This article was published in collaboration with Recart.
In this all-new series, we will be unpacking ecommerce questions alongside industry experts—picking their brains for their thought leadership and walking away with actionable tips to optimize our ecommerce strategies. For our first post, we ask four agency experts: What are some tools and tactics you use to increase customer lifetime value? Without further ado, let’s dive in:
Next is to work on implementation. A great example is building an email list to engage in BFCM. One way to do it is to
This lets you capture an audience at a lower cost per email before everyone else does. Everyone is expecting big discounts during BFCM — don’t be afraid to offer one early to get them in the funnel.
Finally, automate all your email flows, including abandoned cart and checkout and other email campaigns (e.g. a product review for a 5% discount on the next order). You should aim to run specific email promotions throughout the year: BFCM, Christmas, Valentine’s day, etc. — there are all kinds of holidays year-round.
It’s an interesting topic because so many clients we speak to tend to miss customer lifetime value as a metric. They often focus on the here and now, but don’t think about the potential that a customer could have.
The first thing I would do is dive into the data and identify how many purchases a client makes, the value of them, and the average length of time they’ve been a customer. This will highlight your most valued customers and it is then our job as marketers to make sure that we make that repeat purchase funnel as easy as possible. What do I mean by that? Well, it starts with the user experience.
How can we make sure the second somebody has purchased, they are put into a sequence or adrip funnel type of campaign that says periodically - every week or every month, for example - “here’s something else that you might be interested in based on your previous purchases”.
I would start to think about how you can introduce educational content to help those customers instead of simply selling to them. Look at what you sold initially and then aim at building that level of trust, rapport, and respect by providing them with content that is going to help and educate them. Then you can take your relationship to the next level.
If you are selling a product that requires repeated purchases, first and foremost should be thinking about making that journey as easy as possible. How, when that product was sold, can you say ‘I hope you enjoy the purchase, please let us know if there’s anything we can help you with’. At this stage, you could possibly introduce a bit of a surprise and delight and give them a little something extra after that first order - a future discount or even a ‘new customer bonus’, but then going forwards, when you know that a repeat purchase is going to be required in, say, four weeks, you’ll want to plan for a message a week or so before. Ask the customer how they are finding the product and direct them to other products that have been frequently bought alongside theirs. You could offer a free trial or sample or create a simple journey for them to add the new product to their cart. Then you get the conversation going again.
When I’m talking to our clients, it's really important that we look at how we can turn them from standard clients into raving fans. And I think there’s a massive opportunity with tools like Recart to allow us to do that
To build a profitable, sustainable eCommerce business, it’s not enough to simply focus on getting a new customer to buy once. The first purchase only offsets the customer acquisition cost, so we need to focus on reselling to customers and ultimately growing customer lifetime value.
With cost per click (CPC) rising on Facebook, Google, Youtube, and other media platforms, brands need to be versatile in how they engage with their customers. This doesn't mean that you need to be on every channel, but you definitely need to be on the channels that your customers are active on.
In addition to paid advertising, it’s important that we utilize our owned media channels, such as email marketing, Facebook messenger marketing, and SMS, where we can reach our customers when we want. And, of course, we need to prioritize providing value and encourage our best customers to keep coming back. Provide value first and the sale will follow.
Here are two quick win implementations that are a must-have for the upcoming holidays to ensure that our website is doing a majority of the heavy lifting for us:
1. Automated email flows (welcome series, post-purchase, and abandoned cart)
2. Recart (messenger welcome flow and abandoned cart messenger flow)
Here’s an outline of the flow: right when an order is placed, trigger a Thank You email. Wait 15 minutes, then email a limited time offer for the next 60 minutes. Sell a high-profit margin with a steep discount (e.g. 50% off, 75% off or 40% off), something attractive that makes the customer want to buy again. The goal is to make them take action.
For the next 60 minutes, you can get these $20 jeans for just $10. Another example is a brand’s hat, normally $28, on sale for $14 for the next 60 minutes. This turns a one time buyer into a two-time buyer. Someone who purchases twice is much more likely to purchase more from a brand than someone who has purchased just once.
It’s important to act fast—that’s why we wait just 15 minutes after the Thank You email to send a follow-up with a limited time offer.