Why email marketing isn’t a customer retention strategy

I’ve spoken with a lot of brand owners lately. We’ve had conversations about their pain points and challenges, and there’s definitely been a common trend where they’ve said, ‘We have customer retention sorted; we’re doing email automations.'  What’s interesting about this is that they think that email marketing alone is enough to keep their customers shopping with them repeatedly. I respectfully disagree.

Let me start out by saying that email marketing is a brilliant channel for engaging with your customers. It’s a great way to share targeted messages to specific cohorts of people, not to mention that the ROI is usually the best out of all the marketing channels. I’ve seen firsthand how it can deliver significant results. However, just having an email marketing plan in place is not a customer retention strategy. Here’s why. There will only be a small proportion of your customer database who are opted into your email marketing. The pool then gets smaller when you look at email openers, not to mention those who click through and purchase from you. Do you see where this is going? 

It’s essential to understand that retaining your customers and driving loyalty goes far beyond email marketing. First and foremost your approach needs to be multichannel. Why? Customers interact with your brand through a variety of channels, for example your website, social media accounts, SMS, in store to name a few. Relying solely on email ignores the opportunities you have to engage with customers through other touch points. A well-rounded strategy will incorporate multiple communication channels to reach your customers where they are most active.

To my earlier point, not all your customers will like email as their primary communication channel with your brand. Some may prefer SMS, Instagram, or even browsing content on your website. To drive a loyal and diverse customer base, it's crucial to cater to these preferences and provide a seamless and consistent experience across all your marketing channels.

It’s important to recognise that building a community around your brand is a powerful customer retention strategy. Social media and forums provide platforms for customers to connect with each other, share experiences, and build a sense of belonging to your brand, which will foster long-term loyalty. Many brands forget this.

Finally, it’s imperative that you gather and analyse your customer data, using this as the starting point in building out your plan. This involves more than just email analytics; it includes data from various touch points such as Google Analytics and native tools to gain a holistic view of your customers behaviour.

In summary, it’s become clear that there’s a common misconception that having an email marketing plan alone is sufficient in driving customer retention. The key lies in understanding your data and adopting a multichannel approach that leverages various customer touch points which reflect where that shopper is in their buying journey with you. Showing up where your customers are most active, taking into account how and where they want to hear from you is essential in building a loyal database of brand advocates. Because at the end of the day loyal, engaged customers drive a business forward.

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