How To Generate New Business And Increase Customer Lifetime Value
Hello, everybody, welcome. Today's webinar, my name is Cory Voss I'm marketing. Event manager at logical logical, position, and sitting. Next to me is Lindsey steer the. General manager at logical position and in, that window over there is Carly horn and I'll, let you two introduce yourselves, perfect, hey everybody I'm Lindsay stairs Cori mentioned I'm the general, manager for, logical positions, headquarter office here in Portland Oregon, basically. Logical, positions an SEM company, we specialize in search, engine optimization PPC. Management social, and, we particularly have an emphasis with e-commerce websites, we're. Google premier partner an, elite being, elite ads partner, and have, a lot of different industry partnerships, with e-commerce sites to help, provide the best results we can for our clients. So, and I'm Carly, horn I'm the VP of partnerships, for, North America for loyalty Lian I'm. In Nashville Tennessee and we have our headquarters in London, and. So loyalty Lian and we provide fast growth ecommerce stores, with a fully customizable, loyalty, program that's designed to increase customer engagement, retention. And. Lifetime. Value. Great. So. Today. We're going to go over some best. Practices, we're gonna turn our webcams off first. We're. Going to. Go. Over some, best. Practices, to bring in more, customers and keep them coming back we'll, go over estimating. Return and AdWords structuring, your campaigns, with non brand, and brand intent. Calculating. Lifetime, value, and common, issues to avoid in your PPC strategy, and then, Carly, will walk us through building, that customer, loyalty through. Post purchase strategies. That, move folks from at risk to repeat customers, and. Just. As a reminder you, all have a little sidebar, on your screen so if you have any questions, please type it in there and we will address those at the end and we. Will be recording, this webinar so if you miss anything don't worry we'll be sending out an email with a link to the recording. Contact, info if you need, a one-on-one follow-up, and. With that take, it away Lindsay, perfect. Thanks so much Cory, so. I'm the first thing that I really wanted to address on this webinar is just kind of PPC viability, for different types of companies I'm sure that some, of you all have previously, worked with PPC in the past maybe had a negative experience with it or hopefully a positive experience, the. Reason why I'm gonna kind of focus on that in terms of new client acquisition is, just, like I mentioned we work in SEO we work in web design we work in social but, for clients starting out we really do use, PPC as the starting point the. Reason being is because it is instantaneous. It's nimble it's customizable, and, what we find is that it really is the best way to aggregate. Data for, kind of new advertisers. As well as existing advertisers. So. What, I wanted to talk about first are kind of three basic things that you really need to know about, your company in your product, in order, to be able to you. Know identify. PBC's. Viability, so. The first of those is going to be organic conversion. Rate, for. Those of you guys who maybe, aren't as familiar about where to find that you, can go to google analytics you can go to conversions, and go to e-commerce tracking, and I hope that you all have that set up, then, with an e-commerce tracking you can look at the organic conversion, rate the, reason why we, kind of like to start with this is that sometimes PPC. Conversion, rates are higher sometimes, they're lower but. The benefit with the PPC advertising is, that we can target specific types, of products, so, often we will see that PPC. Conversion, rates are pretty in line with organic, if. You don't have information, on your website's conversion, rate maybe you don't have your transaction, goals set up you don't have ecommerce, tracking set, up you. Can kind of ballpark, for the sake of the equations, that we're gonna work through I'd recommend maybe starting, with a ballpark between 1.5%. To 2.5%. Sometimes. Again it's much much higher sometimes, it's much lower it. Just kind of depends the, next thing that's important, to you, know have knowledge of is your, average order value again.
