In the SaaS industry, lifecycle email marketing is crucial for engaging customers at every stage of their journey. Without a well-structured lifecycle email strategy, you risk wasting all the money you spent on customer acquisition and missing out on valuable opportunities to activate and retain your users.

This article will delve into the essentials of lifecycle email marketing for SaaS businesses, highlighting the 12 indispensable email flows that can drive user engagement and growth.

These email flows are designed to guide users from their first interaction to becoming loyal brand advocates.

You'll learn:

• What the typical SaaS customer lifecycle looks like
• The 12 key lifecycle email flows you need
• Effective segmentation strategies
• How to choose the right email marketing tool
• Best practices for lifecycle email marketing

By the end of this article, you'll have the insights needed to implement a powerful lifecycle email marketing strategy tailored to your SaaS business.

Let's get started.

The typical customer lifecycle

Awareness - Initial discovery

The awareness stage is when potential customers first discover your SaaS product. They may first encounter your brand through inbound (social media, SEO, podcast, etc.) or outbound (paid ads and cold outreach) channels.

Creating content that addresses their pain points and positions your product as a potential solution is crucial at this stage. Effective awareness strategies include blog posts, whitepapers, and informative videos. Your goal is to attract attention and generate interest.

By understanding the needs and challenges of potential buyers, you can craft compelling messages that resonate and encourage them to learn more about your product.

Consideration - Evaluating options

In the consideration stage, potential customers actively research and compare different solutions. They’ve identified a need and are evaluating how your SaaS product can meet their requirements.

This is the time to provide detailed information highlighting your product’s features, benefits, and unique value proposition. Case studies, comparison guides, webinars, and demo videos effectively showcase your product’s capabilities. Your goal is to build trust and demonstrate how your solution stands out from competitors.

Engaging content including email campaigns that answers common questions and addresses concerns can help move prospects closer to making a decision.

Purchase - Making the decision

Prospects decide to become paying customers at the purchase stage. At this point, they need reassurance that they are making the right choice, so offering a seamless and straightforward purchasing process is essential.

Provide clear pricing information, offer free trials or demos, and have a responsive customer support team to answer any last-minute questions. A well-executed free trial and a well-crafted onboarding email flow are crucial. The trial should deliver value, and the emails should guide users to their "Aha moment" when they recognize the product's benefits.

Your objective is to reduce friction in the buying process and make it as easy as possible for prospects to commit to your SaaS product. Testimonials and reviews from satisfied customers can also play a significant role in this stage.

Retention - Keeping loyal customers

Retention focuses on keeping customers happy and engaged with your product or service. For SaaS businesses, this means providing ongoing value through excellent customer support, regular updates, and helpful resources.

💡 Implementing a gamification email sequence with milestones to achieve can effectively nudge users into making the most of your product. Additionally, newsletters on product updates and useful tips can help retain users by keeping them informed and engaged.

The goal is to improve customer relationships and transform new users into loyal customers who regularly use and advocate for your product.

Advocacy - Promoting the brand

Advocacy is when satisfied customers become promoters of your brand. They share their positive experiences with others, helping to generate referrals and new business opportunities. Encourage brand advocates by creating referral programs that reward customers for bringing in new users.

Collect and showcase customer testimonials and success stories on your website and marketing materials. Engaging with your loyal users on social media and acknowledging their contributions can further strengthen these relationships.

The objective is to leverage your satisfied customers’ networks to expand your reach and attract potential new customers who trust the recommendations of their peers.

The twelve indispensable lifecycle email flows

Lifecycle email flows are designed to accompany a SaaS user through different stages of their journey. These flows are more granular than simply observing the five-stage customer lifecycle, as they address specific user behaviors and needs at various points.

The following flows start at the free trial, right before the purchase stage. We don’t cover the awareness stage since cold outreach emails would be part of your sales process. Nor do we cover the consideration stage in this article. In email marketing, that would typically involve a lead magnet followed by a nurturing email sequence.

Implementing the email flows below will allow you to send the right message to the right person at the right time, so you can enhance user engagement, drive conversions, and foster long-term loyalty.

Welcome Flow - Convert free trial users into paid users

The welcome flow is crucial for making a positive impression and setting the tone for future communications. This flow typically includes welcome emails introducing users to your product, highlighting key features, and guiding them through the initial setup process.

💡 The primary goal is to convert free users into paying customers by guiding them to the "Aha" moment—the point at which users realize the true value of your product. Segment users based on activity levels: engage active users with advanced features and encourage inactive users with onboarding calls, use cases, and tutorials.

This approach ensures a personalized experience and increases the likelihood of conversion into paid users.

Win Back Flow - Bring back users who have churned after the free trial

The win-back flow is designed to re-engage free trial and freemium users who haven't upgraded to a paid plan. This flow includes emails reminding users of the benefits they might miss out on and offering incentives to return.

Strategies can include extending the free trial, sharing case studies and testimonials, offering discounts on the upgrade plan, and conducting surveys to understand why they haven’t upgraded.

