Customer Retention Through Email Marketing

Wednesday, November 07, 2007

Gone are the days when marketers were frenzied about gaining new customers. Today, the battle is over building loyal customer relationships and keeping those customers, obtained by spending millions of dollars. The winners of this battle seem to influence their customer intelligence through innovative and promising channels, like email marketing.

Importance of Customer Retention

Lack of coordination and communication between the organization and its customer can result in the loss of customer loyalty and likeness. It is critical for any business to retain customers due to the following key reasons: 

• Research shows that it is 5 to 7 times more expensive to gain a new customer than to retain an existing customer.
• For many organizations, repeat customers cause the more sales than the rest. Most of the consumers exposed to the product or service are subject to make a purchase at a later date.

Role of Email Marketing in Customer Retention

Retaining existing customers by developing consequential, appropriate relationships with them and manipulating channels to do it in a timely and efficient manner is essential for save additional marketing expenditure. Below given explain how emails can assist in customer retention marketing:

• Email marketing continues to be among the most inexpensive and effective ways to reach your customer base
• Email marketing allows you to stay in contact with potential customers and keep your business at the top of their mind
• Emails can be used for several different purposes like adherence programs, up-sell offers, surveys, service messaging, a win-back offer or at the very least, an apology
• Emails can strengthen the bond between the customer and the company; improve brand allegiance and bring repeat business
• Since E-mail newsletters are customer initiated and are more oriented to educate the customer than selling, one can see a drastic improvement in the value that a customer holds for the company
• No quantity of attractive ads and accurate SEO will alleviate the lack of attention to customer communication and relationships but Emails for they can be personalized.