Using loyalty information in consumer messaging is a great way to segment emails and lift open rates. While the average brand email garners a 17% open rate, emails promoting loyalty in the subject line average a 24% open rate, according to L2’s Loyalty: Communication report.
While brands might fear bombarding consumers with too much marketing content, there is essentially no downside to adding loyalty emails to a brand’s existing campaigns. L2’s study finds no negative relationship between a brand’s email campaign frequency and its average email open rate.
One illustrative example is Bloomingdale’s, which is in constant communication with its shoppers. In May, L2 observed 20 emails and 11 SMS messages from the brand, a third of which were loyalty-specific.
The brand operates two main email domains, one for general emails and one for its loyalty members. With its generic domain, Bloomingdale’s incentivizes program signups by clearly advertising loyalty benefits and linking directly to the site registration page for its Loyallist program. With its loyalty-specific domain, the brand advertises loyalty benefits further and promotes its credit card program, which is integrated with the main Loyallist program. The brand’s loyalty domain enjoys a higher open rate than its generic domain, indicating that Loyallist members are more likely to open an email than non-members.