In the competitive online ecommerce world it’s more cost effective to retain customers than it is to acquire new ones.

Tidey (2015) expresses once fashion brands can retain customers it works out in their favour in the long run because as a brand you will be able to pin point what needs your consumers have. Once a brand has an idea of what these needs are particular methods such as email marketing and email newsletters are indirect sales opportunities.

Ahmad and Buttle (2002) state it’s important to find methods that engage existing customers, encouraging them to purchase more often as the act of doing this costs less than encouraging new customers to make purchases for the first time.

figure 1

Figure 1 shows an email newsletter showing key spring pieces to help entice consumers to return back to the site and possibly explore more from the range ‘bouquet’ already !. Ratcliff (2014), argues email newsletters are a subtle way of advertising and subtle advertising is the best way to retain customers because after a while consumers soon become desensitized to the traditional advertising marketing methods.

Rastogi (2014) puts forward the idea that clothing brands would have better luck retaining customers by using personalized emails as they build a connection with the customers. Ratcliff (2014), shares a similar view and develops it further by stating when clothing brands get to know their audience by finding out there:

• Age
• Gender
• Location
• Date of Birth
• Special Anniversary

It allows them to create “loveable content” tailored specifically to them allowing them to be engaged, thus increasing customer retention as simple reminders will urge them to frequently come back. Figure 2 is a great example of a personalized email. Collecting personal information and sending a reminder with a discount code helps with customer retention as consumers become somewhat appreciative of the gesture and are more likely to return.  Measurement of such strategy would be whether the user had reached the landing page and if the unique code had been entered at the checkout.

figure 2

Hauser (2008) argues direct marketing is the best method to use when wanting to retain existing customers. Personalized email marketing/newsletters are a great method of direct marketing. Personalized emails are less likely to be marked as spam and require the recipient to read the email and make an informed decision. Figure 2 shows an example of a personalized email, in this case birthdays are a great opportunity to retain customers by offering freebies and unique discount codes. The emails would come with a call to action in the email prompting traffic to the site in question.

Ratcliff (2014), argues email newsletters are a subtle way of advertising and subtle advertising is the best way to retain customers because after a while consumers soon become desensitized to the traditional advertising marketing methods.

Fariborzi & Zahedifard (2012) explain despite the benefits of email marketing, the direct form of customer retention also comes with disadvantages. Disadvantage of email marketing/newsletter is the undelivered email which can be for multiple reasons such as junk mail filters so the email doesn’t even reach the recipient. Sometimes the readability can be an issue, sometimes different email reading systems may not translate the colour or graphics or link may not be supported on all browsers. The frequency of emails sent can also be an issue. It is important to find a balance so consumers are not bombarded and soon see the emails as a nuisance.

References

Ahmad, R. and Buttle, F. (2002). Customer retention management: a reflection of theory and practice. Customer retention management: a reflection of theory and practice”, Marketing Intelligence & Planning, [online] 20(3), pp.149 – 161. Available at: http://dx.doi.org/10.1108/02634500210428003 [Accessed 9 April. 2017].

Fariborzi, E. and Zahedifard, M. (2012). E-mail Marketing: Advantages, Disadvantages and Improving Techniques. International Journal of e-Education, e-Business, e-Management and e-Learning, [online] 2(3), pp.233-236. Available at: http://www.ijeeee.org/show-31-358-1.html [Accessed 2 May 2017].

Hauser, W. (2008). Successful Direct Marketing Methods20081Bob Stone and Ron Jacobs. Successful Direct Marketing Methods. McGraw‐Hill, 2007.. [online] EmeraldInsights.com. Available at: http://www.emeraldinsight.com/doi/full/10.1108/17505930810863644 [Accessed 3 May 2017].

Lazazzera, R. (2014). 7 Customer Retention Tactics to Get Current Ecommerce Customers to Purchase More – Shopify. [online] Shopify’s Ecommerce Blog – Ecommerce News, Online Store Tips & More. Available at: https://www.shopify.co.uk/blog/15593136-7-customer-retention-tactics-to-get-current-ecommerce-customers-to-purchase-more [Accessed 9 April. 2017].

Rastogi, P. (2014). How Online Fashion Retailers can use Email Marketing for Brand Building, Profit & Customer Retention – 67 Points Checklist – ILoveFashionRetail.com. [online] ILoveFashionRetail.com. Available at: http://ilovefashionretail.com/fundamentals/how-online-fashion-retailers-can-use-email-marketing-for-brand-building-profit-customer-retention-67-points-checklist [Accessed 29 April. 2017].

Ratcliff, C. (2014). How fashion ecommerce brands use email marketing. [online] Econsultancy. Available at: https://econsultancy.com/blog/65115-how-fashion-ecommerce-brands-use-email-marketing/ [Accessed 29 April. 2017].

Tidey, W. (2015). Acquisition vs Retention: The Importance of Customer Lifetime Value. [online] Huify.com. Available at: https://www.huify.com/blog/acquisition-vs-retention-customer-lifetime-value [Accessed 16 April. 2017].