#112. Identifying and Using a Churn Risk Segment | Podcast

Vira: 0:41

Hello everyone and welcome to Email Einstein the podcast by Flowium. I’m your host, Vira Sadlak. I’m an email marketeer and an agency called Flowium. Here at Flowium, we are very, very passionate about what we do. Honestly, we’re the biggest email marketing nerds and because we love what we do, we want to share our insights with you. Flowium is one of the fastest growing email marketing agencies in the world. We specialize in providing premium full service e commerce marketing experience to all of our clients. We deliver the right message to the right person at the right moment. That’s what we are all about here at flowium. And today’s episode will be actually exploring exactly that. Delivering the right message to the right person. Today we will be discussing one more super easy but super exciting segmentation strategy. Also guys, this episode today will be a bit different. Instead of giving you almost like an hour long speech on different segmentation strategies, different tools as we usually do, we’re going to focus on a single strategy. Today the episode will be short and sweet. I think it will be around 10 minutes. But this is the strategy that you can learn about and implement right away in your business. So hopefully after today’s episode you will have something actionable that you will walk away with. And I’m sure all of your businesses can benefit from this strategy. But before we go there guys, I just wanted to really quickly remind you that the holiday season is coming and actually we’ve prepared this really cool Black Friday Cyber Monday and holiday email marketing guide created by our CEO Andriy. And actually in this book we’ve gathered all of the most effective try and true Black Friday Cyber Monday strategies. All of the research, we poured our hearts into this book. So it’s definitely a good one. If you want to learn more about it, go to flowium.com holiday and actually starting probably October, we’re going to be talking a lot more in depth about the holidays. So this book is kind of let’s a good book for you to start preparing for the holidays. Cool. Okay, so let’s go to the segments. So today guys, we will be talking about so called Churn Risk segment Some people also call it the lapsed customer segment. Basically, research shows that approximately 80% of your company’s future revenue will come from 20% of your existing customers. So here you have the 8020 rule again. In other words, your team ideally should not only focus on bringing the new lead leads to your website, to your brand, but also using the existing one and ensuring that your existing customers are still gaining value from your content, from your brand, no matter how long they’ve been with you. And the segment that we will be talking today about is called the Churn Risk. Lapsed Customer. It’s a vital segment to have in your account. It’s a vital segment to have as a part of your strategy. This segment basically tests the likelihood of a group or a customer to stop purchasing entirely from you or to move to the other competitor. You can basically target these people through your Winback series, through your Winback Automations. And by the way, we discussed the Winback automations back in the day here on this podcast. But ideal combination, ideal combo is when you actually marry the two, when you marry the strong win back flow, but also when you have some win back campaigns in place as well. Of course, win back flow is always a good idea to automate the process, but the campaign is where you can actually make it even more personable, even more timely and even more relevant to the customer. So right now I’m going to discuss the definition of the Churn Risk segment. This definition is from Klaviyo. So if you’re using other email marketing platforms, this definition might be a bit different for you guys, but the logic is still the same behind it. So it should work for all of your email marketing efforts no matter what platform you’re using. So here you go. Churn Risk segment. So definition is first of all, the person should be someone who has purchased at least once from you over all time. So this person is your customer no matter when they purchase. So they’ve purchased from you at least one and this person should also be someone who have placed zero orders in the last 180 days, meaning that yes, they’ve purchased from you, but the purchase was not recent. And this person should be someone who have received email at least two times in the last three months and they opened zero emails in the last three months. And obviously this person should not be suppressed. So again, the person should be someone who have placed at least one order with you and they placed zero orders in the last 180 days and they receive at least two emails from you in the last 90 days. They open zero times and they are not suppressed. I like this definition of a segment more than someone who just haven’t purchased from you in a while because it basically cover, it’s more like segmented down. It’s basically targeting people who haven’t opened the emails even though you were trying to reach them. Right? It also targeting people who haven’t purchased anything from you. And I think it’s a great way to sort of like segment out that group of people. Now I’ve mentioned this number of days, like six months and like three months, like 90 days and stuff like that. Obviously this is like a generic example. If you are say selling the mattresses, you probably wouldn’t consider someone inactive after a year of not buying another mattress, right? Because the life cycle of the product is longer. And also since this is a high value, high quality items like this, they are like created to hold up for years, right? So your customer probably won’t need another one for know like 5 years or 10 years. If you would be selling like mattresses, that’s the whole. Or sorry, the socks. If you would be selling the socks, that would be a whole different story. It would be more reasonable for you and your customers to make the repeat purchases more closely together since they are probably going through socks more frequently. You know what I mean? So if you’re just like getting started with the win back campaigns or like winback series, consider like experimenting with the amount of time you use as a threshold. Because before sending a winback email to customers. So obviously it all comes down to understanding your customer’s behavior. Customer’s typical journey. We usually go with something like as little as like 60 days for the winback series. But again it all comes down to what product you are selling and what’s your customer sort of like behavior is. So here you have it. You have one quick, tried and true strategy. This is basically like a more advanced version of the win back segment for you to try this month. Definitely, definitely talk to these people. I know sometimes you might think that winning back your inactive email list subscriber and customers like trying to squeeze water out of a stone, that no matter what you do, they will never come back. Well, in reality that’s not true. You can still win some of those people back. And given that it’s at least five times more expensive to acquire a new customer than to retain an existing one. And win back email campaigns are actually must haves in your email marketing arsenal. So here you have it. A fun little strategy to try send some promotion to these people. Maybe remind about yourself. Maybe give them additional discount or additional little nudge, you know to make that purchase. Definitely don’t give up on those people. They are your valuable customers. They know your brand already. They’ve purchased from you already. So don’t give up on them. Try this strategy. We’ve tried it internally many times. It does work. It does bring the revenue. So here you have it. The short and sweet episode, right? I hope you guys enjoyed it. If you have any questions or if you need our assistance with anything, honestly, just like reach out to us. We’re always happy to talk to fellow e commerce entrepreneurs and fellow e commerce enthusiasts. And just a quick reminder, if you guys want to learn more about different like Black Friday Cyber Monday strategies and if you want to start preparing for that season early, go to flowium.comholiday where you will be able to get that that like book of all of the tried and true strategies. And thank you so much for listening. As always, don’t forget to subscribe and share this podcast with your friends. And thank you so much for listening and we will see you here next week.