Building Customer Loyalty Through Email Marketing

Don’t get me wrong, new customers are great. Without customer acquisition, your business would not grow—and we’ve got more than a few tips to help in this area. But be careful not to overlook the goldmine you’re already sitting on: your existing customers.

91% of consumers are more likely to shop from brands that recognise, remember, and offer them relevant recommendations and deals. What’s more, acquiring new customers costs 5 times as much as retaining your current ones. Luckily, your magic potion for increased loyalty lies just at your fingertips, in your email marketing strategy.

We’ve talked about this from a post-holiday perspective, but what about the bigger picture? How do you keep customers engaged, satisfied, and willing to sing your praises year in, year out?

Why focus on customer loyalty?

The customer is always right, right? That age-old maxim has always worked for face-to-face customer interactions, but has been somewhat diluted by the impersonal world of online sales.

However, customer service in e-commerce doesn’t have to be impersonal. Customer experience can actually champion your product offering if executed right. It’s just not always easy for brands to see how valuable it is with the ROI of other pursuits like launching products and expanding into new markets. Yet, the Harvard Business Review found that increasing customer retention rates by just 5% can boost profits by 25% to 95%.

Happy customers don't just equal repeat purchases, though. A loyal customer base can actually ‘do the work for you’ when it comes to customer acquisition. This is where loyalty programs come in: reward your existing shoppers AND attract new ones—it’s a win-win. But we’ll get into more on that later.

Loyalty means high order values, higher engagement, more purchases over time, and great, free press for your brand.

And email marketing provides more than a few ways to help strengthen those customer relationships. Let’s dive in:

Personalisation

Personalisation is the driving force behind customer loyalty. “Shoppers who feel like they are just another order number are not going to feel a connection to your brand” says Tim Peckover, Sr. Manager, Marketing & Community of Smile io. “Personalisation is crucial to make sure that your customers know you appreciate them and their business, and that you're willing to go out of your way to give them the best shopping experience possible.”

Feeling valued gives your customers motivation to keep shopping with you. But what do we mean by personalisation? Hint: it’s not just injecting your subscribers’ first names into your subject lines, but this is a good place to start.

Personalised Subject Lines

Your subject line is your first impression — and your ticket to boosted open rates. Kick off things on the right foot and include your recipient’s name, or reference past interactions, to grab their attention. For example, “Jane, check out these new arrivals just for you!” feels more familiar than a generic subject line, but “Still thinking about [product name]?” also suggests you know a thing or two about your customer’s buying habits.

Segmented Email Lists

Segmenting your list is essentially dividing it up into smaller groups based on specific criteria like demographics, purchase history, and engagement level. A segmented list allows for more targeted messaging to increase open rates and conversions.

For example, new subscribers might receive a Welcome Series introducing them to your brand - this can be segmented even further based on location or what the subscriber is interested in (this data can be collected in your pop-ups) - while long-term customers could get exclusive offers and sneak peeks.

Behaviour-Triggered Flows

We send behaviour-triggered emails based on a variety of different customer actions, including browsing history, abandoned carts, or past purchases. These emails address your customers’ needs or interests, just at the right moment, whether as a prompt or a reminder, but always in a timely and relevant way.

For instance, an abandoned cart email reminds browsers of the items they’ve come close to purchasing, nudging them to finish checking out. This can reduce cart abandonment rates and push conversions.

Personalised Product Recommendations

Customers appreciate recommendations that are to their taste, it also shows that you know them a little bit more. Suggest products based on a customer’s past purchases and browsing history, with targeted campaigns or dynamic blocks that you can inject into any of your flows.

“We thought you might like these” goes a long way for that extra touch of personality, making customers more likely to engage and make additional purchases.

Learn here how to create a product feed in Klaviyo to enhance your messaging with personalized product recommendations. Product feeds integrate data from your product catalog and customer behaviour—such as viewed or purchased items—to deliver tailored recommendations to your subscribers.

Anniversary and Birthday Emails

Acknowledge significant dates in your subscribers’ calendars like anniversaries and birthdays as another way to show your customers you value them. Better yet, offer special offers or discounts on these days to help conversions.

Start with an email in the lead up to their special day: “It’s almost time…” to show that you remember, and send a celebratory email on the day too.

Re-Engagement Campaigns

Remind customers who might have forgotten about you that you haven’t forgotten about them. Re-engagement campaigns can win back inactive subscribers with incentives to return. Personalise these offers and include recommendations based on their previous purchases for extra oomph.

