Two Simple Rules for Increasing Existing Customer Spending
Contrary to popular belief, existing brand customers are one of the largest untapped resources in email marketing. New customers and big spenders typically drive business revenue, so how can email marketers increase the lifetime value of current customers and encourage them to spend more money, more often?
Though there is no one-stop-shop solution to increasing sales, email marketers should consider two fundamental principles when looking to boost transactions: using data to inform future correspondence and removing friction from interactions.
Initially, email marketers should rely heavily on point-of-sale data to inform future communication with existing customers. This might sound obvious, but many companies fail to properly record, save, and utilize this information for targeted correspondence later.
There are two important types of data to be collected in the initial buy: purchase data (what a customer purchased) and customer preference data (every other interaction, such as other items browsed, purchase time, shipping speed, etc.). It’s never too early to begin utilizing this information. In fact, smart marketers use automated correspondence such as confirmation emails as another opportunity to present ultra-relevant items that might compliment what was just purchased.
Later down the line, email marketers should recall previously captured data to send the personalized emails with product recommendations, hyper-targeted promotions, and checkout reminders for items they might not have purchased yet.
The second rule for increasing customer purchases is to remove friction from simple interactions. When we say, “removing friction,” it means finding ways to streamline transactional processes. For example, companies that sell clothing can target existing customers with items they might like when a new season rolls out. Restaurants can send available reservation times to guests that haven’t dined there in a few months. Auto shops can remind customers of needed tune-ups with direct links to booking. Whatever you sell, find ways to eliminate the hassle of decision-making by automating smart suggestions or one-click purchasing.
In a world where consumers have endless products at their fingertips, encouraging existing customers to purchase from your brand is more challenging than ever before. However, using personalized data to inform correspondence and streamlining the process for decision-making, and ultimately purchasing, will help your company stand out in a crowded marketplace.