Webinar recap: boosting loyalty through post-purchase messaging

As we discussed in a recent post, boosting customer loyalty should be a top priority for merchants as the eCommerce market matures. One crucial stage in fostering that loyalty is the post-purchase period, when interactions with the brand can either convert customers into brand advocates and spur additional purchases — or sour the relationship irreparably. Unfortunately, too many merchants still don’t take full advantage of this ripe opportunity: for example, less than half include additional product or service offers in transactional emails,  according to Jim Davidson of Bronto Software, whose webinar last week revealed focused on how to engage customers during the post-purchase period.

In a guest post last week, Davidson introduced the concept of the “near customer” when it came to pre-purchase interactions — and during the webinar, he extended that idea to the immediate post-purchase period, when buyers become “near customers” for that next potential transaction. Citing data from an upcoming Bronto study, Davidson said not only do too few merchants use order confirmation and shipping notification emails to invite further engagement with the brand, but an astonishing 75% don’t customize campaigns to purchasers beyond those initial transactional communications — leaving a vast opportunity untapped.

Among the wealth of information and examples Davidson provided, one theme to emerge was how the content of the transactional messages should change over time to forge the strongest possible connection with customers and encourage re-engagement. Merchants should:

Use initial transactional messaging to instill brand confidence. While merchants may already include explicit invitations to re-engage with the brand — perhaps by signing up for further email updates or connecting via social media — there’s a subtler, but just as important, message that transaction emails can send, which is to reassure shoppers that they’ve purchased with a brand that will follow through and offer stellar support for their products. To help boost customer confidence, merchants should:

• Match the design, style and tone of transactional emails to the rest of the shopping experience. An awkwardly-automated order confirmation email that contains no connection to the brand can cast doubts for customers and make them wonder if their order will be fulfilled correctly.
• Restate order details prominently. Reassure shoppers that the right product will be shipped to them in a timely manner with not only the product name, but a SKU-specific image — a tactic used by just 40% of merchants, Davidson said. Include any was/is pricing or discounts to remind shoppers how much they saved with the transaction.
• Display an estimated delivery date to proactively address shoppers’ chief concern. Even before the shipping confirmation message, remind shoppers of the delivery timeframe for their order to arrive.
• Begin customer service messaging immediately. Proactively promote customer service contact details such as an 800 number or email along with hours of service, and message crucial order information such as how to handle changes, cancellations and returns. Although including information on returns may feel too preliminary considering the order hasn’t even been received yet, Davidson noted that customers may use the message as a resource for getting in touch once they’ve received their items. Additionally, such messaging reinforces the commitment the brand has made to stand behind the products on offer and to deliver stellar service.

eBags offers a bevy of customer service information in its order confirmation email, from the order number and date positioned prominently at the top to no fewer than five sections lower in the message devoted to shipping and delivery, gift services, and other customer service information.

Fine-tune timing of post-delivery messages. Davidson offered an array of ideas for further post-purchase communications beyond order confirmation and delivery details, from offering tips and tricks for using products to discount coupons for future purchases. These messages should be timed according to the merchant’s product cycles and replenishment timelines, but in general, merchants should:

• Trigger review invitations later. Merchants who invite customers to contribute product reviews should key the emails off the delivery date, not the order date — and should factor in enough time to allow shoppers to get to know the product, Davidson counseled. In addition, giving customers more time before prompting a contribution can help focus reviews on the product itself, rather than on any glitches encountered during order fulfillment.
• Prompt replenishment orders earlier. By contrast, merchants selling replenishment items such as beauty products or food can pre-empt the next research and buying process by prompting customers to set up a recurring order shortly after the initial purchase. Assuming they’ve had a positive experience of the brand thus far, buyers may opt for the convenience of establishing a re-order schedule rather than repeatedly investing time into seeking out the products again. Specialty music merchant Sharmusic.com crafted emails reminding buyers to replace their instrument strings every six months, and offering a quick reorder link. For those customers who might opt to try something new, the emails also included an invitation to connect with customer service for expert help, and offered free shipping above a threshold to incentivize repeat purchasing. The messages drove conversion 21% higher than other emails, according to Davidson.