Rhian Whadsworth, Partner Marketing Manager from LoyaltyLion tells us “When implemented correctly, [customer reactivation emails] create a natural affinity between the brand and customer, resulting in increased customer lifetime value (CLV) and helping to negate acquisition costs”. A winback flow not only creates value but also reminds of value and is a powerful tool for improving brand loyalty.

For example, a simple “We miss you” email with a discount for customers who haven’t purchased in the last six months can reignite interest and encourage re-engagement. This also does wonders for your list health, as any subscribers who don’t engage can be removed.

2. The Art of Loyalty Programs

Loyalty programs are more than points and rewards. Think of them as exclusive clubs where customers are patted on the back for their buying habits, and you, in turn, improve your relationship with your shoppers.

Delivering special discounts and early access to new collections straight to your subscribers’ inboxes creates a cycle of constant re-purchasing. But what makes loyalty programs truly magical is the psychology of reciprocity and belonging. By rewarding engagement, you create a sense of personal connection. Your customers feel valued and recognised and, over time, this consistent, personalised interaction transforms casual buyers into advocates.

Usually initiated by an email invite or website pop-up, a loyalty program offers perks to customers in exchange for various activities like making purchases, referring friends, or engaging on social media. Our partner, Smile.IO, makes curating a loyalty program that your customers will love that little bit easier. They provide the tools you need to boost repeat sales, with their integrated points, VIP, and referral programs that work together to create the ultimate loyalty experience for your business.

Looking for some tips on how to get started yourself? Keep reading.

Top Tips for Building a Loyalty Program That Converts

We spoke to the experts for their top tips on crafting a rewards program that keeps your customers coming back for more.

First things first, you need to get into the minds of your customers to relate to their motivations. Surveys, quizzes, or polls can help you get feedback and even tailor content for your customers.

“Understand what drives your customers to ensure you’re offering the right rewards and benefits that build loyalty. What do they want, and how can you deliver this?” - Rhian Wadsworth, LoyaltyLion.

2. Create an incentive with a feeling of exclusivity through a tier-based program.

“Play into your customers’ motivation with a tier-based program that includes both financial and experiential rewards in exchange for loyalty points.” says Rhian
“Let your shoppers earn the chance to join an exclusive Slack, Whatsapp, or Facebook group, participate in product research, or attend in-real-life meetups with your brand's team and other loyal shoppers. If you can get your shoppers excited about the non-discount perks of your program, you are going to see a lot of success from it.” - Tim Peckover, Smile.IO

3. Personalisation is just as important in your loyalty programs as it is anywhere else.

“Inject [your customers’] personal rewards data into communications. Show how many points they have, what VIP tier they are in, and use all of the loyalty data at your fingertips to create highly targeted segments so that the message shoppers receive feels personalised and applicable.” - Tim Peckover
“If you're running a sale for your top-tier VIPs, maybe don't send the same email to shoppers who aren't in the applicable tier. You should let all your customers know that you run those kinds of sales, but the message you send to someone who can take advantage of the exclusive sale and someone who isn't at the right level yet needs to be different so you aren't alienating your shoppers” says Tim.

4. Offer exclusive access to drive home the VIP feeling.

“Exclusive access is one of the most common approaches to keeping a loyal customer engaged” says Rhian
Offer your first-look access to seasonal sales, product launches or brand updates, using your tier program to emphasise exclusivity

5. Consider hosting exclusive events and experiences

As Rhian points out, “98% of customers attending events share content on social media.” This is another way for loyal members to become brand advocates and increase your visibility.
Such events might include a new collection launch, archive sale or store opening.

Final Thoughts: Looking Forward

As we look to the future, the landscape of email marketing and customer loyalty is poised for exciting transformations.

One of the most anticipated advancements is the rise of AMP (Accelerated Mobile Pages) emails. Tim Peckover says: "AMP emails give recipients the ability to directly interact within an email. Click through a banner image, complete a quiz, and sign up for a consulting session—all without leaving the email inbox. The possibilities are nearly endless.”

You might ask, how does loyalty come into play here? Imagine shoppers earning and redeeming loyalty points seamlessly within an email, eliminating the need to navigate between pages, tabs, or apps. This would streamline the whole experience of rewards programs for extra convenience while also deepening engagement and loyalty.

In essence, the future of customer loyalty is smarter than you might think. Need a hand revolutionising your email strategy? Book a call and let’s discuss your rewards program. And if you don’t have one in place, it’s time to get set up. The future is interactive, personalised, and seamless—don't get left behind.

Why focus on customer loyalty?