Skip to main content
Category

E-commerce Strategies

How we increased a brand’s email revenue by €442,000 in 12 months

How we increased a brand’s email revenue by €442,000 in 12 months

By E-commerce Strategies, Email & SMS Campaigns, Flow Building

How we increased a protein brand’s email revenue by €442,000 in 12 months

Although we consistently drove over 30% of this brand’s revenue through email marketing, this can be a vanity metric.

See how we conducted email marketing and retention strategies to identify growth opportunities for conversion rate, LTV, campaign content & flows to increase this brand’s email revenue by €442,000.

Imagine turning your overlooked email list into a goldmine…

As an ecommerce brand owner or manager, you’re constantly bombarded with strategies claiming to skyrocket your revenue.

In this article, we’ll explain how we transformed a client’s dormant email list into a staggering €442,000 in revenue.

All within 12 months.

However, This isn’t a tale of overnight success or unattainable marketing magic.

It’s a reality we created.

How we increased a brand’s email revenue by €442,000 in 12 months

For this client, our journey began with zero email revenue.

Our goal was clear: to unlock the full potential of email marketing and drive significant revenue growth.

However, margins were tight.

This had to be a tactical plan that increased profit as well as revenue.

A one-size-fits-all approach with some discounts would not suffice.

We needed to dig deeper.

We’d to understand their customer, their buying patterns and the psychology behind their behavior.

So, here’s a peek behind the curtain of our journey from €0 to over €442,000 solely through email.

We focused on:

  • Pop-up Optimisation
  • Pre-purchase Flow(s)
  • Post-purchase flow(s)
  • Campaigns
  • Segmentation
  • A/B Testing 

Mapping out all the numbers for the customer lifecycle from the point from when someone makes their first purchase.

  • What % of first purchasers end up making a second purchase & how long does it usually take them?
  • What % of second purchasers go on to make a third purchase and for how long?

From here, we could really hone in on specific areas of that customer journey.

With the majority of brands, the first purchase to the second purchase is really where most of the drop-off happens in retaining customers.

Typically, once someone has made a second purchase, the chances of them making a third purchase is significantly higher.

The main area is to focus on that first purchase.

 

The Client’s Challenge

At the outset, our client faced the common yet daunting challenge of having a non-existent email revenue stream.

Despite having a strong product offering, they were missing out on the lucrative opportunities that effective email marketing strategies can provide.

With no relationship built with customers, it was very transactional.

Repeat purchase rate was low meaning cost-per-acquisition was high

When we met with this client as they’d no base or efficient backend system to increase the lifetime value of their customers, they were finding it difficult to scale profitably.

Research: Laying the Groundwork for Success

Upon onboarding a new client, our first and foremost task is to conduct comprehensive research.

This initial phase is crucial in shaping the entire email marketing strategy and ensuring that it’s deeply aligned with the client’s unique position in the market.

Our AI-Driven Review Analysis

Our approach begins with an AI-powered strategy that allows us to scrape and analyse reviews.

Not just for our client but also for their major competitors. 🙂

This advanced technology enables us to sift through vast amounts of data efficiently, extracting valuable insights that might otherwise be missed.

Understanding Customer Preferences

By analysing these reviews, we gain a thorough understanding of the features and benefits that resonate most with customers.

This insight is vital, as it guides us in highlighting similar aspects in our client’s offerings, ensuring that our email content aligns with what the market values most.

Identifying Pain Points

Equally important is our ability to identify pain points and issues that customers face.

This information is gold for our email marketing strategy.

Knowing the challenges and objections of the target audience allows us to tailor our email copywriting to address or preempt these concerns effectively.

The Power of an Informed Strategy

Now we’re ready.

Armed with this deep understanding of both the positive aspects and the pain points, we’re able to create email content that is not only appealing and engaging but also incredibly relevant and persuasive.

This research phase sets the stage for all subsequent strategies.

It ensures that every piece of content we create is informed, targeted, and optimised for the best possible performance.

It’s not just about sending emails.

It’s about sending the right emails to the right people at the right time.

Our Approach: Tailoring a Strategy

Our strategy was multi-faceted, beginning with a deep dive into the client’s business model, target audience, and market positioning.

This understanding was crucial in crafting a bespoke email marketing strategy that resonated with their audience and aligned with their brand values.

We also took time to understand their margins.

