November 24, 2024 • 19 mins
Unlock the secrets to skyrocketing your e-commerce revenue as we promise to transform your approach to customer lifetime value (LTV). This episode is packed with insights on moving beyond generic newsletters to harness the full potential of post-purchase automation. Learn how to craft highly segmented and personalized communications using tools like Klaviyo and HubSpot, and explore the art of strategic remarketing. We reveal how to smartly exclude recent buyers from your usual lists and instead tempt them with irresistible cross-sell and up-sell offers that affirm their purchase decisions and ignite repeat business.
We also explore how loyalty programs can be a game-changer for businesses with diverse SKUs, especially those dealing with replenishable products. Discover the magic of tiered, points-based systems to foster customer loyalty, and see how pampering your top 1% to 5% of buyers with bespoke interactions and rewards can pay off. Inspired by a local energy drink supplier, we demonstrate how proactive customer service and laser-focused communication can elevate satisfaction and loyalty. Whether through personalized marketing, strategic remarketing, or targeted engagement, this episode equips you with the strategies needed to elevate your e-commerce success.
The Digital Horizons Podcast is hosted by:
James Walker - Managing Director WHD
Brian Hastings - Managing Director Nous
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Welcome back to Digital Horizons.
We're the channel for marketers, business owners and e-commerce
entrepreneurs who want to knowwhat tactics are working in
digital marketing right now andwhat ones to try and test into
the e-commerce store In thispart.
Speaker 2 (00:15):
We're talking about how to, I guess, generate more
sales from your current customerbase in a way that is, then
again, as we've talked about inprevious ones.
We're just trying to look ateach one of these different
levers of the four.
So we've started with traffic,then we went into conversion
(00:36):
rate, then AOV and now LTV, andwe're talking about if we can
just increase any of thesemetrics by a small percentage,
then overall, in combination,you're going to see a really
large scale increase in youroverall sales.
Speaker 1 (00:47):
Let's get started.
Yeah, let's get into it.
I think customer lifetime valueis usually the one people leave
to last.
They have some customerspouring in, but it is definitely
one that small tweaks andchanges increase revenue over a
much longer period of time thanjust an addition to traffic in
the current month.
So it is really importantChanges in tactics that you
(01:09):
implement now can last a long,long time.
Some of these strategies we'regoing to talk through more
long-term nurture flows andprograms that, once you
implement them, they justcontinue to keep delivering for
you.
But let's get into it.
We want to work through sometactics that you can implement
right now that aren't too nichespecific but it is more relevant
(01:32):
for an e-commerce store.
Yeah, 100%.
So let's jump into the firstone.
Okay, Post Okay.
Are we ready?
Speaker 2 (01:41):
So the first one we're talking about today is
post-purchase automation, andthe way that we want to do this
is make sure it's highlysegmented.
You don't want to just besending out blanket stuff to
your whole database hoping thatit's going to buy unless your
solution is for if someone'sbought one of X, then everyone
is likely to buy Y Then you wantto make sure that you've got a
segmented database list andyou're tailoring your messaging
(02:01):
and tailoring your automationsbased on if people purchase this
product and from your data youcan see they're more likely, or
quite very likely, to purchasethis product.
Then you're making sure yourrecommendations are for the next
step that makes sense to them.
Speaker 1 (02:14):
That's right.
We need to see businesses moveaway from newsletter
subscriptions where you'resending out a bulk email once a
month and hoping that there'llbe an offer appropriate to your
entire database in there.
We need to see customizedcommunications based off the
time since purchase of theindividual customer, not just
when you get around to sendingan offer email.
(02:35):
Of course you can drop in offersthat are relevant to a business
sale, but if you can createnurtures that are tailoring the
product offer or the cross-sellor up-sell to that particular
customer based off what they'vepurchased in the past, then
you're going to get a higherengagement rate.
You're going to get a higherconversion rate because you're
(02:55):
looking at your data, you'reseeing what your other customers
have purchased in the past andthen what they typically go on
to buy or what's relevant tothem to purchase next, and then
you're offering that at the sametime span as the other
customers took to buy.
So it takes a little bit oftime to structure this the first
time, but once it's in placeand the appropriate
(03:17):
communications are there, thenit's set and forget effectively.
You do need to keep optimisingit, but marketing automation
tool, whether it be Klaviyo orHubSpot, is going to continually
look at each customerindividually and send them the
right SMS or the right emailbased on when the best next time
is to receive that offer orcommunication.
Speaker 2 (03:38):
Definitely.
I'm pretty sure.
I feel like I've seen that it'seither coming or it has already
been implemented, but Klaviyois now using a lot of AI stuff
for product recommendations.
Speaker 1 (03:47):
Yeah.
Speaker 2 (03:47):
Because all the data is already there in the software
and I have a feeling that,where previously you'd have to
look through your own Shopifydata and start picking all right
, cool if someone buys this andrecommend this or include this
product, but I believe thatthey've got quite a strong AI
model in there now that isallowing you to basically just
say, yep, you handle that sideof things, working out what fits
, when and how long after theemail to send them out.
(04:07):
If that's not currently alreadyin there, I know that it's
coming soon.