You Can actually find this information in the same place in Google Analytics as you can see on the screenshot, if. You, don't have that available in goo analytics, either you can Ballpark it as well I'm sure you know what sort of price point your products fall into and. Then the third thing that's really important, for estimating your PPC viability, is your, product margin, information. So. You know usually, retailers. Are going to be somewhere around 35%. Maybe. Less depending, on how many times the margin kind of gets stepped on through the supply chain process. Manufacturers. And brands are typically, going to be higher 50%. Or sometimes even more just, depending again on how close you are to the you. Know origination, of a product. So. Once you have kind of those three different points of information the, next place that I always like to go to you. Know kind of help assess, viability is going, to be the Google Adwords, Keyword planner, some. Of you guys might be familiar with this tool it's a free tool provided, by Google, that shows you things like average, monthly, searches level, of competition, of PPC advertisers. On a particular, term as well, as estimates, on cost. Per click the, thing to know is that this. Is all just, kind of information. It's not going, to you, know necessarily be a hundred percent accurate, so. What I like to have my clients, do is you know basically pick out different keywords, that are going to be related to product categories, so, let's say you're an apparel retailer, maybe, that's something like north. Face jackets. You, know burton hoodies, things, like that and then, you can kind of get together just a small list of things that represent your different products and categories and then, what you want to do is find kind of an average CPC. Across, those different search terms really. What this exercises, is you. Know figuring, out how much traffic you can get to your website within, your particular, budget if we're, talking about e-commerce sites, we recommend, a budget no smaller than a thousand dollars per month for pay-per-click if you, are in a hyper competitive vertical. It's probably going to need to be much more than that, but, if you have your budget and then you can look at your average CPC then, we can basically move, forward to the next step which, is how to calculate the theoretical, amount of traffic to your site within PPC.
So. Again you've got your monthly budget you've got your CPC and what you're going to do is divide, the budget by CP, see and that's, going to get you the number of potential. Site visitors, that you can aggregate, within that budget so, this is actually a screenshot from a client account this was you. Know what. Has happened so they spent six thousand seven hundred and fifty three dollars at an, average CPC, of seventy six cents and they were able to bring in eighty nine hundred. Website. Visitors, so, you, know look at your budget look at the CPC figure. Out how many people you can bring to the site within those kind of different constraints. So. Once, you have the number of theoretical, site, visitors, you can drum up through, PPC. Then, what you want to do is look at that conversion, rate to figure out the number of transactions. That you can generate, through, this new acquisition. Channel again. I used a client account as an example so, we have eighty nine hundred site visitors, they happen to have a conversion, rate at four point four six percent, and what. That was able to yield was three hundred and ninety seven transactions. Within their budget with the CPC constraints. So. This is where again average order value comes, into play if you know how many transactions, you're getting to the website and you know what the average order value of, those transactions, are you, can calculate what your gross revenue, you know theoretically would, be running, this acquisition, channel so, you know in this example at one hundred and thirty seven dollar AOV, for, average order value that. Yielded, fifty four thousand, four hundred and thirty five dollars, in gross, revenue. So, now there is one more step because as we all know gross revenue, does not equal net profit, and that's, where your margins, gonna come into play so if, we have the revenue that you could theoretically aggregate. Through the channel and then you know your margin you, can multiply those things together to figure out what the net profit would be and then. You want to minus out the cost of the actual advertising, so, in this case the. Advertiser. Again. Was able to aggregate, fifty, four fifty, four thousand, dollars in revenue, and then, we take out what, they're paying and you know cogs basically, and then, also subtracting. What they paid to acquire, that traffic to their website and that, resulted in the net profit of twenty thousand, seven. $36.00. So. What I would really encourage you all to do is play around with these numbers play around with different budgets, play around with different conversion. Rates and really, figure out what your worst case scenario, is gonna be your best case scenario, is going to be and your breakeven, and that, kind of gives you a nice if, you will zone of you know kind of possible, profitability, that, you can then use, the strategies, and Adwords to orient around.
