Starbucks understands email marketing basics. Do you? - The Retention Newsie

Welcome to The Retention Newsie by The Email Marketers.

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

Up this week:

• 📧 Essential retention email strategies

• ☕️ How Starbucks uses email to keep the coffee flowing

• 🔍 Google Ads updates, Bloom & Wild's retention focus, Planet Fitness' price hike & more!

Reading time: 4.5 minutes

Acquiring new customers is only half the battle. The real challenge lies in retaining them.

Retention emails are designed to keep your existing customers engaged, satisfied, and loyal to your brand.

Most brands know email matters and have a few sequences set up. But dialing in your retention email strategy should be a priority.

Consider these eye-opening statistics:

• Acquiring a new customer can cost 5 times more than retaining an existing one.

• Increasing customer retention by just 5% can increase profits by 25% to 95%.

• The average open rate for welcome emails is a whopping 50%. 

To create a well-rounded retention email strategy, incorporate these essential email types:

1. Welcome Emails: First impressions matter, and a well-crafted, warm welcome email can make all the difference. Introduce your brand, highlight your unique value proposition, and set expectations for future communications.

2. Win-Back Emails: Sometimes, customers need a gentle nudge to reignite their interest. Remind them of the value your product or service provides and give them a compelling reason to reengage.

3. Thank You Emails: Show your appreciation after a purchase or milestone with a heartfelt thank you email. Include personalized recommendations, exclusive discounts, or a referral incentive to keep the momentum going.

4. Feedback Emails: Gather valuable insights from your customers by sending a feedback email after a purchase or interaction. Include a survey link or review request to make it easy for them to share their thoughts.

Notice how each of these basic emails builds a narrative of connection between you and your customer. They help humanize a brand and establish a basis for further purchases.

Once inside, personalization is key. Use your customer's name, purchase history, or browsing behavior to create a tailored experience that speaks directly to their unique interests and needs.

Perfect execution of basic email marketing strategies can have a massive impact on retention. Our case study will dig into one familiar company that has made this an art.

How Starbucks Crafts Irresistible Retention Emails

Starbucks is a brand that needs no introduction. With over 30,000 locations worldwide, the coffee giant has become a cultural phenomenon.

However, in 2008, Starbucks found itself on the brink of financial failure, a victim of its own rapid expansion and a shift away from its customer-centric roots. 

It was a wake-up call that prompted the company to refocus on building lasting relationships with its loyal patrons. Enter the revamped My Starbucks Rewards program and a strategic email marketing campaign that would cement Starbucks' reputation as a master of retention marketing.

At the heart of Starbucks' retention strategy is the My Starbucks Rewards program, a loyalty initiative that incentivizes customers to keep coming back. 

By integrating the rewards program with email campaigns, Starbucks continuously reminds customers of the benefits of being a loyal member. Personalized emails highlight exclusive offers, promotions, and opportunities to earn bonus stars, enticing customers to make more frequent visits and purchases.

Despite its scale, Starbucks hasn't forgotten email marketing fundamentals. They have a list for general news and another one for their Rewards program, and each has proper welcome emails. They use proper segmentation and customization and deliver targeted product recommendations based on customers' past purchases and preferences.

For example, if a customer frequently buys dark roast coffee, they may receive an email featuring new dark roast blends or promotions on their favorite beans. This level of personalization creates a sense of relevance and exclusivity, increasing customer satisfaction and conversion rates.

They also expertly handle promotional emails, changing the design and copy for each promotion while smartly repurposing successful content. This saves resources while keeping their messages fresh.

Starbucks has successfully transformed its customer relationships from transactional to value-driven, all with the power of email.

The lesson is clear: put your customers first, and the rest will follow. By retaining relationships, you'll have a recipe for long-term success, no matter the scale of your business.

• Bloom & Wild shifts strategy to focus on customer retention over acquisition.

• This collection of 10 re-engagement email examples provides some great inspiration to keep customers coming back.

• Google Ads introduces Performance Max updates to help advertisers win back lapsed customers.

• Planet Fitness is raising its iconic $10 membership plan for the first time in 26 years.

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