Paid advertising is a large part of their business, therefore we also worked closely with their ads team.

It’s important that our copy and product offerings align. This is an important lesson for any brand owner or manager utilising multiple strategies.

Your email and paid advertising team must be singing off the same hymn sheet.

Maybe mention ‘fast-forward 12 months’ our team along with the paid ads, and web development team tackle each ‘peak’ in sync.

The result of this?

Higher sales, better conversion rate.

The Journey to €442,000

For the purpose of this article, we’re keeping things relatively simple.

However, there were a lot of moving parts and many smaller objectives we’d have to hit along the way before reaching €442,000 in revenue solely from email.

The first step was to understand customers and begin to build a relationship.

This is something that takes time and cannot be done overnight.

It also can’t be false or customers will see straight through it. You must stick by your brand values.

Do What You Say & Say What You Do

Actions speak louder than words. Through your actions, you’ll build that relationship and turn once-off customers into lifetime brand advocates.

Below are some of the key pillars of our strategy from the outset.

1. Establishing a Strong Foundation

Our first step was to lay a solid foundation for the email marketing strategy. 

This involved setting up essential email flows, segmenting the audience, and establishing key performance indicators (KPIs) to track progress.

However, this alone is not enough. If anything, that’s the basics and should be the starting point for any email marketing agency worth their salt.

We need to dig deeper. Our plan involved gathering zero-party data that we sought to be relevant.

It’s important to carefully collect this and not overload your ESP with data you’ll never use.

Having this information allowed us to understand customers and allowed us to pre-handle potential objections. 

Take the Welcome flow for example, this enabled us to send recipients through the relevant path with tailored messaging.

When we collected this zero-party data, we then shared this information with the Ads team so they could tweak their strategy.

Also, when customers willingly share their information in exchange for personalised experiences, it automatically establishes a reciprocal relationship.

Tip: When collecting zero-party data, try to collect it at the point with the highest intent. We collect this data at the pop-up stage. 

When looking to collect such information, the Breadcrumb Technique is often the best option.

2. Creative and Engaging Content

We focused on developing creative content that engaged the audience. 

This included designing visually appealing email templates and crafting compelling copy that spoke directly to the client’s customer base.

This involved analysing customer data, understanding their preferences, interests, and pain points.

Our goal was to create content that felt personalised and directly spoke to the needs and desires of the audience.

Become a storyteller

Our content creators focused on storytelling. 

Each email was more than a sales pitch; it was a narrative that connected the product to the reader’s life. 

We used engaging headlines, persuasive copy, and a tone that matched the brand’s voice, making each email an enjoyable read.

Test and create feedback loops

We continuously tested various aspects of our email content, from subject lines to the layout of the body.

We used customer feedback and analytics to understand what worked and what didn’t, allowing us to constantly evolve and improve our content strategy.

Test and learn.

3. Strategic Campaigns and Flows

We launched targeted campaigns and automated email flows, each meticulously designed to guide the customer through a journey from awareness to purchase.

The purpose of these flows is to educate and build relationships with your customers.

In turn, this will drive revenue.

Here’s a snapshot of how we broke down our flows:

Pre-Purchase Flows

  • The Welcome Flow

The Welcome Series is often underutilised by many direct-to-consumer brands.

However, it serves as the first point of contact with potential customers and allows you to make a lasting impression.

The primary goal of a welcome series is to introduce subscribers to your brand, products, and values while building a meaningful relationship.

It is an opportunity to engage with your audience, capture their attention, and encourage them to take desired actions.

The number of emails in a Welcome Series may vary depending on your brand. If open rates are still high, you can continue to add emails.

If you’re looking for answers on how to craft an effective Welcome Series, then you can check out our blog. 

  • Site Abandonment

This email serves those higher up the funnel and perhaps with less intent.

They’ve simply viewed your website. This email should be somewhat simplistic and serve as a reminder to return.

  • Browser Abandonment

Again, these are quite high up the funnel and are likely ‘window shopping’.

Browser Abandonment emails are sent automatically to your website or online store visitors who left without making a purchase.

The aim is to re-engage these potential customers and encourage them to return and purchase.

There’s no need to erode margin by panicking and offering heavy discounts. Some ideas for your email could include:

  • Highlighting your products USPs and benefits
  • Showcasing customer testimonials
  • Comparing your products vs a competitor

You can also personalise the experience by highlighting the specific page they’d previously visited.

