Latest / The Retention Marketing Podcast with Fexingo: Email, SMS, and Loyalty for Repeat Customers / How a CPG Brand Uses Email to Retain Customers Through Product Education
Transcript
- Lucas: Luna, we get a lot of pitches about loyalty programs and flash sales, but there is a quieter retention strategy that doesn't get nearly enough attention, and it's just teaching people how to use your product better. Luna: You mean like sending recipe ideas to a food brand's customers? That kind of thing? Lucas: Exactly. Product education emails. The idea is that if a customer understands the full range of what your product can do, they get more value from it, and they're far less likely to churn. And I think it's especially powerful for consumer packaged goods, where the product itself is relatively simple. Luna: So, before we dive deeper, this kind of conversation is exactly what keeps our show going. If these marketing discussions have sparked ideas you've actually used, and you want to keep us ad-free, you can support the show at buy me a coffee dot com slash fexingo. It's a small way to keep these episodes coming. Lucas: Thanks for that, Luna. Now, let's get into a specific example. I was looking at how Whirlpool approaches this. They don't just sell appliances; they send email sequences that teach you how to use your specific washer or oven more effectively. Luna: Right, because an appliance is a big purchase. If you don't use all its features, you might feel like you wasted money. But if you learn to use the steam cycle or the smart features, you're more satisfied. Lucas: And that satisfaction translates to loyalty. Whirlpool's emails are triggered after purchase, walking you through setup, then moving to maintenance tips, and later to recipes that use their oven's special modes. It's a classic onboarding sequence applied to a physical product. Luna: So it's not just about sending a 'thank you for buying' email. It's a structured curriculum. Lucas: Exactly. And the data suggests it works. Whirlpool saw a significant increase in repeat purchases and brand advocacy from customers who engaged with those educational emails. They were also more likely to register their appliance and sign up for the extended warranty. Luna: That's interesting. But for a smaller CPG brand, how do you apply that without a huge budget? Lucas: You don't need a huge budget. You need a solid email marketing platform and a willingness to map out your customer journey. Start with a simple welcome sequence that educates, not just sells. You can create a series of three to five emails that teach a new customer how to get the most out of your product. Luna: And what about timing? When do you send these educational emails? Lucas: Timing is crucial. The first email should go out immediately after purchase, but it should be about usage, not a thank you. Then, space out the next ones based on typical usage cycles. For a coffee brand, that might be daily or weekly. For a cleaning product, maybe every two weeks. Luna: But how do you avoid annoying people? If I buy a pack of sponges, I don't want an email every day. Lucas: That's where segmentation comes in. You can track engagement and purchase history. If someone opens every email and clicks, you can send more. If they haven't opened in a month, you might pull back and send a win-back offer instead. It's all about respecting the customer's attention. Luna: So, what metrics should you watch to know if your educational emails are actually driving retention? Lucas: Open rates and click-through rates are useful, but the real metric is repeat purchase rate. You want to see if customers who engage with the educational sequence are more likely to buy again within a certain window compared to those who don't. Luna: That makes sense. But what if your product isn't as complex as an appliance? Like, say, a snack bar. How do you educate someone about a snack bar? Lucas: Great point. For simpler products, education can be about new usage occasions. For a snack bar, you can send recipes that crumble it over yogurt, or a guide to pairing it with coffee. You're expanding the occasions when they think of your product. Luna: So it's about shifting from a single-use product to a versatile ingredient. Lucas: Exactly. And that's what we see with brands like Omsom, the Asian sauce brand. They send emails with recipe ideas and cultural context, teaching you how to use their sauces beyond just stir-fry. It's a way to build a deeper connection. Luna: I've seen that. Their emails feel more like a cooking class than a sales pitch. Lucas: And that's the key. It's not about selling in every email. It's about providing value. When you do that, the selling comes naturally when the customer is ready to reorder. Luna: But there's a balance. You don't want to become a magazine that never mentions your product. Lucas: Right, you have to intersperse educational content with promotional offers. A good rule of thumb is the 80-20 rule: eighty percent value, twenty percent direct asks. But even the direct asks can be framed around education, like a 'restock reminder' that also includes a tip. Luna: So, what's a concrete example of a company that's doing this really well right now? Lucas: I think Grove Collaborative is a great example. They sell cleaning and personal care products, and their emails include guides on how to use refills, how to compost, and even DIY recipes. They're teaching you to be more sustainable, which aligns with their brand mission. Luna: That's smart because it positions them as a partner in your lifestyle, not just a store. Lucas: And it works. Their repeat purchase rate is high, and they have a strong community of advocates. The education creates a sense of shared values. Luna: But doesn't that require a lot of content creation? Writing recipe guides or usage tips for every product is time-consuming. Lucas: You don't have to do it all at once. Start with your top-selling products and create a few educational emails for each. Then, repurpose that content across SMS and social media. You can also leverage user-generated content, like asking customers to share their own tips. Luna: So, what's the one thing you want our listeners to take away from this episode? Lucas: It's this: education is retention. If you can teach your customers something new about your product, you're not just selling a transaction, you're building a relationship. And that relationship is what keeps them coming back. Luna: That's a good note to end on. Next time you're planning your email calendar, think about what your customers don't know about your product yet. Lucas: And if you want to see an example, look at Whirlpool's email sign-up. You'll see how they nurture you from new owner to brand advocate.