By targeting inactive users with a thoughtful win-back flow, you can reignite their interest in your product and encourage them to convert to a paid plan or re-engage with your solution.

Abandoned Payment Flow - Convert users who haven’t completed their payment

The abandoned payment flow targets users who initiated but did not complete a purchase or subscription renewal. This flow includes reminder emails prompting users to finalize their transactions.

Highlighting the benefits of your SaaS product, showcasing use cases, and offering limited-time discounts or incentives can entice users to complete their purchase. Implementing an effective abandoned payment flow helps recover potentially lost revenue and converts hesitant users into paying customers.

This flow ensures that users who were close to purchasing are given the necessary encouragement and information to complete their transactions.

Onboarding Flow - Onboard users who subscribed to a paid plan

The onboarding flow ensures new paying users have a smooth and successful start with your product. This flow includes instructional emails guiding users through key features, setup processes, and best practices.

Providing step-by-step guidance, helpful tips, and resources helps users quickly become proficient with your product, increasing their satisfaction and likelihood of continued use. An effective onboarding flow can reduce churn, enhance customer experience, and set the stage for long-term user retention and loyalty.

Ensuring users understand and utilize your product effectively from the start is crucial for their ongoing engagement.

Gamifying Flow - Encourage specific desired user behaviors in an engaging way

💡 The gamifying flow leverages gamification techniques to engage customers and encourage them to explore and utilize your product more extensively. This flow includes emails introducing milestones users can achieve by completing specific actions within the product.

Break down your product into core milestones, from simple to advanced, with credits awarded for completion. These credits can be used to access certain features or unlock add-ons.

By making the customer experience more interactive and enjoyable, you can boost user engagement, increase product adoption, and foster a sense of achievement and loyalty.

Annual Upgrade Flow - Upsell monthly subscribers onto the annual plan

The annual upgrade flow targets paid users monthly, encouraging them to upgrade to an annual plan. This flow includes emails highlighting the benefits of committing to an annual plan, showcasing new features, and providing a discount incentive.

Sending periodic emails offering discounts such as 20% off can effectively encourage users to switch. This approach ensures steady revenue, reduces churn rates, and enhances customer lifetime value for SaaS companies.

When presented with compelling reasons and incentives to upgrade, users are likelier to commit to a long-term relationship with your product.

NPS Flow - Know what your users think about your product - and improve it

The NPS flow typically includes a single email requesting feedback, with follow-up emails sent every six months to those who haven’t responded. It’s crucial to make the feedback email actionable and simple.

A straightforward question with clickable buttons leading to a one open-ended question survey can be super effective. An effective feedback flow helps improve your product and strengthens the relationship with your users, fostering a sense of partnership and trust.

By regularly soliciting user feedback, you demonstrate your commitment to continuous improvement and customer satisfaction, which can enhance loyalty and engagement.

Feature Upgrade Flow - Upsell users who reach feature or credit limits onto higher plan

The feature upgrade flow aims to inform and encourage users to take advantage of additional features in your solution. This flow includes emails highlighting the benefits and functionalities of these features, providing detailed explanations and use cases.

It’s particularly effective for promoting higher-tier plans, suggesting add-ons based on user activity, or encouraging the purchase of more credits for credit-based features. The overarching goal is to guide users toward purchasing more and unlocking greater value from your product.

Emails in this flow should be sent sparingly to maintain a balance and avoid appearing overly promotional.

Review Request Flow - Get reviews on sites such as G2 or Capterra

The review request flow seeks to gather positive reviews and testimonials from satisfied customers on dedicated SaaS review platforms like Capterra and G2. Implement an A/B test to split the audience evenly, with half receiving an email requesting a review on G2 and the other half on Capterra.

💡 Offer incentives such as credits, add-ons, or branded merchandise to encourage participation. This flow should be implemented strategically after a positive customer interaction or successful milestone.

Actively seeking reviews and offering incentives can enhance your product’s reputation and build trust with potential customers.

Referral Program Flow - Leverage customers to bring in more users

The referral program flow leverages satisfied customers by incentivizing referrals with rewards or discounts to expand your user base.

This flow includes emails explaining the referral program, highlighting benefits for the referrer and the new user, and providing easy-to-share referral links or codes. An effective referral program flow can increase customer acquisition, engagement, and business development through word-of-mouth marketing.

Target the most engaged users, such as those on annual plans, to maximize effectiveness. By tapping into your existing customers’ networks, you can drive growth and attract new customers who trust peer recommendations.

Churn Prevention Flow - Reactivate users who haven’t logged in for X days

The churn prevention flow targets users who show signs of disengagement or are at risk of canceling their subscriptions. Typically triggered by about one month of non-login, this flow includes personalized emails highlighting the value of your product.

Use demographic segmentation to showcase relevant case studies and social proof. This approach demonstrates the product’s value and relevance to the user’s industry or role - if relevant to your product.

