Acquiring customers is tough. Keeping them? Even tougher — but far more profitable. In 2025, Canadian e-commerce brands that win are the ones that master retention marketing through smart, scalable, and automated systems.

Whether you’re building your first email flows for online stores or looking to add SMS strategies for customer loyalty, this guide covers everything you need to increase repeat sales and grow customer lifetime value (LTV).

Why Retention Marketing Matters in 2025

It costs 5x more to acquire a new customer than to retain an existing one. For Canadian e-commerce brands battling rising ad costs, automated retention strategies are the highest ROI move you can make.

Top Benefits of Retention Automation:

• Improves LTV (lifetime value)
• Increases AOV (average order value)
• Builds stronger brand loyalty
• Fuels word-of-mouth growth
• Reduces reliance on paid ads

Brands with strong retention systems can grow 40–60% of revenue from returning customers alone.

What Is E-Commerce Retention Marketing?

Retention marketing is the process of keeping your customers engaged and coming back for more. Tools like email automation and SMS flows help you do this at scale — without constant manual effort.

In Canada, where online shoppers value trust, speed, and personalization, retention automation is your path to sustainable e-commerce growth.

Step 1: Choose the Right Retention Tools

Before launching flows, make sure you’ve got the right stack.

Top Email & SMS Platforms in Canada:

• Klaviyo – Best all-in-one email + SMS solution for Shopify
• Omnisend – Easy drag-and-drop builder and segmentation
• Postscript – SMS-focused; works well for text-first brands
• Attentive – Strong compliance for SMS + behavioral triggers

Integrate your platform with your e-commerce CMS (like Shopify or WooCommerce) to unlock automation and personalization.

Step 2: Build High-Converting Email Flows

Flows are automated email sequences triggered by customer behavior. These are your 24/7 sales reps.

Essential Email Flows for Online Stores:

✅ 1. Welcome Series

• Trigger: First signup or purchase
• Goal: Set brand tone, build connection, introduce product value

✅ 2. Abandoned Cart Flow

• Trigger: Cart started but not completed
• Goal: Recover lost sales with urgency + incentives

✅ 3. Browse Abandonment Flow

• Trigger: Viewed product but didn’t add to cart
• Goal: Remind and suggest related products

✅ 4. Post-Purchase Flow

• Trigger: Completed order
• Goal: Thank customer, request review, suggest cross-sells

✅ 5. Winback Flow

• Trigger: No purchase in 60–90 days
• Goal: Re-engage with loyalty rewards or limited offers

📌 Customize timing and tone based on your niche — beauty brands might use 10-day flows, while fashion or supplements may use 30-day windows.

Step 3: Add SMS Marketing for Real-Time Engagement

Email is great for content. SMS is unbeatable for immediacy.

SMS Use Cases That Convert:

• Abandoned cart reminders
• Flash sales / limited-time offers
• Order updates and tracking links
• VIP restock alerts
• Birthday or milestone rewards

SMS open rates average 98%, with 9x higher engagement than email alone.

SMS Best Practices (Canada-Specific):

• Use explicit opt-in (CASL compliance required)
• Limit to 2–4 texts/month unless part of a promo series
• Add opt-out option (e.g., “Text STOP to unsubscribe”)
• Personalize using first name and past purchases

📌 Pro Tip: Combine SMS with email for multi-touch workflows. For example, cart abandonment = 1 email + 1 follow-up SMS.

Step 4: Segment Your Audience for Better Results

One-size-fits-all doesn’t work in 2025. Segmentation helps you send the right message to the right person at the right time.

Smart Segments to Use:

• First-time buyers
• VIP/high-spend customers
• Dormant users (no order in 3+ months)
• Geographic (Ontario, Quebec, BC, etc.)
• Product-specific (beauty vs. apparel vs. home goods)

Use these segments to create personalized offers, dynamic product recommendations, and more relevant copy.

Step 5: Build Loyalty with Value-Driven Content

Retention isn’t just discounts. It’s about value, connection, and timing.

Content Ideas for Retention Emails:

• “How to use your product” tutorials
• Routine reminders (for skincare, health, etc.)
• Style or pairing guides (for fashion/home)
• Sneak peeks at upcoming drops
• Birthday or anniversary offers

📚 Related: The Complete Guide to E-Commerce Influencer & UGC Marketing in Canada →

Step 6: Use Automations to Drive Cross-Sells & Upsells

Retention marketing is also the perfect place to increase order value.

Cross-Sell Automation Examples:

• “Since you loved this, try this next”
• “Bundle & save” follow-ups
• Personalized product recommendations post-purchase

Use dynamic product blocks in your emails/SMS to populate based on past behavior.

Step 7: Track Performance & Iterate

Automations are powerful — but only if you measure results and tweak regularly.

Metrics That Matter:

• Open rate (Email): Aim for 30–50%
• Click-through rate: Aim for 3–5%
• Conversion rate: Aim for 1–3%
• Unsubscribe rate: Keep under 0.5%
• Revenue per recipient: Track per flow

Split test subject lines, send times, CTA language, and discount offers to improve performance.

📌 Zrafted helps brands set up data-backed email/SMS dashboards to monitor retention metrics in real-time.

Retention Automation Mistakes to Avoid

Avoid these common errors that kill repeat sales:

• No segmentation (spray and pray)
• Too many messages too fast (fatigue)
• Not honoring opt-outs (legal risk)
• Over-relying on discounts
• Ignoring post-purchase experience
• No personalization or dynamic content

What’s the Ideal Retention Funnel?

Here’s how a simple Canadian e-commerce retention flow could look:

Bonus: Compliance Tips for Canadian Email & SMS Marketing

Canada enforces CASL (Canada’s Anti-Spam Law) — so make sure you’re compliant.

What’s Required:

• Explicit opt-in (no pre-checked boxes)
• Clear unsubscribe link
• Business contact info in every message
• Records of consent

📌 Zrafted’s lifecycle marketing toolkit includes compliance-ready templates for email and SMS.

Final Thoughts: Automate the Path to Lifetime Customers

Retention is no longer about sending a newsletter once a month. It’s about building relationships through automation, showing up at the right moments, and giving customers a reason to keep coming back.

📦 Retention starts with smart automation—get our lifecycle marketing toolkit.