How to Use Email Marketing to Boost Your SaaS Customer Lifetime Value

Understanding the value of each customer over their lifetime (Customer Lifetime Value - CLV) is vital to your business's growth and sustainability.

Enhancing CLV through email marketing is not some grand new idea. But it does work. So why reinvent the wheel?

In this article, we'll uncover how to harness the power of email marketing to boost your SaaS.

Why CLV Matters for SaaS Business

In the SaaS model, the customer-business relationship isn't a one-and-done deal. It's about cultivating a long-term relationship where your customer finds consistent value in your service, leading to ongoing subscription renewals and potential upgrades.

Raising CLV implies both increasing the revenue from each customer and lengthening their lifespan. This is where email marketing steps into the spotlight.

The Role of Email Marketing in Boosting CLV

Email marketing is often viewed as an acquisition channel. However, its power extends beyond that, serving also as a platform to retain existing customers. Regular, value-adding communication via email helps keep your service top-of-mind and reinforces the value your customers gain, motivating subscription renewals.

Here are a few other avenues:

  • Upsell and Cross-sell: By providing tailored suggestions for upgrades or other products your customers might benefit from, you're enhancing their experience while increasing your revenue.
  • Gather feedback and improve: Engaging customers through email surveys helps gather insights into their needs and challenges. This information aids in enhancing your offerings and customer experience, thus bolstering retention and CLV.

Here’s how to get started

1. Personalize your Communication

Avoid sending generic emails to your entire customer list. Use the data you have about your customers to segment them and personalize your communication. Make your customers feel special by addressing them by name, understanding their usage patterns, recognizing their challenges, and offering solutions that cater to their specific needs. Personalization increases email open rates, click-through rates, and overall engagement.

2. Educate your Customers

A common reason customers churn is that they're not utilizing your software to its full potential. Use email to regularly educate your customers about features they may not be using, provide tips and tricks & share use cases.

3. Leverage Automation

Automation is your best friend in email marketing. Set up automated sequences for onboarding new customers, upselling, cross-selling, and renewal reminders. A well-planned sequence can guide your customer through their journey, providing relevant content at the right time.

And of course, we at Plunk can help with that ;)

4. Ask for Feedback

Engage your customers by asking for their feedback and making them feel heard. Use emails to ask for reviews, conduct surveys, or request product improvement suggestions. You'll get valuable insights, and your customers will appreciate that their opinion matters.

5. Celebrate Milestones

Recognize your customers' milestones—be it their 'user anniversary' with your product or achieving a significant goal using your software. Celebratory emails can make customers feel valued and foster a sense of loyalty, thereby enhancing CLV.

6. Referrals

If you’re familiar with NPS, you know that promoters are the holy grail. Happy customers, attract happy customers. Whether it’d be an actual referral program, or more organic word of mouth, staying top of mind and writing clever copy will help cast a wider net.

These are all but a few ways to increase your CLV through email marketing. Now all that’s left for you is to find a powerful tool to get the job done. Oh wait, you already found it ;)

Get started with Plunk or read our docs to see how to integrate Plunk in your SaaS today!

Carlo D'Agnolo
CarloFounder & Head of Growth at Plunk