So. Lifetime. Value um the. Reason I wanted to talk about this Carly is gonna go a lot more in depth into lifetime value but, the reason why we're talking about it in terms of new acquisition, is that. Lifetime value is incredibly, important, for setting, those goals on, what. You're willing to pay for a new client, a new, client acquisition so, um some people a lot of the clients that I have spoken with at least have struggled with where to find information about, the lifetime value of their clients and I don't think any of these data sources are necessarily, a silver. Bullet about exactly, what your lifetime value is but, some of it common places that we'll look towards to find information on that subject is going, to be a client, CRM, so. For example Salesforce HubSpot they do a very good job of being, able to run a report on you know particular, person's, lifetime value, also, your, different content management systems, have that built in Shopify. Does a pretty good job they, have some reports you can run payment. Processors, are also a great place to go because you. Know people are putting in their credit card information and, that can also be mapped and then of course loyalty, lion and. Other loyalty, programs typically provide, this information seeing, is that's the, value that they're bringing to their clients. So. Just, a kind of quick side note on the, equation, for lifetime value, you, know what. That's going to look like is your average order value times. The number of repeat, sales times. Your retention and that's, going to equal lifetime, so, um you know you. Can kind of look at this over different time frames and things like that but. If you have a really high repeat, rate that. Can definitely afford more, than opportunity. To take a loss up front in order, to drive higher revenue, numbers on the back end we, actually had a client that we worked with who is in the gift. Industry. If you will so gift baskets, things like that and based. On their lifetime value it made the most sense for them to lose a substantial, amount, of money up front on new client acquisition because. Their lifetime, revenue was so high once they got that person in the door so it is going to change the orientation of. You, know how you're viewing your account how you're maneuvering your account and your, spend between brand, and non brand when you have that understanding, of what a new client, really does mean to you. So. I wanted, to talk a little bit about brand and non brand, and some of the differences. Between the two and again how we orient, strategy. Talking. Specifically, about brand, there, are typically two schools, of thought when it comes to PPC. Branded, advertising. So that's advertising, on your own branded. Term so for example, logical, position advertising. On the search term logical, position so. One school of thought is don't do it it's, traffic you're gonna get organically, anyway why, would you pay for that the, other school of thought is that you should absolutely do. It because, there are you know a lot of kind of intangibles. And tangibles. That come with it we're. Definitely the latter so, we actually do the PPC for the Dallas Cowboys and you know we had had some conversations, back and forth about if we, should or should not run brand so, what that actually did was it, had us we, decided to create some blackout tests, and some different markets to see what the effect was of when we were running brand versus when we were not running brand and in the markets where we weren't running brand we actually saw a 10% drop, in revenue, so that means that that's revenue that obviously.
Was Being lost to, other competitors or other sources and things of that nature so. Um now. If we're gonna talk about the differences between running, on your brand and your non brand, non, brand is going to be obviously, things that don't include your, particular, branded. Terms so, for example if I am an apparel retailer, it's going to be kind, of those new acquisition. Type searches, somebody, who's looking for sand north face down jacket, or somebody who's looking for a pair of Nike shoes or, whatever it might be non, brand is always going to be more. Costly, than brand just, because you, don't own the terms and they're more competitive. However, non brand is incredibly, profitable because. Like we mentioned it is typically new client, acquisition so those are people you can get into the door to continue, purchasing your product and nurture over time, so, I'm generally, speaking you should absolutely be running both but. If we have clients, that are budget constraints, we will typically opt for brand first to generate, the, most amount of revenue to then move into the non brand category. So. I'm just a side note on running, on brand, this, is just an example I wanted to show everybody of, Hunter, boots you, guys may or may not be familiar with them but they are a brand. Of rain boots they, do sell direct through their website and they do run quite, a bit of pay-per-click advertising in, the non brand arena but, this was a search I conducted, on their branded, term and you'll notice that they're they're nowhere on the page Zappos. Is their Moose Jaw Shopbop shoes.com. So, these are you know four different places that are gonna be getting that revenue, that hunter boots is now not getting by. Not employing this strategy, so. Talking. About profitable, PPC, and where to start I already, kind of addressed this first point here but, if. I have a client who comes to me and says Lindsey, I've been running pay-per-click, it hasn't been working you know what should we do this, is the typical, kind of advice that I would give them and that is number one let's, start on the Google search Network on, your branded, terms so, again in that example previously hunter, boots was not doing that we're, gonna start here because it's low-hanging fruit, at a very low cost with very high revenue, these, are people who are already familiar with your brand, they, are actively, searching for your brand so you should be there as a top option, so that they don't go to say.