Speaker 1 (04:10):
Yeah and I think that same data leads nicely into the
next recommendation, which isremarketing to existing or past
customers.
Speaker 2 (04:19):
Definitely and I mean everybody.
We've talked about this beforeI think it was in the first one
for increasing your conversionrates.
But you want to be sure you areremarketing, but then being a
lot more strategic about it interms of how you're segmenting
your remarketing lists to makesure that your messaging is
consistent with what stage ofeither the purchase journey
they're in for your pre-purchaseor post-purchase.
And I feel like a lot of brandsare probably not catering their
(04:40):
remarketing as strongly orputting enough budget or thought
into post-purchase remarketing.
So that way you can be focusingmessaging to bring customers
back, make sure that they arepurchasing again from your store
, because they're going to bethe easiest ones to convert.
Speaker 1 (04:51):
And a very obvious tip is to make sure you're
removing those who purchase fromyour remarketing for that
product that they purchased andputting them into a remarketing
list of cross-sell or up-sellfor relevant products.
You want the customer to knowthat you know they've already
purchased.
There's nothing worse thanseeing continual ads from a
(05:12):
brand for the product you'vealready bought.
Thinking, don't you know?
Speaker 2 (05:16):
Yeah, and I do think there are some ads that work
right through.
So your confidence, your trust,ads, shit like that.
You want to confirm thatthey've made the right decision,
so you want to make sure that,all right, you've shown them all
these cool ads going hey, we'refive stars, look at all our
reviews.
But don't stop that oncethey've purchased, because once
they've purchased, you stillwant to give them the confidence
that they made the rightdecision in completing that
purchase.
Speaker 1 (05:34):
So having that run through, but then obviously you
don't want to be recommendingthat product again to that
person who's already purchasedbecause it makes you look stupid
about the product and brand andthen potentially promoting it
on through continued remarketing, but knowing that they're an
(05:55):
existing customer andadvertising as such.
Speaker 2 (05:58):
Yes, On to the next one, so adding a subscription
service to your website.
Now, not all products aresuitable for this, Like I mean,
if you're selling beds, you'renot going to sell a bed on a
subscription item.
Our bed's going to break in ayear so you should-.
It probably doesn't send theright signal that you will need
a replacement in a short timeframe, but there are going to be
products on your website.
If you're selling beds, youcould sell bedding and that
(06:19):
could be on a subscription,because that is something that
is a replenishable product, andso I guess it's looking at.
What is it?
What is your customer basedoing?
Are they reordering?
If so, why not get them onto asubscription?
That way you can count on therevenue coming in.
You can offer incentives forthem to sign up for your
subscription.
It could be free shipping or adiscount, but this is a good way
to get locked in future revenueas well.
Speaker 1 (06:38):
Absolutely, and I think those products that do run
out in a period of time andthat you know, after a certain
two or three-month period it'stime to push the reorder.
One of my clients, who I'vementioned before, has an
e-commerce store selling beardproducts, beard grooming
products like beard oils andbutters.
(06:59):
They're cautious about doing asubscription model because a lot
of their customers come backand buy different scents,
different products that theydon't particularly need.
They haven't run out of thefirst one yet and he's concerned
if he sets it on a set andforget subscription model that
they won't particularly need.
They haven't run out of thefirst one yet and he's concerned
if he sets it on aset-and-forget subscription
model that they won't get thatsort of the average order value
(07:20):
that they get from a customerbecause they'll know I've bought
it once.
Every six months I get a newbeard oil.
So there are those factorsthere that if you are going to
introduce a subscription modelthat you make sure you don't
reduce your average order valueby just getting the bare minimum
offered.
If you're going to introduce asubscription model, it needs to
be suggesting additions to theirsubscription continuously and
(07:43):
new scents to try or newproducts to add to their
subscription, but it is going tobe a good way of getting
someone connected viaconvenience to your brand and
just knowing that it's there andI can increase it or decrease
it as time goes on, definitely.
Speaker 2 (07:59):
Next one, which we don't.
I mean, we get them and theyprobably annoy a lot of people,
but SMS is something that can beused as a strategy to increase
your lot and value, because itis another touch point that you
are having with your customerbase.
Speaker 1 (08:10):
Yeah, my emails, especially in Gmail, are
filtered between promotions.
Actual emails I should belooking at and I think there's
like the other one is junk orwhatever.
Updates yeah, updates, junk orupdates.
It takes a lot for me to lookinto that section.
I sort of have to know what I'mlooking for.
But text message I need to seethe notification get removed off
(08:32):
my phone.
Speaker 2 (08:34):
I need to press that and open it.
Speaker 1 (08:35):
So, yeah, I'm definitely opening those a lot
more than the others.
Speaker 2 (08:40):
Yeah, and when done well, they can be used as a
really good sales tool.
I mean, for example, we're justtalking about Domino's, they're
great at it.
I mean they must have so muchdata in their system as to when
to send out a message to buy apizza, and so when you are
getting the message that that isthe right time for you to
purchase, it's definitely goingto be a lever.
But I think it's also somethingthat you don't typically look
back at, like when your emails.
You might go back into youremails.
