Welcome to The Retention Newsie by The Email Marketers, the retention building experts for 8-& 9-figure e-commerce brands.

Every week, we bring you the best case studies, strategies, and tips for retaining more customers, turning them into raving fans, and increasing revenue.

Up this week:

• 🥗 Sweetgreen’s Impressive Subscription Model

• 📧 The Importance of Your Email’s Subject Line

• 📊 Email Retargeting, 98% SMS Open Rates & More!

Reading time: 4 minutes 20 seconds

Sweetgreen’s Sweetpass Reinvents Customer Loyalty

Back in 2007, three Georgetown students—Jonathan Neman, Nicolas Jammet, and Nathaniel Ru—started Sweetgreen with a simple goal: make healthy food convenient and tasty. What began as one salad shop in Washington, D.C., has grown into a nationwide fast-casual chain with over 180 locations.

Even with its success, Sweetgreen isn’t settling for what it’s already achieved. In February 2024, the company announced the nationwide rollout of its revamped loyalty program, Sweetpass, featuring a new subscription option.

"Sweetpass will have both a free and subscription component to it," said Co-founder and CEO Jonathan Neman on a recent earnings call. "This week we started a phased rollout of Sweetpass with customers in Colorado. In April, we will launch our Sweetpass program nationwide, making eating Sweetgreen every day more effortless and rewarding."

Their flagship loyalty program, Sweetpass, operates on a two-tiered model that combines both free and paid elements. The free tier provides access to rewards, birthday treats, and exclusive menu items. But the real innovation comes with Sweetpass+, their $10 monthly subscription service.

For the price of two lattes, subscribers receive:

• $3 off one entrée every single day

• One free delivery per month

• Priority customer support

• Access to exclusive community content

• Input on the brand's sustainability partnerships

The results speak for themselves. During the second half of 2023, enrollment in Sweetgreen's rewards program jumped 25%. Even more impressive, Sweetpass+ members now account for one in four transactions, proving the program’s success in driving repeat visits even during inflationary times.

Sweetgreen’s focus on expanding its subscription offering comes as restaurants fight harder than ever to keep customers. With inflation tightening budgets, more people are cutting back on dining out. By offering a subscription, Sweetgreen aims to incentivize frequent visits and generate reliable recurring revenue.

Sweetgreen’s healthy, customizable bowls naturally fit into customers’ routines. With 63% of sales coming from digital channels in Q4 2022, they have a strong foundation to grow and manage their subscription service.

• Make the Value Obvious: Keep the perks simple and easy to understand. Sweetgreen’s $3 daily discount works because it’s clear how much customers save every day, making the subscription feel worthwhile right away.

• Use Digital to Your Advantage: Make signing up and managing subscriptions effortless through your app or website. Sweetgreen leaned on its strong digital presence, which already drives most of its sales, to engage customers and boost signups.

• Start Small and Improve: Test your program in a single market to see what works and what doesn’t. Sweetgreen’s pilot in Colorado let them gather feedback and tweak the subscription before rolling it out nationwide.

• Build Around Customer Habits: Create a program that fits naturally into your customers’ routines. Sweetgreen’s focus on healthy, everyday meals made a daily discount feel like a perfect match for regular diners.

We help 8-& 9-figure e-commerce brands increase revenue and build strong customer relationships through retention marketing: Email, SMS, direct mail, subscriptions, memberships, loyalty programs, and more.

How to structure subject lines

Your email strategy is only as strong as your subject lines. With average open rates hovering around 36.5%, the difference between success and failure often comes down to those few crucial words.

Let’s turn your subject lines into can't-miss hooks with templates that grab attention and boost engagement.

The Magic Formula

The key to successful subject lines lies in combining these essential elements:

• Personalization: Include the recipient's name or relevant details to create an immediate connection. "John, your curated collection awaits" performs better than generic alternatives.

• Urgency and Scarcity: Create compelling reasons to act now. "Last chance: Your exclusive offer expires at midnight" drives immediate action through FOMO.

• Curiosity Gaps: Pose intriguing questions or teasers that compel opens. "Did you catch what we just added?" sparks natural curiosity without giving everything away.

Strategic Implementation

Turn these principles into real results with these actionable strategies:

1. Test Multiple Angles

   • Write 2-3 versions of each subject line

   • A/B test different approaches

   • Track which styles resonate with your audience

2. Utilize Social Proof

   • "Join 10,000+ members who've discovered..."

   • "See why customers can't stop talking about..."

   • "The product that's selling out weekly..."

3. Time-Sensitive Messaging

   • Limited-time offers

   • Countdown-based urgency

   • Seasonal relevance

Your subject line is a promise to your reader. Make it compelling, but ensure your email content delivers on that promise. This builds trust and maintains high engagement over time.

The most effective subject lines don't just get opens—they start conversations that lead to lasting customer relationships. Apply these templates consistently, measure your results, and adjust based on what resonates with your audience.

• Shopify's guide on how email retargeting can deliver an impressive 36:1 return on investment.

• Kalder raised $10.5 million to help brands turn loyalty into revenue streams.

• Tesla revived their referral program, offering customers up to $1,000 off new vehicles and giving referrers $500 in credits.

• New research shows SMS messages have a 98% open rate with 90% read within three minutes.