September 4, 2019
7 Insights To Unlock Your Christmas Bonanza
For many online stores, the lead up to Christmas is your biggest sales season of the year.
It is one time of year when you can pretty much guarantee that shoppers will be out in force, spending money like it grows on trees!
It can be tempting to sit back and rely on gift-buying Christmas shoppers just coming your way.
But that would be a BIG mistake!
The holiday season is a very busy time for marketers and advertisers. Trying to get any kind of cut-through at this time of year is much, much harder!
So you really need to understand your customers’ Christmas shopping behaviour and put some thought into HOW you will attract those big-spending gift-buyers to your website!
Here are 7 insights into online Xmas shopping behaviour…
1. Mobile shopping
30% of shoppers completed a purchase on their mobile device during the 2018 holiday season.
And the rate of mobile commerce is steadily increasing by about 10-15% per year.
As an eCommerce marketing expert, I see many many many websites that have a poor mobile shopping experience.
And there are some common pain points that cause shoppers to give up trying to buy from a Mobile website:
- Website page load speed too slow (27%)
- Unclear images (26%)
- Font size too small to read (23%)
- Product information too difficult to see (27%)
- Content doesn’t fit on screen (25%)
That’s at least a quarter of your holiday shoppers potentially lost due to fixable technical issues with your website!
One of the biggest causes for these problems is that the business owner, or the person responsible for the website, is only looking at it on their desktop.
It is now IMPERATIVE that your website works just as well, if not better, on mobile!
2. Video is king
Nearly 50% of shoppers during the 2018 holiday season watched video content posted in stories across social media platforms.
And Over 60% of shoppers said that videos showing products being worn or used helped them to make a purchase decision.
Now if you tell me that you hate being in front of the camera or you’re too nervous to shoot live video – I’m with you! It’s not my favourite pastime either.
But the clients of mine who are experiencing the fastest, biggest growth, are all making frequent use of video content on social media.
3. Customer service has gone social
Instant messaging via social media channels increased a lot last year.
28% of Aussie shoppers said they messaged a business during the holiday season.
And 39% of holiday shoppers indicated they would be more likely to buy from a business if they could contact it through instant messaging.
Given 48% of customers are researching gift ideas, product information and reviews on their mobile phone, there is a high chance that instant messaging will continue to rise.
I know how hard it is for all businesses to make money from their social media pages and we all need to pay to advertise now.
But by offering helpful and prompt customer service via instant messaging, you WILL make more money this Christmas!
4. Christmas shopping starts earlier
I know we like to have a laugh that Easter Eggs and Hot Cross Buns start selling in Woollies on Boxing Day…
But did you know – in Australia, nearly 20% of customers start their gift buying in October! That’s compared to 10% around the world.
This means you really need to be thinking about and planning your Christmas marketing much earlier in the year, otherwise you miss the boat.
It also means – your Christmas marketing needs to be sustained over a longer period of time.
I’ll share more tips on planning your holiday marketing campaigns later, but think of it in three stages:
- Early bird buyers want what’s new and want to be organised
- Volume buyers will buy in November, taking advantage of specials such as Black Friday, and
- December buyers get a bit desperate and respond well to free express shipping and gift voucher offers.
5. Black Friday / Cyber Monday is HUGE worldwide
Black Friday / Cyber Monday is a huge online sales event that started in the USA.
It starts at the end of November, the day after Thanksgiving, so it’s kinda a bit like Australia’s good old Boxing Day Sale. Only before Christmas.
Typically Black Friday / Cyber Monday is a 4 day sale event, and it never used to be that big of a deal in Australia.
But in 2018 – it grew by 50-55%!
And that growth is likely to continue this year, which means you want to be on board and prepared!
I can say even from my own client base, most experienced a big uptake of sales in that 4 days.
The key is to be able to sustain Christmas promotional messaging from Black Friday at the end of November, right up until Christmas.