Target Or some other you know potential. Retailer. The. Next area that we would focus on after, we've maximized. Brand potential, is going to be Google Shopping and most, of you guys are going to be very familiar with this network as you, can see over here in this little screenshot it's where you, have not only the image, the add the description of the product, but you also have, the cost. So. It's a great way to prequalify traffic, before they ever even click on your ad so, these typically have really high conversion, rates and they're usually a pretty low cost and just. Kind of a side note I'm a fun fact about Google shopping is that eighty, percent of the initial product, clicks, actually. Go in and purchase a different, product from the store and that's. Something that we can actually track because, of the way that we set up our shopping accounts so it's just a really, interesting information to see what gets, a lot of click viability but then what ultimately, ends up in that purchase. So. The third area that we would move into based. Again on return, numbers, is going to be what we call our LSA. Which, stands for remarketing, lists for search and shopping ads you can do it for search or for shopping a lot. Of people are familiar with remarketing, on the Display Network which, are graphic ads that follow you around two different websites what's, different about these, types of campaigns is, that in our LSA you can actually target, people who have been to your website through. The search network or through the Shopping Network so. Again if you have a. Handful. Of people that have abandoned, the shopping cart those are people that we can re-engage on, these high intent networks to pull back to the website we. Also like to segment out our remarketing, into kind of different buckets so for instance one of those is going to be duration, so. We can take nan, converters, and we can message them within the first 24, hours in, a very specific way and that, might look a lot different than somebody who say abandon the shopping cart a month ago they might require a different type of messaging, to re-engage and. Lastly. Where we would go would be the. Non brand, Google, search specific. To long-tailed, search terms so, again I've had. A client that was in a very competitive industry children's, apparel and when, we went in and looked at their account most of what they were doing in their non brand acquisition. Was, these very kind of general, categorical. Type searches, like children's, apparel apparel, for, children. So. What we did is we came in and we kind of inverted, that strategy, and we, went after much more specific types, product, searches that have a way higher likelihood of converting, in the account if you, think about every time you're paying for a click on something like children's apparel that's, budget, that you don't have available, for the search term dr., Seuss kids pajamas which, is something significantly, more specific, with a way higher likelihood of converting. So, in this particular account, basically. In year-over-year when we in, enacted. This strategy, we, saw a 60% increase in revenue which is pretty, astronomical. Sorry. Getting over a cold over here so. Um in terms of profitable, PPC, one of the most important. Things to high return, on adspend is campaign. Structure. The. General, rule of thumb is that you should section, out your campaigns, as granularly. As possible, because there are a lot of different, settings at the campaign, level that really influence, profitability, so I wanted to give an example of a way that you could segment, say your. Shopping, netwerk campaigns, so, one, way that you might want to segment that is going to be by is it a brand or a non brand campaign, are the, search terms of the products that you're gonna have in there going to be based around either of those two areas because, those are going to take different. Budgets, different. You. Know ad delivery methods, and things of that nature so down here, you know if we're talking about maybe, the brands REI we. Would have REI, as one, element of that campaign segmentation. Another. Layer to that is going to be you, know the audience or, the you know I guess, kind of category, of the product so are we talking about you know men's REI, products, children's, REI products, in this case women's and then.
Another Layer to add to that is what category, of REI, women's are we talking about is it accessories or is it apparel, and then. Another, layer that you can add into that is what type of apparel. Is this campaign, going to house so, in this case we have branded. Women's. Apparel, and specifically, jackets, so, everything, that's going to fall under this campaign, is going to fall under those different umbrellas, and what that's going to do is allow us to collect really, really clean data in the account and, it's also going to give us the ability to, push and pull different products, very specifically, to increase, return on adspend, so, I'm going to show you guys two different examples here this first one is something, I see often. So. Um if, I hop into an account and then especially if, they're running shopping, and I see that there's one campaign, with one ad group with all the products housed under, that one particular, campaign, that is a huge, red flag and the, biggest reason as you can see here is that you know that's $150. A day budget, that's, running across all different, product categories and products in general that are going to have different margins different. Revenue numbers and you're. Not going to be able to optimize, this campaign, towards highest return, when, everything's, looped together like that I guess. An analogy you could kind of think of is it would be like trying to drive a car with just a stop and a go button like, yes you might make it to your end destination but, it's going to be dicey, as best. So. Here is a much, better example. Of how to section. Out your, campaign, structure so, as I mentioned previously what, we have here is an indication of, you. Know what product category, is this and what specific. Products. Are we looking at within those product, categories, you. Can't see it all from here but I think that this one has about 25, different shopping campaigns, there are some brand there are some non brand they're designated, as such so, again we can isolate budget. We can isolate settings, and we really can maneuver. Those products, and a much better and specific, way to, increase return on adspend with, a structure like this. So. I'm in summary, you know another. Analogy that I like to use that I think is really apt for, PPC is that you, can build this beautiful incredible. Website which is essentially, your main event right, you want people to get to the website have a good time enjoy themselves, but, if you're not using some sort of invitation, to invite people to your event then, you're. Not really going to have a good turnout or any turnout, at all so. Um you. Know you, really do need to be up in front of this very intent, based audience. That's, actively searching, for your types of products but, the key is just understanding. Some of those nuances about how, much are you willing to pay for new client acquisition and, what does that client mean to you over, the lifetime of the account and then the second, part of that is obviously structuring, the account and customizing. The settings to really hone in on that a tenth you can be incredibly specific with PPC and you can allocate. Very little to it but that's at least going to provide you an acquisition, channel that you're not otherwise going to have without it so as always you know you guys are welcome to contact, me after the webinar so I can answer specific questions but I'm going to hand it over to Carly to talk now about once. You have those customers, how do you really increase, their value. Awesome. Thank, you. Awesome, so, that. Was great and. Definitely, learned a lot so, really, really enjoyed watching that so, now that we've we've, talked a lot about how. You're going to get your customers in the door how.
