How Email Segmentation Sustains Customer Loyalty

Research shows that segmented email campaigns possess a 14.25% higher open rate compared to non-segmented campaigns.

Targeted messages grab people's attention. And SaaS teams must direct that attention to converting buyers into loyal customers.

“While enticing new customers is important, no marketing channel can boost loyalty the way that email can. Since people typically sign up for email to be notified about promotions you can use that information to increase sales,” says David Marinaccio, email marketing manager at Active Web Group.

Segmentation is an effective method to deliver the right message to the right person. It helps personalize the shopping experience to increase sales.

Let's explore how your next email campaign can retain more customer relationships.

The Value of Customer Loyalty

Customer loyalty is how your business will continue to grow.

Satisfied consumers enjoy purchasing your products, like telling their friends about your brand, and don't mind sending a promotional tweet. And when necessary, loyal customers will even defend your brand name during a PR mishap.

To achieve customer loyalty, your SaaS needs to offer unprecedented value to your buyers. You're not selling a product; instead, your team is providing an experience.

“Customer loyalty is built upon consistently positive, high-value experiences with a brand, often exceeding customer expectations. Loyalty goes beyond satisfying needs or wants. It's an emotional connection to a brand that customers love and will happily return for,” writes Donna Peeples, Founder and Chief Engagement Officer of Motivated, Inc.

In the graphic below, you'll discover a few effective strategies to improve your customer loyalty. One of my favorites is creating a WOW factor in customer engagements. It's vital to give people something they weren't expecting. Then, you exceed their expectations.

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Convince and Convert reports that “44% of email recipients made at least one purchase in the last 12 months based on a promotional email.” Use email to build a loyal consumer base and boost sales.

Email is an intimate channel where your company can talk directly to the buyer. That's why it's important to ensure that your marketing messages resonate with the individual.

Research says that “41% of people said they purchase more from retailers that send personalized emails based on past browsing and buying behavior.”

Your customers don't like receiving mass emails. They want information catered to their needs.

There is value in customer loyalty. Look toward email as a way to build that loyalty.

Segmentation Possibilities

Segmentation is “the process of dividing your customers up into different groups who share a number of similar characteristics.”

And loyalty segmentation is how you group customers based on their interaction and engagement with your content. It's about going beyond demographics and locations.

Use segmentation to support personalized email campaigns. The goal is to target your buyer's behavior and interests.

A study reported that “mailings targeted to loyalty program members outperformed overall bulk mailings, with open rates 40% higher, click rates 22% higher and transaction rates 29% higher.”

Pat Flynn, podcast host of Smart Passive Income, suggests discovering the different content types within your audience:

“In the health and fitness industry, for example, there are people who are interested primarily in losing weight, and there are others who are more interested in strength training. Within strength training, there are those who are interested in looking beefed up, while there are others who are in it to look lean.”

Learning your buyer's likes and habits is mandatory. It will allow your team to deliver messages that matter to the customer. Therefore, saving your company both time and money.

Below is an example from MyBinding. This business offers different promotional incentives based on the customer's purchase history.

Churning customers receive a larger discount (15%) to lure them back into the purchase cycle. Since the best customers are more likely to purchase again, they receive a slightly smaller incentive, 10%.

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What segmentation mix works well for your SaaS? Find out how you can bring more value to a specific audience.

Loyalty-Targeted Emails

Your SaaS might be missing opportunities to build customer loyalty. It's because you are not sending triggered emails to your segmented groups.

Triggered emails are automated messages sent in response to your customer's actions. And while you're probably using them to send welcome emails, research shows that triggered emails are underused.

MarketingSherpa revealed that “only 24% use them for date-activated trigger messages (such as renewal dates or birthdays), and only 18% use them to acknowledge website behaviors.”

Start reviewing your email data. Gain a better understanding of how your team can benefit from triggered emails.

Derek Buntin at Adonis Media, says, “Use email analytics to determine which customers are opening emails but not making a purchase. Then, send these users follow-up emails with the incentive.”

Priceline tailors emails to consumers' on-site behaviors. For instance, when consumers book a trip, the brand will send an email welcoming them home after their vacation is over. And the email includes a discount toward their next trip.

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With a loyalty-targeted focus, your team can send customers triggered emails about redemption reminders, requests for feedback, and invitations to VIP programs.

“Loyalty-focused campaigns can span the entire customer life cycle, from the initial entry to program renewal notifications and reminder messages. They also tend to perform better than standard promotional mailings in terms of customer response and revenue,” says John Fetto, a senior B2B marketing manager.

Email marketing doesn't mean sending anything and everything to buyers. You're striving for retention. So, develop email campaigns with the power of triggered messages.

Sustainable Relationships

Because all consumers aren't created equal, customization is essential.

And customers are willing to help build personalized experiences. However, they want something in return.

Loyalty360 “noted that 67 percent of U.S. adults would be willing to give companies access to basic personal information in exchange for better service or products.”

It's doesn't matter how great the relationships are if your products don't deliver. Always be mindful of how you can improve your platform, features, and customer service.

Be open and honest with consumers. Transparency helps your organization build sustainable relationships.

“We are fighting against years of people feeling like companies are somehow screwing them over with hidden pricing and confusing return policies. The only way to establish trust and loyalty is to show your cards,” writes Mikkel Svane, founder and CEO of Zendesk.

Focus on a long-term strategy by testing and experimenting. Measure your results and derive new insights from your findings.

You may find out that everyone isn't on the same page. But that's fine. Just make the necessary adjustments.

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“…[E]mail marketing's biggest challenge: the fact that there is a lot of competition for the same eyeballs. Personalization of your email messages will help your company stand out and generate more attention, higher levels of online engagement and lead to more in-store sales,” says Melanie Franke, Content Marketing Specialist at G/O Digital.

Don't settle for generic or dishonest messaging. Your customers deserve better.

Segment to Sustain

Customer loyalty strengthens your brand. With the power of email segmentation, SaaS teams are able to create personalized experiences.

Loyalty can lead to increases in brand awareness and sales. Segmenting includes differentiating customers by interests and behaviors. And a powerful email campaign strategy is grounded in data-driven triggered emails.

Segment to sustain customer loyalty.

About the Author: Shayla Price lives at the intersection of digital marketing, technology and social responsibility. Connect with her on Twitter @shaylaprice.