  • Abandoned Cart

Abandoned Cart emails are sent after someone views a product on your website.

They’ve added to the cart but not proceeded to the checkout page. Although there’s less intent than the Abandoned Checkout, it’s still an important flow to focus on.

You should focus on the copywriting and highlighting the product(s) that they’re leaving behind.

Depending on your brand’s tone of voice, you can play around with eye-catching subject lines and messaging here too

  • Abandoned Checkout

Unfortunately, a large percentage of people who visit your website won’t purchase.

But you’ve put the time, effort, and money in to attract them to your website. 

Therefore, having an effective Abandoned Checkout flow in place is crucial.

They’d almost crossed the finish line. They’d like your product(s) enough to make it all the way to the checkout but fell at the final hurdle.

An effective Abandonment Checkout flow well done correctly can recuperate vast amounts of otherwise lost revenue.

Some of the pillars of an effective Abandoned Checkout include:

  • Segmenting flows buy first-time vs repeat purchaser
  • Segmenting flows vs value (Over € vs Under €)
  • A/B testing offers, subject lines, and time between each campaign

In regards to this case study, our big win within the Abandoned Checkout flow was A/B testing the time delay between the first and second email.

Over 75% of people who order from this brand opt-in for next day delivery.

We A/B tested a 50% random sample split.

  1. 50% – 3 hour delay
  2. 50% – 24 hour delay

After looking at the result of the A/B test, we noticed a rise of 5% in placed orders from the 3-hour delay.

We identified this pain point by looking at the historical delivery data and collecting zero-party data.

This enabled us to then tailor our copy around this pain point and clarify the timelines for delivery.

Their purchase was time-sensitive so we had to act quickly.

Ab testing time delays

Post-Purchase Flows

When done correctly, post-purchase emails are extremely powerful.

There’s a myth thrown around sometimes that customers don’t want to hear from you after a purchase.

However, this couldn’t be further from the truth. It’s your job to remove any potential buyer’s remorse and add value.

There is an opportunity for a cross-sell or upsell, but most post-purchase emails should be about education and providing value.

Post-Purchase nurture

You can send an email showcasing how your products can be used. Educating the customer and putting their mind at ease.

In this particular case study, we educated on the following areas:

  • How to use the product in various ways
  • How to make the product last longer (it was perishable goods)
  • Specific ingredient spotlights and breakdowns
  • Highlighting the story of the brand and the people behind it.

Educating and telling stories is powerful. In this example, the business is in its third generation of the same family. 

These are stories your customers like to hear and help to create a relationship with them. 

The relationship should never be purely transactional.

Other post-purchase flows you can focus on are:

  • VIP
  • Winback flow
  • Replenishment flow
  • Sunset flow
Post purchase flows

Sprinkling some Post-Purchase Magic

A focus of ours was the new customer repurchase rate

This is the percentage of new customers who make another purchase after their first order.

It’s a metric that can often make or break e-commerce brands.

Particularly those who may not be profitable on the first purchase.

We analysed the average time between the 1st and 2nd order. From here, we tailored our win-back campaigns to trigger at a relevant time. 

It was clear that 81% of customers who purchased for the first time ordered again within the first 30 days. After 30 days, customer engagement declined sharply. 

Where brands often fall short is in teaching customers on how to get the most value out of their first purchase.

The sale process doesn’t just end because someone has bought from you. 

This is now your time to nurture the relationship and educate and increase the 1st to 2nd purchase % rate.

  • Get them excited 
  • What to expect from using your product
  • When are they going to receive
  • What are the benefits they are going to receive
  • What are they going to see in the first 30,60,90 days
  • How to use the product
  • How should they store the product(s)

Think about your value proposition. 

What is the relationship you want to cultivate with your audience?

In this case, our post-purchase flow was tailored around this data. 

The majority of customers order for next day delivery so the product more often than not was in their hands within 24 hours. 

This meant that we could start educating from the get-go. 

This client had no post-purchase flow before working with us. 

They didn’t know the average time between orders or the reasons why people bought. 

Our post-purchase series helped increase first to second order by 25% in the first 60 days. 

Knowledge is power 🙂.

Campaigns

We break our campaigns into categories depending on what outcome we’re looking to achieve.

Both campaigns and flows played a part in making email a successful revenue stream for this brand.

