Email marketing is around for over 21 years, still we’ve never had the opportunity to segment and personalize Email Marketing at the scale we can today.
With behavior based email marketing and the ability to segment the customers down to the finest distinctions, email marketing continues to grow in effectiveness. Over 7% of all eCommerce transactions are based on email marketing, making it the second most effective ecommerce marketing channel according to a 2013 study by Custora.
We are going to share five strategies for you to implement in your email marketing to pace the sales significantly and boost your ecommerce site’s revenues. However, many of the tips require integration between your shopping cart and email list. We would say that these are not ‘nice to haves’, but essentials for highly effective email marketing.
Before we go to the tips let us remind you that using an email marketing software is always better so that nothing can hold you back. However, there’s no general consensus or one-size fits all solution when it comes to using email marketing software. Budget, feature requirements, personal preferences all thee play important part in determining the best option for you. Although, we would recommend choosing an email marketing tools that offers features beyond the traditional tools at marketing automation services.
With that covered, let’s begin.
- Entice customers to write testimonials or reviews via email: There are countless case studies on positive impact based on product reviews. Argos found that reviewed products generated 10% higher conversion rates than those without. Figleaves also reported similar improvement of 12.5% in conversion rate on products. Interestingly they also noticed 83.85% increase in conversions on products with 20+ reviews. While the numbers speak for themselves, one of the best strategy to gather testimonials is to offering your customers a competition-based incentive via email. This strategy works best when it is applied as an automated personalized email that’s scheduled for customers a few days after they receive their product. You may experiment with the timing or the offered prize to get maximum reviews.
- To optimize open & click-through rates use A/B testing: During the elections Barack Obama’s team found that through email A/B testing one subject line generated $403600 in donations, while another variation generated $2540866. When we talk about email A/B testing, we’re referring to create several variations of the subject line or the body content to recognize which one has the highest engagement or conversion rate. In a perfect world, you’d be doing A/B test with every email you send, but it can be quite time consuming to practice. Therefore, you’ll need to figure out which emails would have the biggest impact on your bottom line if they had a higher conversion rate. For ecommerce sites, an obvious example would be to experiment with different upsells and cross-sells in the transactional emails as well as A/B testing any major retail holiday newsletter campaigns.
- To improve checkout conversion rate and bug fixing setup cart abandonment emails: When it comes to conversion rate optimization, improving cart and checkout abandonment is typically the highest value areas to focus. When someone adds a product in their cart he/she becomes an extremely well-qualified potential customer. So, if you’re using software to enable automation, it is quite easy to identify whether a person visits the cart or checkout page but not the confirmation/thank you page. If you have already gathered their email address an email can be sent automatically, asking them why they didn’t complete their transaction. This is not only a great way of crushing technical bugs, but when worded well can also be a valuable way to collect customer objections that you can address earlier in the sales funnel.
- Reward your most loyal customers by timed discount offers via emails:
Most of the time ecommerce websites have an 80/20 relationship between customers and total revenue. Therefore, a large portion of revenue is typically driven by a relatively small number of loyal customers. Howard’s Storage World found that by segmenting their customers into five categories based on engagement and loyalty and targeting certain categories with gift cards and incentives, they were able to increase their short-term
revenue by $250,000. Their most loyal group of customer had gift redemption card rate of 34%, which represents $105,00 of the total revenue driven from this campaign.
- Encourage your dormant customers to come back: Fascinatingly, in the same study as above, the outcomes from the inactive percentage of their customer base were even more striking than their most loyal customers.This group hadn’t shopped with Howard’s Storage World in over 12 months, represented a $108,000 increase in revenue, and spent an average 16% higher than the loyal customers. We can take away a few good lessons from this case study. The first is to categorize your customers by constancy and target them with campaigns that are relevant to their level of dormancy.The second lesson is that, sometimes it’s more profitable to focus on rebooting dormant customers than to incentivize the loyal active ones.
These are only the scratched surface of what’s possible with email marketing. Virtually there are no limits on how far we can categorize customers, target them through multiple channels and customize our communication.