6. Customers want a smooth online shopping experience
Friction slows shoppers down. But issues aren’t always caused by technical issues with the website.
Here’s what else is important to your online shoppers at Christmas time:
- Delivery timeframe (67%)
- Product availability (86%)
- Free shipping (70%)
- Customer service (73%)
The holiday season is the one time of the year that your customer service team needs to be on its A-Game!
I know not everything is within your control. Namely – shipping and delivery times.
But do whatever you can to make this simple:
- Choose the most reliable shipping options you can (not necessarily the cheapest).
- Get some help with customer service, especially manning your social media messages.
- And try to keep on top of product availability in your marketing and on your website. (For example – don’t keep sending an email or showing an ad that promotes a product you’ve sold out of!)
7. Free shipping works!
I know that shipping is a huge cost for every eCommerce business and we all want to try and reduce the impact of that cost on our bottom lines.
But the statistics on Christmas shopping behaviour are hard to ignore on this…
70% of holiday shoppers in Australia said free shipping was important to them when making a gift purchase decision!
Two tips from my own experience:
- The closer to Christmas you get, if you can offer free EXPRESS shipping you will easily convert a lot more sales than you would otherwise! And
- Full price + Free Shipping generally outsells Discount price + shipping.
Looking for help to increase website traffic and sales this Christmas?
Contact us to discuss marketing for your own eCommerce brand today:
July 30, 2019
How To Turn One Time Shoppers Into Lifelong Customers
If you increase repeat purchase rate by 5%, you can increase profits by up to 95%!
Most eCommerce stores spend the majority of their marketing dollars on driving cold traffic and converting new customers.
But did you know that 40% of the average online store’s revenue is generated by only 8% of its customers?
When you launch, and as you grow, of course you need to attract new customers. But many ecommerce businesses would grow faster and more profitably by focusing more effort on customer retention.
(A.K.A you should try to increase your repeat purchase rate!)]
Here’s my top 3 tips to increase your repeat purchase rate
What’s the average repeat purchase rate?
According to Shopify, the average repeat purchase rate for ecommerce is about 27% for first time customers.
However, once a customer returns to make a second purchase, they are 45% more likely to return again for a 3rd purchase. The fourth time a customer returns, the odds of them buying again jump to 56%!
So how do you get there? How do you give yourself the best chance of increasing your repeat purchase rate?
Step 1: Customer Onboarding
What the heck is ‘customer onboarding’ you might ask. Yeah, I hate jargon too. I promise I won’t do that to you too often!
Customer onboarding means – welcoming your brand new customers and sharing some content with them that is designed to help them have the best, most successful experience using or consuming your product possible.
Making sure your new customers are really happy and satisfied MUST BE the first step to increasing your repeat purchases.
In fact – providing a great first experience is absolutely critical to your bottom line!
Because 84% of customers now say that their experience is EQUALLY important as the product!
And further to that – companies that focus on providing a great experience actually grow 4-8% faster than those who don’t.
This customer onboarding thing can be done using your email marketing program.
My favourite platform to use for this is Klaviyo.
You want to include at least 3-4 emails in this campaign (don’t worry, you’re not sending them all at once!).
Within these emails, you’d welcome them to your brand family and thank them for their order.
You could include some kind of customer case story or cool video that helps to reinforce the new customer’s purchase decision, or that inspires them and keeps them anticipating the arrival of their new purchase.
I recently purchased some supplements online and the first email I received included links to two informative articles that were really relevant to my situation.
You want to anticipate any customer service moments.
For example, an email that’s scheduled to go out after the order should have arrived, asking ‘Is everything OK?’
The main goal with these emails is to roll out the red carpet to your new customers and make them feel really special. Hopefully ensuring they absolutely LOVE your stuff (ie priming the pump ready to ask them to purchase again!)
Step 2: Ask for a review
Once you’ve taken a brand new customer through the above post purchase sequence and you’ve made them feel really special and appreciated, then what?
