Let's start this blog post with two simple and very impacting statistics. First, targeted email campaigns can improve conversion by 355%. Second, it can boost revenue by 781%. Ok, so by now you are probably staring at this data and wondering “why the heck haven't I segmented my lists yet?”
Maybe you didn't know the importance of sending segmented emails so far or you are segmenting your lists, but not personalizing the content. Either way, the truth is: you are losing opportunities to increase ROI being more relevant to your customers.
To start, the one-size-fits-all plan of action doesn't work in ANY marketing or sales strategy. People are different and react differently to the same approach. Not to mention that, even if they share the same reaction, they might have divergent interests or needs towards the same product or service.
So let's move on and see some other great benefits of sending targeted email campaigns.
So the very first benefit is relevance. A recent survey proved that 34% of customers have broken up with a brand because they've received non-relevant messages. And 33% of those clients said that they did so because they felt that the messages were too generic and obviously sent to everyone. In other words, relevant messages counts for customer retention.
Relevance also helps to increase your click-through and conversion rates. At least that is what numbers tell us. Personalized email messages improve click-through rates by an average of 14% and conversions by 10%. At the end of journey, this equals more revenue, of course.
Another great benefit, that may pass unnoticed is that relevant messages are good for your email reputation. Many email senders are caught in spam filters because they send irrelevant content (way too much) to unengaged recipients. Lists segmentation is responsible for improving your deliverability rates.
Customizing email campaigns are also great to build a trustful, long-term relationship with the customer. Once you client opens a highly relevant email, it’s more likely that they will engage with it. More interaction means more chances to talk directly to them, to listen to their needs and, as a consequence, more opportunities to close deals. If you show your clients that you value and recognize them you will gain their trust. As a brand, you must prove that you want to tailor your offerings to them. As a result, customer experience improves and you create a longing relationship with your clients. A great customer experience is a key to retention.
But how do you actually build targeted email campaigns? All you have to do is segment lists or the path is a little bit longer? From now on, we will give the clues to win your customer's heart.
How to build targeted email campaigns
Rule number one of any new project: define your goals. Sure your ultimate goal is to retain customers but what are your specific objectives? Keep or boost your "brand awareness"? Create new upsell opportunities? Extend the lifetime value of new clients? The list can go on and on.
Once you determine your goals it's time to choose your segmentation criteria. How will you separate your customers? By job title, company size, behavior within the app or CTLV? The more segments the better. Just bear in mind that these groups should have different needs.
To segment your lists you can take advantage of marketing automation platforms that can make this task much easier for you. A good software can automatically add your list of segments to a chosen automation flow and you can start your personalized communication strategy in an easier and quicker way.
The next step is to create the content. All the texts and designs should be targeted towards each group with a voice that resonates with them.
Remember that your content must be extremely personal. Customize as much as you can - not the greetings. Personalize according to the segments. You can change CTAs, texts, images, everything.
Sending emails at the right time is also important to achieve better results. By knowing your segments' behavior you can define what's the ideal moment to send you campaigns - a marketing automation software can help you save time and effort with that since your campaigns will be triggered by user's actions.
Also take in consideration that your customers might be in a different stage of the sales cycle and this may interfere in opening and click-through rates. Pay attention to your analytics to identify patterns and predict possible reactions.
Let's see some emails examples to analyze how the companies have worked with targeted emails.
On this email, Dropbox has probably recognized that the customer has accessed its account on another device and it's suggesting that the service should be downloaded on another computer.
Pinterest is a very good example of a targeted email campaign sent to bring the customer back to the website. The company uses the client's behavior to create suggestions of images that can be added to their boards. It's simple, yet creative.
On the last example, the main goal is to re-engage customers. This is, in fact, a great benefit of the segmented and personalized emails.
Re-engaging inactive customers
We could think of a few reasons to reactivate inactive customers but, of course, the most important one is to prevent churn. Inactivity is a very strong sign that your user might be ready to leave your company and you sure need to stop that. Besides it's much cheaper to keep an existing customer than acquiring a new one, not to mention that your customer already know your product and can be a great source of feedback.
However, before creating a plan to re-engage these users you need to know why they have stopped to use your product in the first place. Did they face any issues or difficulties? Did they have trouble perceiving the real value of your service?
You also need to have clearly defined what is an active and an inactive user. This can be a very trick metric and it may vary from company to company.
A good alternative is to use a marketing automation tool that offers a way to measure the engagement level of the customers. With the help of a customer engagement index and a proper customer journey map, it´s possible to discover if, where and when your users had problems using the platform. How exactly they use it, for what purposes and so on. With this information in hands, it's possible to create a report with similar patterns to score and classify the users according to their actions.
Emails' strategies to reactivate users
So you know who are you inactive users and why they are inactive. All you have to do now is get your hands dirty. Targeted emails are very helpful when it comes to bringing the customer back.
According to a Bain & Company study, 60-80% of customers who describe themselves as satisfied do not go back to do more business with the company that initially satisfied them. How can that be? Often it’s due to a lack of connection.
Looking for a creative way to rekindle the flame with your seemingly gone but not forgotten customers? Use all the information and feedback collected from them to create engaging content. For example, if you've noticed that a certain group has stopped to use your product at a certain stage they probably have faced some issues using it so why not sending extra tips on how to use these or that feature?
A survey can be a clever way to find out what customers think of your brand and product. Think of an easy and fast questionnaire and give something in return. This can be a good way to re-start a conversation with an inactive customer.
Think of innovative call-to-actions. They are already mandatory in any good newsletter but when it comes to re-engagement emails, they are critical. You can send out emails that allow your user to change their email preferences or force them to click a link to continue receiving emails, for example. This might incite them to go back to your website or product. Let's say a user haven't accessed your product for a while and you send him an email with the message "Hey xxx, we haven't seen you for a while and we have just noticed that there is some info missing on your profile. Would like to check it and updated it?" This can be a great reminder and might bring your customer back to you.
Analyze your current strategy. It might be the case that you are overwhelming customers with too many emails or you're pushing the sales too hard. Take a step back to reconsider your content and approach. Give your customers a few time so they can miss you and start fresh later on.
These pretty simple tactics can have a huge influence on any business. While not all your inactive users will re-engage with you, remember that is always easier and cheaper to bring back dead customers back to live them to get new ones.
Start to look through your lists right now, analyze your open rates, see who has been using your service and who hasn't. Start hyper-segmenting your customers, right now. Send them a specific email to find out if they are still interested in your services. If they are, give them a reason to stay on your list. If not, remove them. It will save you time, energy and money.