After all your marketing efforts and implementing strategic campaigns, you’ve succeeded in persuading your prospects to make a purchase and become your customers.
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But is it the end of Lifetime Value (LTV) of customers after they’ve made the purchase? Or is it the end of your email marketing cycle for those customers?
Certainly not because your email marketing doesn’t end at the Purchase Stage and should come to a full circle by implementing it throughout the customer lifecycle.
Covering Retention, Loyalty, and Advocacy stages and having a solid post-purchase email campaign planning helps improve LTV of your customers because it allows you to increase the number of repeat customers vital for your business.
What Are Post-Purchase Emails?
Post-purchase email emails are automated communications, typically a series of follow-up and transactional emails that are sent to customers beginning from the time after they make a purchase from you.
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The use of Post-purchase emails goes for several reasons, based on what’s most valuable to your business—making customers feel unique, gathering valuable feedback, providing personalized experiences, and increasing revenue by upselling or cross-selling similar products.
When done strategically, they will practically guarantee happy, delighted, and repeat customers while also elevating your customers’ loyalty and engagement, thereby letting you Improve LTV.
The ROI of Post-Purchase Emails
Email marketing reaps an enormously high ROI of about 4200% that is $42 on every $1 spent. Thus, it is evident that email marketing is monumental in bringing in all pluses for your business. On top of that, if you have a post-purchase email strategy well placed alongside your primary email strategy, it only compounds the pluses as it lets you improve the LTV of your customers.
The primary objective of post-purchase emails is to optimize and improve the customer experience. You do this using a series of follow-up and transactional emails, whether it’s an order confirmation email, a product information email, or a replenishment reminder.
It enables you to encourage repeat purchases and better retain customers, thereby reducing the customer churn rate. Thus, it guarantees you high ROI and dramatic ways to improve LTV.
As per the research done by Bain & Company, just a 5% increase in customer retention rate elevates the profits by at least 25%.
How to use email automation to increase your Customer Lifetime-Value (CLV)?
Customer Lifetime Value (CLV) or simply Lifetime Value (LTV) of customers helps you look at the relationship and engagement metrics with your customers and form a long-term strategy to strengthen it further.
When you concentrate on CLV, you’re figuring out how to strengthen relationships to create loyal customers and meet their needs.
There are several strategies for increasing CLV, but not every CLV optimization strategy will work for your brand or business.
That said, some strategies will work for pretty much every brand out there. And that is where you can rely on email marketing besides other marketing methods. Email marketing guided by automation is one of the most effective mediums for gathering detailed information about your customers and prospects.
So, how to use email marketing automation to improve LTV of your customers?
1. Create strategic email segments
Segmenting your email lists based on your current LTV of customers should be the very first strategy you should take before anything else.
Segmenting helps you to be clear about which customers to target based on their position in your customer lifetime value (CLV) analysis—Inactive or Dormant customers, Active or Profitable Customers, and Very Profitable Customers.
Although your CLV analysis changes from time to time, segmentation based on your most recent information will tremendously help you get a bird’ eye view of finding an effective way to go forward.
Following this strategy, you’ll create a spectrum, from inactive customers to loyal repeat customers and even repeat customers.
It doesn’t matter how you go about doing it; there is no doubt that segmenting your email list will give a plunge to your profits by laying a solid foundation that will enable you to improve LTV of your customers.
2. Say Thank You!
Thank You — these two little words are actually magical. An unadorned thank you message can help you humanize your communications and build long-lasting relationships with your customers.
Exhibit to your customers that you care by sending a proactive response message as soon as they make their purchase. It will allow your customers to feel appreciated and enable you to keep in touch with them while building stronger relationships.
Thank you email messages can be a perfect beginning for your drip campaigns. You could send follow-up messages in the form of a short survey to figure out how you did, or you could send educational material to help the customer get something out of their product or service.
3. Reminder messages
Sending a reminder email is one way to ensure customers return to buy from you. When a customer receives a reminder message just before the expiration date of a product or service subscription, they are more likely to reconsider buying it from you.
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For doing this, you should set drip emails to be received from the moment a customer purchases from you. Reminder messages are considerably effective that lets you improve LTV of your old customers.
4. Ask for Referrals
The most reliable form of advertising is not really advertising. Instead, it’s recommendations from your existing customer base that have already experienced your product and service.
