Retention email strategy 2025: Best practices and templates

Retaining customers is infinitely easier and less expensive than acquiring new leads and converting them into customers. Focusing on improving customer lifetime value (CLV) is important for all businesses because of these high-impact benefits.

Cost-efficiency: Acquiring a new customer often means multiple attempts, longer duration, and high-spend activities. In comparison, retaining existing customers is more cost-effective to do with simple but well thought-out strategies.

Steady revenue: Nurturing existing customers means that you can ensure a steady flow of reliable revenue for your business. Repeat customers are also likely to drive higher than average order values. In fact, a modest 5% increase in retention can boost profits by more than 25%, thanks to repeat purchases and upsells.

Brand advocacy: Satisfied, long-term customers are natural brand advocates, spreading positive reviews and referrals that support organic growth.

Competitive edge: Companies with strong retention strategies stand out in crowded marketplaces, turning satisfied customers into long-term assets.

One of the best and easiest tactics is to use transactional emails to create a retention email strategy. Most businesses treat transactional emails purely as service messages—functional, necessary, and often overlooked. But in reality, they’re tiny brand experiences with high impact on customer experience and satisfaction.

Because transactional emails are triggered by customer actions (purchases, sign-ups, renewals), they arrive at critical touchpoints in the customer journey. Using transactional emails as part of a retention strategy means going beyond just delivering information. It’s about layering subtle, value-driven elements that keep customers connected and coming back:

• Reinforcing trust

• Adding value

• Encouraging next steps

• Building consistency

Transactional emails turn ordinary touchpoints into relationship-building opportunities. When executed strategically, they don’t just confirm an action, they invite the customer to continue their journey with your brand, thus increasing the customer lifetime value (CLV).

Best practices to build a retention email strategy

Deliverability best practices

Sender reputation

Sender reputation is often a combination of IP and domain reputation. Marketing emails have a higher chance of being perceived as spam by users and ESP servers. When marketing and transactional emails are sent from the same IP or domain, the transactional email delivery could also be affected. To avoid this, it’s best to send transactional emails from a distinct domain/subdomain and choose services with good and isolated IPs. This keeps deliverability high and prevents reputation issues caused by marketing emails.

Email authentication

Setting up certain industry standard authentication records for your sending domain can help build trust with inbox providers. SPF, DKIM, and DMARC are the most adopted authentication protocols. They’ll reduce the likelihood of emails from your domain being flagged as spam and will protect your brand from email attacks like spoofing.

Prompt delivery 

Transactional emails are triggered by user actions, and the user expects them to reach their inboxes without any delay. Automate transactional email workflows to deliver messages instantly after a customer action, such as registration or purchase. Timely emails make your customers view your business as reliable and trustworthy, helping you keep your customers engaged.

Compliance

Based on the country and the industry your business is in, there are legal regulations and regional laws, like GDPR, that your business must comply with. For purely transactional emails, unsubscribes aren’t generally required, but it’s best to monitor local regulations, especially when including retention elements in the content.

No-reply addresses

It’s always better to avoid using no-reply email addresses to send your transactional emails. This is more true when employing the transactional emails in a retention email strategy. Use a recognizable “From” name and allow recipients to reply. This makes your emails more trustworthy and gives customers a way to contact support if needed.

Plain text version

Most transactional emails are formatted in HTML, but you should always include a well-formatted plain-text version to maximize accessibility, improve deliverability, and make the message available to all recipients regardless of the device or email client they use. Inclusion of a plain-text version signals to the recipient email server that you have nothing to hide and can be perceived as being genuine without malicious intent.

Content best practices

Focus on your core message

When using transactional emails as a retention strategy, you’re bound to include retention elements that are slightly different from the main purpose or context of the email. But make sure that the primary message is always the primary focus. For example, in an order confirmation email, the information about the order should be front and center, even if you're including product recommendations based on the order. Failure to follow this can overload the customer and erode their trust in transactional messages.

Align with brand identity

Ensure that your transactional emails and their elements align with your brand identity. The content needs to align with your brand voice, and the design needs to align with your brand image. A cohesive look builds familiarity, making every message feel professional and trustworthy.

Add value

While including elements in the transactional emails for retention purposes, ensure that the additional elements add value to the customer's journey with your business. Share exclusive offers, tips, or other helpful content relevant to the transaction. Where appropriate, add customer reviews or testimonials to reinforce trust and encourage further action.

Personalize the content

Personalizing an email doesn’t just end with using the customer's name in the subject line or salutation. Leverage behavioral and purchase data to recommend relevant products, acknowledge milestones, and anticipate needs based on customer patterns. Personalize the retention elements so the customer perceives them as an aid rather than an intrusion.

Design for multiple devices

With most emails being opened on mobile devices, use responsive, clutter-free layouts, easily operable buttons, and readable font sizes. Ensure that your content is also designed for accessibility by using descriptive alternate texts for images.

Optimize subject and headers

Keep subject lines concise (under 50 characters) and directly related to the email’s content. Being direct in the subject line will help you stand out in the recipient's inbox and can help with a higher open rate. Personalization in the subject line can further boost open rates—think “Your package is on its way, David!”. Include relevant information like the order number so the recipient can easily understand the context.

Segment audience

While transactional emails often carry the same core message to all customers, you can alter the retention elements based on the audience behavior, patterns, and history. It’s never one size fits all. Automate workflows so that every action—purchase, cancellation, or inactivity—triggers retention-focused communication at the right time.

Retention email use cases and templates

Let's look at an e-commerce customer journey to see the transactional emails that are sent at different touchpoints during the lifecycle and how they can be used for retention.

