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Email Marketing intermediate 45-60 minutes

How to Use Email Marketing for Customer Retention

Learn how to turn one-time buyers into lifelong advocates using strategic email automation and personalised retention campaigns.

Michael 25 January 2026

In the competitive Australian business landscape, it is often five to ten times more expensive to acquire a new customer than it is to keep an existing one. Email marketing is the most effective tool in your digital arsenal for building loyalty, increasing lifetime value, and ensuring your Brisbane business remains top-of-mind.

Prerequisites

Before you start, ensure you have the following:
  • An email marketing platform (e.g., Mailchimp, Klaviyo, or ActiveCampaign).
  • A clean, permission-based subscriber list (compliant with the Australian Spam Act 2003).
  • Basic customer data (purchase history, first names, and sign-up dates).
  • A clear understanding of your customer’s typical buying cycle.

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Step 1: Audit Your Current Customer Data

You cannot retain customers if you don’t know who they are. Start by exporting your customer list from your POS or e-commerce system into your email platform. Ensure you have fields for 'Last Purchase Date' and 'Total Spend'. What you should see: A table or dashboard showing your subscribers with columns for their name, email, and the date they last engaged with your business.

Step 2: Segment Your Audience for Relevance

Sending the same email to everyone is the fastest way to increase your unsubscribe rate. Create segments based on behaviour:
  • VIPs: Your top 10% of spenders.
  • Lapsed Customers: Those who haven't purchased in 3-6 months.
  • New Customers: Those who made their first purchase in the last 30 days.

Step 3: Set Up an Automated Post-Purchase Sequence

Retention starts the moment a sale is made. Create a 3-part automation:
  • The Thank You (Immediate): Express genuine gratitude. Don't sell; just thank them.
  • The Value-Add (3 days later): Send a 'How-to' guide or tips on how to get the most out of their purchase.
  • The Check-in (14 days later): Ask if they are happy with the product/service.

Step 4: Implement a 'Win-Back' Campaign

Identify customers who haven't interacted with your brand for a specific period (e.g., 90 days). Design an email with a subject line like "We miss you, [Name]" or "A special gift for our favourite customers." Offer a time-sensitive discount or a free gift with their next order to incentivise a return visit.

Step 5: Personalise Beyond the First Name

Australian consumers value authenticity. Use 'Merge Tags' to reference specific products they bought. Instead of saying "Check out our new arrivals," try "Since you loved your [Product Name], we thought you'd like these."

Step 6: Create an Exclusive VIP Club

Reward loyalty by making your best customers feel like 'insiders'. Create a segment for customers who have purchased three or more times. Send them early access to sales, invite-only events in Brisbane, or 'sneak peeks' at new services before they launch to the general public.

Step 7: Optimise for Mobile Users

Over 60% of Australians check their email on mobile devices while commuting or on lunch breaks. Use a single-column layout, large buttons (the 'fat finger' rule), and ensure your text is at least 16px. What you should see: In your email editor, use the 'Mobile Preview' toggle to ensure no text is cut off and images scale correctly.

Step 8: Ask for Feedback and Reviews

Retention is built on trust. Send an automated email 7-10 days after a service is completed asking for a Google Review. If they provide negative feedback privately, you have the chance to fix the issue before they churn.

Step 9: Celebrate Milestones

Use the 'Date' field in your CRM to send automated birthday or 'Anniversary' emails. A simple "Happy 1st Anniversary with [Business Name]" accompanied by a small discount code humanises your brand and builds an emotional connection.

Step 10: Monitor and Adjust Your 'Churn' Metrics

Check your 'Unsubscribe' and 'Open' rates monthly. If your unsubscribes spike after a specific email, review the content—was it too salesy? Was the frequency too high? Use these insights to refine your strategy.

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Pro Tips for Success

  • The 80/20 Rule: 80% of your emails should provide value (tips, news, stories), and only 20% should be hard-sell promotions.
  • Localise Your Content: Mention local Brisbane events or weather. It proves you aren't just a bot sending mass emails from overseas.
  • Use A/B Testing: Test two different subject lines on a small portion of your list. Send the 'winner' to the rest of the group to maximise opens.

Common Mistakes to Avoid

  • Ignoring the Australian Spam Act: Always include a clear 'Unsubscribe' link and your physical business address. Failing to do so can lead to heavy fines from ACMA.
  • Buying Email Lists: Never buy lists. It destroys your sender reputation and ensures your emails end up in the 'Junk' folder.
  • Inconsistency: If you only email when you want money, customers will notice. Stay consistent with a monthly newsletter at minimum.

Troubleshooting

  • Emails going to Spam? Check your SPF and DKIM records in your domain settings. Ensure you aren't using 'spammy' words like "CASH," "FREE," or excessive exclamation marks in subject lines.
  • Low Open Rates? Your subject lines might be boring. Try using emojis (sparingly) or creating a sense of urgency.
  • High Unsubscribe Rates? You may be emailing too often. Try reducing frequency to once a fortnight or once a month.

Next Steps

Now that you've laid the groundwork for customer retention, it's time to scale.
  • Review your current customer list and segment them today.
  • Draft your first 'Post-Purchase' automation.
  • If you need help setting up complex automations or integrating your POS with your email platform, the team at Local Marketing Group is here to help. Contact us today to discuss a tailored retention strategy for your business.
Email MarketingCustomer RetentionMarketing AutomationSmall Business Tips

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