How online retailers can save on customer acquisition
Does the budget increase to attract customers online store with an increase in their number? It is impossible to give an unequivocal answer to this question. On the one hand, if you compare advertising budgets, then they will be much lower for a small website than for a large online retailer. On the other hand, stores with a large user base can save money by re-selling existing customers. Consider this approach on the example of retention-marketing, which has become particularly in demand in the past year.
Sergey Makarov, General Director of the RA “Profitator” (Kokoc Group), spoke about how this tool works.
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The first attempts to use retention-marketing belong to offline stores - customers were offered to issue a bonus card upon their first purchase and indicate their phone number or e-mail address in the application form.
Today, the tool is widely distributed in online retail, it works as follows: when a user purchases a product from an online store, he leaves information about himself (phone and / or e-mail). The data automatically enters the CRM database, where they are classified by cohorts, for example, in one group information is collected about clients who viewed women's shoes, and in the other group - those who were interested in men. During sales, bonus promotions, and the arrival of new collections, the online store sends out to these addresses and numbers.
The tool has become popular due to the fact that in many niches the first purchase of a client, as a rule, does not compensate for the costs of its attraction. For example, the average check of an online clothing store is 3000 rubles. Considering the cost of goods, the cost of advertising, renting a warehouse and office, the salary of employees and logistics, costs exceed revenues. Naturally, store owners motivate consumers to re-purchase, primarily through mailings.
In the mass segment with a small average check, e-mails, SMS and push notifications are used in mobile applications (if any). For example, we sent out SMS messages to 80,000 customers of an online furniture store, which cost 110,000 rubles. Some buyers clicked on the link, people went to the site and made orders for a total amount of 2,000,000 rubles. Thus, 5.5% of the turnover was spent on attracting customers. To achieve the same sales volume using classic Internet marketing tools, for example, contextual advertising would have to spend significantly more - about 300,000 rubles (15% of turnover).
In the segment with a high average check, for example, in the tourism business it is useful to connect managers to the process, whose task will be additional communication with customers. By the way, to simplify the work of employees, it is better to call only those who opened the letter and went to the site. When attracting buyers of expensive goods, the effectiveness of a call in comparison with a letter can be 3 times higher.
If we talk about mailing via WhatsApp or Viber messengers, then you need to be careful with these tools. Unlike e-mail and SMS, where people are already accustomed to receiving messages from brands, messengers still remain for users a personal means of communicating with friends and acquaintances. Information about discounts or new collections can cause a backlash: customers will decide that the store interferes with their privacy and block the number. Therefore, we do not recommend using this tool to send instant messengers to current customers.
Social networks are also useful for retention marketing: VKontakte, Facebook or Odnoklassniki, in which you can target ads to online store customers.
For example, in order to show an ad to girls who bought boots on your site, you need to load their data from CRM into a special form in the settings of the social network advertising campaign. The effectiveness of retention-marketing in social networks is comparable to the context, while the cost of a click on social networks is 2 to 10 times lower depending on the subject.
Evaluation of the effectiveness of retention-marketing depends on the content of messages. If they have a link, then the number of conversions can be measured using Google Analytics counters, which are installed on the site. If the company prefers to communicate with potential customers by phone, you can specify a unique number and, by connecting call tracking, count the number of calls. You can also add a promotional code to the text, which the recipient must inform when contacting the company.
Thus, using the information collected about customers, online stores can reduce the cost of attracting them. The tool will increase the likelihood of repeat purchases on average up to 40-60% of total sales.
Source: Shopolog .
Sergey Makarov, General Director of the RA “Profitator” (Kokoc Group), spoke about how this tool works.
')
The first attempts to use retention-marketing belong to offline stores - customers were offered to issue a bonus card upon their first purchase and indicate their phone number or e-mail address in the application form.
Today, the tool is widely distributed in online retail, it works as follows: when a user purchases a product from an online store, he leaves information about himself (phone and / or e-mail). The data automatically enters the CRM database, where they are classified by cohorts, for example, in one group information is collected about clients who viewed women's shoes, and in the other group - those who were interested in men. During sales, bonus promotions, and the arrival of new collections, the online store sends out to these addresses and numbers.
The tool has become popular due to the fact that in many niches the first purchase of a client, as a rule, does not compensate for the costs of its attraction. For example, the average check of an online clothing store is 3000 rubles. Considering the cost of goods, the cost of advertising, renting a warehouse and office, the salary of employees and logistics, costs exceed revenues. Naturally, store owners motivate consumers to re-purchase, primarily through mailings.
In the mass segment with a small average check, e-mails, SMS and push notifications are used in mobile applications (if any). For example, we sent out SMS messages to 80,000 customers of an online furniture store, which cost 110,000 rubles. Some buyers clicked on the link, people went to the site and made orders for a total amount of 2,000,000 rubles. Thus, 5.5% of the turnover was spent on attracting customers. To achieve the same sales volume using classic Internet marketing tools, for example, contextual advertising would have to spend significantly more - about 300,000 rubles (15% of turnover).
In the segment with a high average check, for example, in the tourism business it is useful to connect managers to the process, whose task will be additional communication with customers. By the way, to simplify the work of employees, it is better to call only those who opened the letter and went to the site. When attracting buyers of expensive goods, the effectiveness of a call in comparison with a letter can be 3 times higher.
If we talk about mailing via WhatsApp or Viber messengers, then you need to be careful with these tools. Unlike e-mail and SMS, where people are already accustomed to receiving messages from brands, messengers still remain for users a personal means of communicating with friends and acquaintances. Information about discounts or new collections can cause a backlash: customers will decide that the store interferes with their privacy and block the number. Therefore, we do not recommend using this tool to send instant messengers to current customers.
Social networks are also useful for retention marketing: VKontakte, Facebook or Odnoklassniki, in which you can target ads to online store customers.
For example, in order to show an ad to girls who bought boots on your site, you need to load their data from CRM into a special form in the settings of the social network advertising campaign. The effectiveness of retention-marketing in social networks is comparable to the context, while the cost of a click on social networks is 2 to 10 times lower depending on the subject.
Evaluation of the effectiveness of retention-marketing depends on the content of messages. If they have a link, then the number of conversions can be measured using Google Analytics counters, which are installed on the site. If the company prefers to communicate with potential customers by phone, you can specify a unique number and, by connecting call tracking, count the number of calls. You can also add a promotional code to the text, which the recipient must inform when contacting the company.
Thus, using the information collected about customers, online stores can reduce the cost of attracting them. The tool will increase the likelihood of repeat purchases on average up to 40-60% of total sales.
Source: Shopolog .
Source: https://habr.com/ru/post/297354/
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