1. Account creation/welcome email

Core message: The primary focus of the email should be on informing the customer that the account has been created and guiding them in the next steps to take.

Retention add-on:

• Introductory discount or coupon code.

• Invitation to join a loyalty/points program.

• Tips for getting started, or links to popular products/categories.

Template:

Subject: Welcome to [Brand Name]! Unlock your first order now.

Hi [First Name],

Thank you for joining [Brand]! We're so glad to have you onboard.

Your account has been successfully created. You can now:

• Track and manage your orders

• Save your favorite products

• Enjoy faster checkout

<CTA>: Go to my account

To welcome you, here’s a special 10% off code for your first purchase: WELCOME10

With every purchase, you can earn points and convert them into discounts for future purchases. Start shopping to earn points and unlock exclusive perks.

We’re excited to have you with us!

Cheers,  
The [Brand] Team

2. Double opt-in/verification email

Core message: This email is sent to confirm the email address provided by the customer during sign-up. Verification of the email can help with keeping bounce rates and spam rates low.

Retention add-on:

• “What to expect next” and highlight member perks.

• Quick intro to referral or rewards programs.

Template:

Subject: [Brand name]: Verify your email

Hello [First Name],

Thanks for signing up! Please confirm your email to activate your account and unlock all of the features.

[Confirm Button]

As a member, you’ll receive early access to sales, birthday treats, and more. With every purchase, you can earn points and convert them into discounts for future purchases. Start shopping to earn points and unlock exclusive perks.

Welcome aboard,  
Team [Brand]

3. Abandoned cart email

Core message: These emails are a way to re-engage customers who are on the fence about making a purchase. It’s an important tool in your retention email strategy.

Retention add-on:

• Personalized product recommendations based on user browsing.

• Urgency (“Limited stock!”) and a limited-time discount.

• Social proof with user reviews or “bestseller” tags.

Template:

Subject: Prices for the items in your cart have dropped

Hi [First Name],

Looks like you forgot something in your cart—don’t miss out!

[Cart item images and details]

Complete your order in the next 24 hours for 10% off: CART10

Need help deciding? See why customers love it: [Top Reviews Link]

[Return to Cart Button]

Happy shopping, 

The [Brand] Team

4. Order confirmation

Core message: This email is sent to confirm that you have received the order that the customer has placed on your application or website.

Retention add-on:

• A “Thank you” note with extra loyalty points or promo for next purchase.

• Cross-sell suggestions (“Frequently bought together…”).

• Info about your referral or VIP program.

Template:

Subject: Order no: [###] Confirmed! Here’s a thank-you gift.

Hi [First Name],

Thanks for your order! Your order #[Order Number] is confirmed and ready to be shipped.

Order details: 

• Order ID

• Item details

• Item quantity

• Amount details

A delivery tracking link will be sent to you once the order has been shipped.

You’ve earned 50 loyalty points—track your rewards here: [My Rewards Link] Want more? Customers who bought these also loved: [Product recommendations]

Thank you for being part of the [Brand] family!

5. Shipping/delivery notification

Core message: The purpose of these emails is to keep the customer updated on shipping details and delivery of the item they ordered. Ideally, the email will carry a link so they can track the delivery.

Retention add-on:

• “Track your order” with a link to exclusive members-only products or early access promotions.

• Product care tips or usage guides (showing investment in customer success).

• Incentive for sharing their delivery on social media.

Template:

Subject: Your order is on the way! Unbox exclusive tips.

Hello [First Name],

Great news—your order #[Order Number] has been shipped!

Order status:

Order placed --------- Order shipped --------- Order delivered

Order details:

• Order ID and item table

• Tracking ID

Payment details: [Total amount]

[Delivery address]

<CTA>: Track my order button

Want to get the best out of your purchase? See our top product tips and member-only offers in your account: [Link]

Share your unboxing on Instagram with #[BrandHashtag] for a chance to win a gift card.

Enjoy, 

The [Brand] Team

6. Feedback or review request

Core message: These emails are often sent after the successful completion of the transaction in question. The intention is to gather insight and feedback about the experience to see what worked and what didn't.

Retention add-on:

• Offer a discount, bonus loyalty points, or entry into a giveaway as a thank-you for reviews.

• Invite the customer to join a product tester or ambassador program.

Template:

Subject: Share your feedback about your recent order

Hi [First Name],

Your recent order was delivered, and we hope you love it! 

Tell us about your experience—submit a quick review and unlock 10% off your next purchase: [Review now button]

Bonus: Join our product tester club and shape the future of [Brand]!

We appreciate your feedback, 

The [Brand] Team

7. Password reset

Core message: The main purpose of this email is to help customers regain access to their account when they've forgotten the password. This is often in the form of OTPs or magic links.

Retention add-on:

• A subtle reminder about updating preferences for better personalization.

• Reassurance of security and links to support helpful resources.

Template:

Subject: Password reset link

Hi [First Name],

You have requested a password reset of your [Brand] account. Here's your password reset link: [link]

If you did not request this link, report it to [Support email].

Now’s a great time to review your preferences—we’ll personalize offers you’ll love: [Update my preferences button]

Questions or need assistance? We're just a reply away.

Cheers, 

The [Brand] Team

Conclusion 

Transactional emails are operation-critical emails that customers are expecting and help in the customer journey. Using them as retention strategies is an efficient and impactful method. Always tie retention elements to value—whether it’s exclusive access, financial incentive, social recognition, or personalized content. This ensures transactional emails remain helpful, timely, and a vital part of your retention strategy.