Over the last few months, we’ve been excited to be working with THMotorsports, one of the leading sellers of authorized auto-parts on the web, to help them increase customer retention and drive more revenue – ultimately doubling their number of repeat purchasers and driving >$9 in revenue impact per email sent.
The Opportunity for THMotorsports
With a strong online brand and following, THMotorsports provides automotive enthusiasts with extensive selection, free shipping and significant discounts off of retail stores. Like all Ecommerce stores, one of their biggest opportunities is to get first-time purchasers to come back and buy again – since that second purchase is often enough to create a loyal lifetime buyer and they’ve already made the investment to acquire that customer in the first place.
The Win-back Email: 1 Month after Purchase
While THMotorsports has long had a special 2% discount offer for any returning customer, their email efforts were limited to an occasional newsletter and an abandoned cart campaign.
Working with Klaviyo, THMotorsports set up an email campaign that would be triggered 1 and 6 months after a customer purchased if they hadn’t bought in the meantime. Here’s the content for the 1 month email campaign:
It’s worth noting a few things that THMotorsports is doing really well in this email:
- Personal subject line, sender and opening greeting. We see significantly higher open rates for more personal emails.
- Clear call to action. For this email, THMotorsports goal is to get customers back on the site and shopping. To this end, the call to action is a direct encouragement to customers to come back to their store and use the coupon code.
- Smart Discount. While every business has different margins and different offers that work best, it’s worth noting that this THMotorsports offer isn’t dramatically greater than their standard 2% off deal. We recommend trying different offers to see what works best while maintaining the most benefit for you – but don’t assume you have to give a way everything to get customers back.
When setting up the campaign, THMotorsports triggered the email when customers had purchase 30 to 60 days ago, not since and made sure that they had never received this particular offer before:
To test the impact, THMotorsports first uploaded data from a file into Klaviyo detailing when purchases were made as an initial test; however, since then THMotorsports has hooked a live feed of some of their website data up to Klaviyo.
The Initial Results of the Win-back campaign
Focusing in on an initial subset of customers as a trial, the results on both email engagement and orders were impressive:
- Over 46% of customers read the email
- 5% clicked
- 2.3% purchased
- Average purchase was $344
Collectively, this result meant $9 in new revenue to THMotorsports for every email sent through Klaviyo.
Expanding the Win-backs and Overall Retention Benefit
While this initial email already recaptured a substantial percentage of revenue, THMotorsports then set up regular win-back campaigns to reach out to customers who hadn’t returned at set intervals after their first purchases. By testing each campaign with different messages and time frames (i.e. how many months after purchase before it was sent) and then monitoring the impact on purchases, opens, clicks, unsubscribes and other key metrics, THMotorsports and Klaviyo were able to create a series of emails aimed at increasing customer retention.
Comparing 2013 to 2012, THMotorsports customers are now over twice as likely to come back for an additional purchase within the first 3 months of their initial purchase.
A few key lessons every Ecommerce stores can learn from THMotorsports:
- Less can be more. Unlike their monthly newsletter, the overall number of emails sent to customers each month as part of this win-back campaign is significantly less – but the value per email sent is way higher. These emails are less intrusive to customers (since they are getting fewer) and take less work (since they can largely be automated).
- Experimentation works. By starting with campaigns to a limited number of customers, THMotorsports could understand the impact of the emails before they committed fully to automating them to all their customers. Furthermore, rather than having to debate questions like what time period to send emails out at or whether to send a graphic rich email or a plain text email, they could just send them out and measure the impact.
- Automation saves time. Unlike a weekly newsletter, THMotorsports was able to automate these emails to go out to any customer who had purchased but hadn’t come back. This automation meant that setting emails up was a one-time project – not a once a month project.
What makes win-back campaigns especially easy is that you can get started with just a spreadsheet of past purchases, run a test campaign, observe the impact, and then automate the process going forward to capture that same revenue every month. Using Klaviyo, you should be able to have your data loaded, group and email created, and everything sent all within a few hours.
Sign up at http://www.klaviyo.com to get moving.