Online shopping has revolutionized the retail industry, allowing consumers to shop from anywhere, at any time, and with a vast selection of products at their fingertips.
However, this convenience also presents a challenge for online stores to establish customer loyalty and retention.
According to the Harvard Business Review, acquiring a new customer can cost five to twenty-five times more than retaining an existing one.
In this report, we discuss the benefits of sending private and personal thank you videos to customers and how it can improve customer retention and loyalty.
Why video inside marketing emails works so well
Video adds a human touch:
One of the biggest advantages of video in email marketing is the ability to add a human touch to your communication. Video allows you to showcase your brand’s personality, share real-world experiences, and connect with your audience in a way that text-based emails can’t. By using video, you can convey emotions, build trust, and make a genuine connection with your audience. This helps to build stronger relationships and ultimately leads to increased customer loyalty.
Video is engaging:
People are more likely to engage with video content than any other form of content. According to a report by Wyzowl, 84% of people say they’ve been convinced to buy a product or service after watching a brand’s video. Video is a great way to demonstrate your product or service in action, showcase your value proposition, and highlight your brand’s unique selling points. By using video in email marketing, you can capture your audience's attention and keep them engaged for longer periods of time.
Video boosts conversions:
Finally, video in email marketing has been shown to boost conversions. Adding video to your email can lead to increased click-through rates, higher conversion rates, and ultimately, more revenue. According to a report by Campaign Monitor, adding video to your email can increase click-through rates by up to 300%. Another report by HubSpot found that including the word "video" in an email subject line can increase open rates by 19%. By using video in your email marketing campaigns, you can increase the likelihood of your audience taking the desired action, whether it’s to make a purchase, book a demo, or schedule a call.
The Performance of Thank You Video
Thank You Video is an innovative platform that helps online stores establish customer loyalty and retention through personalized thank you videos.
We enable online store owners to send private and personal videos of thanks to their customers, made possible because of the automation in our platform and integrations to popular ecommerce packages.
Our aggregate platform statistics are as follows:
>75% email open rates
>75% email click through rates
Typically each video is watched 2.4 times
16.9% of emails opened, were opened 6 times or more
20.1% of videos were watched 3 times or more
Typical email open rates are around 20%, with click-through rates averaging around 2-3%, as reported by Campaign Monitor, depending of course on the industry your are in - so we are delighted with the performance above.
Below we explore some of the reasons why we are seeing superior marketing engagement metrics with private and personal thank you videos for online stores, and why integrating these with your other marketing initiatives can help you drive improved business growth.
Challenge of Customer Retention and Loyalty for Online Stores:
Many online stores struggle with customer retention and loyalty, as customers are often tempted to shop around for the best deals.
According to research by McKinsey & Company, 75% of consumers report that they are willing to try new brands or products, which can make it difficult for online stores to build long-term relationships with customers.
This is why personalization has become increasingly important, as it can help businesses stand out from the competition and create a more meaningful connection with customers.
According to research by Sumo, the average online store has a 60% to 80% drop off rate after the first purchase, which means that the vast majority of customers will never return to make a second purchase.
Additionally:
According to a report by RJMetrics, the average ecommerce store has a customer retention rate of just 32%. (Source: RJMetrics)
A study by Barilliance found that the average repeat purchase rate for ecommerce stores is 27%. (Source: Barilliance)
In a survey by Annex Cloud, only 13% of respondents said they were loyal to a single brand, and 73% said they were willing to consider switching brands. (Source: Annex Cloud)
According to a report by Invesp, returning customers are worth nearly 2.5 times as much as first-time customers. However, the report also found that only 32% of customers make a second purchase, and just 14% make a third. (Source: Invesp)
A study by Adobe found that customers who make repeat purchases are more likely to spend more money per transaction than first-time customers. (Source: Adobe)
This high drop-off rate can be attributed to a variety of factors, including lack of personalization, poor customer service, and a lack of connection between the customer and the brand.
Case Study: Koerner Wines
Koerner Wines, a winery based in South Australia, began using the Thank You Video app to send personalized and private thank you videos to each customer after their purchase.
