5 simple email remarketing strategies to increase LTV

Customer Lifetime Value (LTV) is one of the most important indicators when we talk about analytics. LTV is the amount of money that a client will bring to you for all the time you use your product or site. Many "sloths" ignore him, although it is time to completely puff and work. Remember yourself, we all love to postpone "for tomorrow" the most important and global tasks. What to do?!

There are a lot of phrases about LTV counting and a bunch of articles written. To stop on his calculation, we will not. Suppose that this part is already in the process.
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Having learned LTV of your customers, you should focus on improving this indicator. Increasing the average LTV means that you will get more money from current customers. Well, who is not interested in this?


Sometimes it seems that email marketing was created to improve LTV. You already know that email marketing works wonders. We published excellent research about these miracles that might interest you.

Next, we will describe 5 simple email remarketing strategies . This topic is close to us at Carrot Quest . We know that the simplest solutions are often ignored and postponed. Although it is easy to launch the described strategies, it takes 30 minutes of time and one cup of coffee. After that, customers will live with you longer and pay more.

1. Use the product life cycle to your advantage.

Increasing repeat sales is not an easy task. This is the key factor that determines the customer's lifetime value. The more customers returned, the higher the LTV. You should plan your email remarketing campaigns. Use for this any pretexts and opportunities.

There are some products that we will buy all the time and never stop doing this. Clothing, medicines, equipment, food, etc.

Marketers should use this knowledge. Imagine you are selling men's t-shirts online. Your data shows that 3% of customers who bought T-shirts come back after 6 months and make repeated purchases.







There is an excellent solution for such a case. Set up an automatic newsletter that will be sent to customers 5.5 months after the last purchase.

This is an opportunity to increase the number of loyal customers. Re-sell to customers who otherwise would not have returned. Many of them will simply forget where they bought their T-shirt (even if they liked it very much). After all, there are many other offers on the Internet.

Our service, Carrot Quest, in addition to the basic functions, allows you to customize trigger emails. The service collects a lot of information about the user's actions, as well as his personal data. All the information you can use to improve communication with the client: contact the user by name, do not send unnecessary letters, target email remarketing regarding advertising campaigns in direct, etc.

Remember that the reason # 1 for unsubscribing is an excess of letters sent. Therefore it is important to send letters on time. And the main helper in this are knowledge of the life cycle of your product.

2. Remind customers that they need you.

Remind them why they need you, and do it regularly. You must make a good argument. Let customers see you as a necessary part of their lives.

We at Carrot Quest send out letters with statistics (data that we collected about the client’s site in our service) so that he can see what additional benefits he receives from us. In some letters, the client is invited to take some action to improve his performance. In this case, it is proposed to activate and configure the online chat.





Let's take another interesting example. Brennan Dunn, founder of the Planscope service, offers great solutions. The company's newsletter comes out every week and reminds of the value of the Planscope for the client, expressed in real money .


"Over the past week you have worked 10 hours and earned 2 thousand dollars."


No matter what your business is. Create a campaign that weekly or monthly will show customers the real benefits of your product.

3. Create a sense of urgency

Urgency is the strongest motivator. Look at coupon services: you can love them or hate them, but you will not dispute the fact that companies have secured a rapid growth. Part of their success lies in the effect of urgency . Throughout the day, companies heat up customers, and at the end make a sale.

One of the ways to increase repeat sales with the help of urgency is to sell through wish-lists (wish list or basket). Take the example of ModCloth :


"Hello.
Do you remember this cool pendant, in the photo below? You saved it in your wish-list, and you know what? He is now on sale!
This price will not last long, so hurry to catch your desired pendant ... "


To solve such problems in the Carrot Quest, you can configure trigger mailings or pop-up windows. For example, for the segment of buyers who added the product to the cart, but did not buy it. Or added a product to the wish-list.

Due to a similar mailing, a user who threw a book a week ago into the basket, but did not complete the purchase, can buy it now. Discounts and bonuses are excellent. Although there are companies that do not use discount promotions in principle. They can simply remind customers about the goods in the basket and describe in detail their benefits from the purchase. This is a great way to increase LTV and dump stale goods.

4. Segment to maximize profit.

As an experienced marketer, you know perfectly well that there are more valuable segments for your company. Everyone has customers who are loyal, buy regularly, recommend and even protect us. Usually these customers make the main profit. Remember that Pareto principle? 20 - customers, bring 80% of the profits.

The main problem is that letters with the same offers are sent to all customers. But the segments are different, they have different motives, different possibilities, etc. Therefore, the effectiveness of such actions is nearing zero.





Intermix , an online fashion store, divided the proposals for their life cycle into 3 key segments: VIP-clients, discount and brand buyers.

VIP clients differ the most from the rest. Intermix found that by holding promotions without cash rebates for VIP clients, they were able to increase the profitability of email campaigns by 28% . Instead of giving them a discount, they offered something like invitations to events with pre-shows of new collections.

Carrot quest allows you to divide the audience into segments for different indicators. For example, according to their actions on the site (which articles the users read, which buttons they clicked, how many purchases they made, etc.) This will help you prepare and conduct your campaigns individually for each segment .





As soon as you define from 3 to 5 consumer groups, test different offers for each of them. Do this with email marketing and optimize both your income and profit.

5. Encourage them to pay more.

If you have a steady income, then a great way to increase LTV clients is to encourage them to pay for a longer period . If most customers pay monthly, then ask them to pay immediately for the whole year. Thus, you will reduce customer churn and increase LTV.

In action, a similar campaign was perfectly implemented by the WP Engine . They sent letters with information in which they offered clients 2 months of free services if they pay for one year immediately.





Some customers were so surprised that they even wrote about it. The campaign allows you to encourage more users to accept the offer. 2 months as a gift in exchange for a whole year sounds great, is not it? For WP Engine, this is a real opportunity to save users (at least for the next 12 months) and get them to pay in advance.

This offer also has an additional bonus - your cash flow will accelerate.

Completion

We hope that this article will inspire you to new feats. In fact, these solutions are elementary and will not take you much time. All of these strategies have a direct impact on the life cycle of your customers. Remember, it is always better to keep a customer than to bring a new one. After all, to bring a new client is much more expensive.

Steep you products and high LTV.

Your team from the Carrot quest