Optimize your marketing spend by prioritizing customer retention
On average, it costs businesses more money to find and acquire new customers than it does to retain existing customers. With that being said, churn is a big risk for your business.
One major roadblock for customer retention is that businesses often don’t realize that customers are at risk of churning before they stop engaging with the brand. Once customers have churned, it’s nearly impossible to win them back.
With predictive analytics, you have the opportunity to spot your churn risks before they reach the point of no return. This insight enables you to proactively target these customers with re-engagement strategies, encouraging them to buy back into the value of your brand. Churn risk prediction and expected date of next order are two insights in Klaviyo you can use to fuel your customer retention strategy.
Use predictive analytics to strengthen your re-engagement campaigns
In the video below, learn how you can identify your at-risk customers using predictive analytics, create a segment of them, and use this segment to send a targeted re-engagement campaign.
As mentioned in the video, it’s important to note that you will need to reach out to Klaviyo support in order to access the Churn risk prediction metric in the segment builder. Support will help activate this in your account.
Design effective re-engagement campaigns
When you’re communicating with lapsing customers, any old campaign won’t encourage them to invest their time and money in your brand. These messages need to provide unbeatable value and solidify a strong brand perception to help win these customers back.
Explore the gallery tabs below for campaign strategies you can send to your churn risk customers that will make them give you a second look before they go:
Exclusive winback discounts
Incentivize churn-risk customers with a deal they can’t beat.
You should also include personal details in the campaign, like the recipient’s first name, and consider acknowledging their inactivity.
For example, you might say something like: “Hey Chris, we haven’t seen you in a while, and we miss you! Here’s 25% off your next order, on us.”
Highlight new releases
If customers haven’t been browsing your site or making purchases in a while, they likely aren’t familiar with your newest products.
Send them a campaign featuring some of your newest releases, and lean into how they embody your unique value. You may also consider how you stack up against competitors in the market when you do this.
Reintroduce your brand
Take this opportunity to remind your lapsing customers about who you are, and why your brand is so special.
Send them a re-introductory email highlighting your brand’s story, and don’t push any sales or purchases; in this strategy, you should be focused on re-building the customer relationship rather than driving conversions.
Review your metrics
After you implement these strategies, it’s helpful to review your form and campaign metrics to assess how your promotional strategy performed. Explore the dropdowns for reminders about key metrics you can analyze in Klaviyo:
Campaign open rate
Campaign open rate tells you the percentage of people who opened your email out of everyone who received it. Your open rate gives you a good idea of how many of your churn-risk customers were enticed by your subject line to open your email and learn more.
View your campaign open rate in Klaviyo by clicking Campaigns on the left-hand navigation menu, and searching for your specific campaign in the list view. You’ll see your metric listed under the Open rate column.
If your open rate is low, consider workshopping your subject line to be more specific and personalized, and use engaging language to highlight the value and benefit of your promotion. If you need more help, try Klaviyo’s subject line assistant for AI-generated recommendations for conversion-driving copy.
Campaign click rate
Campaign click rate shows you how many people who clicked the CTA in your email out of everyone who received it. Use click rate to determine how effective your email content is at driving recipients to re-engage with your content and click your CTA link.
View your campaign click rate in Klaviyo by clicking Campaigns on the left-hand navigation menu, and searching for your specific campaign in the list view. You’ll see your metric listed under the Open rate column.
If you’re looking to improve your click rate, check out this resource for helpful strategies: How to increase email click rates.
Campaign conversion rate
Campaign conversion rate provides you with the number of people who performed a certain action (such as placing an order) out of how many people received the campaign.
To view conversion rates in Klaviyo, head to Campaigns on the left-hand navigation menu and search for your specific campaign in the list view. Your conversion rate will be located next to your open and click rates. To change your conversion metric, use the dropdown next to the search bar.
If you’re looking to improve your conversion rate, check out this resource for helpful strategies: How to increase email conversion rates.
AOV of the campaign
AOV (average order value) of the campaign provides you with the average value of orders placed after receiving the campaign. This number is calculated dividing the total revenue generated by the campaign by the total number of orders placed.
To find your campaign AOV, click Campaigns on the left-hand navigation menu and search for your specific campaign in the list view. Click your campaign name, and then find AOV by going to the Overview tab and viewing the metric on the Revenue card.
Note: you must have a Placed Order metric enabled to have this information available in your account.