Word-of-mouth endorsements are trusted by 92% of customers worldwide. That is why Referral marketing may help you convert satisfied customers into brand advocates.
You can achieve this by incentivizing your loyal customers to become brand advocates and tell about your product or services to their friends and family. Utilize referral email strategy to send them the boost they need.
You might also offer them a coupon or a complimentary gift if anyone they recommend makes an order.
5. Solicit customers to join your loyalty program
Like referral programs, loyalty programs’ primary purpose is to keep your customers coming back and spending with you instead of falling apart and spending somewhere else, your competitors.
Loyalty programs are a proven way of turning your loyal customers into brand advocates who actually help you get new visitors or prospects. Hence, it is a profound way to improve LTV of your customers while also getting you new leads.
Take Myntra, for example: Under the Myntra Insider loyalty program, Myntra Insiders earn 10 Insider points for every 100 rupees spent shopping on the Myntra platform and can earn up to 10,000 annually. Insider Members can only redeem their Insider points to shop more on Myntra or to enjoy a plethora of exciting benefits and experiences.
6. Personalized Product Recommendations
If you want to elevate your customer loyalty base and make it a smooth experience converting first-time buyers, then you should utilize personalized product recommendations.
Post-purchase follow-up messages with product recommendations are your best bet! In fact, Recommendation email messages increase average order value (AOV) by almost 11% and help you achieve a 30% increase in sales conversion rates.
Alongside your recommendations, you can feature your bestsellers or upsell/cross-sell related products to elevate repeat purchases. These all efforts will only garner you better chances to let you improve LTV of your customers.
7. Offer a Discount
If you’re focused on increasing customer lifetime value (CLV), consider providing them discounts a couple of weeks after a customer makes a purchase to set a stage for their prospective purchase in the future.
Since the transaction is still fresh in the minds of your customers, it is more likely that they may be willing to return to your site and check out other products or services.
Or, if they have made a purchase for your monthly subscription cycle, then provide a discount to encourage them to switch to an annual billing cycle.
There’s something appealing about getting a product or service you need for an even better price.
So, Including a discount email in your post-purchase funnel is a good idea.
Adding such sentiment to your copy in your post-purchase emails can entice your customers and tug at their emotional needs — plus, it is always good to make people feel special.
8. Ask For A Product Review
You have a wealth of information and details about your customers, but do you know what they think of your products?
So, it’s helpful to find out if you want to find areas for improvement and gather positive reviews that you can utilize to increase sales by placing the shiny ones on your website.
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You can ask for a product review from your customers by employing post-purchase emails within your post-purchase funnel specifically for getting product reviews. Send these kinds of post-purchase emails between a definite number of days after your first email to your converted customers.
Gathering reviews to integrate them on your website can have a massive effect on attracting new buyers and cross-sell existing customers to improve LTV.
9. Follow Up with Dormant Customers
Often customers just forget, and it isn’t always personal. Sending out reminder emails can significantly improve conversion rates. Follow-up emails can be more effective if they integrate special discount offers in order to re-engage your dormant customers.
Always try building a sense of urgency and opportunity and consider adding a time-limited offer in such communications. This strategy will help push traffic to the website, re-energize old customers, boost sales, and help you improve customer LTV.
10. Shipping Confirmation
Shipping confirmation emails give you yet another opportunity to promote your products and also encourage interaction. Customers often open these kinds of emails to figure out when their product will arrive.
For the eCommerce industry, sending these kinds of post-purchase emails is quite common.
Here is an example from Myntra:
When you’re ordering a product from an online store, you want to be informed about the item delivery status and whether there are any delay situations in the delivery.
Consider that feeling; your shipping confirmation emails specifically complement all those factors and efficiently work in putting an end to your customers’ worries.
Give Post-Purchase Emails a Try
Indisputably, post-purchase email automation allows you to gather data, solicit input, and do a variety of other things while also enabling you to improve LTV of your customers dramatically.
Perhaps specifically, it allows you to nurture customers for repeat purchases. Besides this, post-purchase emails are tremendously helpful to build your loyal customers and brand advocates.
Are you looking for more personalized email automation assistance to give a plunge to your post-purchase emails? Get a demo below and start creating personalized relationships with your customers today!