(09:00):
You might see it might pop upagain when you go back into your
emails.
But I find with SMS, it'sbasically you get a lot of texts
throughout the day Once itcomes in and out.
Speaker 1 (09:07):
yeah, unless you're going to take action right now,
it's unlikely that you'reprobably going to think about it
and go searching back throughyour SMS to go back and find
that thing.
Yeah, that's right, I havefound another one using it.
Well, as BCF.
I don't really have a need fora portable battery-operated
fridge.
I don't go camping that much,but I'm so close to buying one.
I'm just sort of three moretext message offers away from
(09:29):
getting one and I don't replyopt-out because I might convert
soon.
Speaker 2 (09:34):
Yeah, okay, from getting one and I don't reply.
Opt out because I might convertsoon.
You like the reminder that youmight want to buy this at some
point?
Speaker 1 (09:37):
I might want to get this stuff and I kind of like
the BCF product.
So I do want to be on that textmessage in case it's an offer
that no one else is getting, buthave you ever bought from one
yet?
No.
Speaker 2 (09:47):
But I mean still, it's kind of working.
Yeah, it's close.
Speaker 1 (09:50):
It's getting me there .
I'll have a fridge by the endof the year.
Speaker 2 (09:53):
Next one is loyalty programs.
So this is, I mean, everyone'sfamiliar with them.
If you shop at a lot ofdifferent brands, I've got them
set up on their websites.
Where you purchase things, youget more points, you get access
to different things, and there'sall different ways to set these
up.
But again, the whole goal ofthis is to increase, well, first
of all, your average ordervalue, because we talked about
that.
This can be a lever forincreasing what people are
(10:14):
spending on a single transaction.
But I think the stronger partof it is building that customer
loyalty to come back and shopfrom your store in the future,
because if they're weighing youup versus a competitor, they've
already got some points orthere's some incentive there for
them to come back and purchasefrom you versus somebody else,
and that's going to potentiallybe the thing that brings them
back to your store and helpsthem buy.
Speaker 1 (10:33):
And I think it is going to be some
product-specific platforms.
Say, if you're selling a $400pressure washer, someone's
probably going to buy one, maybetwo.
Having a points-based loyaltyprogram, you're unlikely to keep
coming back and buy four, five,six or seven.
It may not work there, but Forthose, you know, multi-purchase
(10:54):
Replenishables yeah,replenishables and smaller value
stuff.
Speaker 2 (10:57):
Yeah, and then you've got like Meyer and shit like
that as well.
I think you need a lot of SKUs.
Like if you've got a very widerange of items in your store
where people do tend to comeback and purchase, it can be
valuable there.
Speaker 1 (11:08):
That's key.
Yeah, it's the wide range ofSKUs and the potential, like you
can have the points-based offerfor BCF.
Yes, and they've got reallyexpensive stuff down to really,
you know, low-cost stuff, butthey've got a lot of options.
Speaker 2 (11:20):
Yes, Whereas if you're looking at, say, a lamp
shop, you're probably not goingto spend that much throughout
the year on lamps.
Speaker 1 (11:26):
Yeah, like you might just be.
Speaker 2 (11:28):
That's a good example .
Yeah, like you might buy two orthree, but it's not like, yes,
I'm going to elevate to the toptier purchasing lamps from the
shop.
Speaker 1 (11:34):
Once I get a triple platinum at Lamps for Us, I can
finally get the lamp haul I'vebeen wanting.
Speaker 2 (11:41):
So I guess it is obviously industry specific and
depending on your customer base,but making sure that you are
implementing something like thisto bring people back and
increase your customer loyaltythere.
Speaker 1 (11:50):
And look, we're not recommending multiple platforms
here.
There are plenty of options,especially in Shopify, for both
the tier-based loyalty programsand the post-checkout automatic
subscriptions.
Shopify has one called CheckoutSwitcher.
There's multiple options.
You can test and try what worksfor you, but they do make it
relatively straightforward toset up and add to your store.
(12:11):
But they are tools that, onceinstalled, you just go through
the setup process and organizewhat offers and what things are
delivered within that platform.
It's quite straightforward.
You don't need an externaldeveloper to do this.
Speaker 2 (12:26):
Yeah, on to the final one that we're going to be
going through today and this isone that I feel is definitely
not used enough.
Enough, but it is creating tofurther extend your loyalty
program is looking at who yoursort of top 1% to 5% of your
customer base is, making sureyou've got this segment
identified and then havingtargeted messages that's being
sent to them.
Speaker 1 (12:45):
Yeah, absolutely.
I think having the loyaltyprogram with the tiered base
point system from our lastrecommendation can help you
easily identify that super toptier.
But we're suggesting reallylasering in on that top 1% to 5%
in that top tier and coming upwith custom offers, maybe more
(13:06):
tailored ways of connecting withthe brands handwritten notes in
their packages that are sentout to them, asking them for
feedback on new productdevelopment, early access to new
products or new offers thatothers aren't getting, to really
make them see that they arespecial and they are important
to you as a brand.
Speaker 2 (13:27):
Yeah, and an example of this is a buddy of mine.
We both purchased this drinkthat is quite I don't think it's
very well known in the market.
