Study Shows Retailers Are Losing Sales Opportunities by Relying on Blanket Sales Discount Emails; How to Differentiate Your Strategy & Succeed
In a recent Mediapost article “Retailers are Sending Out the Same Old Emails to the Same Old People,” columnist Ray Schulz highlighted a recent study by Gartner L2 that showcased some unsurprising facts about retail email marketing. The findings of the newest study should be a wake-up call to e-commerce and retail marketers – something that shakes them into reconsidering their strategies for engagement and conversion.
Consumers are Experiencing Discount Email Fatigue
Consumers’ inboxes are being jam-packed with generic, non-targeted discount offers. Consumers polled for the L2 study complained that these irrelevant retail email offers – and the frequency with which they are sent – are among their top 3 pain points in their email relationships with retail brands.
Brands are commonly sending blanket emails with generic discounts that aren’t targeted to the consumer – and their low open and engagement rates (around 16% for open rates) are showing the impact of this strategy. In contrast, targeted emails and automated engagement emails are showing open rates as high as 20% to 31%.
“The need to leverage CRM data to send relevant, targeted offers has come to a critical point.” -Gartner L2, Discount Email Study, 2018
The secret to a successful relationships between retail brands and their consumers is in providing targeted discount offers that match the consumer’s needs & interest.
Brands that send fewer, but more relevant discount emails achieve higher open rates than brands that send more frequent, broad-based discount campaigns.
Overcoming Discount Email Fatigue
The results of the L2 study are clear: Retailers need to personalize, segment, and get creative on their messages.
One simple solution that allows for all of this to be done effortlessly is email remarketing. Email remarketing tools allow retail brands to send timely, highly targeted retail emails that convert at a higher rate – and that reach a more targeted audience as well. Instead of blanketing your entire email list with untargeted offers, follow up only with consumers that have shown interest – give them an incentive to convert – and reap the benefits with increased sales.
Here’s how it works:
- Install the ReachDynamics pixel on your website and on your conversion page.
- When a visitor comes to your website, considers your offer and leaves without providing any contact information, ReachDynamics automatically identifies your visitor and delivers a targeted email offer based on the page they visited.
- The visitor is surprised & delighted by this immediate, personalized follow-up in their inbox – and a discount offer that’s more enticing than what they found on the website. They return & convert!
Email remarketing addresses so many of the mistakes that retail marketers are making with their retail email strategy. It allows you an opportunity to:
√ Make a bigger impact with fewer email sends
√ Follow up in a timely manner with a relevant offer
√ Follow up with a simple automated program that converts for you 24/7
The study also provides additional insights in how you can overcome discount email fatigue by making a few small changes to your approach:
- Brands are under-utilizing product discovery subject lines & offers – which are often received well by consumers as useful personalization.
- Sending messages to fewer, more targeted segments is key. The study found that many of the discount emails are being sent to broad swaths of subscribers – and that there was often overlap with discount emails by competitors. There was very little differentiation.
- Brands that rely on formulaic subject lines such as “50% off [insert product name here]” need to explore differentiation to get attention. These subject lines simply aren’t working as they used to.
- Timing is key. It’s important to follow up on buyer intent quickly to get that sale. Tools like email remarketing that offer automatic delivery of a follow-up message will contribute to retail email success.
Brands across the U.S. are leveraging email remarketing to convert their prospects. Consider these statistics:
- A major weight loss & wellness organization increased the conversion rates of their affiliate marketing program by 22% by implementing email remarketing follow-ups. This resulted in 11,300 recovered sales from July 2017 to September 2018.
- Retailer 1ink recovered 566 lost sales with email remarketing in a one year period. Read the case study here.
- TireBuyer recovered several hundred orders with an autopilot follow-up program leveraging email remarketing. Read the case study here.
- National Debt Relief saw a 200% increase in leads when they began implementing email remarketing follow-ups on their landing pages. Read more.
Contact our team to set up a demo of email remarketing – and to learn how it may help your business recover lost sales and leads.