• Identify and target lapsed buyers. While the definition of a lapsed buyer varies according to the product offering and the brand, messaging to this segment of the customer base is a worthwhile endeavor for everyone: Davidson said emails prompting re-engagement and re-purchase typically produced conversion rates three times higher and average order value two times higher than typical campaigns. Davidson noted, however, that merchants need to take into account orders across touchpoints when targeting lapsed buyer messaging; sending a “We’ve Missed You” email to a shopper who hasn’t made repeat purchases online, but buys frequently in a physical store location, exposes a disjointed approach that can reduce rather than boost customer confidence in the brand. And any invitation to reconnect should make it easy to do so across channels, such as this email from West Elm offering a 15% discount that can be claimed online or by printing the email so the bar code at the bottom can be scanned at the point of sale in stores.

How are you using transactional email to keep customers engaged — and buying?

Thinking beyond points to encourage brand loyalty

Merchants have long known they should do more to foster loyalty, even as the lion’s share of their efforts focused on acquisition rather than retention. According to industry researcher Forrester, repeat buyers still comprise just 27% of merchants’ customer base, even as they account for 41% of total revenues.

But new research suggests that as the industry matures, merchants should turn their attention to winning repeat business sooner rather than later. Forrester’s latest eCommerce revenue forecast predicts that just 4 million consumers will become first-time online buyers this year. Instead, most of the industry’s projected 13% growth in 2013 will come from existing online buyers making more purchases.

The message is clear: merchants should do their utmost to encourage customers to re-engage with the brand and buy again. One way to do so is to develop a loyalty or free shipping club; as discussed in a previous post, the popularity of such programs has soared, with participation growing by a third from 2010 to 2011, according to Forrester.

But merchants should also think outside the loyalty-program box when it comes to attracting repeat business. After all, not every potential return customer may be attracted to the loyalty program; for example, an annual membership that includes free shipping may not appeal to a customer who makes significant but infrequent purchases — say, only during the holiday gifting season.

Boosting customer loyalty is such an important topic, we’ll devote an entire webinar and whitepaper to it as part of our “” series. But meantime, merchants should consider these strategies to stimulate return business beyond points, rewards and memberships:

Maximize the potential of post-purchase transactional emails. Consumers now expect to receive promotional merchandising alongside their order details, with 53% of shoppers saying they expect product promotions in order confirmation emails and 45% say they expect such messaging in shipping status alerts, according to a study from the E-Tailing Group and MyBuys.  Merchants should use transactional messages to entice customers to subscribe to future email updates, follow the brand on social media and contribute reviews.

The Home Depot sends a series of post-purchase emails attempting to re-engage customers, starting with a “thank you” message that includes an email signup link, cross-sells, promotion of free shipping, and a link to the brand’s community of do-it-yourself enthusiasts. A follow-up email invites customers to review the product they purchased, with the potential to win a cash prize if photos are included in the review. The messages offer customers a variety of ways to interact and continue engaging with the brand.

Devise programs or campaigns that speak to customers’ ideals. While rewards and loyalty programs appeal to customers’ desires for material perks, merchants should also devise ways to tap into their audience’s more altruistic impulses. Campaigns or programs that put the spotlight on causes attuned to the customer lifestyle, or on a merchant’s charitable activities, can boost the brand’s profile and reputation and give customers a means to continue engagement beyond simply shopping for new products. Such heartfelt connections can have bottom-line impact; according to the Edelman goodpurpose Study, 53% of consumers said that social purpose is the most important distinguishing factor guiding purchase decisions, when quality and price are equal; 72% of consumers would recommend a brand that supports a good cause over one that doesn’t, and 71% of consumers would help a brand promote their products or services if there is a good cause behind them.

It may seem counter-intuitive for a brand to recommend that customers forgo buying products — but that’s part of the message Patagonia crafted as part of its Common Threads initiative. Consumers are invited to pledge to reduce consumption, repair items when possible, and recycle products they no longer need. The campaign not only appeals to the company’s outdoorsy clientele; it also puts the spotlight on the durability of the brand’s products, the availability of repair services and the ability to resell items through the brand’s used clothing store and eBay storefront.

Watch for a post coming up soon with more tips on post-purchase transactional email from our technology partner Bronto, and stay tuned for that whitepaper and webinar on loyalty. Meantime, how are you boosting repeat business for your brand?