It's one of those naturalenergy things and it's from a
local supplier here.
But the volume that we purchase, I feel we would have to be in
that top 1%, if not the 1%, andwe've been getting delays in
shipping and so we put a buddy,sent an email out saying, hey,
(13:51):
is there a better way to getthis faster?
Because it's not.
This is like I'm waiting fortwo to three days to keep
running out.
And this is obviously.
It's a drink, so you're on asubscription and then the owner
called and then put it on a fourhour service to get to it so
and so I think, from looking atthat like just but I mean I
guess this was reactionary, thiswas something that he had to
send an email and say, oh look,hey, you know, can you do
(14:12):
something about this?
But I mean, he did place an$800 order for $4 cans, yes.
So he was like it was getting abit what is this stuff?
Speaker 1 (14:18):
Licking cracker.
Speaker 2 (14:19):
I will have to look a little bit addicted to it
Haven't had a coffee in a while.
This.
I've actually switched fromthis from coffee to this about
three to four months ago.
It's called Savvy, if anyonewants to check it out.
This is not an ad, it's justdrugs in a can.
Speaker 1 (14:34):
It pretty much basically is.
But that's a great example.
He could quickly identify youguys are top customers and then
you need to react quickly, 100%.
Speaker 2 (14:43):
And so he was and jumped on the phone and put it
on a four-hour service fordelivery, which I thought was
really impressive, so actuallytaking that step to then, you
know, it wasn't a greatexperience in terms of the slow
shipping, but because he has agood product, he kept buying it
anyway, and so being able toprovide better service to your
top customers, I guess, was justa good outcome, and imagine if
you were identified as a topcustomer earlier.
Speaker 1 (15:01):
Exactly, and that's what I was thinking.
Speaker 2 (15:03):
Proactively 100%.
And so if we looked at it andgo, hey look, these guys are
buying a shitload of my product,Maybe I could put this onto a
better service.
So that way they're tellingeveryone about it it we already
are anyway.
Speaker 1 (15:13):
You can even offer those top 1% to 5% of customers
rewards for being advocates,like go and recommend this, or
here's a promo code or here's agift you can give others of
trying this thing and you get abit of a kickback as well, like
a gym promotion subscription.
Plenty of options you can offerthem.
But they're the fiverecommendations for our customer
(15:35):
lifetime value, which ispost-purchase customer
communications through yourmarketing automation tool with
personalized recommendations,remarketing to your past
customers with bestrecommendations of what they
should purchase next,subscriptions, sms, loyalty
programs with the tiered basepoint system and identifying
(15:55):
that top 1% to 5% of yourcustomers and really connecting
with them in different ways tothe rest of your customers.
Speaker 2 (16:02):
So I guess, if we are looking at the overall, so
we're sort of here wrapping upeverything that we've gone
through over the last five weekswell past four and then this
week is we are looking toincrease our overall revenue
coming through our e-commercestore.
It started with our traffic andthen we had our conversion rate
and then our AOV and finally weare at our lifetime value.
So the way we've beenpositioning this is we want to
(16:25):
see a 10% increase of a trafficas a minimum is what we should
be focusing on as a first pointa 10% increase in our conversion
rate, 10% increase in AOV and10% increase in our lifetime
value.
Now, if you're a store thatdoes all of these things and if
you're only making, say, $100 amonth, you're going to see a 46%
(16:47):
increase in overall revenue.
So, based on that, your $100 isnow worth $146 per month.
Now, if your conversion rate, a10% increase that's not hard.
Any of these things that we'retalking about, that's a simple
feat.
Speaker 1 (17:01):
That's not going to be hard to do yeah, it's
sometimes possible just withinnormal fluctuations, but if you
can consistently keep it at 1.1Exactly I mean this is not a
day-by-day.
Speaker 2 (17:10):
We're looking over, say, a 30-day, 90-day period.
But if you can look at that andgo, all right, cool, one
percent to one point, onepercent, I mean that's fucking.
Anyone could do that averageorder value same thing.
You were doing a hundreddollars, now it's 110.
We've got some pretty strongstrategies in place that we've
talked about to get to the 110lifetime value they're just
again only going to spend.
If your average order value is100 bucks or 10 bucks, you need
to add an extra dollar to thislike.
This isn't big numbers thatwe're trying to change, but a 46
(17:32):
increase in overall sales as acombination.
That's big.
That's going to have a massiveimpact on your overall sales.
Obviously, you're not doingthis with $100 sales.
If you imagine, if you're doing$100,000 in sales, these small
incremental changes are going tohave massive impact on your
overall sales.
Speaker 1 (17:45):
And they don't negatively impact the customer.
It's almost imperceivable.
A lot of these tactics aresupporting and helping and
improving the engagement yourcustomer has with you, so they
won't be overly noticeable otherthan improving the experience
for the customer.
Speaker 2 (18:02):
Yes, so a lot of quick and easy incremental wins
that improve the overallposition 146% increase in
revenue from 0.1 or 10% metricsis really compelling, and I'm
(18:23):
starting to think I've forgottenwhat I'm talking about.
All right, well, we might justleave it there.
So, I mean, we've covered off alot of content throughout the
last five weeks.
