Top 3 eCommerce Growth Hacks to Help You Boost Sales
Ask any eCommerce business owner about his business goals and you are most likely to hear ‘to grow the business enormously’ as the answer. If you have the same goal for your eCommerce business this year, you need to devise strategies that will help you achieve the following:
- Win more customers
- Increase average order value, and
- Increase frequency of orders
The three factors are interlinked:
- Increasing the number of customers, however, does not guarantee there will be an increase in the overall profit.
- On the other hand, increasing the order value will be of no use if you have only a handful of customers. Your strategy should help you achieve all the three.
Here are three growth hacks that will help you achieve your eCommerce business goals:
Target the Best Customers
Your best customers are the ones who have been loyal to your brand. Most businesses invest time and money towards acquiring new customers, but they forget to engage the existing ones who have helped them come this far.
According to eCommerce expert Jeremy Liew, “Not all customers are equal. Identifying and catering to your best customers and getting them to buy more, buy early, and buy often is a key growth driver for the e-commerce companies in my portfolio.”
This is because acquiring a new customer is six to seven times more expensive than retaining an existing customer (according to ThinkJar) and the probability of selling to an existing customer is 14 times higher compared to that of a new customer. Moreover, according to SDL Global CX Wakeup Call Report, 73 percent of satisfied customers are likely to recommend your brand to others.
Some ways to engage existing customers are:
- Emails and Newsletters: Newsletters offer regular engagement and keep your brand in the center of a customer’s mind. Make sure you craft interesting emails that are worth reading. Use a catchy subject line since it can increase the open rate by 203 percent!
- Communicate through Social Media: Social media allows you to interact with your customers face-to-face. It allows you to add a personal touch to customer service and help customers avoid call center queues.
- Create a Reward System: Your customers have helped you come this far, now it is your turn to show them some appreciation. Create a reward system to offer deals and discounts to thank loyal customers.
According to the eCommerce trends for 2017, “effectively targeting ready-to-buy audience will help the brands leverage this increase in buying frequency.”
Focus on Branding:
Businesses that focus on building their brand rather than their products or services tend to see higher profits.
According to Eric Roth, Managing Director at Lazard Freres, “Retailers who invest in developing their own brands are able to significantly enhance contribution margin, resulting in incremental marketing dollars that can be redeployed to significantly enhance customer acquisition, retention, and reactivation.”
Let’s take the example of the shoe company Toms. The company builds it brand around a very humanitarian cause: “One for One® – With every product you purchase, Toms will help a person in need.” The company donates a pair of shoes to a child in need for every pair purchased by customers. With the launch of its eye-wear brand, the company has started providing medical treatment, prescription glasses, and sight-saving surgery to people in need with every purchase of Toms eye-wear. In addition, the company champions a few other humanitarian causes to “improve people’s lives through business.”
It is a no-brainer that such campaigns help Toms drive the message to their customers that they are the conscious choice (note that they are not bragging about being the best in the market unlike their competitors) when it comes to buying eye-wear, shoes, bags, and coffee.
Focus on building your brand. Offer more value to your customers and aim to provide the best brand experience that you can, from start to finish.
And if you are wondering where to start, here are a few tips:
- Know the values your business provides and create a mission statement (i.e. your purpose for existence) around that. Your mission should be reflected in every aspect, from your business logo to your brand’s personality and tagline, just like Toms did.
- What makes Toms unique is that it never speaks about how good their shoes or other products are. Rather, they differentiate their brand by providing a unique value proposition to their buyers. So, highlight the unique advantage you are providing and position your brand accordingly. This will ensure that your target audience realizes and appreciates the greater value you are offering over your competitors.
- Review your brand every now and then. No brand is static and just like everything else, it has to go through changes. Toms started with donating a pair of shoes to children in need in 2006. But since then, the company has moved beyond ‘One for One’ to help people and communities around the world. Use every opportunity to re-establish or enhance your brand’s value.
Reclaim Abandoned Shopping Carts
According to Neil Patel, Co-founder of Kissmetrics and Crazy Egg, it’s time for online retailers to start reclaiming abandoned shopping carts.
As he states, “For most e-commerce companies that I have worked with, shopping cart abandonment has been one of the biggest levers. From using re-marketing to email automation to even optimizing the flows for conversions, this is where you can drastically increase revenue.”
Recent studies indicate that the rate of shopping cart abandonment is something around 69.23 percent. So you can see what Patel and other experts mean when they say that addressing this issue that help you improve your revenue drastically.
To reclaim these abandoned carts you need to understand why customers abandon them in the first place. There are a few reasons for such behavior including the cost of the product in general, the cost of shipping, complex check-out process, distractions, and so on.
Once you have identified why the shopping carts were abandoned, see if you can do something to persuade the customer to complete the purchase. Email marketing should be the weapon of choice here. And while re-marketing through emails is often an effective strategy, you can also use other enticing offers such as free shipping or coupon codes to bring your customers back.
But before implementing such strategies, make sure you have a simple checkout process, which is essential for high conversion rates. So many people abandon shopping carts during the payment phase because of lengthy and complicated checkout process.
Online retailing is growing at a faster pace than you can imagine, so entrepreneurs need to act quickly. The competition is also growing every day, but there is no shortcut to success. You need to try different strategies and figure out which one works best for you.
However, one strategy that always works in the world of eCommerce is improving the quality of customer service. Focus on your customers, since they are the biggest assets of your company.
Provide your customers with the best experiences and they will spread the word about you on your behalf. Get started quickly and try out the above-mentioned three hacks to see how far you go. Provide your customers with the best experiences and they will spread the word about you, and that will certainly determine how far you go.
Brian Zeng is the owner of Ponbee.com. He is an entrepreneur by spirit. Through Ponbee, Brian would like to share his insights on an array of topics related to business, e-commerce, digital marketing, and entrepreneurship.
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