You probably want to ask them to buy something else right about now. BUT hold your horses, you’re not ready for that just yet!
The next thing you want to do to increase repeat purchases, is to ask for a review.
We all know how influential social proof can be when it comes to growing sales. So it’s important that you ask your new customer, who is hopefully really happy with your product AND your awesome customer service, to give you a review!
The best way to do this is to automate it using a fabulous review-request app called Stamped.io
I love this app so much because customers don’t have to click back to your website or log in to leave a review. They simply need to reply to the email and Stamped will post it to your website for you. It even knows precisely where to put the reviews on your website!
The other cool things Stamped can do is to add a dynamic feed of product reviews on your website home page, along with star reviews. This kind of social proof has been proven to increase your website’s conversion rates, so you definitely want to employ this strategy!
One of our clients, Tiptoe & Co, demonstrates this really well. On her website home page, the ‘Best Sellers’ section shows you the dynamically-updated customer reviews that Stamped posts to her website. Nifty right?
Step 3: Time to sell!
OK your leash is off now – NOW you can go and offer these new customers something else to buy!
WARNING: Do NOT simply add these customers onto your email newsletter list! This strategy will fall flat if you are simply relying on your email newsletter to entice your new first-time customers back for a repeat purchase.
To entice your new customers back to buy again, you want to sell to them AFTER you’ve completed steps 1 and 2!
You want to automate this process of securing a repeat purchase from your first-time customers.
Why is this important? Because, if you can increase loyalty (ie repeat buyers), you immediately become a much MUCH more profitable business.
It costs much less to get an existing customer to buy from you again, than it does to convert that customer in the first place!
TOP TIP: Add an additional three sales emails to the above Post Purchase campaign.
Just make sure you remember to leave enough of a time-lag between the last customer onboarding email and this first sales email, to allow for your Review Request email to be sent from Stamped.
The three sales emails you include here should all make the exact same offer. That is, you introduce an offer in the first of the sales emails, and then reiterate it in the subsequent two emails. (Follow-up works guys – you’ll always sell more if you follow-up!)
One of our past clients, Kapow Kids, is a brilliant example of just how powerful this strategy can be in growing your eCommerce sales. Check out their story here.
Looking for help to increase and automate repeat purchases in your own business?
Implementing these strategies can be the quickest way to fire up your eCommerce store and start making some serious dough.
The first step is to book a no-obligation strategy call with us, where we’ll discuss your current business situation and your goals, and work out if we’re a good fit to work together.
July 28, 2019
How To Automate Your New And Repeat Sales In 3 Easy Steps
& Generate Over 1300% More Revenue Per Email Subscriber
On average, as an eCommerce store, around 20% of your total revenue is generated by email marketing.
Does that sound high to you? Or are you doing even better than that?
Where does email automation fit into this?
For most online stores, only about 2-8% is coming from automated triggered emails, such as an abandoned cart email.
Not so great huh.
You may be wondering why on earth I get so excited about this sales automation stuff then….
That low percentage makes absolutely no sense at all when you consider that automated emails out-perform broadcast or newsletter-style emails by pretty much every metric that matters.
- Open rates are 165% higher.
- Conversion rates are over 1500% higher.
- And revenue per recipient is over 1300% higher!
Automated emails are true revenue-generating power houses when you put them to work.
Here’s how to leverage email automation to build stronger customer relationships and make more money.
Here’s My 3 Easy Steps To eCommerce Sales Automation
I remember about six years ago, so back in 2010, I was expecting my third child. Even though I didn’t plan on taking much maternity leave, I knew I’d need to have the flexibility to “take my eye off the ball”, so to speak, for a few months.
And that meant that, whilst I wasn’t there to run the ship, I somehow had to make sure that sales continued to grow!
I needed to get more eyeballs on website AND capture those leads and turn them into sales.
The solution for me was sales automation
It’s possible to automate the process of generating traffic, converting the first sale (at a really good average order value), AND motivating those customers to come back and buy more than once.