We did use ‘sales’ emails but sparingly. Instead, we focused on education and building relationships.

This increased the average order value, lifetime value, and overall profitability.

Value/Content based Campaign ideas

  1. Myth buster
  2. Customer Testimonials
  3. How to do X
  4. Blog content
  5. Behind the scenes
  6. Press mentions
  7. Quizzes
  8. UGC

Sales / Product based Campaigns 

  1. Bestsellers
  2. X of the month
  3. Product launch
  4. Holiday period
  5. Flash Sale
  6. Bundle

4. Continuous Optimisation

Continuous A/B testing and data analysis allowed us to refine our strategies, ensuring maximum efficiency and effectiveness of each campaign.

Pop-ups

We placed a strong emphasis on continuous optimisation of the website pop-up.

From using the Breadcrumb Technique to split testing designs, imagery and offers.

It was important we optimised. 

We closely monitored user feedback and key performance metrics. 

This continuous loop of feedback, analysis, and refinement allowed us to stay ahead of trends and adapt to the ever-changing preferences of our audience.

Other tests we ran during the year were:

  • A/B Testing flows
  • A/B testing Abandoned Checkout by over/under value €
  • Returning vs non returning customer splits
  • Time delays
  • Subject lines
  • Email structure
  • CTA’s

These tests allowed us to ensure each campaign, flow and pop-up were optimised.

Email marketing is not a game of set and forget.

Things change and they change quickly.

It’s important to always be keeping an eye and making tweaks as you see fit.

From Zero to Hero: More Than Just Revenue in Email Marketing

While boosting revenue was a primary goal, ensuring increased profitability was equally crucial.

We didn’t just aim for higher sales; we focused on making each sale more profitable.

This meant optimizing our email campaigns to target not just more customers, but the right customers – those who were more likely to make higher-value purchases and engage with the brand on a deeper level.

Of course, the additional €442,000 in revenue will catch the headlines.

However, these can often be vanity metrics. The real measure of success lies in the business’s overall profitability.

Driving revenue could be done with heavy discounts and constant sales.

This is an approach we always steer clear of.

Instead, we focus on providing value to customers and building relationships. 

In turn, we can increase customer lifetime value, average order values, and overall profitability.

For email to be a successful pillar of any business, it must be contributing to the business’s overall profitability.

Increased Customer Retention

A significant part of our strategy was turning one-time buyers into repeat customers.

This focus was not just about immediate sales; it was about reducing overall acquisition costs in the long run.

This was done through crafting several different strategies. 

We categorised customers and spoke to them in certain ways at specific times.

Ready to Transform Your Email Marketing?

If you’re an eCommerce brand owner or manager looking to elevate your email marketing strategy, we’re here to help.

Reach out to us for tailored solutions that not only boost your conversion rates but also foster lasting customer relationships

Book your chat here: https://calendly.com/caolan-optima/15min?month=2023-12

Email Campaigns

7 & 8 Figure DTC Brand Blueprint 📩🚀

Looking for more information?

Here are a few more articles we think will interest you.

Filter

How we increased a brand’s email revenue by €442,000 in 12 months
E-commerce StrategiesFlow Building

How we increased a brand’s email revenue by €442,000 in 12 months

January 17, 2024
How we increased a protein brand’s email revenue by €442,000 in 12 months Although we…
E-commerce StrategiesLead Generation

How you can use a ‘Breadcrumb’ technique to drive email sign-ups and increase your revenue

December 4, 2023
In this article, we’ve broken down various BFCM strategies and plays. We look at important…

Helping 6,7 & 8 Figure E-Com Brands nurture, convert & retain more customers

How you can use a ‘Breadcrumb’ technique to drive email sign-ups and increase your revenue

By E-commerce Strategies, Lead Generation

Whether you’re a marketeer, brand owner, or manager, you likely spend countless hours thinking about your target audience.

Who they are, what they need, and how you can reach them.

During this BFCM season, we naturally wanted to maximise conversions for our clients.

So, we utilised The Breadcrumb Technique.

Although we used this technique during BFCM 2023, it’s something we use all year round for many of our clients.

Understanding The Breadcrumb Technique

The Breadcrumb Technique goes against much of the conversion rate opinions you see online.

Many people will tell you reducing fields and/or steps will increase conversions.

