Converting New Shoppers Into Loyal Customers
There are many tactics in marketing. However, a compelling marketing strategy does not depend on an eclectic mix of tactics, however creative. The various tactics and channels which best fit your product and business model will work better than general marketing strategies.
Good marketing needs to fit into the market in which you are. Choose your channels and marketing tactics based on informed customer feedback and adjust as the results arrive.
But it is essential to zoom first to understand your specific audience better, your products and the products that fit your needs before diving in to specific tactics that will produce results. This helps you to develop a marketing strategy that can guide you.
As the e-commerce expert Drew Sanocki explains in his Three Multiplier Framework, e-commerce marketing is truly trilateral: a sustainable increase is caused by an increase in overall buying per client, an increase in the average order value (AOV), and by an increase in the overall buying frequency (C). Your business won’t ever scale in marketing if it does not address all three.
Different ways you can market your services
If you’re interested converting new shoppers into loyal customers you need to think differently. All too often, brands only concentrate on the purchase of a workstation to attract as many new customers as possible. However, the acquisition costs are higher and if customers only buy one item and never return, it is difficult to profit out of the initial costs. The Three Multiplier Framework therefore aims to improve each hard-earned customer’s profitability.
We need to use marketing tactics to produce the results that we want: an increase in average order value and an increase in orders per client, and in the course of time, new clients. These marketing efforts will support the overall strategy instead of acting in a silos manner.
How to encourage repeat purchasers
However, repeat shopping does not come for free. In the right areas, you still have to invest strategically. While you can argue that “all” has the potential to retain, there are three major levers with which brands should implement:
Goods. Customers need goods that suit their requirements. They also look for high-quality products that meet their expectations or exceed them. If you find a product that is a best-seller, consider putting it on your website first and foremost. Customers who buy this product will probably return for repeated purchases.
Customer experience. Fantastic customer service does not mean going above and beyond in expenses, but it means unforeseen extras. If your customer expects you to offer a free return of any order, simply having that option available can improve their customer experience.
Marketing. The right marketing will be needed at the right time for the right customers. You could use tactics such as: win-back email campaigns, lifecycle marketing, loyalty programmes, or a new release structure to keep customers going.
We’re talking about marketing right now, so let’s look at that more closely. You will need a specialised marketing plan to increase the customer order frequency. You can use a number of common and efficient marketing tactics. Check them out down below.
Present a loyalty program
Free or payable loyalty schemes are available and offer subscribers special advantages. For instance, Altitude Sports retailers pay $34.99 in lifetime. You enjoy benefits like 5% off almost every item, exclusive sales and free returns on every order.
Loyalty programmes may also be unpaid and a point system can be used to provide different rewards for a certain number of points. Other unpaid programmes such as that of Girlfriend Collective clothing retailers provide both points and benefits, such as discounts for ordering.
Loyalty programmes work because they allow customers to return into their online shop, whether to take advantage of the points they have collected for a free donation, to be shipped free or to receive a percentage off their purchase price. Hi, returning customer!
Create an email campaign
Emails are a lifeline for high-intent buyers who have already visited and purchased from your shop. It is therefore the ideal way to promote repeat purchases.
One of the most precious sequences that you can create is a winback, a kind of lifecycle marketing that tries to engage a customer on the basis of where he is travelling. The customer is in the post purchasing stage in this case, so it encourages the return journey to send them a message.
Drew Sanocki calls this type of win-back a one-two-punch campaign because it aims to first turn clients into repeat clients. This is how it functions:
Who is the target of the email marketing campaign? Configure your email campaign for first time customers. send the first email only if they did not make a second purchase at that time, for example: 30 days after their purchase. You will receive your list of first customers with every subsequent email. You will set parameters to remove anyone who ends up shopping in the email sequence at any time.
Email 1: The first email informs customers that they might like a different product from their original purchase. The item might be part of your core collection or could be a limited edition item to stimulate excitement. This email does not contain any coupon codes but seeks to excite or remind customers of their other products.
Email 2: The second email sends a small promotion, such as 10% off or free shipment for next order 30 days after the first email is sent.
Email 3: The third email, sent 30 days following the previous email, offers another 15% coupon. That can be approximately 25% off or 15% off and free shipping.
Email 4: This email could be a different offer, but it may be high time these customers were asked if they were still interested in your shop because this one will send no more than 120 day after the buyer made the purchase. You can include an e-mail survey to find out why they aren’t interested in making a purchase.
Then, anybody that was inactive or did not open an email from you in the last 60 days will be unsubscribed. You can also offer to unsubscribe people who select one of the options if you decide to send an email such as the previous one.
If you don’t want it, you don’t have to use email for the recovery campaign. You can use pop-ups, paid social ads and a postcard for direct mail – whatever you think your clients will react to.
Give sign-up coupons in your e-mails and SMS
Converting new shoppers into loyal customers means you need to encourage them to go back to your shop. Email marketing is an excellent way for both current and future customers to re-engage. To make people choose your list, consider using a pop-up that shares an offer when you first visit your site. This could be about 10% off your first order or free shipping. You will not only be able to send them an email now, but they will also be more likely to purchase with your promotion. The same SMS can be done. Postscript is a plug-in Shopify that allows you to maintain contact by SMS.
