Thursday, 21 March 2013

Email Marketing still biggest driver of E-commerce Conversion


You are reading a blog about order management so it may be counter-intuitive to discuss the merits of not getting a sale. But in many cases, not getting a sale is the best you can hope for.



Website visitors, your potential customers, don’t want to buy every time they go on the internet.

We all have different levels of engagement and intent; some are purely loitering, some are researching a purchase, some are competitors and some want to buy NOW.

The trick is to identify the needs and intent of users at various stages of the buying cycle and offer them a relevant Call to Action (CTA) which meets their needs – to give you a chance to develop the relationship.

You are not going to get married until you’ve been on a few dates. If you propose to everyone you meet, you will be severely disappointed (and people will start to avoid you…)

In this case, an email address or social media follow is the silver bullet. Research shows you are 6 times more likely to recommend or buy from someone you follow on Twitter.

SheMe.ca - a great example

Think of Groupon. When they started, the cost of acquiring a customer email addresses was less than £5. They would email you deals everyday and occasionally you would buy. So despite the initial cost of the email (in adspend/affiliate fees) Groupon made their profit from the lifetime value of a customer (LVC).

Fast forward to today, and with a plethora of competitors, the cost per email has rocketed:

"Groupon’s customer acquisition costs grew 485% between the first quarter of 2010 and the first quarter of 2011 to more than $30 per email address, according to AmericanBanker.com." more
...just as the conversion rate and Lifetime value of customers tanked. It even has a name: daily deals fatigue.

But, if you look at flash sales sites like Fab.com and Gilt Groupe, where you have to be a member to buy, they are still growing rapidly via a daily email model.

Consumers are still happy to receive the email; it’s just the value proposition / offer that needs to be carefully considered. i.e. is it of value/interest to the user and how do we maintain interest.

Fab.com daily emails are crucial to their growth

If you count your existing email list, past and present customers and social media fans, how much would it have cost Groupon to generate? $30 x 1,000 emails? We're sitting on a gold mine…

I'm sold, now show me how to encourage email sign up...


It is not a dark art. Simply provide value and integrity to the user, and match the Call to Action (CTA) to the right stage of their buying process.

Next weeks post will include tools to help cost effectively capture email addresses market to, and learn from your email lists.

Cant wait?


Why you can't afford NOT to attend!

It is much easier to sell more to existing people than attract new ones.

This free 60 minute webinar shows you to integrate the e-commerce and order management vertical:

  • step-by-step how to integrate Mailchimp, Shopify, OrderHarmony and Xero 
  • identify and reward your top customers, and spot buying cycles to maximise order value and advocacy.
  • combine the report capabilities to create smart lists and one time offers to drive purchase activity.
The 60 minute free webinar will provide a step by step overview and share reporting tips to help spot these opportunities.

It would be great to meet you.

Thanks for reading :)

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