivity. For instance, automation not only streamlines tasks like email campaigns but also optimizes website speed, ensuring a seamless user experience. A faster website not only enhances customer satisfaction but also positively impacts search engine rankings, driving more organic traffic and ultimately boosting conversions.

Advertisement

Automation allows for precise targeting, reaching the right audience with personalized messages.

With automated workflows, processes become more efficient, leading to better productivity. A great example of automated workflow is Pipedrive & WhatsApp Integration in which an automated welcome message pops up on their WhatsApp

within seconds once a potential customer expresses interest in your business.

Increases ROI

By optimizing campaigns and reducing manual labor, automation can significantly improve return on investment.

Leveraging automation enables businesses to scale their marketing efforts effectively, driving growth and success. Additionally, incorporating lead scoring into automated marketing processes can streamline the identification of high-potential prospects, further optimizing resource allocation and maximizing conversion rates.

Harnessing the power of marketing automation can revolutionize your marketing strategy, leading to increased efficiency, higher returns, and sustainable growth in today’s competitive market. So, why wait? Start automating your marketing efforts today and propel your business to new heights, moreover if you have just learned ways on how to create an online business

Advertisement

How marketing automation can simplify operations and increase efficiency

Understanding the Change

Marketing automation has evolved significantly over time, from basic email marketing campaigns to sophisticated platforms that can manage entire marketing strategies. This progress has been fueled by advances in technology, particularly artificial intelligence (AI) and machine learning, making automation smarter and more adaptable.

One of the main reasons for this shift is the vast amount of data available to marketers today. From understanding customer demographics to analyzing behavior, the sheer volume of data is staggering. Marketing automation platforms use this data to create highly personalized and targeted campaigns, allowing businesses to connect with their audience on a deeper level.

The Emergence of AI-Powered Automation

In the future, AI-powered automation will play an even bigger role in marketing strategies. AI algorithms can analyze huge amounts of data in real-time, helping marketers identify trends, predict consumer behavior, and optimize campaigns as they go. This agility and responsiveness are crucial in today’s fast-moving digital world, where opportunities come and go in the blink of an eye. For example, we’re witnessing the rise of AI-based tools from AI website builders, to AI logo generators and even more, showing that we’re competing with time and efficiency.

Combining AI-powered automation with WordPress management services streamlines marketing efforts, enabling quick adaptation to changing trends and efficient management of online presence.

Moreover, AI can take care of routine tasks like content creation, scheduling, and testing, giving marketers more time to focus on strategic activities. By automating these repetitive tasks, businesses can work more efficiently, leading to better outcomes. AI can create social media ads tailored to specific demographics and preferences, ensuring that the content resonates with the target audience. With the help of an AI ad maker tool, businesses can efficiently produce high-quality advertisements that drive engagement and conversions across various social media platforms.

Personalization on a Large Scale

Personalization has always been important in marketing, and automation is making it possible on a larger scale. By using AI and machine learning, marketers can create tailored experiences for each customer based on their preferences, behaviors, and past interactions with the brand.  

Advertisement

This level of personalization not only boosts customer satisfaction but also increases engagement and loyalty. When consumers feel understood and valued, they are more likely to become loyal customers and brand advocates. As automation technology continues to evolve, we can expect personalization to become even more advanced, enabling businesses to forge deeper connections with their audience.  As your company has tiny homes for sale California, personalized experiences will ensure each customer finds their perfect fit, fostering lasting connections.

Integration Across Channels

Another trend shaping the future of marketing automation is the integration of multiple channels into a cohesive strategy. Today’s consumers interact with brands across various touchpoints, from social media and email to websites and mobile apps. Marketing automation platforms that can seamlessly integrate these channels and deliver consistent messaging will have a competitive edge. When creating a comparison website it’s important to ensure that the platform effectively aggregates data from diverse sources and presents it in a user-friendly manner, empowering consumers to make informed decisions.

