Here’re Growth hacking tips that work

My apologies for not writing for a long while. Work has been hectic at the FMCG where I work but I know that is not a good excuse. My work has actually allowed me to put my growth hacking ideas to the test and here are some of the quick wins I have found to be most effective. Implement them for your e-commerce business today.

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Retain your customers by sending personalised email and setting up a Loyalty program to reward the VIPs

Based on the studies done by Bain & Company, increasing customer retention by 5% can lead to an increase in profits of 25% – 95%, and the likelihood of converting an existing customer into a repeat customer is 60% – 70%, while the probability of converting a new lead is 5% – 20%, at best.

You have probably spent at least 1/4 Customer Lifetime value acquiring the customer so it’s important to ensure that you keep them engaged and provide relevant information for them.

What kind of email to send?

  • Easy but low returns: the key is to see which of your campaigns have the highest opening rate and conversion rate. This gives you a basic idea on what your audience like and you could conduct A/B testing to further test and develop the type of content that work.

 

  • Medium effort and returns: 
    • The key here is to start on simple personalised emails.
    • Sign up for a tool like Listrak, Bronto, Simon data, plug-ins to your ecommerce sites (Magento, shopify etc) and use it to segment your customers using basic rules.
      • For example, set up a rule that if the customer only bought once, then send him or her an email a week after the first purchase to welcome/ask for review.
      • If the email tool allows for embedding of products in the email, for customers who bought more than once, send an email every two weeks to recommend products, together with a free gift if they buy above a certain threshold. If your idea of the website is to go premium, avoid heavy discounts. Instead, provide 3 for 2 promotion, free gift or free shipping when the customers buy above a certain threshold.

 

  • High effort, high returns:
    • As above, sign up for an email tool that allows you to segment your customers and send them different emails, based on the rules that are set up.
    • Download all past transactional data using excel or other formats that you are comfortable with. For each customer who have shopped at least twice with you, analyse if 1) they replenish a particular SKU once every few months, 2) buy different products from the same range all the time or 3) from different range.
    • 1) For the first scenario, ensure that you set up a rule to send them a reminder email to replenish that item they last bought every few months, depending how long it takes to finish the product. For example, a jar of moisturiser may take 3 months to finish so that is the time to send them a reminder.
    • 2) If your customers buy from the same range, make it a point to send an email every two weeks to recommend products from the same range, together with a free gift if they buy above a certain threshold. If your idea of the website is to go premium, avoid heavy discounts. Instead, provide 3 for 2 promotion, free gift or free shipping when the customers buy above a certain threshold. Whenever there is a new product release from the range that they have bought from before, it would be a good prompt to send them an email to introduce the product.
    • 3) If your customers buy from a different range, send an email every two weeks to recommend relevant products from another range, together with a free gift if they buy above a certain threshold. If your idea of the website is to go premium, avoid heavy discounts. Instead, provide 3 for 2 promotion, free gift or free shipping when the customers buy above a certain threshold.

Loyalty program

Loyalty programs do not have to come with a hefty price tags. Add-ins like Sweet Tooth and 500friends are affordable and easily scalable. What is important is to analyse your customer data and find out who are your top customers in terms of recency of last purchase, the frequency of their purchases and the amount of spend. The top customers are usually 5-10% of your customer pool and they are the best ambassador for your brands. Reward them for coming back to spend, when they refer a friend and even for their birthday. Write them personal notes (“email from the founder”) showing your appreciation can work wonders too.

Here are the top quick wins and feel free to share your experience implementing them with me in the comment box below.

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