How much would YOU love to automate the process of building a crowd of obsessed brand fans who’ll salivate over your every single offering, and who’ll buy from you repeatedly? This is what “sales automation” is and I reckon it’s the holy grail of eCommerce marketing!
Here’s exactly how I did that:
1. Attract & Convert Customers
In the early days of eCommerce, there wasn’t nearly so much competition out there. It was possible to have success by being very generic in your positioning and to target a very broad audience.
Those big players are well established now, though. So for new players to gain traction, we need to niche down. We need to serve a very specific audience, and we need to be clear on who they are and how they buy.
Let me give you an example:
Are you selling kids clothing?
Or are you selling funky, hard-wearing threads for the outdoor adventure-loving little superhero?
What kind of marketing messaging will appeal to your exact customer?
And what is the ultimate benefit they are buying in your product?
Bottom line is…
Not everyone will be obsessed with you, but some will – your job is to work out who those people are.
Clarifying the kind of customers you want to serve gives you the power to absolutely knock their socks off with your perfectly-matched products, your mouth-watering content, and your promotions will start generating a shoe-sale-frenzy level of excitement amongst your tribe!
Once you’ve attracted the right audience to your website, you want to convert as many of them from browsers into buyers.
So let me ask you:
Do you believe you’ll make more sales if only you could get more people to visit your website?
I’m sorry to say, that’s not the total solution. People rarely buy from you the first time they’re on your site.
But if they’re on your site, they’re likely to fit your ideal customer profile. So you don’t want to lose them, do you?
The solution – collect their emails
So that you don’t miss out on any potential sales from these first-time non-buying visitors to your website, you want to collect their name and email address.
We call these email subscribers “leads” – they’re your potential customers.
You want to entice as many potential customers to subscribe to your email list as possible. You do this by offering them an incentive, such as a discount or coupon or a free downloadable gift of some kind (called a ‘lead magnet’).
But, what are you gonna do with those email addresses next?
Hint: you do NOT simply add them to your email newsletter list!
Our goal is to move your customers from just-found-out-about-you to ‘YES-I’m-buying-this-product-now!’
And you’ll never achieve that by sending out ad-hoc newsletter blasts to your entire email list.
The key to increasing the number of customers who buy from you is…
Follow up with your new subscribers and make them an offer they can’t refuse!
Direct selling experts will always say you need to follow-up multiple times in order to get a sale. The money is in the follow-up.
You should be following up a minimum of three times, which means having a minimum of three emails in the automated email sequence you send to new subscribers.
Here’s what goes in those emails:
You want to introduce brand and present the benefits of buying your stuff, plus present an irresistible offer.
You want to show some social proof, like customer testimonials, and remind the reader of your irresistible offer.
And the last email is a ‘don’t miss out – this is your last chance to grab this incredible introductory offer’ kind of email. Fear of missing out is an incredibly effective motivator after all!
There are only 3 ways to increase your sales and profits online:
- Increase the number of customers who buy from you,
- Increase your average order value, or
- Increase the frequency your customers buy from you.
By attracting the right people to your website, growing your email list and presenting the right offer or incentive in your follow-up email campaign, you can increase the number of customers buy from you AND potentially increase your average order value.
That’s sales automation in action right there!
There’s one more way to increase the number of customers who buy from you, and it’s a super powerful one…
2. Reclaim abandoned carts
Lots of people abandon their shopping cart. It’s kinda like window shopping, right?
You go online, browse around for a bit, add some stuff you like to your cart.
And then, up to 70% of these punters leave your website without completing their purchase!
Why do people abandon their cart? Do they not love my stuff?
Well there’s lots of reasons. Most often it’s because they were presented with unexpected costs (like when shipping is only calculated at the checkout).
People also abandon their carts because they were interrupted or because it was too hard to complete on their mobile, and loads of other reasons.
Why should you chase someone who didn’t love your stuff enough to buy?
