Online retailer boosts customer retention through email subscriptions

Even though online retailers often have access to their customers’ email addresses, that doesn’t mean they should automatically add them to their email marketing lists. Filters Fast, an online company that sells air and water filters, recently found that voluntary opt-in subscriptions are key to bolstering customer retention.

The firm told InternetRetailer that it had previously added customers to its mailing list when they purchased a filter. However, these messages had a low click-through rate between 1 and 2 percent. In March, the retailer dropped this program and instead enabled consumers to sign up for a reminder service.

Overall, 5 percent of the site’s customers have opted into the program, and Filters Fast president Ray Scardigno expects 15 percent of his audience to sign up before the end of the year.

Email marketing campaigns are so effective because of how much time consumers actively spend checking their inboxes. A recent report from Nielsen indicates 8 percent of American online activity and 38 percent of mobile phone usage is devoted to reading emails.

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