But often when you take fields away, you’re left with the field visitors find most intimidating:

😰 Your Name

😰 Your Email

😰 Your Phone Number

That can be a shock to the system and many will hesitate and bounce.

However, using The Breadcrumb Technique allows you to break it into easily digestible steps.

We focus on mini micro-conversions.

Let them answer the questions and move through the steps with as little cognitive work as possible.

This method is rooted in the psychological principle of the “Yes Ladder” where agreeing to smaller requests increases the likelihood of agreeing to larger requests.

The Psychology behind The Breadcrumb?

Renowned psychologist, Robert Cialdini, states that making a choice usually leads people to take a path that validates that choice.

We’ll often have a subconscious bias to follow through with our initial commitment.

The “foot-in-the-door” technique comes to mind.

It’s where we use small, low-threat questions to engage potential customers. They answer said questions leading to a higher chance of them continuing to the next question.

In simplest terms, they’ve already committed to the first set of questions, so they might as well answer the next ones until they’ve finished what they started.

Whether you should be using a two-step, three-step, or even five-step form is all based on testing.

Try A/B testing each length until you find your ‘sweet spot’ for conversion rate optimisation.

Utilising the ‘Breadcrumb’ for Black Friday / Cyber Monday Success

During the recent Black Friday/Cyber Monday sales, we implemented this technique across several client websites.

The results were quite impressive.

But, we weren’t the only ones utilising The Breadcrumb Technique this BFCM.

Brands such as Hexclad also opted in for this technique.

How did we structure our breadcrumb?

Below is an example of a pop-up we used for a client this Black Friday.

The client prefers to remain confidential so we’ve removed their logo and some branding.

We’ve also used a placeholder image.

Step 1: Ask a question. E.g. Would you like up to 20% off your order?

This question is to the point and doesn’t ask for any commitment (name, email etc).

Answer >> Yes please (now committed – micro conversion complete ✅)

Step 2: Enter email address and clickSend me the details’

We’ve now collected that all-important email address. This individual has entered our ‘Welcome Flow’ and our conversion process has begun.

At this point, you could also ask for a phone number for SMS marketing.

What our Breadcrumb results looked like

Through A/B testing different forms of pop-ups, we’ve found this style to work well.

We decided to fully utilise it during the BFCM season.

The results were as follows:

  • Mobile conversion rate: 16.6%
  • Desktop conversion rate: 12.0%

Mobile

Desktop

Finding ‘True’ Submission Rates

This submission rate is a true result. The ‘Yes’ button does not count as a form submission which may result in an inflated submission rate.

Once the ‘Send me the details’ button is clicked, a submission is counted.

If somebody clicks ‘Yes’ but doesn’t continue and complete the next step, it’s counted as a form ‘view’.

There’s a huge difference between each of the above.

During BFCM, we didn’t drastically change the offer.

We slightly increased the percentage discount but the amount was minimal as profitability and margins are a key focus.

The copy was tailored to BMCM and the intent may have been higher but the results were excellent.

This pop-up along with the BFCM flows were live for 6 days.

Beyond the Numbers: Why Conversion Rates Trump Sign-Up Stats

In the world of email marketing, it can be tempting to be misled by the allure of high sign-up rates.

Although, they’re often nothing more than a vanity metric.

We examined how to increase sign-up rates using methods like The Breadcrumb up above.

However, it’s critical to understand that a high sign-up rate is not the endgame.

It’s a mere steppingstone.

The real measure of success lies in conversion rates.

Vanity Metrics vs Sales

Let’s break down the illusion with some numbers.

Consider two scenarios:

In the first, you achieve a sign-up rate of 10% and a purchase rate of 5%.

In the second, your sign-up rate soars to 20%, but your purchase rate plummets to 2%.

The latter might seem more impressive at first glance, but it’s a classic case of a vanity metric.

It feels good, but it doesn’t necessarily translate to better business outcomes.

The truth is, the majority of purchases occur before the second email in a ‘Welcome’ series is even sent.

This statistic underscores the importance of not just attracting subscribers but converting them effectively.

A lower sign-up rate with a higher conversion rate is far more valuable than the reverse.

Email Marketing’s Bottom Line: Conversions, Not Just Subscribers

While it’s tempting to chase higher sign-up rates, the focus should be on nurturing those sign-ups into conversions.

The real victory lies in conversion – turning those subscribers into engaged customers who contribute to your business’s growth.

