How to Reduce Newsletter Unsubscribes: Strategies to Retain Customers and Build Loyalty

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Olha Bielik

Did you know that acquiring a new customer is five to seven times more expensive than retaining an existing customer? This is stated in almost every article about loyalty strategies. In Netpeak's experience, the same rule applies to newsletter subscribers. On average, keeping a contact active in the database will cost a company seven times less than acquiring a new subscriber.

In this article, I'll talk about the top reasons people unsubscribe, ways to increase email campaign performance, and how to enhance email newsletters to help retain customers and improve brand loyalty.

Customer retention in numbers
Let’s start by taking a look at some statistics about the paraguay number dataset of retention marketing.

Small businesses get up to 35% of their revenue from their 5% of most loyal, repeat customers.
Loyal customers spend 67% more than new customers.
Approximately 33% of customers will leave if the brand lacks personalization.
The loyalty management market is estimated at $6.47 billion and is expected to reach $28.65 billion by 2030. The compound annual growth rate is approximately 23.7%.
Up to 50% of marketers consider brand loyalty one of their primary content marketing objectives.
Numbers speak louder than words. These metrics make it easy to see how painful it is for a business to lose customers.

It's also easy to correlate purchases and emails: according to the seven-touch theory, a customer must contact a business an average of seven times before completing a transaction. Retention marketing with emails, messengers, and app notifications is the best way to do this.

Therefore, each unsubscribed customer should be considered an indirect loss to the business, albeit an indirect loss.

The relationship between retention and loyalty
In business, loyalty programs are often used as mechanisms to encourage repeat purchases. In a broader sense, referral programs, cashback systems, bonus rewards for purchases, and other tools to attract users are only part of organic loyalty.

Misunderstanding of these concepts can lead to misuse of the advertising budget. Instead of working on fostering true loyalty, the brand implements more “push” mechanics to get customers to make a purchase; this obsessive approach will do nothing more than annoy and alienate potential customers.

Organic loyalty refers to a consumer's strong attachment to a particular brand, positive attitude toward the company's policies and representation, and willingness to recommend the company's products or services to others. All of these factors lead to repeat purchases.

A truly loyal customer is one who:

Shares the company's values and mission;
Identifies with the company;
Feels involved in the company's social positioning.
These users become brand advocates: their choice of product or service is based on much more than price and the number of bonus points they receive from the purchase. Even if competitors offer cheaper products, brand loyalists will not be tempted to switch.