Let’s quickly go over what email newsletters are so we can better discuss the impact they can have on client retention rates.
Have you noticed how some ecommerce stores or large brands send you promotional offers to your email? You also probably also receive ‘how-to’ emails from your local arts and crafts guild membership, perhaps some podcasts you signed up for send you monthly emails summarizing the news for the month, or you local organization sends you the most recent updates on the programs they offer.
These are email newsletters. They are the basis for the strongest of the client retention strategies. The friendly email is the absolute best way to use an email list and raise customer value.
The Leading Client Retention Strategy – Email Newsletter
The largest number-crunching companies out there implement email newsletters simply because of the need to retain customers.
Fortune 500 companies have huge marketing departments that do not only focus on NEW clients but also focus on retaining their existing clientele. The reason being:
The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics.
These businesses use newsletters to keep more clients on their site because these emails act as a gentle top-of-mind reminder.
Retention Management Via Free Value
The reason newsletters keep customers is that you are providing FREE value. Each email should be some kind of information about the industry, like helpful tips or otherwise useful recommendations. This establishes the company as an authority in the industry and makes recipients aware of the products that may interest them.
This, in turn, develops brand loyalty. As they continue to receive each email, they receive more and more value. This means that clients are:
- Less likely to stray – which results in increased client retention rates.
- More likely to increase transaction frequency – as your emails provide a gentle reminder that you are there to provide your goods and services, clients will visit more regularly.
- More likely to increase value of each transaction – because you’re providing all the free value every month via email, your relationship is amplified.
Straddle Fine Lines To Improve Retention
In order for the newsletters to be successful, you need to keep your emails from sounding too much like a sales pitch. A good ratio by this Hubspot post shows that you want 90% helpful, educational content and just 10% sales promotions.
This means, each email should be helpful with just a simple line at the bottom that might lead them back to your site, maybe mention a promotion or tell them to call in and schedule an appointment. Nothing more.
How To Measure Your Client Retention Newsletter Campaign
Simply emailing clients is not practical. Make a good newsletter and monitor these metrics to ensure your success:
- Recipients – Make sure you continue to build your email list with new prospects or clients
- Open Rate – Measure the % of recipients who have opened the email. If it is low, you will want to play with subject lines to get more readers
- Click-Through Rate – If you are trying to get them to take a specific action, make sure you set up link tracking to see if they do as designed.
Implementing Your Own Newsletter Campaign
Now that the benefits of friendly email touchpoints is clear, there is nothing stopping you from getting your client retention system set up! You only need:
- Write monthly emails
- Set up automated email marketing tool
- Sequence your email lists
We have two things that can help you out and supercharge this.
First is a set of process maps for setting up your own newsletter marketing campaign here. Additionally, we also offer a done-for-you service that does all the work for you. Stop wondering how to improve client retention with an automated email newsletter and get Touchpoint 80/20.