In this episode, Nathan and Josh discuss the incremental revenue available through email and SMS marketing. They emphasise that while email and SMS are important communication channels, the true drivers of retention and revenue are merchandising and operations. They explore the concept of purchase intent and how it affects the effectiveness of email and SMS campaigns. They also delve into the importance of understanding the customer journey, leveraging reviews mining for messaging, and creating novelty and exclusivity through merchandising. They highlight the need for a comprehensive retention strategy that goes beyond email and SMS marketing. In this conversation, Josh Tay discusses the importance of novelty and exclusivity in email marketing to drive repeat purchases. He emphasizes the need for brands to create variations and new products to keep customers engaged and interested. Josh also highlights the significance of product consumption and value maximization in retaining customers. He explains the role of segmentation in email flows and the importance of tracking metrics and forecasting for effective email marketing strategies. The conversation concludes with a discussion on the future of email agencies in the face of AI.

Takeaways

- Email and SMS marketing are important communication channels, but the true drivers of retention and revenue are merchandising and operations.
- Understanding purchase intent is crucial for effective email and SMS campaigns.
- Reviews mining can provide valuable insights for messaging and product development.
- Creating novelty and exclusivity through merchandising can drive customer repurchases.
- A comprehensive retention strategy goes beyond email and SMS marketing and involves understanding the customer journey and creating switching barriers. Novelty and exclusivity are crucial in email marketing to maintain customer interest and drive repeat purchases.
- Creating variations and new products helps to keep customers engaged and prevents them from getting bored.
- Product consumption and value maximization are key to retaining customers and creating true retention.
- Segmentation in email flows allows for more targeted and effective communication with different customer segments.
- Tracking metrics and forecasting are essential for understanding the effectiveness of email marketing strategies and setting goals.
- The future of email agencies lies in their ability to provide strategic insights and understand the wider business context, as AI may automate certain aspects of email marketing.

Chapters

00:00 Introduction and Background
02:04 The Role of Merchandising and Operations in Retention and Revenue
06:19 Understanding Purchase Intent for Effective Email and SMS Campaigns
13:50 Leveraging Reviews Mining for Messaging and Product Development
18:14 Creating Novelty and Exclusivity through Merchandising
23:34 Going Beyond Email and SMS: A Comprehensive Retention Strategy
32:38 Driving Repeat Purchases with Novelty and Exclusivity
37:27 The Role of Product Consumption in Retention
46:27 Segmentation and Targeted Communication in Email Flows
51:02 Tracking Metrics and Forecasting for Effective Email Marketing
55:09 The Future of Email Agencies in the Age of AI