We are going to get back to ourregular, I guess, scheduling of
content, which is going to bemore of a mix of content for, I
guess, all types of businesses.
We have had quite a strategicfocus on e-commerce, especially
leading up to this time of year,being that Q4 for many
e-commerce businesses, theabsolute most important time of
the year for them to beperforming.
(18:43):
We felt that this was coming in, was going to be a strong time
to do it, but check in next weekand we'll have a new episode.
Thank you, that's been Digital.
Speaker 1 (18:50):
Horizons for this week.
We'll be back with brand newslater in the week.
Thank you.
Welcome back to Digital Horizons.
We're the channel for marketers, business owners and e-commerce
entrepreneurs who want to knowwhat tactics are working in
digital marketing right now andwhat ones to try and test into
the e-commerce store In thispart.
Speaker 2 (00:15):
We're talking about how to, I guess, generate more
sales from your current customerbase in a way that is, then
again, as we've talked about inprevious ones.
We're just trying to look ateach one of these different
levers of the four.
So we've started with traffic,then we went into conversion
(00:36):
rate, then AOV and now LTV, andwe're talking about if we can
just increase any of thesemetrics by a small percentage,
then overall, in combination,you're going to see a really
large scale increase in youroverall sales.
Speaker 1 (00:47):
Let's get started.
Yeah, let's get into it.
I think customer lifetime valueis usually the one people leave
to last.
They have some customerspouring in, but it is definitely
one that small tweaks andchanges increase revenue over a
much longer period of time thanjust an addition to traffic in
the current month.
So it is really importantChanges in tactics that you
(01:09):
implement now can last a long,long time.
Some of these strategies we'regoing to talk through more
long-term nurture flows andprograms that, once you
implement them, they justcontinue to keep delivering for
you.
But let's get into it.
We want to work through sometactics that you can implement
right now that aren't too nichespecific but it is more relevant
(01:32):
for an e-commerce store.
Yeah, 100%.
So let's jump into the firstone.
Okay, Post Okay.
Are we ready?
Speaker 2 (01:41):
So the first one we're talking about today is
post-purchase automation, andthe way that we want to do this
is make sure it's highlysegmented.
You don't want to just besending out blanket stuff to
your whole database hoping thatit's going to buy unless your
solution is for if someone'sbought one of X, then everyone
is likely to buy Y Then you wantto make sure that you've got a
segmented database list andyou're tailoring your messaging
(02:01):
and tailoring your automationsbased on if people purchase this
product and from your data youcan see they're more likely, or
quite very likely, to purchasethis product.
Then you're making sure yourrecommendations are for the next
step that makes sense to them.
Speaker 1 (02:14):
That's right.
We need to see businesses moveaway from newsletter
subscriptions where you'resending out a bulk email once a
month and hoping that there'llbe an offer appropriate to your
entire database in there.
We need to see customizedcommunications based off the
time since purchase of theindividual customer, not just
when you get around to sendingan offer email.
(02:35):
Of course you can drop in offersthat are relevant to a business
sale, but if you can createnurtures that are tailoring the
product offer or the cross-sellor up-sell to that particular
customer based off what they'vepurchased in the past, then
you're going to get a higherengagement rate.
You're going to get a higherconversion rate because you're
(02:55):
looking at your data, you'reseeing what your other customers
have purchased in the past andthen what they typically go on
to buy or what's relevant tothem to purchase next, and then
you're offering that at the sametime span as the other
customers took to buy.
So it takes a little bit oftime to structure this the first
time, but once it's in placeand the appropriate
(03:17):
communications are there, thenit's set and forget effectively.
You do need to keep optimisingit, but marketing automation
tool, whether it be Klaviyo orHubSpot, is going to continually
look at each customerindividually and send them the
right SMS or the right emailbased on when the best next time
is to receive that offer orcommunication.
Speaker 2 (03:38):
Definitely.
I'm pretty sure.
I feel like I've seen that it'seither coming or it has already
been implemented, but Klaviyois now using a lot of AI stuff
for product recommendations.
Speaker 1 (03:47):
Yeah.
Speaker 2 (03:47):
Because all the data is already there in the software
and I have a feeling that,where previously you'd have to
look through your own Shopifydata and start picking all right
, cool if someone buys this andrecommend this or include this
product, but I believe thatthey've got quite a strong AI
model in there now that isallowing you to basically just
say, yep, you handle that sideof things, working out what fits
, when and how long after theemail to send them out.
(04:07):
If that's not currently alreadyin there, I know that it's
coming soon.
Speaker 1 (04:10):
Yeah and I think that same data leads nicely into the
next recommendation, which isremarketing to existing or past
customers.
Speaker 2 (04:19):
Definitely and I mean everybody.
We've talked about this beforeI think it was in the first one
for increasing your conversionrates.
But you want to be sure you areremarketing, but then being a
lot more strategic about it interms of how you're segmenting
your remarketing lists to makesure that your messaging is
consistent with what stage ofeither the purchase journey
they're in for your pre-purchaseor post-purchase.
And I feel like a lot of brandsare probably not catering their
(04:40):
remarketing as strongly orputting enough budget or thought
into post-purchase remarketing.