High sign-up rates may appear attractive on paper, but without an increase in conversions, they are meaningless.

The key takeaway is to focus on nurturing and converting your subscriber base.

This approach not only ensures a healthier return on investment but also builds a more loyal and engaged audience.

Techniques like The Breadcrumb approach can be valuable tools in your arsenal.

They’re great for boosting engagement and should always be refined through A/B testing to deliver the best results for your clients.

However, at the end of the day, it’s conversions that are the real game-changers.

Remember, while techniques like The Breadcrumb approach can enhance sign-ups, it’s the conversion and customer relationships that truly drive success.

Ready to Transform Your Email Marketing?

If you’re an eCommerce brand owner or manager looking to elevate your email marketing strategy, we’re here to help.

Reach out to us for tailored solutions that not only boost your conversion rates but also foster lasting customer relationships

Book your chat here: https://calendly.com/caolan-optima/15min?month=2023-12

Looking for more information?

Here are a few more articles we think will interest you.

Filter

How we increased a brand’s email revenue by €442,000 in 12 months
E-commerce StrategiesFlow Building

How we increased a brand’s email revenue by €442,000 in 12 months

January 17, 2024
How we increased a protein brand’s email revenue by €442,000 in 12 months Although we…
E-commerce StrategiesLead Generation

How you can use a ‘Breadcrumb’ technique to drive email sign-ups and increase your revenue

December 4, 2023
In this article, we’ve broken down various BFCM strategies and plays. We look at important…

Helping 6,7 & 8 Figure E-Com Brands nurture, convert & retain more customers

Black Friday/Cyber Monday: Strategic Moves or Just Following the Crowd?

By E-commerce Strategies

Black Friday/Cyber Monday: Strategic Moves or Just Following the Crowd?

As we approach the busy season of Black Friday / Cyber Monday (BFCM), many brand owners and managers are at a crossroads.

The BFCM season has transformed from a mere sales event into a cultural phenomenon, pushing brands to partake almost as a rite of passage.

But, here’s something to ask yourself:

Are BFCM offers actually helpful for your business, or are they just a herd mentality that could be slowly eating away at your profits?

Is your brand running Black Friday campaigns just because everyone else is, or is there a strategic goal?

Black Friday presents a unique conundrum for e-commerce brands.

While it offers an opportunity for increased sales and visibility, it’s essential to approach it with a strategic mindset.

Let’s dig in below and discover how to maximise this BFCM season.

Creating Your Own Peaks

In the ever-evolving landscape of e-commerce, relying solely on traditional peak seasons like Black Friday/Cyber Monday (BFCM) can limit the potential of your brand.

As an e-commerce brand owner or manager, there’s a compelling opportunity to create your own peaks throughout the year.

Harnessing New Product Launches

Launching new products is a brilliant way of creating your own peaks.

Use new product launches as an opportunity to create excitement and anticipation.

Develop a build-up campaign that engages your audience, teasing them with sneak peeks and exclusive previews.

Consider offering early access or special deals to your loyal customers or email subscribers, making them feel valued and part of an exclusive group.

Leveraging Natural Peaks

Depending on your product range, identify natural peaks throughout the year. For instance, flower companies can capitalise on occasions like Valentine’s Day or Mother’s Day.

Companies specialising in mens grooming products could piggyback off Father’s Day.

Aim to establish annual events or sales that your customers can look forward to each year, turning these peaks into anticipated traditions.

Creating your own peaks in the e-commerce calendar is not just about boosting sales; it’s about establishing your brand as a dynamic and customer-centric entity.

This season, challenge the norm and think beyond the usual discount frenzy.

Conformity vs. Individuality: The Brand Dilemma

In a sea of discounts and deals, standing out can be challenging. Consider:

  • Are your BFCM campaigns just another echo in the chorus, or are they distinctly ‘you’?
  • How can you leverage BFCM not just for sales but to amplify your brand’s unique voice?

This is an opportunity to differentiate your brand.

Maybe it’s through storytelling, unique packaging, or a campaign that resonates with your audience’s values.

The Inventory Conundrum

Many brands default to large BFCM discounts without giving it much thought.

However, are you just needlessly eroding the margin for products that are forecasted to sell out regardless?

If products aren’t perishable, is there a need to jump the gun and push discounts? If so, what is the reason?