Constantly advertise new arrivals
Converting new shoppers into loyal customers is a continuous process. Consider planning a product launch on the same day each week or every same day, every month if you plan to offer new products often. You may visit your website to check and see a first user experience, ask yourself who will be more likely to open your message if your customers know the date of a new drop.
Customers check frequently with new releases. Every Monday, Mejuri, a website which sells fine wear gems, launches new products that follow a design theme.
For curious customers who are big fans of the brand, that drums up excitement to see what’s new every week. The new “Monday Drop” is displayed in a timely email on the website homepage.
Create a subscription system
While it may not sound like marketing, it is a marketing decision to subscribe to your products. Give your customers a way to subscribe to their products that essentially make them essential everyday. Nevertheless, building a subscription model takes more effort to ensure recurring revenues than other marketing tactics.
You can create a subscription model that automatically renews on the standard schedule if your product requires refills. Then customers won’t have to even visit your store or recall that before sending out a refill they are running low. For instance, Fresh Patch offers pet owners hydroponic grass patches. The company accounts for 80% of its total subscription revenue.
Alternatively, you can subscribe to a bundle of monthly items if your company doesn’t supply recharges. Package Free sells environmentally friendly home and body products and enables shoppers to develop a variety of products to create their own subscription bundles.
Increase your AOV, upsell!
If you’re interested in Converting new shoppers into loyal customers, you need to think about your (AOV). The increase in your average order value will generate more revenue than you think. You will need to understand the mean, median, and mode of your orders in order to develop an effective strategy for an average order value. We will also cover selling and upselling.
Integrate your services and upsell your products
It may not work for your company to offer free shipping. Please rest assured that you can apply other tactics, such as cross-sales and upsales, that help boost the total value of orders.
Cross-selling is when customers are invited to purchase an additional item. Cross-sales proposals are most successful when a customer looks at his cart, similar to a shopper purchase aisle at a store shop. Upselling is an excellent cross-selling option.
Encourage customers to buy a similar high end product. The update on the product page is more effective before the customer undertakes to purchase a particular article. Upsell App Store recommendations are an excellent tool.
Cross-sales and upselling based on the idea that 10% –20% of your customers are ready to spend far more than the average customer when you have an impressive product. Your objective is to understand what you want to make these products and upgrades available.
You can use tools from there to automate upselling and cross-selling suggestions or you can offer these by another means, for example via email, telephone call or live chat.
To increase new customers, use traditional acquisition methods
Want to attract new clients to buy your products? This is how. Traditional acquisitions are using methods such as paid social media ads, content marketing and optimization of search engines (SEO), press releases, influencer coverage, conversion rate optimization, and e-mail subscription coupons.
Whatever method you choose, you will want to target the customers who spend more on your marketing. Here are some successful ways of attracting more customers in your shop.
Find your footing in the market
Paid marketing and influencer marketing in social media both fall into this bucket. You can help with validation and cost-effectiveness of your product.
Have you ever seen someone with a major social media post on a product you like and then offer their supporters a unique discount code? Marketing is influencing and is extremely efficient. This is how it works: brands reach influencers that they think their products will love. In return, they offer the influencer something on their social media account about the product. This could be a sum of money, but many brands offer the influencer free of charge a few of their products.
Then, on their behalf, the influencer posts about the product several times as agreed. You can ask your influencer to post about your product on Instagram twice, for instance, or you may agree to one Instagram post and one Instagram Story feature – it’s up to you.
You can also follow the traditional route and pay for your advertising to future customers on a social media platform like Facebook, Instagram or even Pinterest. You can create your own social ads or work with an agency to assist you in designing an ad, writing your copy and placing it in the channels that you think is best for you.
Don’t rush, play the long game
This means playing with channels such as content marketing and SEO (search engine optimization). The use of organic (not paid) instruments like blog posts, videos, social media, podcasts or electronic mail to inform a target market is a practise in content marketing.
To increase brand visibility and website traffic, you’ll optimise your content to rank on the first page of a Google search. The reason for content marketing is that it compounds itself. If you stop paying for it, the organic transport from the content marketing can produce hockey stick growth if you do so properly. When traffic through paid acquisition dries.
Convert Traffic into converted audience
Converting new shoppers into loyal customers sometimes means you need to think outside the box. You are probably already on high traffic, so instead of focusing on increasing traffic, the traffic you currently have must be converted down. This is called optimization of conversion rate (CRO). CRO is easier to automate, cheaper than traffic buying and improves your pay-off traffic return on investment (ROI).
Consider this: you use a funnel to refill a soap container in your hands, but the funnel has several troughs on the side, which causes a lot of soap to ooze out. Probably the same problem lies with your customer funnel.
You can fix your funnel and preserve your resources instead of buying more soap.
You will find more detailed information about the conversion rate optimization in our blogs, but a great way to start is to focus your checkout flow with leaky holes. Shop Pay is a great tool for converting potential customers.
It sounds disappointingly straightforward. However, the next level of your business growth will be a thoughtful and strategic marketing strategy. Excellent marketing will help you acquire new customers, but many brands forget that there is no ingredient in customer retention. Please note that you need to re-engage customers who have already purchased from you before you start to get more customers. And efficient, thoughtful marketing is the key to this.
Interested in scaling your business by up to 7 figures? Book a call with one of our business experts here.