People who add a product to their shopping cart (but don’t check out) are actually your warmest leads!
These people are what we call your ‘low hanging fruit’. They’re the easiest ones to convert because they’ve already demonstrated that they really like your stuff!
Reclaim your abandoned carts – on autopilot!
By using an automated email sequence to follow up with these punters, you’ll reclaim these lost sales 10-15% of the time.
Given most people abandon their carts due to the shipping fees, I usually like to offer a free shipping coupon to incentivize people to complete their purchase.
A sales increase of 10-15% that you can AUTOMATE is nothing to sneeze at!
3. The secret sauce to turbocharge your eCommerce sales.
“Retention is the single most important thing for growth” (Alex Shultz, VP Growth, Facebook).
The first sale from a new customer is rarely all that profitable. When you take into account discounts or incentives, or the cost of advertising, your profit margin will be eroded.
The solution? Sell more to existing customers.
And you can automate this process by sending a post-purchase email sequence to all first-time customers.
This sequence includes a Welcome message and a series of Getting Started emails, followed by a cross-sell or up-sell offer.
Part 1 of your post-purchase automation
Take your welcome emails seriously. Sure, it’s an opportunity to say “hi” and “thank you” and give them an idea of what to expect.
Your goal initially is make absolutely certain their first experience with your product a positive one!
(Because happy customers buy again. Unhappy customers tell 10 friends, so you lose x 10!)
Then, you want to ask for a review! Do this BEFORE you ask them to buy from you again.
We all know how influential social proof can be at getting new customers to buy. So make sure this review-request is an automated part of your post-purchase process.
Part 2 of your post-purchase automation
This is where the rubber hits the road.
Where you get to convert your one-time buyer into a repeat buyer.
It’s time to make your customer a really great offer that entices them to place a second order with you.
Offer them a product (or product category) that makes sense as a next purchase on from their first order.
Or, offer them an incentive to buy more of the same.
And, like in the very first automation, you want to include a couple of follow-up emails to remind them about this offer!
Tips for successful post-purchase sales automation
When automating these messages, make sure you schedule them to be sent during business hours. (An automated message sent 30 seconds after someone purchases at 3am doesn’t exactly look personal!)
With Get Started emails, the idea is to encourage customers to take action quickly. The sooner they can get value from your product, the more likely they’re going to have a positive experience.
Don’t overwhelm people with a long email – just include one step at a time to make it do-able.
Regardless of how user friendly your product is, every new customer feels like “the new guy” when they start using your product. Some of your customers may not understand the best ways to the get the most value from your product.
Additionally, if you can pre-empt any customer service moments, you have a really good chance of turning an upset customer into a raving fan! (Believe me – I’ve done this many times!)
And lastly, when considering the timing between each email, you want to think about how quickly your orders are delivered AND how frequently customers generally buy from you.
That way, you can time each email and your cross-sell or up-sell offer emails to suit your customer perfectly.
Looking for help to achieve results like this in your own business?
Implementing these strategies can be the quickest way to fire up your eCommerce store and start making some serious dough.
The first step is to book a no-obligation strategy call with us, where we’ll discuss your current business situation and your goals, and work out if we’re a good fit to work together.
March 25, 2019
How To Navigate The Shopify Mailchimp Breakup
Shopify and Mailchimp have just announced that the two platforms will cease to integrate from 12th May 2019.
As an eCommerce and email marketing expert, I wanted to share my insights and advice with you to help you to navigate your pathway forwards. Especially given so many of you use both these platforms!
Here are your eCommerce email marketing options moving forwards
Shopify and Mailchimp are breaking up…
From May 12th 2019, the Shopify Mailchimp app will no longer function.
This means the automatic subscribing at checkout (if they opted into marketing emails) will no longer trigger.
Additionally, you will not have any synced up sales data being carried over to Mailchimp to trigger your automated email campaigns (like abandoned cart or post-purchase).
Nor will you be able to run reports in Mailchimp to show you how much revenue your marketing emails are generating in your store.
