How Ignoring Email and Text Remarketing Costs Service Businesses Six Figures Annually
Service companies miss out on revenue by not using email and text to re-engage past clients. This dual-channel strategy increases customer lifetime value, as shown by our work with Wilson’s Appliance, where remarketing added $60,000 in monthly revenue. Discover actionable steps to boost engagement and retain loyal customers.
How Ignoring Email and Text Message Remarketing Costs Service Businesses Six Figures Annually
By Adam Wilson
November 4, 2024
In today’s service industry, focusing solely on new customer acquisition can lead to missed opportunities for growth. Many service-based companies overlook remarketing to existing customers, not only through email but also through text messaging. This untapped potential often results in hundreds of thousands of dollars in lost revenue each year. By integrating both email and text remarketing, companies can capture more value from their current client base and increase lifetime value (LTV).
The Missed Opportunity in Numbers:
Consider that over 80% of revenue in service industries often comes from 20% of loyal customers. Yet, only a small portion of companies (about 22%, according to recent reports) actively remarket to past clients. Even fewer use text messaging, despite its high engagement rates.
- Email remarketing alone can boost revenue by an average of 30% annually for service companies.
- Text message open rates are as high as 98%, with 90% of messages read within 3 minutes. Yet, less than 20% of service businesses fully utilize this channel.
Case Study: Wilson's Appliance – $60,000 in Additional Monthly Recurring Revenue
We recently worked with Wilson’s Appliance, which had underutilized its customer list beyond the initial transaction. By implementing a dual strategy with email and text message remarketing:
- Wilson's Appliance saw a $60,000 boost in monthly recurring revenue (MMR).
- Client retention and LTV increased by over 20%.
Our campaign leveraged tailored offers, follow-up reminders, and seasonal promotions across both channels, consistently re-engaging clients who hadn’t been part of any structured communication strategy before.
Key Statistics for Service-Based Companies:
- 65% of service companies report higher engagement with segmented email campaigns, yet less than 30% personalize their messages.
- Repeat customers spend up to 67% more than new customers, but most companies focus nearly all their marketing spend on new customer acquisition.
- Text messaging is one of the least-used channels despite its high open and response rates, often outperforming email alone.
Actionable Tips for Your Business:
- Segment Your Audience by Customer Behavior
Divide your list based on customer history and service type, then create segmented lists for both email and text. For high-value customers, offer exclusive promotions; for one-time customers, send reminders to re-engage them. - Combine Email and Text Messaging for Higher Response Rates
Send promotional emails to announce special offers and follow up with a text reminder for more urgent actions, such as a limited-time discount. - Automate to Maximize Reach with Minimal Effort
Automate follow-up sequences in both email and text to keep past clients engaged. For example, an HVAC business could send seasonal reminders via text to prompt regular service bookings. - Measure and Adjust Across Channels
Track metrics like open rates, click-through rates, and conversion rates for both email and text. Simple adjustments in timing, frequency, or messaging can make a significant difference in engagement.
Conclusion:
Service companies have an audience that’s already engaged—they just need to tap into it. By integrating email and text message remarketing, businesses can increase engagement, drive higher revenue, and ensure they aren’t leaving money on the table. If you're ready to see where remarketing can drive growth, we’d be happy to audit your current efforts.
