Retention is a key part of selling and growing an e-commerce business. Keeping existing customers on for repeat business is often a more cost-effective and easier way to sustain your company than putting the time and money into gaining a new customer. In fact, the most commonly quoted “average” is 7 times more to sell to a new customer than to an existing one. Not only that, but repeat customers typically spend up to 67% more. Overall, managing to hang onto a customer improves the lifetime value of that customer. But it is a major challenge for marketers to retain
In recent articles, we have established why marketing campaign automation is an important part of eCommerce for nurturing leads and increasing conversions. Our post today will explore the final part of the customer journey – engaging your customers after first purchase. We will address how marketing automation can play a key role in extending your customer’s lifetime value (CLV). What is a customer worth? For any eCommerce to be truly successful, it’s key to really understand the unit economics related to your customer acquisition, retention and finally lifetime value. Too often businesses invest substantially in paid advertisements to acquire new customers.
In recent years, marketing has gone through a drastic shift. Businesses now turn to the Internet to promote their products and generate more leads. Incidentally, there’s one demographic in particular that is best reached via digital channels, particularly email marketing: Millennials. Millennials, also known as Generation Y, are those who reached adulthood during the earliest years of the 21st century (while the exact years demarcating the generation are disputed, several historians believe that Millennials are individuals that were born between 1988 and 2004). Since Millennials were born after the dawn of the computer age, they are accustomed to consuming most of their
If you run an eCommerce business, you can’t overlook the power of email marketing. After all, studies have shown that email is 40 times more effective than social media for acquiring new customers. Also, 72% of the consumers surveyed would rather receive promotional material through email than other channels, like social media networks. If you want to maximize the power of your email marketing strategy, you should consider adopting predictive analytics to perform dynamic segmentations based on visitors’ and customers’ web behavior. Predictive analytics in email marketing can ensure that you’re using the most effective models to generate the right leads and
With increased competition in eCommerce, one way you can get a leg up on your competitors is through the use of audience segmentation tools. Audience segmentation is a simple marketing process that every company must use to reach their customers more effectively. What is audience segmentation? Audience segmentation is a subset of audience analysis, and it involves sorting your customers into various groups depending upon certain data points. At its core, audience segmentation is simply an acknowledgment that your buyers are not homogenous in terms of identities, needs, desires, motives, capabilities, etc. Naturally, the exact same messaging won’t necessarily reach
As marketers, you constantly have to struggle in explaining the value of what you do. You have to justify all your actions and goals in ways that other departments don’t have to worry about because the results of your work are gradual and not always instant. Executives want to know the outcomes of the time and money the business has invested in various marketing tactics. In order to make a convincing case for marketing investment, you need to focus your recommendation on the ultimate results a certain strategy will generate. E-commerce email marketing is one of the tactics that gets pushed