Are Going to get them familiar with your brand to get them shopping with you but let's, talk a little bit now about how you, keep them coming back. So. One, of the best ways to get your customers, returning. To you and shopping with you frequently is by building loyalty with them throughout their lifecycle as a customer, with you, so. We're. Going to talk a little bit about the customer lifecycle I'm, and I've you know pretty deeply into some strategies, you know to help get it move a customer to being a loyal customer but after, you've gotten them to make that first purchase there's, still a lot of work to be done in, order excuse. Me to convert those, customers, into a loyal customer so. You. Know if a customer is purchasing with you often, and for a long time they can be classified as loyal when. You have a loyalty program in place after, that first purchase is made you can use points, or other rewards you. Know to reward, on actions that are being taken and, encourage, a customer to come back and make another purchase with you I'm going, to continue to repeat that purchase, and. You know with a with a program like loyalty lion or any other loyalty. Platform you may be using you can help we can help under customer, understand, when, someone's at risk and make it really easy to re-engage with that customer I get that we get the back. So. Just. Because a customer makes a repeat purchase doesn't, necessarily, mean that they're a loyal customer but. This. Is a really important statistic that after our customer has, made that first purchase they have a 27%, chance of making a repeat purchase and after. That second purchase that, goes up to 45% so. It's really valuable and this is all information that you know is available in a program like loyalty Lion so you can see all the statistics, behind every customer, and. It's you know it's extremely valuable to know your repeat purchase rate because, briefie. Purchasers, are extremely valuable, Bain. And company have shown that a five percent increase in retention has, the potential to increase profits, by up to ninety five percent. So. How. Do we turn one-time, buyers into repeat customers, this. Is really important because it you know everything we talked about you're spending a lot of time and energy and getting your. Customers in the first place you want to lose them after they make that first purchase so, we're gonna talk a little bit about. You. Know building loads who are on your brand and I'm gonna talk about Sephora. Full transparencies. Before, it is not a customer, of ours but we like to talk about them because they're, just a great example of a, custom, you know someone that's doing a really good job with a loyalty program I will chat a little bit later with some with some other examples, but you. Know they believe that effective, loyalty strategies, are at the center of marketing, and they make that very clear so just, gonna chat a little bit about what they've done and, how they've been successful, so. You know with over 10 million Beauty, Insider members, they're, definitely doing a lot of things right you. Know the first thing is, effective. Use of tiers so tiered, programs, are really. Effective, when, the upper tiers have a minimal, amount of members, usually. Around. 10% so you want your most loyal customers, to feel they have achieved something that others could not and.