So that way you can be focusingmessaging to bring customers
back, make sure that they arepurchasing again from your store
, because they're going to bethe easiest ones to convert.
Speaker 1 (04:51):
And a very obvious tip is to make sure you're
removing those who purchase fromyour remarketing for that
product that they purchased andputting them into a remarketing
list of cross-sell or up-sellfor relevant products.
You want the customer to knowthat you know they've already
purchased.
There's nothing worse thanseeing continual ads from a
(05:12):
brand for the product you'vealready bought.
Thinking, don't you know?
Speaker 2 (05:16):
Yeah, and I do think there are some ads that work
right through.
So your confidence, your trust,ads, shit like that.
You want to confirm thatthey've made the right decision,
so you want to make sure that,all right, you've shown them all
these cool ads going hey, we'refive stars, look at all our
reviews.
But don't stop that oncethey've purchased, because once
they've purchased, you stillwant to give them the confidence
that they made the rightdecision in completing that
purchase.
Speaker 1 (05:34):
So having that run through, but then obviously you
don't want to be recommendingthat product again to that
person who's already purchasedbecause it makes you look stupid
about the product and brand andthen potentially promoting it
on through continued remarketing, but knowing that they're an
(05:55):
existing customer andadvertising as such.
Speaker 2 (05:58):
Yes, On to the next one, so adding a subscription
service to your website.
Now, not all products aresuitable for this, Like I mean,
if you're selling beds, you'renot going to sell a bed on a
subscription item.
Our bed's going to break in ayear so you should-.
It probably doesn't send theright signal that you will need
a replacement in a short timeframe, but there are going to be
products on your website.
If you're selling beds, youcould sell bedding and that
(06:19):
could be on a subscription,because that is something that
is a replenishable product, andso I guess it's looking at.
What is it?
What is your customer basedoing?
Are they reordering?
If so, why not get them onto asubscription?
That way you can count on therevenue coming in.
You can offer incentives forthem to sign up for your
subscription.
It could be free shipping or adiscount, but this is a good way
to get locked in future revenueas well.
Speaker 1 (06:38):
Absolutely, and I think those products that do run
out in a period of time andthat you know, after a certain
two or three-month period it'stime to push the reorder.
One of my clients, who I'vementioned before, has an
e-commerce store selling beardproducts, beard grooming
products like beard oils andbutters.
(06:59):
They're cautious about doing asubscription model because a lot
of their customers come backand buy different scents,
different products that theydon't particularly need.
They haven't run out of thefirst one yet and he's concerned
if he sets it on a set andforget subscription model that
they won't particularly need.
They haven't run out of thefirst one yet and he's concerned
if he sets it on aset-and-forget subscription
model that they won't get thatsort of the average order value
(07:20):
that they get from a customerbecause they'll know I've bought
it once.
Every six months I get a newbeard oil.
So there are those factorsthere that if you are going to
introduce a subscription modelthat you make sure you don't
reduce your average order valueby just getting the bare minimum
offered.
If you're going to introduce asubscription model, it needs to
be suggesting additions to theirsubscription continuously and
(07:43):
new scents to try or newproducts to add to their
subscription, but it is going tobe a good way of getting
someone connected viaconvenience to your brand and
just knowing that it's there andI can increase it or decrease
it as time goes on, definitely.
Speaker 2 (07:59):
Next one, which we don't.
I mean, we get them and theyprobably annoy a lot of people,
but SMS is something that can beused as a strategy to increase
your lot and value, because itis another touch point that you
are having with your customerbase.
Speaker 1 (08:10):
Yeah, my emails, especially in Gmail, are
filtered between promotions.
Actual emails I should belooking at and I think there's
like the other one is junk orwhatever.
Updates yeah, updates, junk orupdates.
It takes a lot for me to lookinto that section.
I sort of have to know what I'mlooking for.
But text message I need to seethe notification get removed off
(08:32):
my phone.
Speaker 2 (08:34):
I need to press that and open it.
Speaker 1 (08:35):
So, yeah, I'm definitely opening those a lot
more than the others.
Speaker 2 (08:40):
Yeah, and when done well, they can be used as a
really good sales tool.
I mean, for example, we're justtalking about Domino's, they're
great at it.
I mean they must have so muchdata in their system as to when
to send out a message to buy apizza, and so when you are
getting the message that that isthe right time for you to
purchase, it's definitely goingto be a lever.
But I think it's also somethingthat you don't typically look
back at, like when your emails.
You might go back into youremails.
(09:00):
You might see it might pop upagain when you go back into your
emails.
But I find with SMS, it'sbasically you get a lot of texts
throughout the day Once itcomes in and out.
Speaker 1 (09:07):
yeah, unless you're going to take action right now,
it's unlikely that you'reprobably going to think about it
and go searching back throughyour SMS to go back and find
that thing.
Yeah, that's right, I havefound another one using it.
Well, as BCF.
I don't really have a need fora portable battery-operated
fridge.
I don't go camping that much,but I'm so close to buying one.
I'm just sort of three moretext message offers away from
(09:29):
getting one and I don't replyopt-out because I might convert
soon.
