6 min.

Retention is not merely a strategy to apply only when the “churn rate” rises into the danger zone, but an activity that should be carried out continuously: here are 7 email campaigns you can use to be perceived as useful and by the customer’s side.

Every company has revolving doors: the number of customers acquired always corresponds (naturally) to the number of customers who leave.

This last fact has a very specific name: it’s called churn rate, and it is no less important than the number of new customers in terms of ROI or turnover.

We are dedicating today’s blog post to churn rate, putting some tactics to counteract it on the table through email channels. Let’s start with some basic notions.

What is churn rate?

Churn rate refers to the customer abandonment rate. This is a certain percentage that compares the customers who have stopped a service with those who have chosen and confirmed it.

Understanding that it’s impossible for this percentage to be zero, as a certain number of abandonments is only natural, the churn rate helps us understand the dynamics between new entries and exits so that a company can always have the ratio under control.

All you need is a simple formula to calculate churn rate: take the total number of customers lost in a period of time and divide them by the total number of customers your company has.

(Customers at the beginning of the month – Customers at the end of the month)/Customers at the beginning of the month

Counteracting churn rate: retention activity

Defining retention as loyalty may be incorrect, but it explains the concept rather well.

We can say that the churn rate is inversely proportional to the retention rate, or the confirmation of your service by those who have already chosen it.

Customer retention is the set of activities implemented by a company to retain its customers over time, therefore reducing desertions to a minimum. In the broadest and most general sense, it indicates the maintenance of continuous relationships of exchange with customers over the long term.

The effectiveness of a sales strategy addressed to an acquired customer is 60-70%, while the effectiveness of a strategy addressed to a new customer is 5-20% (source: Invesp Consulting).

In pursuing the goal of retention, a company can use different techniques and tools. In this blog post, we’ll focus on a particular channel you can use to apply a very effective retention activity: email.

7 Retention Email Marketing Tactics

Through retention email marketing, companies can engage their customers and strengthen their relationship with the brand, offering usefulness and added value.

Let’s look at some retention techniques applied to email marketing.

1. Create and send useful content

How can you convince the customer of the quality of your product/service and induce him or her to stay with you? The  sine qua non condition is that they know how to take advantage of the full potential of the product available to them.

The more customers know and understand the product, the more they will appreciate the features, consider them useful and, consequently, be willing to renew their loyalty.

2. Invite customers to webinars and courses

Especially for companies operating in the software field, webinars, online or classroom courses are fundamental tools they can use to increase customer engagement, offer useful things, and cultivate brand identity.

In addition to providing useful information about the product, the goal is to increase the perception of the company as reliable and available to meet customers’ needs. Here’s an example from Teachable…

3. Send recap emails about the customer’s activity

Let customers know how they are using the product/service and what results they are obtaining: this is a great way to make them feel like you are by their side, improving their perception of usefulness and reliability.  

This is a very interesting option which consists in sending customers an email summarizing some data on their use of the product/service. Every brand can provide numbers and information based on its business model, as long as they are relevant to the recipient.

Spotify does this very well in periodic emails which include figures and information related to listening on the platform:

4. Design a product newsletter

From a focus on the customer, we move more towards a focus on the product: one option to pursue is that of a more editorial newsletter you can use to communicate important, hot off the press news to customers (if they happened to miss it), anything coming up in the near future, and any other kind of useful or possibly entertaining information.

Here are the macro-themes around which a product newsletter could be detailed on a quarterly basis:

  • What’s new
  • What’s next
  • Ongoing projects
  • Upcoming events
  • Reading tips.

5. Take advantage of the potential of milestone emails

Perhaps the name may mean nothing to you, but Milestones are those emails that celebrate some kind of result, a recurring event, or an “anniversary” between the customer and the company. This is another precious opportunity that helps the user feel like you’re by their side.

Need an example? Check out this Uber email celebrating the third anniversary of customers and the brand.

6. Engage inactive customers

Since a certain churn rate is natural, so is a certain rate of inactivity: this means that as days and weeks pass, some customers stop interacting with and using the service or product. In many cases, inactivity is the precursor of abandonment.

It therefore becomes essential to manage to reactivate these dormant customers. How? With targeted emails that communicate closeness and know how to trigger an action by the customer, with useful content or the request to get in touch with the company to solve any problems that prevent use.

Here’s an example of a reactivation email:

7. To support retention: onboarding, new launches, cross-selling, and upselling

Marketing objectives are not always parallel, but they often intersect, and in this sense we have included various activities as final techniques: onboarding, launches, cross-selling and upselling. While they all perform different tasks, they also contribute to the goal of retention.

For example, take the following email: this is the launch of a new service, but at the same time, it has the function of re-initiating a conversation with the customer, showing a greater depth of the offer:

Cross-selling and upselling work in the same way: both are techniques that will make the customer understand that the company’s solutions go far beyond what they imagine.

In summary

As you will have understood, retention means using targeted strategies that are able to highlight the good choices made by the customer.

With this post, we wanted to explain to you how retention activities are not simple accessory strategies to be implemented only when the churn rate rises into the danger zone; on the contrary, they are activities to be carried out continuously.

Our advice is to develop a retention email marketing strategy, defining a set of campaigns and then checking their effectiveness. You can start today by requesting a free MailUp trial: you’ll have the platform available for 30 days to create, send, and track your campaigns.

Try MailUp'

Liked this article? We have plenty more in store for you.

Subscribe to get news, tips and updates delivered to your inbox.

Read also

Email marketing and typography: tips on formatting and style

How much does sending campaigns with readable, impactful text really matter? Time to rethink text style and formatting. Much of the recent typography discussion in Email ...

Read more

Email marketing & e-commerce: a research on the Covid-19 impact

We have combined the results of two researches: one by MailUp and the other by B2c eCommerce Observatory from the Polytechnic University of Milan's School ...

Read more

Email Design: 4 Tips for Header Design

From logo best practices, to the use of color, to skillfully combining consistency and variety. The header is the first thing a recipient sees in an ...

Read more

6 Email Marketing Tips For Brick And Mortar Businesses

Email marketing can be game-changing for attracting and retaining customers. In fact, when executed successfully, email marketing has the potential of receiving a 4400% ROI; ...

Read more

UX Design and SEO synergy boosts site traffic

Let's check out 8 key actions in designing a user experience that also benefits search engine positioning. A decade ago, SEO rankings were the sole company ...

Read more

Why You Need To Nail Your Visuals In Email Marketing

The perfect marketing email comprises many elements: flawless copy, coordinated sequences, compelling subject lines, valuable content. But one of the most crucial elements — arguably ...

Read more