Get Other customers. You know striving, to get there. Tears. Can be set up based on the total number of the, total spend or number of points earned and, the, Sephora's program they use the. Dollar amount spent within their loyalty program both online and in-store and. Then you, know second their rewards match the brand and customer, base is a forest done an excellent job aligning. Their rewards with what the brand stands for they. Really match that look and feel of, all of their marketing initiatives, so. It's a high-end brand and, it's become, synonymous with quality and luxury and this is definitely reflected, in what they offer in, terms of customer rewards. So. The, rewards, that a Beauty Insider can redeem with points, follow the same principle, and. They have created a redemption process that reflects that instead of using points for a discount which you'll, typically see a lot BD, insider members can use their points to claim more beauty products this. Is this is a great strategy and if you've ever been inside of Sephora shops with them earned, points you know at the actual store they have a little box right next to checkout which shows you know what those what you can get which, also promotes products, that they're selling but, they'll give you you know like a little small version of it so you can try it out, and. You, know this has been very effective for Sephora it's, a really effective way to allow points to be redeemed, since, discounts. And coupons, you know those are typically not associated. With a, premium, or luxury brand like Sephora, and, so, you. Know redeeming, points for our product is a better fit for them, they, you know service rewards for an amazing job of motivating customers, to perform, profitable. Actions, without compromising. The brand's identity, and this, is what makes their rewards, program. This, is a makes. Their rewards a key factor of driving success for the program, they. Also do, a really great job with personalization, so, they. Know that their shoppers are highly motivated by experience, which is clear through how they've set up their tears and rewards, so, this desire for experiences, is also why they've created personalized. Product recommendations, for beauty and cider members. These. Personalized, product recommendations, you. Know they're tailored to each customer based, on their prior shopping, history. This. Is obviously, fantastic, for regular customers but, when it comes to new shoppers, and there are someone that's you know new to Cosmetics, how. Do you do that so they figured that out too with, a beauty profile so a shopper. Can simply input hair. Type or pair concerns. Skin. Type, problem. Areas things like that any other information about themselves into. The beauty profile, and then, Sephora, generates, recommendations. Specific, to your information so personalized. Products, and recommendation. Recommendations. Establish, a relationship, with our customers, that creates a positive association. With Sephora, brand so, not only does this motivate, customers to purchase more products, you. Know in products specifically that's before I knows that they will like but, it also gives shoppers, the type of experience they need to become a brand advocate, and then. Finally, you know the program, isn't all completely seamless between both. Our online shop and in-store and, this is key, for a company like theirs where shoppers you know want their rewards to transfer, both when they're in the store and online and be able to redeem in both places. You, know another thing that they've done well as they've expanded, their. Program. To include the social network so they're using social, to.
Really Just to, get their brand out there and help spread the word so. It's, funny they've had a lot of people a lot of people tweet when they reach that sort of top level. Top tier for Sephora and there. Was a lot of buzz when they rolled out their to your programmer on people getting access to that very top tier because they felt special and excited like we talked about earlier that's a really, great way to motivate people. And. So they've done a really good job you can reward points through activities, on social, which is just a really great way to encourage customers to engage. So, now, that we've looked at that, larger. Example with Sephora I, want, to dive in and you know at a higher level I want to dig in a little bit just five specific ways that we recommend, you know moving customers, from one time buyers to repeat customers. So. The first place to start is right after that but first purchase is made so. You want to get that conversation started, right. After they make the purchase and the best way to do this is through you. Know post purchase thank you email and you, want to include the personalized, points, available or, reward available, information so. These emails, can be sent out, of loyalty Lian and we also integrate, with some of the best use fees out there so all these emails can be sent out through if you're already using an ESP through, your ESP you. Know customers, appreciate, when you thank them and. And. Feel, that personalized, messages are really the most genuine, so this is a great way a great way to follow, up with them. Next. You want to continue, to keep your storefront of mine for your customers, so, you know sending an intelligently, time to reminder email about the rewards they have available is key this. Is another thing that you could do through loyalty lion or you know or as I said we integrate with a lot of ESP so it's available through them as well but these. Emails have a really high click-through rate over, 35% which, is much higher than. Sort of industry average and our, customers, typically see about 3% of their annual revenue through these emails which again, you can track all of this information inside, loyalty lion so you can really see the value that these. Emails are driving for your brand. And. Then. Running, limited time campaigns, so things like double points weekend is a great way to drive engagement. Consumers. Will increase the amount they spend in order to earn more points, and. Then you know another interesting. Limited campaign you can send, is. You can look at referring. A friend, and, so you can turn, that on we've had a lot of customers that'll just turn that feature on for a certain amount of time as a marketing tactic to help acquire new customers um so, you're using your most loyal, customers, those brand advocates, that you've built through your loyalty, program to help bring in new customers and you know 100%, pure who's a great client of ours I'm you. Shopify they they, turn on the refer-a-friend feature, for a week or two about once a quarter and they typically see around eight thousand dollars a week from the refer-a-friend feature, so, just another interesting campaign to think about to, help you know drive driving new customers, through your your, loyalty. Members. And. And. Then, you know a key. Way to turn one-time buyers into long-term customers, is by giving bonus, points to increased average order value and, and to drive those repeat purchases so. There's a lot of different ways you can do this and you can set this up however you want but you know for example you could give a hundred bonus points for orders over a hundred dollars or, you. Can reward purchase, that purchases. That are made during a certain period of time so you. Know holiday like Cyber Monday sale or Christmas sale or whatever, whatever you may want to do whatever lines up with a brand but you can set sort, of special on promotional, campaigns to run at, certain times. And then. Finally. Another. Key tactic is allowing for free gifts for purchases, made with points, so. Our. Customer doctor access this really well through, our Inc cards, feature that, makes the loyalty program just, really a seamless part of checkout so there's no need for vouchers. I'm shoppers, just add their word they want in one click from the cart this feature is designed to increase reward, Redemption because, obviously it removes that friction, and, compliments, that a normal, customer journey and you don't have to copy and paste or wait, for that email to come to your inbox you can do it right there in the cart so customers. We've seen that customers who were deemed boil too rewards, spend. Two times more so. This is really valuable you can also offer special free gifts that can be purchased. With points only and this, will really encourage. Them to redeem their points like I said dr. axe is a great example of someone who's really doing this they have a huge.