Take a company that sells jeans for example. If already forecasted to reach sales targets, there may not be any need to partake in BFCM discounts and erode your margin.

This could mean creating BFCM campaigns that focus on the quality and longevity of your products rather than just the price point.

You shouldn’t autopilot into blind BFCM discounts.

Ensure you’ve a strategy and a long-term play in mind.

Choosing Your Offer:

The key to a successful Black Friday/Cyber Monday strategy is understanding that customers are looking for more than just a good deal; they’re seeking real value.

Therefore, you need a combination of clarity and creativity.

Understanding exactly what your offer is and how that creates value is imperative.

This value might appear in a variety of ways, such as exclusive goods, customised experiences, or special product bundles.

Examples of offers include:

  • Percentage (%) OFF
  • Flat ($) discounts
  • Buy 1 get 1 free (BOGO)
  • Bundle deals
  • Free gift with purchase

It’s all about making an offer that appeals to their desires and emotions as well as their wallets.

In a world where discounts are expected, the challenge is to think outside the box.

How can your brand not only satisfy but also exceed market expectations in a memorable and meaningful way?

This requires a deep understanding of your target audience and a clear message that communicates the unique value you provide.

Whichever offer you commit to, make sure it’s easy to understand and follow for the consumer.

Rethinking Value: Beyond the Discount Tag

We’ve outlined five key strategies and considerations tailored for the upcoming Black Friday/Cyber Monday frenzy.

These tactics cover a wide range of innovative approaches, from the careful application of unit economics, to the calculated use of freebies and inventory control.

1. Unit Economics and Bundling Strategies:

  • Leverage Bundling: Offer bundles to improve unit economics. For example, pairing products together can increase the perceived value while maintaining a reasonable cost.
  • Free Gifts with Purchase: Include a unique and desirable free gift with purchases. This not only adds value but also differentiates your offer from competitors.
  • Perceived Value of Gifts: Ensure that the free gift has a high perceived value to the customer, enhancing the overall attractiveness of the offer.

Remember: value is in the eye of the beholder.

Things are valued differently by different people. Take the free gift with purchase example.

Consider a skincare brand that offers a free eye serum, retailing at €29.99, with every purchase over €65.

This offer might seem generous at first glance, but a closer look at the unit economics reveals its strategic advantage.

  • High Perceived Value:

The eye serum, retailing for €29.99, carries a high perceived value. Customers view this as getting a substantial product for free, enhancing the attractiveness of the overall purchase.

  • Low Unit Cost:

Despite its high retail price, the actual cost to the brand for each eye serum is only €4.99. This significant difference between perceived value and actual cost is where the brand’s strategy shines.

  • Encouraging Higher Spend:

The condition of spending over €65 to receive the free serum cleverly incentivises customers to add more to their carts, potentially increasing the average order value.

  • Inventory Management:

This strategy can also be an effective way to manage inventory, especially if the eye serum has higher stock levels or is strategically chosen to be cleared.

For the skincare brand, the actual cost is a fraction of the retail price, making it an economically sound choice.

Meanwhile, customers perceive high value, which not only drives sales but also enhances brand loyalty and customer satisfaction.

2. Inventory Management for Free Gifts:

  • Monitor Inventory Levels: Keep a close eye on inventory, especially for items used as free gifts, to avoid stockouts and customer disappointment.
  • Plan for Demand Fluctuations: Anticipate and prepare for increased demand, ensuring a smooth customer experience and avoiding overselling.

If giving out BFCM discounts, it’s important to ensure you’ve enough inventory to hit your goal.

A simple formula to avoid any mishaps is BFCM GOAL / OFFER = RETAIL VALUE NEEDED

  • BFCM Goal: €100,000

Although it seems obvious, brands occasionally make this error.

Identify your goal at the outset, then ensure your forecasts include the discount.

3. Challenges for Single SKU or Hero Product Brands:

  • Diversify Offers: For brands with a limited product range, consider creative offers like exclusive limited-time variants or special editions.
  • Focus on Brand Strengths: Highlight the unique value proposition of your hero product to make your offer stand out.

Although a completely single SKU brand is difficult to find nowadays, Crocs are still a good example.

They’ve added SKU’s over time, yet recent reports show that 79% of their quarterly revenue came from their original clogs.