Speaker 2 (09:34):
Yeah, okay, from getting one and I don't reply.
Opt out because I might convertsoon.
You like the reminder that youmight want to buy this at some
point?
Speaker 1 (09:37):
I might want to get this stuff and I kind of like
the BCF product.
So I do want to be on that textmessage in case it's an offer
that no one else is getting, buthave you ever bought from one
yet?
No.
Speaker 2 (09:47):
But I mean still, it's kind of working.
Yeah, it's close.
Speaker 1 (09:50):
It's getting me there .
I'll have a fridge by the endof the year.
Speaker 2 (09:53):
Next one is loyalty programs.
So this is, I mean, everyone'sfamiliar with them.
If you shop at a lot ofdifferent brands, I've got them
set up on their websites.
Where you purchase things, youget more points, you get access
to different things, and there'sall different ways to set these
up.
But again, the whole goal ofthis is to increase, well, first
of all, your average ordervalue, because we talked about
that.
This can be a lever forincreasing what people are
(10:14):
spending on a single transaction.
But I think the stronger partof it is building that customer
loyalty to come back and shopfrom your store in the future,
because if they're weighing youup versus a competitor, they've
already got some points orthere's some incentive there for
them to come back and purchasefrom you versus somebody else,
and that's going to potentiallybe the thing that brings them
back to your store and helpsthem buy.
Speaker 1 (10:33):
And I think it is going to be some
product-specific platforms.
Say, if you're selling a $400pressure washer, someone's
probably going to buy one, maybetwo.
Having a points-based loyaltyprogram, you're unlikely to keep
coming back and buy four, five,six or seven.
It may not work there, but Forthose, you know, multi-purchase
(10:54):
Replenishables yeah,replenishables and smaller value
stuff.
Speaker 2 (10:57):
Yeah, and then you've got like Meyer and shit like
that as well.
I think you need a lot of SKUs.
Like if you've got a very widerange of items in your store
where people do tend to comeback and purchase, it can be
valuable there.
Speaker 1 (11:08):
That's key.
Yeah, it's the wide range ofSKUs and the potential, like you
can have the points-based offerfor BCF.
Yes, and they've got reallyexpensive stuff down to really,
you know, low-cost stuff, butthey've got a lot of options.
Speaker 2 (11:20):
Yes, Whereas if you're looking at, say, a lamp
shop, you're probably not goingto spend that much throughout
the year on lamps.
Speaker 1 (11:26):
Yeah, like you might just be.
Speaker 2 (11:28):
That's a good example .
Yeah, like you might buy two orthree, but it's not like, yes,
I'm going to elevate to the toptier purchasing lamps from the
shop.
Speaker 1 (11:34):
Once I get a triple platinum at Lamps for Us, I can
finally get the lamp haul I'vebeen wanting.
Speaker 2 (11:41):
So I guess it is obviously industry specific and
depending on your customer base,but making sure that you are
implementing something like thisto bring people back and
increase your customer loyaltythere.
Speaker 1 (11:50):
And look, we're not recommending multiple platforms
here.
There are plenty of options,especially in Shopify, for both
the tier-based loyalty programsand the post-checkout automatic
subscriptions.
Shopify has one called CheckoutSwitcher.
There's multiple options.
You can test and try what worksfor you, but they do make it
relatively straightforward toset up and add to your store.
(12:11):
But they are tools that, onceinstalled, you just go through
the setup process and organizewhat offers and what things are
delivered within that platform.
It's quite straightforward.
You don't need an externaldeveloper to do this.
Speaker 2 (12:26):
Yeah, on to the final one that we're going to be
going through today and this isone that I feel is definitely
not used enough.
Enough, but it is creating tofurther extend your loyalty
program is looking at who yoursort of top 1% to 5% of your
customer base is, making sureyou've got this segment
identified and then havingtargeted messages that's being
sent to them.
Speaker 1 (12:45):
Yeah, absolutely.
I think having the loyaltyprogram with the tiered base
point system from our lastrecommendation can help you
easily identify that super toptier.
But we're suggesting reallylasering in on that top 1% to 5%
in that top tier and coming upwith custom offers, maybe more
(13:06):
tailored ways of connecting withthe brands handwritten notes in
their packages that are sentout to them, asking them for
feedback on new productdevelopment, early access to new
products or new offers thatothers aren't getting, to really
make them see that they arespecial and they are important
to you as a brand.
Speaker 2 (13:27):
Yeah, and an example of this is a buddy of mine.
We both purchased this drinkthat is quite I don't think it's
very well known in the market.
It's one of those naturalenergy things and it's from a
local supplier here.
But the volume that we purchase, I feel we would have to be in
that top 1%, if not the 1%, andwe've been getting delays in
shipping and so we put a buddy,sent an email out saying, hey,
(13:51):
is there a better way to getthis faster?
Because it's not.
This is like I'm waiting fortwo to three days to keep
running out.
And this is obviously.
It's a drink, so you're on asubscription and then the owner
called and then put it on a fourhour service to get to it so
and so I think, from looking atthat like just but I mean I
guess this was reactionary, thiswas something that he had to
send an email and say, oh look,hey, you know, can you do
(14:12):
something about this?