Following In, their little to program and they offer really. Unique, rewards. That you can gain and, you know they're trying out a new product they'll use this as something that you can collect through, through. Rewards when you're checking out. So. Then when we're talking about sort of specifically, moving customers that are at risk. To. Repeat purchasers, there's a couple of things that that, you can do to really help to. Help turn those risk customers into to repeat purchases and bring them back you know to being loyal customers, so. You can give reward credits to customers who haven't shopped in a while so you can see that they haven't made a purchase in a long time if their valuable customer you want to get, them back on the door so, you can give them a reward right and hopefully encourage them to come back get. Your get your store front of mind again and this, really helps you differentiate, yourself from competitors. And turn someone, who may be at risk into, turning, back into hopefully a brand advocate. Then, we talked a little bit about tears so. Tears are a proven way to boost program engagement, and increase success you. Can get you know your customers, to perform profitable, actions by incentivizing, them with both intangible. And tangible rewards. You. Can encourage, engagement and delight our risk customers by moving them up a tier right we talked a little bit earlier about Sephora, they they do a really great job of building. Those tiers and building, excitement around moving up a tier obviously, you know different tiers and 100%, pure is a great example different tiers how, different benefits right so and you can set that up any way that you want but if free shipping or you. Know there's various things that you can do and so if you want to move them up into a tier it gets people excited right it and hopefully would bring them back. And then finally you can use exclusivity.
So. Allow for exclusive, rewards through your loyalty program having specific items that are only available to loyalty, members through points can be a great motivator so we talked about that with dr. axe too you, know here, you can see like that travel, pouch is only available as a reward, that can be used through a loyalty program so, people, can see that oh hey if I'm a member of the loyalty program and have X amount of points I'm able to purchase this product maybe you don't allow it to be something. That that, can just be sold for you know straight up for a straight-up purchase maybe you make it something that's unique as a reward, or, if you know early access to sales things like that or other ways you can do this. So. You, know overall loyalty, programs are a really great way to keep your customers, and even in. The case of sort of refer-a-friend acquire. Some new ones you. Can reduce, churn and increase customer retention, so, customer, customers. Gonna earn points for, a purchase or activity, they'll get an email they'll, hopefully come and claim that reward, and then repeat a purchase so, it really helps you stay in front of mind when. They shop and gives, them another reason to return. Increase. Customer spend, so it's proven that when redeeming rewards, you'll see a higher order value we talked a little bit about dr. axe they've seen a 36, percent higher average order value since, starting their loyalty program. Increased. Engagement you, can set it up so that you can reward any beneficial. On-site activity, with points, you. Know things like sign ups comments. You know sharing, of blog and anything like that so customers can see see. Typically, see forty seven percent increase in on-site engagement, and then. Just you know general happiness right you're gonna make customers, happy with, rewards, and interact. With them on-site you can interact with them on-site with real-time notifications. Which is just a nice way and you, know the Chive is, a client, of ours and they have a shop called the chivor ii and they opened a blog for. Customers to talk about the program when they launched their loyalty program and they, had hundreds, of excited, comments about it which was just really nice to see they, were making their you know their customers were clearly looking. For that which was exciting and then just increase acquisition, you know by referring, a friend by. Sharing on Facebook Twitter, via email with a link you. Can track that ROI end and see, what those you know those brand advocates are doing for you in terms of what customers they're bringing in the door you. Always trust your friend right so friends, just their friends and want to shop where they do if they tell you that if. They recommend, a brand to you you're typically more likely to shop there. Yeah. And that's it for me so thanks, for listening and I'm going to pass it back for some questions. You. Great. So we had one question come through. It. Is how can I really maximize, the value from. My ads what. Are some strategies outside, of advertising, that could help boost the lifetime value of my, customers. Okay. Well yeah kind of two questions and, you. Know I think in regard to maximizing, the value of your ads a. Lot of what we're talking about is what. Carly