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Customer Retention. Automated

Ringing In the New Year with Retention

Posted by Enelda Butler on Jan 5, 2016 11:05:01 AM
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Another holiday season is now in the books, but that doesn’t mean that retailers should take a break at the beginning of the year. The first few months of 2016 present online retailers with opportunities to create marketing campaigns that grow customer value well into the new year. 

We asked some of our clients to name the top retail trends that are on their radar for 2016. These are the top three areas they identified as key opportunities for growing their businesses in this year:

  1. Customer Segmentation
  2. Social Media
  3. Data Management


Let’s take a closer look at the top pick: segmentation, which is dividing your customer list into distinct groups based on common traits, like purchase history or demographics. Segmentation allows you to target messages that are relevant to each customer group.


Segmentation helps to build relationships with customers by leading to increased engagement with your email marketing. In fact, for segmented messages open rates are 13% higher and click rates increase 52% when compared to average engagement rates of non-segmented promotional emails.[1]


Sailrite is a great example of how segmentation can be used to vastly improve engagement with your customer base. Sailrite is a family-owned business that is a source of instruction and materials for amateur sailmakers and DIY enthusiasts.


Sailrite has a diverse group of customers and expansive product offering, which made it difficult to make sure that each customer was getting the right message at the right time. However, through segmentation they were able to address this problem.


More specifically, Sailrite uses our Custom Segment Builder to create targeted groups of customers and deliver more personalized messages. For example, they segmented their most recent Black Friday promotion, offering two different incentives based on purchase history.


Customers who purchased a certain sewing machine (one of their most popular items) received an offer related to that product. All other customers were offered a sale on the sewing machine.  The segmented version had a 35.1% open rate and a 9.4% click rate, which was a more than 100% higher open rate and a 500% higher click rate than the other email.



Segmentation is just one of the tactics that has been successful for Sailrite. In addition to segmenting their promotional messages and Win-Back campaigns, Sailrite expanded their post-purchase series for great results. Download the Sailrite case study to learn more about their lifecycle marketing strategy and for tips to help you sail into the new year with customer retention.


 [1] http://mailchimp.com/resources/research/effects-of-list-segmentation-on-email-marketing-stats/


Topics: Customer Retention

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