If you have a pop-up app like Privy or JustUno for new subscribers – these will still integrate with Mailchimp to trigger your new subscriber email campaigns.
But, without a solution to sync your store with your email platform, none of the other stuff will work. So you still need to figure out a solution.
What are my options after the Mailchimp and Shopify breakup?
As I see it, you only have two options and you need to pick one and implement it before May 12th. Do not leave this till the last minute!
1. Update your Mailchimp integration to use a third-party app or service to continue without interruption.
There is a newish app in the App Store called ShopSync that syncs your sales and customer data with your Mailchimp account.
Another option is to use Zapier as a third party integration app.
The downfall with both these options is that they’re basically limited to just adding a customer or subscriber as a new contact on your Mailchimp marketing list.
They won’t pass any more sophisticated information from Shopify to Mailchimp. For instance, if someone purchases a product, neither ShopSync or Zapier will add the contact to your post-purchase email automation within Mailchimp. Nor will they enable you to run any meaningful reports on revenue or conversions generated from your Mailchimp emails.
Your last option to integrate Mailchimp with Shopify is building out a manual integration. You would need to pay a developer to do this for you and would probably require ongoing maintenance from a developer as well.
These options go from quick and free, to pricey, to pricey and time-consuming.
2. Change email marketing platforms.
This comes with a couple of caveats: Using another email service provider is going to cost more than Mailchimp, AND you’ll have to migrate your data over. It’s still an option worth considering regardless.
Here’s what I recommend you do:
The hardest part of this situation is that you MUST make a decision – and you have a deadline looming! You cannot put your head in the sand on this one and hope it’ll all blow over…
The argument FOR changing platforms
If you are ready to scale your business, or you’re already turning over significant revenue, now is the time to change email platforms.
My personal favourite for eCommerce is Klaviyo.
Klaviyo currently has the most comprehensive, deep integration with Shopify.
Yes, it’s more expensive than Mailchimp, BUT it integrates seamlessly, and has more functionality, AND is much simpler to use than Mailchimp.
Clients of mine who have switched to Klaviyo have all experienced pretty significant sales growth.
Also, given how integral email marketing is to eCommerce sales success, it is worth investing a bit more to have this marketing channel humming along!
The argument AGAINST changing platforms
Some of you are just starting out, or still in the early days of your business, and want to enjoy Mailchimp’s free version.
If you’re in this situation, it’s worth staying with Mailchimp and simply using ShopSync to continue to integrate Shopify with your Mailchimp newsletter list.
Need some help getting set up on Klaviyo?
Sing out! Our team would love to help you.
February 19, 2019
How To Double Your Sales (& More!) In Your Shopify Store
That’s not a typo – my client did just that!
Is your goal to increase eCommerce store sales this year?
Platforms like Shopify now make it super easy to start your own eCommerce business.
But, if you want to generate sales, just getting your website up and running is not enough.
So many times, I speak to online storeowners who are struggling with too few orders, and the majority of their “marketing” efforts are spent crafting and posting content on Instagram.
In the words of Dr Phil – how’s that working for you then? 😉
Trust me – there IS a better way to increase eCommerce store sales!
Meet our client Lisa, who has more than doubled her revenue
If you feel like you’ve tried everything, and you’re starting to wonder, “Are people like me getting results?”
Then let me introduce you to our client Lisa from Happy Tummies.
Lisa is a Mother of three and also owns an eCommerce store on the Shopify platform that specializes in allergy-free foods.
Over the last year, Lisa has worked really hard to implement our strategies.
Her job is not made easy by the fact that allergy-free foods is not exactly the biggest market in the world… It’s a VERY niche market!
However, her dedication and hard work have really paid off.
Over the last year, her average monthly sales have more than doubled!
“Woohoo! For the first time ever I made my ambitious target for the month! Thank you Catherine.” Lisa Munro, Happy Tummies
And I reckon Lisa’s stress levels have probably halved as well, now that much of her marketing is automated!
