Email Automation: A Must for eCommerce Businesses

Contrary to what you might have heard, email marketing is not dying, and in fact, it’s actually projected to grow exponentially in the coming years. That being said, like any eCommerce marketing tool, it is adapting and improving with every passing year to meet the needs of consumers, and in this case, that means email automation.

The Facts
Before we get into how email automation can benefit your eCommerce business, let’s take a look at some of the stats.

  • On average, there is a $42 ROI for every dollar spent on email marketing.
  • Projections estimate that as email marketing grows, roughly 350 billion emails will be sent daily by 2022.
  • 92% of email users check their inbox every day, and 52% of that target group check their inboxes every few hours.

Why should you be using email automation?
There are several clear benefits to implementing email automation in your eCommerce marketing strategy beyond the improvements in productivity, profitability, and customer retention you’ll see. We’ve listed a few of the many benefits below to give you an idea of what to expect.

Repeat Purchases
Using email automation keeps you current in the minds of your customers and encourages repeat purchases. This is valuable because it can cost up to 7X more to acquire a new customer than to keep an existing one. In addition to the money you’ll save on acquisition, studies have shown that returning customers provide 22% of the annual revenue for most eCommerce businesses, and surprisingly, they only make up 11% of the customer base. When you look at the numbers, it’s clear to see how repeat customers can make or break your online business. You can maintain these relationships using touchpoints like:

  • Personalized product recommendations
  • Shipping notifications
  • VIP offers
  • Personalized birthday messages and promotions

Cultivate Relationships
There is a misconception that because businesses are online, personal relationships with customers are no longer important, but that couldn’t be less true. A study done in 2018 found that a resounding 80% of customers said that the experience a company provides them is equally as important to them as the quality of their products or services. Analytics tools will give you a better understanding of your customers’ needs, and you can use that information to strengthen your relationship. You can develop these relationships using:

  • Introductory offers as a reward for setting up an account
  • Optimized email delivery times
  • Strong CTAs
  • Personalized product features

Nurture Potential Customers
We mentioned that it can be costly to gain new customers, but using targeted methods like “drip campaigns” can expedite the process. These campaigns send a sequence of automated emails to potential customers that contain timely and relevant offers while they are in the purchasing funnel. Some of the top-performing eCommerce businesses have reported an 80% increase in open rates and 33% lower costs for sales acquisitions thanks to expertly executed drip campaigns.

What types of email automation should you be implementing?
There are exhaustive lists of the types of email automation you can use to increase your customer relationships and sales, but these examples are some of the most successful styles.

Welcome Emails
Welcome emails are essentially a virtual handshake, and customers have come to expect them. They are your first touchpoint, and they give you a chance to introduce yourself, highlight your tone and voice, and ensure your emails don’t end up in their junk folder. Automated welcome emails tend to have much better click-through rates than generic newsletter campaigns.

Abandoned Cart Reminders
Sometimes consumers just need a gentle reminder that the products or services they’ve been eyeing are still waiting for them in their virtual carts. An astonishing 69.57% of carts are abandoned, and they’re essentially sales that are being left on the table. Price checks, window shopping, and distraction are all factors that lead to cart abandonment, but friendly reminders can produce recovery rates of up to 30%.

Post Purchase
Using email automation to catch your customers in the afterglow of their purchase is an excellent way to show your appreciation and make them feel valued. Research has shown that post purchase emails achieve:

  • 217% higher open rates
  • 500% increase in click rates
  • 90% more revenue per recipient than standard email campaigns

By crafting friendly and engaging automated emails to engage with your customers before and after they make a purchase, you can effectively create captivating and meaningful experiences that will strengthen your customer relationships. After you’ve created a baseline of essential email automations, you can continue to cultivate your program by developing new automations and creating additional touchpoints.

Neglecting to use automated email marketing for your eCommerce platform will increase your customer acquisition costs, and you’ll miss out on the potential to improve your conversions, visibility, and growth.

Want to take advantage of the benefits of automation and expand the reach of your email program?
Contact idig Marketing today to learn how our team can create an email marketing strategy that will drive more sales and growth for your brand.

idig Marketing is a full-service digital agency that generates meaningful website traffic and drives high-value leads to your organization. By optimizing organic content with paid advertising our custom methodology is adapted to meet your requirements and exceed your objectives.

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We post digital marketing tips to help Canadian businesses succeed.

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