Using retargeting, email, SMS and more to increase ecommerce store’s customer lifetime value
Most merchants are focused on pouring money into ads to fill the top of funnel to the store, but fail to optimize for conversion and retention. This post covers how to plug the leaky funnel in your store, and ways to focus on customers you’ve already won the interest from to convert them into sales.
Email is a very effective way to keep customers engaged and aware of new deals on your store, but where merchants fail on converting customers into a sale is the additional nudge on the website after they have clicked on the promotion. You might have a high click through rate if the deals are compelling, but we’ve seen merchants lack conversion to sale due to things like high shipping costs, lack of sizes, etc. One thing that you can do is add a pop-up for a one-time offer on the website for either free shipping or a notification and discount when their size becomes available.
Typically with Facebook product advertisements, customers usually have questions or comments on the post. You or someone on your team could help address these points in the comments section similar to how customer support teams on large sites like Lululemon respond to reviews. It’s the same philosophy, but applying it to customer conversations outside of your store. You can also send the commenters personalized offers through Messenger if they like the store’s Facebook page or help reshare the post that they commented on.
Many of you might be using Facebook ads to showcase product discounts to incentivize customers to click into your store. While this is great for brand and product awareness, this alone will not give you a great conversion rate to sale. We suggest that you remarket to these customers who have clicked on the ad with an SMS text message or personalized message with the product that they clicked on.
You can retarget customers through either email or SMS text messaging prospective customers shortly after they abandon a cart on your store.
For emails, you can send a few messages through a drip campaign showing items in their cart, one-time discounts on those items, or sharing the top positive review on the products that they viewed.
For text messages, send a short message either nudging them about the items in their cart, or send them something valuable that could help convert them to come back to your site to purchase. This could include offering help to the customer and asking if they couldn’t find what they were looking for.
We have seen personalized messaging be a great way to convert lost customers who have selected specific products and have fallen out of the store for one reason or another. Having the proper follow-up structure to ask customers why they are abandoning their carts is crucial to gather data to test strategies on retaining them.
There are endless strategies to try to fill the leaky holes in your funnel, but the core method to solve for this is understanding why it is leaky in the first place. Apteo provides e-commerce merchants with the ability to analyze their Shopify and Klaviyo data, create customer segments, and run highly personalized marketing campaigns to increase customer lifetime value and retention. Please book a demo with our team if you’d like to learn more!
Shanif Dhanani is the co-founder & CEO of Apteo. Prior to Apteo, Shanif was a data scientist and software engineer at Twitter, and prior to that he was the lead engineer and head of analytics at TapCommerce, a NYC-based ad tech startup acquired by Twitter. He has a passion for all things data and analytics, loves adventure traveling, and generally loves living in New York City.