Omni-channel integration not only betters the customer experience but also provides marketers with a comprehensive view of the customer journey. By tracking interactions across channels, businesses can gain valuable insights into how consumers engage with their brand, allowing them to refine their marketing strategies for maximum impact. Lastly, integrating SEO services into omni-channel strategies boosts visibility and helps businesses better understand and engage with their customers across different platforms.

The Human Element

While automation offers many benefits, it’s crucial not to overlook the human aspect of marketing. Despite advances in AI and machine learning, there are still elements of marketing that require human creativity, empathy, and strategic thinking.

Successful marketing automation strikes a balance between technology and human expertise. By using automation to handle routine tasks and data analysis, marketers can focus on what they do best – storytelling, building relationships, and driving innovation.

Conclusion

The future of marketing automation looks promising, offering improved efficiency and results for businesses of all sizes.

Advertisement

As AI continues to advance and consumer expectations change, automation will play an increasingly vital role in keeping businesses competitive.

By embracing automation technologies, marketers can simplify processes, deliver more personalized experiences, and ultimately, achieve their business goals more effectively than ever before.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

Will Google Buy HubSpot? | Content Marketing Institute

Published

on

Why Marketers Should Care About Google’s Potential HubSpot Acquisition

Google + HubSpot. Is it a thing?

This week, a flurry of news came down about Google’s consideration of purchasing HubSpot.

The prospect dismayed some. It delighted others.

But is it likely? Is it even possible? What would it mean for marketers? What does the consideration even mean for marketers?

Well, we asked CMI’s chief strategy advisor, Robert Rose, for his take. Watch this video or read on:

Advertisement

Why Alphabet may want HubSpot

Alphabet, the parent company of Google, apparently is contemplating the acquisition of inbound marketing giant HubSpot.

The potential price could be in the range of $30 billion to $40 billion. That would make Alphabet’s largest acquisition by far. The current deal holding that title happened in 2011 when it acquired Motorola Mobility for more than $12 billion. It later sold it to Lenovo for less than $3 billion.

If the HubSpot deal happens, it would not be in character with what the classic evil villain has been doing for the past 20 years.

At first glance, you might think the deal would make no sense. Why would Google want to spend three times as much as it’s ever spent to get into the inbound marketing — the CRM and marketing automation business?

Advertisement

At a second glance, it makes a ton of sense.

I don’t know if you’ve noticed, but I and others at CMI spend a lot of time discussing privacy, owned media, and the deprecation of the third-party cookie. I just talked about it two weeks ago. It’s really happening.

All that oxygen being sucked out of the ad tech space presents a compelling case that Alphabet should diversify from third-party data and classic surveillance-based marketing.

Yes, this potential acquisition is about data. HubSpot would give Alphabet the keys to the kingdom of 205,000 business customers — and their customers’ data that almost certainly numbers in the tens of millions. Alphabet would also gain access to the content, marketing, and sales information those customers consumed.

Conversely, the deal would provide an immediate tip of the spear for HubSpot clients to create more targeted programs in the Alphabet ecosystem and upload their data to drive even more personalized experiences on their own properties and connect them to the Google Workspace infrastructure.

When you add in the idea of Gemini, you can start to see how Google might monetize its generative AI tool beyond figuring out how to use it on ads on search results pages.

Advertisement

What acquisition could mean for HubSpot customers

I may be stretching here but imagine this world. As a Hubspoogle customer, you can access an interface that prioritizes your owned media data (e.g., your website, your e-commerce catalog, blog) when Google’s Gemini answers a question).

Recent reports also say Google may put up a paywall around the new premium features of its artificial intelligence-powered Search Generative Experience. Imagine this as the new gating for marketing. In other words, users can subscribe to Google’s AI for free, but Hubspoogle customers can access that data and use it to create targeted offers.

The acquisition of HubSpot would immediately make Google Workspace a more robust competitor to Microsoft 365 Office for small- and medium-sized businesses as they would receive the ADDED capability of inbound marketing.

