How to use email marketing campaigns to increase my customers lifetime value?
🍟✨Do you want fries with that: Increase LTV by upselling with email🦄
🍔 A guy comes to McDonald’s and after paying for his burger, the cashier asks him: “Do you want fries with that?” He does, and BAM, the cashier just raised the average order value by 50%, from $4 to 6$.
Not everyone will say yes. But there will always be some people who will. Your job is to find them and serve them as best as you can.
🤓 Now up-selling and post-purchase offers are A BIG topic, so I’ll focus on a more narrower part:
How to use automated email in your e-commerce store to increase both brand loyalty AND customer lifetime value (LTV/CLV). 🤖💕
Furthermore, I want to show you an advanced(ish) trick on how to separate post-purchase flows depending on customer’s engagement and/or order count.
Now if you don’t know what a post-purchase flow (or automation, drip), you should probably google it. 👀
🌰 In a nutshell, if somebody buys a necklace, you’re going to offer them earrings at a better price for a limited time. If they buy pants, you offer them a T-shirt, etc.
Having that automated with email is great and will always deliver results. The results will depend on the strength of your offer, the strength of your list and the strength of your copy. But if you’re getting at least a few hundred orders a week, you will definitely see an increase, much more if you’re doing more orders.
🚀 So, step #1, if you don’t have an automated post-purchase flow with an email yet, stop what you’re doing and go do that now. There’s a bunch of templates online, and pre-set stuff in Klaviyo, so you can start with that.
Now, if you already implemented that, it’s time to put that post-purchase flow of yours on steroids. We call it the: Post-Purchase Order Count Split Flow. Fancy huh.
Basically, we will create a flow that targets 1-time, 2-time, and 3 or more time repeat customers separately and gives each of them a different incentive to help them buy more. 💁
👉 The reward (discount, bundle) for the loyalty of the customer who bought 3 times will be greater than the one for a 1-time buyer.
Here’s how the structure of the Post-Purchase Order Count Split Flow should look like:
1⃣ It gives the buyers all the product and shipping info to make them feel secure immediately after they bought and stop any buyers remorse feelings they might experience.
2⃣ It upsells to them by giving them a discount or an offer based on their order count, those who bought more times, before this one, get better offers.
3⃣ It teases them how they’re on a path to become part of the VIP club. *you should determine the definition of what a customer needs to do to become a part of the VIP club*.
4⃣ After they bought the upsell you can ask them to give you a positive review.
☠ And no, you can’t just use some 10$ app to do that. If you want to play with the big boys, you’ll need some better tools – like Klaviyo. I think active campaign, get response and some others also do that.
Notice the other screenshots of the segments who made 90K in a Xmas sale. There’s non-buyers, 1-time buyers, VIPs (2+ orders in that case) and early birds. See how all the pieces are falling into place?
Bostjan Belingar is the CEO of Hustler Marketing, revising and improving all the key automated email flows of online stores.