According to an eMarketer study, the median email marketing ROI is 122%. In comparison to all the other marketing channels, email clearly has the highest return on investment in times when the customer acquisition costs are skyrocketing. But when every brand out there is using the channel to reach online shoppers, how do you ensure your Shopify email marketing strategy works?
By using data.
Or more specifically, customer analytics.
What’s wrong with traditional email marketing?
Now, typically a Shopify store would implement the following types of emails to keep their subscribers and customers engaged:
- Transactional emails: Emails that include receipts and other post-purchase updates.
- Promotional emails: Emails that include news on the latest discounts, new products, upcoming sales and other updates.
- Lifecycle emails: Emails that are based on a customer’s behaviour or interaction with the store – for instance, cart recovery emails.
So when you sign up on a new online store, you expect a welcome mail coming your way in the next few minutes. In fact, when you leave the store, you expect the brand to reach out to you with an additional discount to make the first purchase too. And when you abandon a cart, you know you’re going to be retargeted with free shipping or something.
Simply put, the new-age consumer is well-informed.
The age-old Shopify email marketing tactics no longer create a WOW moment for them!
Everyone’s sending out weekly newsletters. Everyone’s offering a discount on their products. So why should a consumer choose to interact with your store’s marketing messages over the rest?
While your average open rate should be between 15-25%, most Shopify stores see theirs hitting a maximum of 10% on most days.
That’s where personalization comes in.
In this tactic, you need to pay close attention to every little detail about a shopper – their browsing behaviour, product preferences, purchase habits and more, in addition to the general demographics like age, location, gender, etc.
Wondering if the consumers even need that kind of one-on-one personalization? Well, 63% of consumers expect personalization as a standard of service from any brand they interact with.
How does customer analytics play into personalization?
Customer analytics is the process by which a consumer’s behaviour is used as the base of all key business decisions. It uses analytics to create market segments and predict the changing consumer behaviour, enabling brands to optimize their marketing strategies, online messaging and more to suit what the shopper really wants.
So basically instead of simply retargeting shoppers with emails on products, they have shown interest in and not purchased, you’re taking personalization a step ahead. You’re tailoring your marketing strategy to suit what will ‘motivate’ them on seeing that email to make a purchase.
For instance, if you know that the shopper is price-sensitive, you can stop offering them free shipping. They’re looking for an additional discount. Let’s close the loop faster, right?
Creating customer segments with Shopify analytics
The very first step to understanding the shoppers who come to your store is to look into the Overview provided by Google Analytics. This gets you an understanding of where your shoppers are coming from, what browsers are they using, how many of them are returning visitors and more. These insights are great for creating a framework for your shopper persona.
The next step is to move to the Demographics section to identify the age and gender of the audience on your store. Then you move on to Interests to see what exactly got them to your store in the first place – you don’t want an online shopper interested in buying a car landing up on your store that sells kids toys. Right?
And then comes the tough part – consumer behaviour. Taking a look into how the shoppers landing on your store are interacting with the pages. Are they new or are they returning visitors who know about your brand, what is their frequency and more.
The next step is to combine all that data with how the visitor flows through your store. The pages they land on, the pages they visit during the session and where they drop off. This is important for personalizing your emails to a message that is contextual to their last interaction.
Similarly, you can head over to Facebook Insights to get to know your followers better. Look into which of your posts are performing well, what type of content gets maximum engagement, where your followers are coming from and more.
Take the data from your marketing channels like Facebook and Google Analytics, and bring it all together to identify common patterns across customers. Simply put, identify similar purchase behaviour, categorise these shoppers and create segments.
Now, this could take a few days and data can be really overwhelming. To ensure that you’re not missing out on anything important, you can instead opt for Shopify analytics apps like RevTap.
RevTap is a Shopify analytics app that connects with your store, Google Analytics and marketing channels like Facebook with a single click. It then brings all the data onto one dashboard, analyses it to identify consumer patterns and behaviour, and creates 24+ unique customer segments.
