How to Use Follow-Up Emails to Boost Customer Retention
at customer data based on their behaviour and the overall purchasing patterns. To identify the effects the communication yields the data is compared with a control group which does not receive any communication. According to J Nielsen, author of Measuring usability preference vs. performance. Communications of the ACM data from for example surveys or focus groups can be misleading as the participating individuals can base their answers on
doubtful recollections of memories and give answers that they believe are expected to give. Therefore the loyalty members’ own opinions and personal perception will not taken into consideration. The presented research will focus on personalized email communication from large businesses with loyalty programs without any major possibilities of e-commerce. It will
only regard communication that is somehow targeted and personalized based onKaplan is one of the leading customer management firms in Scandinavia and is based in Stockholm. Kaplan helps large businesses manage and loyalize their customers through technological, strategic, analytical and creative solutions by using technologies within CRM, CEM, data analytics and relationship marketing. They also help companies create customer experiences
Multi Channel Touchpoints
The work differs from client to client as they have different needs and are active in different industries. Kaplan’s client, who this thesis bases its results on, has outsourced some of the processes involving their communication with their loyalty program members to Kaplan, both technical and creative. Kaplan are curious of what effects their customer communication have and what possible improvements can be made.web technologies such as HTML. These
technologies enable email to contain images and links (Reichhart et al 2013). Designing a visually appealing email with an interesting subject line and customized landing page can increase conversion rates (meaning the percentage of visitors who take a desired action) by more than 25 percent (Aufreiter, Boudet and Weng 2014). Emails can be received across
devices with internet connection. As mobile devices have developed and smartphones have become the standard, emails are increasingly being read from the mobile phone (Hartemo, 2016). Nearly 45 percent of all marketing emails today are opened on a mobile device (Aufreiter, Boudet and Weng 2014).Studies suggest that strictly mobile media such as text-messages are perceived to be more personal and can lead to feelings of invasion of privacy.
Marketing Communication In
mobile media is challenging because of the personal nature of the mobile medium and because consumers are not able to notice that the communication is of commercial nature until it is opened (Heinonen, Strandvik 2007). This questions its effectiveness as a marketing channel compared to other media, for example email. Jayawardhena et al. (2009) presents a
study that shows that trust and customer loyalty can be increased by offering control options for the customer. If a customer has power over the communication and can freely choose when to cancel the subscription and when to re-activate it, the overall customer loyalty towards the business increases.etplace Model The marketplace business model allows retailers to tap into enormous pools of potential customers by selling products on large third-
party platforms. Sites like Amazon, eBay, and Etsy have amassed huge networks of online shoppers who turn to them for a wide range of goods (Kilhoffer, 2020). By making offerings available through these established destinations, merchants gain exposure to enormous xisting audiences in just a few clicks. This onboarding requires no costly development of a customer base from scratch, as sellers essentially piggyback on platforms' existing traffic
Reputations Given The Scale
and reach provided, the marketplace structure presents an efficient avenue for companies to instantly reach vast new markets right from when debuting online. While the marketplace model enables access to huge customer networks, merchants must share revenues generated with the platforms themselves. Major marketplaces like Amazon and eBay typically
charge commissions on sales completed through their sites, often around 15%, but varies based on product or performance metrics (Angeloni and Rossi, 2021). This represents the cost of utilizing their established brands, payment systems, fulfillment support, and massive preexisting buyer pools. However, these fees still often undercut expenditures required to achieve comparable traffic, sales, and transactions independently. The commission structure
thus presents a calculated expense against the scale advantages of plugging into enormously widespread environments where high volumes of buyers effortlessly find, purchase, and pay for products through trusted marketplace interfaces on a daily basis. Customer retention is crucial for the long-term success of e-commerce fashion businesses in the United Kingdom
Conclusion
This literature review aims to provide a comprehensive overview of the relationship between customer retention and e-commerce fashion businesses in the UK, exploring the factors influencing customer retention, the strategies employed by businesses, and the impact of customer retention on business performance. Customer retention plays a vital role in driving growth and profitability in e-commerce fashion businesses. Research by Verhoef et al. (2017)
highlights that retaining existing customers is more cost-effective than acquiring new customers. Furthermore, customer retention is associated with increased customer lifetime value and positive word-of-mouth referrals (Lee et al, 2006). Various factors influence customer retention in the e-commerce fashion sector. Personalization and customization of products and services play a significant role in enhancing customer loyalty (Chen, 2018).
Additionally, customer satisfaction, trust, and perceived value positively affect customer retention in ecommerce fashion businesses (Chan and Lam, 2004). E-commerce fashion businesses employ several strategies to improve customer retention. (Becker et al, 2018) highlight the importance of implementing loyalty programs, personalized marketing communication, and effective customer relationship management (CRM) systems. Social
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