An effective churn prevention flow can reduce cancellation rates, bring back lapsed customers, improve customer retention, and show your commitment to customer satisfaction, ultimately contributing to the long-term success of your SaaS business.

Cancellation Flow - Get feedback on the cancellation reason and try to bring back churned users

The cancellation flow begins with an email confirming a subscription has been canceled and explaining the next steps. Collect feedback on cancellation reasons via a brief survey - if you haven't done so in your off-boarding in-app process (you should).

Keep canceled users on your contact list for regular newsletters and send monthly discount emails to prompt them to return. An effective off-boarding process within your product can address user concerns and potentially change their mind about leaving.

This approach can help retain some users, gather important data, and leave a positive impression, increasing the likelihood of users returning in the future

How to segment

Map out your user journey

💡 Start mapping out your user journey to understand the various stages a user goes through, from initial sign-up to becoming a loyal customer. Identify users' key milestones and actions, such as signing up, completing a profile, integrating other apps, reaching the 'Aha moment', etc.

These milestones will help you define your segmentation criteria. For example, new subscribers might need onboarding emails, while active users might benefit from annual upgrades and upsell opportunities.

By mapping out the customer's journey, you can create targeted email campaigns that address the specific needs of users at different stages, ensuring that your communications are timely and relevant.

Start and end of journeys

Identifying the start and end of your customer journey is crucial for effective segmentation. For these twelve flows, the journey begins when users sign up to your service, often through a free trial or a free plan.

The end of this lifecycle stage can vary; it might be when users convert to a paid plan or reach a specific milestone within the app. For paid users' onboarding sequences, consider ending this lifecycle stage once they have fully set up their account and engaged with key features.

But it doesn't stop there. Once they've reached this point in their customer journey, they should start - depending on your product and objectives - the annual upgrade plan, the feedback flow, the referral flow, etc.

Defining clear start and end points helps you create focused email sequences that guide users through critical stages, enhancing their overall experience.

Real-time data

Real-time data is a game-changer in lifecycle email marketing. You can send personalized and timely emails based on users’ current actions and behaviors by leveraging real-time data. Use a customer data platform (CDP) to collect, organize, and manage data from multiple sources in real time.

This allows you to trigger relevant emails immediately, such as sending an email to congratulate a user who achieved a key milestone or a reminder to someone who hasn’t logged in recently.

Real-time data ensures that your emails are highly relevant, increasing the likelihood of user engagement and conversion.

Frontend snippets vs backend data

Many email marketing services capture events and user data through frontend snippets. While easy to set up, browsers can block these snippets, leading to missed data.

For SaaS businesses, backend data should be the single source of truth. Backend systems capture all user actions directly, ensuring no events are missed. For instance, if a user creates a project, the backend will log this action accurately.

By using backend data, you can ensure more reliable and comprehensive tracking, enabling you to create more accurate and effective email segments.

Choosing the right tool

Selecting the right email marketing tool is critical for executing effective lifecycle email campaigns.

Affordable and user-friendly tools like User-Journey or Loops can be highly effective for small to medium-sized SaaS companies.

For larger, established SaaS companies with bigger budgets, a powerful tool like Customer.io or Userlist offer powerful features for creating dynamic lifecycle campaigns. Other options include Userpilot, Encharge, and Messaged.

Choose a tool that fits your budget and technical capabilities, ensuring it can handle your segmentation and automation needs.

Regardless of the tool, focus on planning and writing effective email sequences that can be easily implemented and maintained.

And don't focus only on copywriting. The design is equally important to make your emails efficient.

Three lifecycle marketing best practices

Use various email types

Don't rely solely on lifecycle email sequences. Complement them with newsletters and transactional emails to keep your audience engaged

Newsletters can share company updates and valuable content, while transactional emails provide critical information related to user actions, enhancing overall communication and user experience.

Provide maximum value

Always strive to provide value in every email. Focus on delivering relevant content that addresses your users' needs, solves their problems, and helps them achieve their goals.

Personalized content builds trust and strengthens your relationship with your audience, encouraging long-term engagement and loyalty.

A/B test everything

A/B test all elements of your emails, from strategies and subject lines to design and content. Testing helps you identify what resonates best with your audience, allowing you to optimize your campaigns for better performance.

Regularly refine your approach based on A/B tests and key performance indicators to achieve optimal outcomes.

Implementing a successful lifecycle email marketing strategy

It's well known that ecommerce businesses engage in lifecycle email marketing to increase their CLTV. First purchase, post purchase, repeat purchases, cross sell emails, loyalty programs, you name it.

SaaS businesses face the same challenges when it comes to reduce churn and increase profits, so why so few of them create these emails flows?

From our experience, it's mostly because it's much more complicated in terms of technical implementation.

That's why we created the Digi Storms solution. To help businesses thrive through data driven email marketing, done for them.

So don't let your activation efforts go to waste, optimize your email marketing with us to retain and engage users effectively.