So instead of spending time on excels, you can simply export your customer segments and create separate lists for your Shopify email marketing campaigns.
Using customer segments for Shopify email marketing
Creating customer segments is taking a step closer to understanding your subscribers and your customers better. Now it’s time to put all that data to use to personalize your email marketing campaigns. Let us give you a few ideas!
1. Offer the right motivation to complete abandoned purchases
Not all online shoppers will jump on seeing an additional discount on their cart total. But they might just come running back to your store if they knew those pieces were going out of stock soon! They wouldn’t want to miss out on bagging a trending product.
With RevTap customer segments, you can identify which of your subscribers respond to what kind of nudge. You can accordingly tailor your cart recovery campaigns to suit what they ‘want’ the most. It could even be something as simple as free shipping!
2. Keep your subscribers engaged based on their last interaction
Some shoppers will visit your store regularly. Some might be holiday season shoppers. But waiting for a shopper to come back to your store is like handing over a customer to your competitor. You need to nudge an interaction out of them.
With customer segments, you can see which of your shoppers are active, those that have been inactive for a month, three months or almost a year.
Using this data, you can create Shopify email marketing campaigns that focus on starting a conversation with them. It could be an email that simply says you miss them and offers an exclusive discount on their homecoming purchase, for instance!
3. Create better lifecycle email marketing campaigns
Why wait for a shopper to reach the point of churn when you can keep them engaged with your brand with lifecycle email campaigns. Typically, a store sends out newsletters, ongoing discounts and sales to all their subscribers. While the delivery rates of these emails are high, the open and click-through rates are often not up to the mark!
Now with customer segments, you can reach out to different types of shoppers with different messaging. You can focus on what they want to hear from your brand and personalize even your automated Shopify email marketing campaigns with data.
For example, you can send a personalized email to your repeat customers, promoting your referral program or a loyalty program and what they gain out of it. Just like FamousWear did!
Similarly, you could reach out to your frequent refunders to ask for feedback on your products. It helps you understand what resulted in the refund and how you can make the shopping journey better.
4. Turn transactional emails into more sales
Typically, you’re using transactional emails to send purchase and tracking information to your shoppers. But why lose this interaction as a chance to bag another sale from a consumer who has just displayed trust in your brand?
Create better upsell and cross-sell email marketing campaigns with customer segments. Use shopper motivation to create better bundles, deals and offers to bring them back to your store for making more purchases.
5. Send early sale announcements to price-sensitive shoppers
A good number of your subscribers are simply shoppers who are waiting for deals. They could have a list of products wishlisted and awaiting to be bought on a price drop. Instead of sending these shoppers a sale announcement as and when it goes live, give them a heads up early on!
Using customer segments, you can identify your price-sensitive shoppers. Create a separate Shopify email marketing campaign to send an early announcement of the discounts coming up. You could also offer pre-booking the products they want to purchase to ensure sales during the discount period.
6. Increase interactions from active customers
Active customers and shoppers who have made recent purchases are more likely to interact with your brand when nudged strategically. You can use this opportunity to get to know them better, get more ratings and reviews on your products, and sell more to them.
With clear customer segments, you can reach out to these shoppers within days of their last purchase. Ask them to log in and check in every day to earn points or store credits that can be redeemed in their next purchase. You could ask them to submit reviews or complete their profile to earn more points as well!
The idea is to keep active customers actively browsing your store. This increases the chances of them making a purchase at every visit.
Get better at Shopify email marketing
Email marketing has been one of those channels that have proven to deliver the best of results for decades. But as technology advances and consumer expectations increase, it is important for businesses to look beyond automation.
It’s now important to not just get your emails through to a shopper’s inbox. It’s critical for them to be opened, read and clicked through – that’s what is going to drive more sales for your store!
And the good thing is, you already have all this data in place. Your store data is a clear indication of which products are performing the best. Your marketing and sales data show you who your customers are, and what made them make a purchase.
Now it’s just about putting all that data to use to supercharge your email marketing campaigns.
Ready to get better at email marketing?