August Retention Newsie 1

Author

Melanie Balke
August 07, 2025

Welcome to The Retention Newsie by The Email Marketers, the retention-building experts for 7-9 figure ecom brands.

Every month, we bring you the best case studies, trending news, and tips for retaining more customers while turning them into raving fans and increasing revenue.

This Week’s Inbox Rundown

  • The psychological hack to increase retention

  • The biggest brands are already prepping for BFCM

  • Skio & Postscript just got way more powerful together

  • Prime Day shattered records with one surprising winner

Our Brains Have a Loyalty Program Bug

Here's a psychological experiment that'll blow your mind.

In 2006, researchers handed out loyalty cards at a car wash. Half the customers got cards requiring 10 stamps for a free wash. The other half got cards needing 12 stamps, but with 2 stamps already filled in.

Both groups needed 10 stamps total to win.

The results? Only 19% of the first group redeemed their cards. But 34% of the "head start" group followed through and did it faster.

This is called the endowed progress effect. Our mind is more motivated to complete goals when we feel like we've already made progress, even if that progress is completely artificial. And you’ve seen it before…

Why this matters for retention: You can hack this psychological bias to increase 2nd - and 3rd-time buyers. 

Here's How The Smartest Brands Do It

1) Give Customers a Head Start

Sephora's Beauty Insider program automatically credits new members with points just for signing up, then shows progress toward their first reward. The visual progress bar is never completely empty.

2) Surprise Existing Customers with Hidden Progress

Nike's membership program waits until you've made a few purchases, then surprises you with "You're halfway to exclusive member benefits!" notifications you didn't know existed.

The surprise factor boosts the effect. Customers who weren't even thinking about loyalty suddenly feel compelled to hit the next milestone.

3) Welcome Bonuses That Create Instant Gratification

Target Circle gives new members a birthday reward immediately upon signup, plus bonus offers before they've made any purchases. You get value before you've done anything, creating psychological ownership (sorry for spilling your secret, Target).

Action items for your brand:

☐ Add progress bars to checkout flows. 

☐ Give new loyalty members instant "welcome" points or status.

☐ Create surprise milestone notifications after 2-3 purchases.

The best part? You're giving customers the same value either way. You're just reframing when they receive it to trigger a stronger psychological commitment.

The Biggest DTC Brands Are Already Prepping for BFCM

While most brands out there are still focusing on end-of-summer campaigns, the smartest brands have already started their Black Friday planning!

If you're still on the fence about getting The Email Marketers to run your BFCM campaigns, our client results speak for themselves.

Skio & Postscript Integration Gets Major Upgrade

The subscription platform now offers deeper SMS automation for billing reminders, failed payments, and subscription changes. For example, customers can text "SKIP" to pause orders, reducing churn while keeping subscribers engaged. 

Trump Sets New Minimum Tariff Rate at 15%

The administration is moving away from 10% baseline rates, with most countries now facing 15% minimum duties. The shift impacts DTC brands relying on international suppliers and could accelerate reshoring strategies. 

Legendairy Milk Expands Product Line Strategy

Klaviyo hosted a fireside chat revealing how the brand successfully launched new products while targeting different audience segments. You’ll also find key insights on omnichannel strategy and seasonal timing for product launches. 

Amazon Prime Day Shatters Records with $24.1 Billion

Prime Day continued four days for the first time and absolutely crushed it! US shoppers spent 30% more than last year, totaling two Black Fridays.

Breath Death Goes Viral on X

The new breath freshener brand is blowing up with celebrity endorsements from Logan Paul, Jake Paul, and Lil Yachty. Their whole vibe is aggressive marketing around "exploding mint crystals" that destroy bad breath and make you more desirable. 

We're constantly pushing the boundaries of email creative, and we wanted to share a couple of recent designs we loved creating. 

Tap to view the entire design!