But in the world of rented land where Google is the landlord, the government will take notice of the acquisition. But — and it’s a big but, I cannot lie (yes, I just did that). The big but is whether this acquisition dance can happen without going afoul of regulatory issues.

Some analysts say it should be no problem. Others say, “Yeah, it wouldn’t go.” Either way, would anybody touch it in an election year? That’s a whole other story.

What marketers should realize

So, what’s my takeaway?

Advertisement

It’s a remote chance that Google will jump on this hard, but stranger things have happened. It would be an exciting disruption in the market.

The sure bet is this. The acquisition conversation — as if you needed more data points — says getting good at owned media to attract and build audiences and using that first-party data to provide better communication and collaboration with your customers are a must.

It’s just a matter of time until Google makes a move. They might just be testing the waters now, but they will move here. But no matter what they do, if you have your customer data house in order, you’ll be primed for success.

Want more content marketing tips, insights, and examples? Subscribe to workday or weekly emails from CMI.

HANDPICKED RELATED CONTENT:

Cover image by Joseph Kalinowski/Content Marketing Institute

Advertisement

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

5 Psychological Tactics to Write Better Emails

Published

on

5 Psychological Tactics to Write Better Emails

Welcome to Creator Columns, where we bring expert HubSpot Creator voices to the Blogs that inspire and help you grow better.

I’ve tested 100s of psychological tactics on my email subscribers. In this blog, I reveal the five tactics that actually work.

You’ll learn about the email tactic that got one marketer a job at the White House.

You’ll learn how I doubled my 5 star reviews with one email, and why one strange email from Barack Obama broke all records for donations.

→ Download Now: The Beginner's Guide to Email Marketing [Free Ebook]

5 Psychological Tactics to Write Better Emails

Imagine writing an email that’s so effective it lands you a job at the White House.

Advertisement

Well, that’s what happened to Maya Shankar, a PhD cognitive neuroscientist. In 2014, the Department of Veterans Affairs asked her to help increase signups in their veteran benefit scheme.

Maya had a plan. She was well aware of a cognitive bias that affects us all—the endowment effect. This bias suggests that people value items higher if they own them. So, she changed the subject line in the Veterans’ enrollment email.

Previously it read:

  • Veterans, you’re eligible for the benefit program. Sign up today.

She tweaked one word, changing it to:

  • Veterans, you’ve earned the benefits program. Sign up today.

This tiny tweak had a big impact. The amount of veterans enrolling in the program went up by 9%. And Maya landed a job working at the White House

Boost participation email graphic

Inspired by these psychological tweaks to emails, I started to run my own tests.

Alongside my podcast Nudge, I’ve run 100s of email tests on my 1,000s of newsletter subscribers.

Here are the five best tactics I’ve uncovered.

Advertisement

1. Show readers what they’re missing.

Nobel prize winning behavioral scientists Daniel Kahneman and Amos Tversky uncovered a principle called loss aversion.

Loss aversion means that losses feel more painful than equivalent gains. In real-world terms, losing $10 feels worse than how gaining $10 feels good. And I wondered if this simple nudge could help increase the number of my podcast listeners.

For my test, I tweaked the subject line of the email announcing an episode. The control read:

“Listen to this one”

In the loss aversion variant it read:

“Don’t miss this one”

Advertisement

It is very subtle loss aversion. Rather than asking someone to listen, I’m saying they shouldn’t miss out. And it worked. It increased the open rate by 13.3% and the click rate by 12.5%. Plus, it was a small change that cost me nothing at all.

Growth mindset email analytics

2. People follow the crowd.

In general, humans like to follow the masses. When picking a dish, we’ll often opt for the most popular. When choosing a movie to watch, we tend to pick the box office hit. It’s a well-known psychological bias called social proof.

I’ve always wondered if it works for emails. So, I set up an A/B experiment with two subject lines. Both promoted my show, but one contained social proof.

