In this post we’re going to break down how Peak Design, an eCommerce company that sells gear for creative and adventurous people, uses a two-step welcome email series to introduce first time customers to the brand, and at the same time encourage that all important second purchase.
Only 32% of customers place a second order in their first year as a customer
Once you take into account all customer acquisition costs such as:
- Advertising costs to acquire that customer (AdWords, Facebook and Instagram ads)
- Employee labour
- Outsourced packaging costs
There isn’t that much profit made from that first sale. Generally the profits come from repeat purchases as you grow your customer lifetime value.
Now while 32% may seem like a small percentage of customers placing a second order, one thing to note is that once they make that second purchase they’re 53% more likely to make a third, 64% to make a fourth purchase and 70% more likely to make a fifth purchase.
In the graph below you can see the increase in the repeat purchase probability (RPP) as a customer makes additional purchases.
If the RPP increases to 53% after the second purchase, focusing on getting that second purchase dramatically improves the chance that this person will turn into a very profitable customer for your business.
So how do we encourage that second purchase?
Introduce a First Purchase Welcome Series
Using eCommerce email marketing software, you’ll be able to trigger a welcome series for all customers that make their first purchase.
Setting up a segment where Conversion Count is 1 over the customer’s entire history (All Time), we’re able to build a dynamic list of first purchase customers.
Welcome Email Series Strategy
This welcome email series is from Peak Design (disclosure: they are a customer of Rejoiner).
Their campaign has generated a little over $150,000 in the last 12 months (March 2016 to February 2017).
Their welcome series email strategy is as follows (you’ll see these points in action in the creative down below):
- Welcome first time customers to the Peak Design Family
- Direct them to cool ‘New Stuff’ they can purchase
- Introduce customers to the Peak Design lifestyle with high quality images of people outdoors using their products (these images future pace what their life will look like once they get to use the product they purchased)
- Convey the brand message:
- ‘We launch new products often, because we believe there’s always a better way to solve a problem’
- ‘We don’t listen to anybody but our own customers’
- Introduce customers to social channels (particular Instagram & YouTube due to the nature of Peak Design’s business)
- Direct customers to instructional videos so they can learn how to use their products properly (which helps ease the pressure on customer support)
- Make recommendations for products that work well with their first purchase
Now we’re going to break down their 2-step email welcome series so you can see all of these points in action.
Welcome Email Series Breakdown
Peak Design trigger the first email 30 minutes after the first purchase is made. This gives the customer time to receive and read their payment and shipping emails. If we triggered the welcome email to send right away, it may get lost or archived with the rest of the emails.
The From name is cleared labeled after the brand name (Peak Design) so the customer can instantly recognise who the email is from, and because they’ve just made a purchase, they’ll be more likely to open the email.
The subject line uses short and sweet messaging and seems to be working quite well. Below you can see the open rate for the first email is 72%…
Now here’s the creative of the first email…
Welcome Series Campaign Results
A few things to note with this first email from a results point of view:
- The open rate is very high (which is expected) as they have just made their first purchase with a new brand and are likely excited about what’s to come in the mail.
- While the CTR is a little lower than the second email, the first email does a better job at encouraging that second purchase, with it generating almost 2/3rd’s of the revenue for this campaign.
Now let’s look at the creative of email two…
Email two is triggered to send 7 days after the first purchase is made. By now the customer would have received their product or is just about to receive it.
This emails core focus is on providing tips and tricks for using their new gear, the email opens with two big call to action (CTA) buttons (one being an image with a YouTube play button) directing the customer to Peak Design’s instructional videos where they can learn how to use the product they have purchased.
Below that, the email then leads the customer to their FAQ / Support Center where they can look at product manuals, featured articles or even request to ‘talk with a human’.
The top half of the second email has the main goal of educating prospects on their new purchase so that they have an excellent customer experience.
Instead of selling at the top of email two, they offer recommendations with the following copy and CTA buttons with relevant images:
Email two generates a bit over ⅓ of the revenue for this welcome series by smartly recommending items that work well with the customers main purchase.
Here’s a deeper look into the results of email two…
Email Two Campaign Results
Email two has a much higher CTR (26%) compared to email one (11%) and still generates a good portion of revenue by recommending items that are frequently purchased together.
What to do now
- If your eCommerce company is looking for email marketing software and a team to help you launch your email marketing program from scratch, then I suggest you start with a free ROI report to calculate your revenue from email after switching to Rejoiner.