But I mean, he did place an$800 order for $4 cans, yes.
So he was like it was getting abit what is this stuff?
Speaker 1 (14:18):
Licking cracker.
Speaker 2 (14:19):
I will have to look a little bit addicted to it
Haven't had a coffee in a while.
This.
I've actually switched fromthis from coffee to this about
three to four months ago.
It's called Savvy, if anyonewants to check it out.
This is not an ad, it's justdrugs in a can.
Speaker 1 (14:34):
It pretty much basically is.
But that's a great example.
He could quickly identify youguys are top customers and then
you need to react quickly, 100%.
Speaker 2 (14:43):
And so he was and jumped on the phone and put it
on a four-hour service fordelivery, which I thought was
really impressive, so actuallytaking that step to then, you
know, it wasn't a greatexperience in terms of the slow
shipping, but because he has agood product, he kept buying it
anyway, and so being able toprovide better service to your
top customers, I guess, was justa good outcome, and imagine if
you were identified as a topcustomer earlier.
Speaker 1 (15:01):
Exactly, and that's what I was thinking.
Speaker 2 (15:03):
Proactively 100%.
And so if we looked at it andgo, hey look, these guys are
buying a shitload of my product,Maybe I could put this onto a
better service.
So that way they're tellingeveryone about it it we already
are anyway.
Speaker 1 (15:13):
You can even offer those top 1% to 5% of customers
rewards for being advocates,like go and recommend this, or
here's a promo code or here's agift you can give others of
trying this thing and you get abit of a kickback as well, like
a gym promotion subscription.
Plenty of options you can offerthem.
But they're the fiverecommendations for our customer
(15:35):
lifetime value, which ispost-purchase customer
communications through yourmarketing automation tool with
personalized recommendations,remarketing to your past
customers with bestrecommendations of what they
should purchase next,subscriptions, sms, loyalty
programs with the tiered basepoint system and identifying
(15:55):
that top 1% to 5% of yourcustomers and really connecting
with them in different ways tothe rest of your customers.
Speaker 2 (16:02):
So I guess, if we are looking at the overall, so
we're sort of here wrapping upeverything that we've gone
through over the last five weekswell past four and then this
week is we are looking toincrease our overall revenue
coming through our e-commercestore.
It started with our traffic andthen we had our conversion rate
and then our AOV and finally weare at our lifetime value.
So the way we've beenpositioning this is we want to
(16:25):
see a 10% increase of a trafficas a minimum is what we should
be focusing on as a first pointa 10% increase in our conversion
rate, 10% increase in AOV and10% increase in our lifetime
value.
Now, if you're a store thatdoes all of these things and if
you're only making, say, $100 amonth, you're going to see a 46%
(16:47):
increase in overall revenue.
So, based on that, your $100 isnow worth $146 per month.
Now, if your conversion rate, a10% increase that's not hard.
Any of these things that we'retalking about, that's a simple
feat.
Speaker 1 (17:01):
That's not going to be hard to do yeah, it's
sometimes possible just withinnormal fluctuations, but if you
can consistently keep it at 1.1Exactly I mean this is not a
day-by-day.
Speaker 2 (17:10):
We're looking over, say, a 30-day, 90-day period.
But if you can look at that andgo, all right, cool, one
percent to one point, onepercent, I mean that's fucking.
Anyone could do that averageorder value same thing.
You were doing a hundreddollars, now it's 110.
We've got some pretty strongstrategies in place that we've
talked about to get to the 110lifetime value they're just
again only going to spend.
If your average order value is100 bucks or 10 bucks, you need
to add an extra dollar to thislike.
This isn't big numbers thatwe're trying to change, but a 46
(17:32):
increase in overall sales as acombination.
That's big.
That's going to have a massiveimpact on your overall sales.
Obviously, you're not doingthis with $100 sales.
If you imagine, if you're doing$100,000 in sales, these small
incremental changes are going tohave massive impact on your
overall sales.
Speaker 1 (17:45):
And they don't negatively impact the customer.
It's almost imperceivable.
A lot of these tactics aresupporting and helping and
improving the engagement yourcustomer has with you, so they
won't be overly noticeable otherthan improving the experience
for the customer.
Speaker 2 (18:02):
Yes, so a lot of quick and easy incremental wins
that improve the overallposition 146% increase in
revenue from 0.1 or 10% metricsis really compelling, and I'm
(18:23):
starting to think I've forgottenwhat I'm talking about.
All right, well, we might justleave it there.
So, I mean, we've covered off alot of content throughout the
last five weeks.
We are going to get back to ourregular, I guess, scheduling of
content, which is going to bemore of a mix of content for, I
guess, all types of businesses.
We have had quite a strategicfocus on e-commerce, especially
leading up to this time of year,being that Q4 for many
e-commerce businesses, theabsolute most important time of
the year for them to beperforming.
(18:43):
We felt that this was coming in, was going to be a strong time
to do it, but check in next weekand we'll have a new episode.
Thank you, that's been Digital.
Speaker 1 (18:50):
Horizons for this week.
We'll be back with brand newslater in the week.
Thank you.
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy And Charlamagne Tha God!
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.