The control read: New Nudge: Why Brands Should Flaunt Their Flaws

The social proof variant read: New Nudge: Why Brands Should Flaunt Their Flaws (100,000 Downloads)

I hoped that by highlighting the episode’s high number of downloads, I’d encourage more people to listen. Fortunately, it worked.

Advertisement

The open rate went from 22% to 28% for the social proof version, and the click rate, (the number of people actually listening to the episode), doubled.

3. Praise loyal subscribers.

The consistency principle suggests that people are likely to stick to behaviours they’ve previously taken. A retired taxi driver won’t swap his car for a bike. A hairdresser won’t change to a cheap shampoo. We like to stay consistent with our past behaviors.

I decided to test this in an email.

For my test, I attempted to encourage my subscribers to leave a review for my podcast. I sent emails to 400 subscribers who had been following the show for a year.

The control read: “Could you leave a review for Nudge?”

The consistency variant read: “You’ve been following Nudge for 12 months, could you leave a review?”

Advertisement

My hypothesis was simple. If I remind people that they’ve consistently supported the show they’ll be more likely to leave a review.

It worked.

The open rate on the consistency version of the email was 7% higher.

But more importantly, the click rate, (the number of people who actually left a review), was almost 2x higher for the consistency version. Merely telling people they’d been a fan for a while doubled my reviews.

4. Showcase scarcity.

We prefer scarce resources. Taylor Swift gigs sell out in seconds not just because she’s popular, but because her tickets are hard to come by.

Swifties aren’t the first to experience this. Back in 1975, three researchers proved how powerful scarcity is. For the study, the researchers occupied a cafe. On alternating weeks they’d make one small change in the cafe.

Advertisement

On some weeks they’d ensure the cookie jar was full.

On other weeks they’d ensure the cookie jar only contained two cookies (never more or less).

In other words, sometimes the cookies looked abundantly available. Sometimes they looked like they were almost out.

This changed behaviour. Customers who saw the two cookie jar bought 43% more cookies than those who saw the full jar.

It sounds too good to be true, so I tested it for myself.

I sent an email to 260 subscribers offering free access to my Science of Marketing course for one day only.

Advertisement

In the control, the subject line read: “Free access to the Science of Marketing course”

For the scarcity variant it read: “Only Today: Get free access to the Science of Marketing Course | Only one enrol per person.”

130 people received the first email, 130 received the second. And the result was almost as good as the cookie finding. The scarcity version had a 15.1% higher open rate.

Email A/B test results

5. Spark curiosity.

All of the email tips I’ve shared have only been tested on my relatively small audience. So, I thought I’d end with a tip that was tested on the masses.

Back in 2012, Barack Obama and his campaign team sent hundreds of emails to raise funds for his campaign.

Of the $690 million he raised, most came from direct email appeals. But there was one email, according to ABC news, that was far more effective than the rest. And it was an odd one.

Advertisement

The email that drew in the most cash, had a strange subject line. It simply said “Hey.”

The actual email asked the reader to donate, sharing all the expected reasons, but the subject line was different.

It sparked curiosity, it got people wondering, is Obama saying Hey just to me?

Readers were curious and couldn’t help but open the email. According to ABC it was “the most effective pitch of all.”

Because more people opened, it raised more money than any other email. The bias Obama used here is the curiosity gap. We’re more likely to act on something when our curiosity is piqued.

Email example

Loss aversion, social proof, consistency, scarcity and curiosity—all these nudges have helped me improve my emails. And I reckon they’ll work for you.

Advertisement

It’s not guaranteed of course. Many might fail. But running some simple a/b tests for your emails is cost free, so why not try it out?

This blog is part of Phill Agnew’s Marketing Cheat Sheet series where he reveals the scientifically proven tips to help you improve your marketing. To learn more, listen to his podcast Nudge, a proud member of the Hubspot Podcast Network.

New Call-to-action

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending

Follow by Email
RSS