Here are 5 things Lisa did to dramatically increase eCommerce store sales
1. She committed to spending money on Facebook ads
One of the things I see many small business owners struggle with, is spending money on Facebook ads without knowing absolutely for sure that they will make more money back.
There’s no guarantee with paid traffic. There’s no way to know for sure whether this text and image or that one, or this audience or that one, will be the winning combination for you.
The only way to make it work is to test. And that means being willing to spend some money to see what works.
Lisa’s ads don’t always work perfectly, but a lot of the time they do really well.
But her most important asset when it comes to spending money on Facebook ads is her testing mindset.
2. She gained her customers’ trust (and it shows in her marketing)
Trust seems like a bit of an odd point to make when it comes to eCommerce marketing.
But if you think about it as a consumer, you definitely want to feel confident in an online store before you give them your credit card details!
Even more so when your customers have severe or life-threatening allergies, as in Lisa’s case!
More than just trust, though – if you can demonstrate that your customers love your products and your service, then your customers will end up doing your marketing for you.
That means collect as many customer reviews as you can (and make sure you do an outstanding job so that those reviews are awesome!)
And then use those reviews in your marketing – on your website, in your emails and in your Facebook ads.
3. Make sure your website converts really well
When you first start out in your eCommerce business, it can be tempting to go with the cheapest website possible. You may even wonder why you should spend money on a Shopify or WordPress theme when there are free ones available!
Well, there are very good reasons to choose a great theme or to work with a reputable web designer.
Some websites convert better than others. And if you can convert more of your website visitors into customers, then your sales are growing.
We worked hard on improving her website conversion rate, by designing an intuitive navigation, home page design and checkout process. Plus she puts consistent effort into her SEO and page load speed, and her conversion rate has improved dramatically as a result.
4. Send marketing emails consistently
I don’t care whether you personally feel like you get way too many promotional emails in your inbox.
And I also don’t care if you’ve surveyed your audience to find out they only want to hear from you once in a blue moon!
The cold hard fact is – email marketing works VERY well. It is still one of, if not THE most effective online marketing tool you can employ.
Of course, you need to have an email list to market to (which is one of the benefits of running Facebook ads).
Lisa has never wavered in her commitment to build her email list and to send regular marketing emails each week.
5. Work with experts to fast-track results
Of course it’s entirely possible to figure things out on your own over time, but Lisa was impatient and wanted to grow more quickly than that!
The benefits of working with people who have ‘been there done that’ experience, AND someone who work with numerous similar businesses, is that they know what works and what doesn’t and can help you navigate the ever-changing business landscape more quickly and smoothly.
I won’t share the one big thing that Lisa found most valuable from her time working with us – you’ll have to work with us to find out our secret sauce! 😉
But suffice to say, Lisa now runs a fast-growing business like a well-oiled machine!
Want to see results like this in your own business?
Implementing the strategies implement for clients can be the quickest way to fire up your eCommerce store and start making some serious dough.
November 19, 2018
How To Increase Repeat Purchases From Existing Customers
The Secret Sauce for a Profitable eCommerce Business
Every single business owner we talk to wants a profitable business.
(Actually scratch that – we do have one client who told me I’ve made her so busy she can’t focus on growth right now, she’s too busy ramping up her production to keep up with orders! But I digress…)
And I’m sure you’d also love to achieve this growth WITHOUT the constant need for sales and discounts all the time too, right?
Well, today I want to talk to you about an oft-missed step in growing and retaining a loyal customer base. We don’t just want frequent shoppers – we also want raving fans!
And this step can be the single most important factor to increase repeat purchases AND profitable sales growth online.
How it was before…
Back in the early days of of eCommerce, it was believed that customers were not loyal to any particular online retailer.
The World Wide Web seemed to make customer loyalty irrelevant; at the click of a mouse, shoppers could effortlessly cover the globe in search of the lowest price, with little to hold them at one site.