alluded to and I'll let her hop in and talk about that more I mean once you get the person to your website, you, know you've. Done what you needed to do in terms of the ad intent. Yeah. And I think you know like, we talked about a little bit personalization, is really key right to your you, can see, what what your customers are through up not necessarily through a little time but through some of the companies we integrate with right you can see what people are purchasing, you can make recommendations, like Sephora I mentioned does a really good job with that of. Pulling specific, data into their emails same things advertising. Right you really want to target what that customers, what you know what they like what they're looking for in order to get them to come back and purchase, again and. On. The second part of that question what can you do outside of advertising, to you know help increase lifetime, value of your customers, I think, a lot of that is going to pertain to you, know some search engine optimization, techniques so making, sure you're keeping fresh, recurring, content, on the website and you. Are you know creating, value ads so one of the things that we've seen actually boost a lot of, our client search engine optimization, on-site, is doing. Things like building out really extensive, FAQ. Pages and also, just. Making sure that they're featuring you know any sort of new, product rollouts changes, in the industry, and things like that on their blog. Okay. Next. Question. Can. Automate, play. A role in your loyalty, program.
Yeah. Definitely that's a great question and actually something we've been talking about a lot I think you, know automation, a lot of people think of you know when they think of automation they think of marketing automation they think of email and. You know but it definitely plays a role in loyalty as well when. You're using especially when using a platform like loyalty line because essentially, and you can set everything up and. Run so. You can, set up what activities, will be rewarded, and what that reward will be you. Can set up loyalty tiers like we talked about so customers, are placed into a tier, either. Based on their total spend over the last 12 months or maybe how many points they've earned over the last 12 months and then they'll automatically, move up and down in these tiers as these numbers change and, then. Email like I said emails still an important, part of automation and loyalty because you know we there's the ability to send and set these up to trigger sort of three different types of loyalty. Related emails including welcome, email that you'll sent you know set it to trigger when a new, member signs up for your program, reward. Available, email which we talked a little bit about that notifies the customer when a reward becomes available and it really just encourages, them to visit and we redeem that reward and then. You can also send a monthly point statement just to you know ensure that your shop stays on the radar you, know like we talked about integrations, or key integrate. With a lot of e-commerce, platforms, ESPs, UGC. All of, that to really be able to to, set up a lot of automation. Okay. Thank You Carly our, next question, is. Do. You work. With small. Ecommerce, companies, um I, can field that from the logical, position side. The. Answer to that question is yes I mean we. Work. With any and all different types of clients that are in need of PPC. Management, or SEO or social like I mentioned. So. I think the biggest thing when it comes to being a small ecommerce company, is again, just making sure that you have enough budget available to. Generate, a return and so, going back to those slides where we went through estimating, PPC, viability, you, know as long as the, budget is in step, to generate. You. Know profitable, results for a client that's all we fundamentally care, about is you, know making sure we're putting them in the best place to be successful so, for us you know anything, from a you, know one.
Man Operation drop. Shipping all the way up to you, know a larger enterprise, type client, is, definitely, within our wheelhouse and we definitely really, enjoy seeing growing, small business customers. Yeah. And from the loyalty line perspective, it lines up really well with with logical position two or the same way so we can work if you know small, business all the way up to enterprise and we you, know our pricing, is based on. The number of orders. The store has per month so it really ranges but definitely, like I mentioned you know fast, growth stores are our where, we work the best and we want to see you guys grow and be successful and so but. Yeah it's very easy to set up fully, customizable. You, can white label and it really works for a small business all the way up to an enterprise brand. All. Right well that's, all the time we have today thank, you everybody for attending again. This webinar was recorded and. It'll be emailed out to you if, you have any questions, about loyalty, line or logical, position feel free to reach out to either Lindsey, or Carly, directly. Their contact, info will be in that email as well, have. A great day.
2018-05-20 18:51