After using the app for 20 weeks, Koerner Wines reported a 46% increase in repeat sales. The thank you videos created a more personal connection between the winery and its customers, which helped to foster a sense of loyalty and community.
The winery also found that customers were more likely to share their positive experiences with others, which led to increased word-of-mouth referrals and brand awareness.
Takeaway
This case study highlights the power of personalized thank you videos in improving customer retention and loyalty. By creating a more personal connection with customers, businesses can build trust, foster loyalty, and increase repeat sales.
Challenges of Converting Online Customers into Face-to-Face Store Visits:
One of the major challenges for online stores is to convert online customers into face-to-face store visits. According to a study by Harvard Business Review, customers who shop both online and in-store are more valuable than those who only shop through one channel.
However, the same study found that only 7% of customers shop exclusively online, while 20% shop exclusively in-store, indicating that it is challenging to encourage customers to shop across both channels.
According to research by Google, 61% of shoppers prefer to do their research online before making a purchase in-store, but only 17% of them actually visit a store. This can make it difficult for businesses to drive traffic to their physical locations, even if they offer great products and services.
Case Study: Winery Delighting Customers with Thank You Video
A winery, located in South Australia's Clare Valley, has had success in converting online customers into face-to-face store visits through the use of Thank You Video.
After receiving a personalized thank you video following a two-bottle online purchase, one customer was so delighted that they did a 100km detour to visit the winery's cellar door with some friends. The group ended up spending $1000 in person on more bottles of wine.
Takeaway
This example highlights the power of personalized thank you videos in creating an emotional connection with customers that can translate into in-person visits and purchases. The Thank You Video app provides an easy and effective way for businesses to create these personal connections and drive customer engagement, which can result in increased sales and loyalty.
Benefits of sending thank you videos to your customers:
Meet Your Consumer's Desire for Authenticity:
One reason why personal thank you videos may resonate with consumers is that they are seeking deeper and more meaningful relationships with brands.
According to research by Edelman, 81% of consumers report that they need to trust a brand before they buy from them, and 63% of them say that they want to buy from brands that stand for something.
Additionally, 67% of consumers say that they have stopped buying from a brand because they didn't trust them. This demonstrates the importance of building trust and authenticity with customers, which can be achieved through personalized and private thank you videos.
Enhance Customer Experience:
Thank You Videos are a powerful tool to enhance the customer experience. By sending a personalized video, businesses can show their customers that they genuinely care about them and value their business. This personalized touch creates a memorable and positive experience, which can lead to increased customer satisfaction, loyalty, and retention.
Improve Customer Retention:
Thank You Videos can help businesses improve customer retention by creating a deeper connection with their customers. Customers who feel appreciated and valued are more likely to return for future purchases, and thank you videos are an excellent way to accomplish this.
Increase Sales:
Sending Thank You Videos can also lead to increased sales. A personalized thank you video can encourage customers to come back to the business for future purchases, leading to higher revenue and profits.
Boost Brand Awareness:
Thank You Videos can also help businesses boost their brand awareness. When customers feel appreciated and valued, they are more likely to share their positive experiences with others, which can lead to increased word-of-mouth referrals.
Improve Email Engagement:
The high email open and click-through rates associated with Thank You Videos demonstrate that customers are highly engaged with this type of content. This engagement can lead to increased email deliverability, improved email reputation, and more effective email marketing campaigns.
Provide Valuable Customer Insights:
The Thank You Video app provides businesses with valuable customer insights. By tracking which videos are watched multiple times and which emails are opened multiple times, businesses can gain insights into which customers are most engaged and which products or services are resonating with them.
Conclusion:
By sending personalized and private thank you videos to each customer, businesses can enhance customer satisfaction, improve retention, increase sales, boost brand awareness, improve email engagement, and gain valuable customer insights.
The Thank You Video app provides businesses with a powerful tool to create exceptional customer experiences.
With the high email open and click-through rates associated with Thank You Videos, businesses can be confident that their efforts will be well-received by their customers.