(I would argue that many business owners who sell online today still work off this assumption. And the result is that the only tactic they use to convert new sales is a discount or low-price strategy!)
The reality today…
Even though online shoppers can skip easily from one site to the next, the reality is that many online shoppers are actually highly loyal to their favourite online store. (Like me with my ever-favourite Birdsnest clothing retailer!)
Tools such as Internet bookmarks and highly engaging content (including email and social media) have led to online shopping patterns that are loyal, almost addictive.
Today, loyal shoppers visit their favourite sites far more frequently than they would any bricks-and-mortar store. And as a Productpreneur – you want to be that website, right?
And it gets even better: high levels of customer loyalty can have an enormous impact on the profitability of your website sales.
A study by Bain & Company, Inc, demonstrated that online customer loyalty is a crucial factor in profitability, even more so than for offline companies.
It also showed that small changes in loyalty alone, especially among the most profitable customers, can account for much higher profits in the longer term.
And by small changes – even a 5% increase in customer loyalty (repeat purchases from existing customers) can result in up to 95% growth in profits!
So, why does customer loyalty have such a large impact on a website’s profitability?
1. You won’t break even on one-time shoppers.
Customer acquisition costs in ecommerce are high (that is the cost of converting a website visitor into a paying customer, such as the cost of advertising). So to recoup your investment you need to convince customers to return to your site time and again.
For example, the online clothing store in this example didn’t make a profit from customers until he or she had shopped at the site four times. This implies that the retailer had to retain the customer for 12 months just to break even!
2. Repeat purchasers spend more and generate larger transactions.
The longer their relationship with an online retailer, the more customers spent in a given period of time. In the example shown above, the average repeat customer spent 67% more in months 31-36 of his or her shopping relationship than in months zero-to-six.
3. Repeat customers refer more people and bring in more business.
Word of mouth is the single most effective and economical way online retailers grow their business. Word of mouth referrals have the highest trust rating. And get this – new customers are likely to place their first order within 2 weeks of receiving that referral!
And loyalty, it turns out, can be a key driver for referrals. On average, a customer will refer three people after their first purchase. And after 10 purchases that same shopper had referred seven people to the site!
4. Referrals are powerful selling tools
It’s not surprising that 71% of online shoppers read reviews before they buy (Forrester Research).
Here’s a couple more impressive stats to wrap your brain around. According to Nielsen, 92% of people trust referrals from people they know, AND people are 4 times more likely to buy when referred by a friend.
If ever there was a reason to make sure your customers are happy, this would be it!
How to improve customer loyalty and increase repeat purchases
Now, let me show you how you can easily improve your customer loyalty and increase repeat purchases.
Because you REALLY want to make sure your customers are happy and coming back for more again and again, right?
Well, now you can actually AUTOMATE this process in your online store!
How to increase repeat purchases – on autopilot!
When a new customer places their first order with you, that purchase transaction should automatically trigger an email funnel as follows:
Example of a Post Purchase Email Funnel:
- Welcome to “Brand Name” family and thanks for the purchase (send immediately)
- Share a ‘before and after’ transformation or case study, to reinforce decision to buy (send 3 days later)
- Did your product arrive and is everything OK? (Send 2 days after your product should have arrived)
- Share ‘how to use’ tips and tricks to ensure your customer can successfully use your product (send 3 days later)
- Invitation to social media (for example, ‘show us what adventures your (insert product) has been up to! Tag us on Instagram)
- Request a product review (send 3 days later)
- Time-sensitive promotion – should be a cross sell or up-sell, related to the product they purchased (send 3 days later)
- Follow-up reminder #1 about time sensitive promotion (send 2 days later)
- Follow-up reminder #2 about time sensitive promotion (send 1 day later)
Now, in order to run automated campaigns triggered by a purchase, you will need to be using a marketing automation application such as Klaviyo.
That way, you help improve customer satisfaction AND increase repeat purchases, and it’s all automated!