4. Cashback and Coupon Strategies:

  • Cashback Offers: Provide cashback on purchases to be used on future buys, creating a reason for customers to return.
  • Coupons for Next Purchase: Offer coupons redeemable on the next purchase. This not only drives sales but also encourages repeat business.

Coupons can also have additional value that can be difficult to quantify as a large amount of people will never actually redeem them. Therefore, they may shop again without cashing in on their coupon or cashback offer.

5. Gift Card Incentives:

  • Spend and Get Offers: Implement offers like “Spend €X and receive a €25 gift card.” This not only drives immediate sales but also encourages future purchases.
  • Post-BFCM Strategy: This approach can be particularly effective after Black Friday/Cyber Monday to maintain sales momentum.

🛑Proceed with caution…

Margin ErosionA Hidden Threat: While BFCM can lead to a significant volume of sales, it’s essential to consider the impact on profit margins. Deep discounts might attract a surge in customers, but if not carefully planned, these can lead to substantial margin erosion, affecting overall profitability.

Brand Perception and Value: Constant discounting can also alter how customers perceive your brand. Are you positioning your brand as a value-for-money option, or does relentless discounting undermine your brand’s perceived value?

Alternatives to Traditional BFCM Campaigns

If jumping onto the BFCM bandwagon doesn’t align with your brand strategy, consider these alternatives:

  1. Exclusive Offers for Loyal Customers: Instead of broad discounts, create exclusive offers for your loyal customer base. This approach not only protects margins but also enhances customer loyalty.
  2. Value-Added Promotions: Offer value additions instead of discounts. Bundling products, offering free shipping, or providing post-purchase services can be more profitable.
  3. Sustainable and Ethical Marketing: Position your brand as a proponent of responsible consumerism. Promote sustainable shopping habits instead of impulsive buying.

Understanding your customer life-cycle

In the fast-paced world of e-commerce, an in-depth understanding of your customer life-cycle and lifetime value is not only advantageous; it is also essential for long-term success.

By gaining insights into this lifecycle, you unlock the ability to evaluate the lifetime value of your customers, a critical metric that transcends single purchases and looks at the overall profitability a customer brings over time.

This knowledge is invaluable, as it informs and refines your acquisition strategies, ensuring that your efforts are not just driving sales, but are also contributing to sustainable, long-term profitability.

Black Friday/Cyber Monday (BFCM) sales can be chaotic, and it’s easy to get sucked into the momentary frenzy of bargain hunting and discounting.

However, the savvy brand owner knows that true success lies in understanding the broader customer lifecycle.

Here’s some questions to ask yourself and your team:

  • Is this customer a BFCM-only purchaser?

Reflect on the patterns of buying behaviour. Are certain customers exclusively attracted to your brand during BFCM sales? Understanding this can help tailor your marketing efforts more effectively.

  • Will they repeat purchase?

Consider the potential for long-term engagement. What strategies can you implement to transform one-time BFCM shoppers into repeat customers throughout the year?

  • Are they now conditioned to only purchase at a sale price?

Assess the impact of your discounting strategy. Are your customers becoming conditioned to wait for sales, and how does this affect their perception of your brand’s value outside of sale periods?

  • What’s the value of them to your brand long-term?

Evaluate the lifetime value of these customers. Beyond the immediate transaction, how can these BFCM shoppers contribute to your brand’s growth and sustainability in the long run?

No One-Size-Fits-All: Industry and Product Specifics

Recognizing that BFCM strategies are not universally effective is critical. What works for a tech gadget brand might not hold the same results for luxury fashion labels.

  1. Product Life Cycle Considerations: For some, BFCM is an opportunity to clear out old inventory, making room for new products. For others, especially those with evergreen products, heavy discounting might not be necessary.
  2. Industry Dynamics: The effectiveness of BFCM campaigns also varies across industries. High-ticket items might see a more significant benefit from BFCM discounts than everyday consumer goods.

The BFCM Hangover:

Unfortunately, post-BFCM, many brands face a ‘hangover’ period, marked by high returns and customer disengagement.

It’s a critical time to re-engage customers.

Step away from the ‘sales’ and push towards value-orientated emails.

Some examples are:

  • How-to-guides
  • Success stories and testimonials
  • Lifestyle integrations
  • User-generated content (UGC)
  • Seasonal tips
  • FAQs
  • Invite to social media
  • Giveaways and competitions

By implementing these strategies, you can maintain engagement with your customers after the BFCM rush, providing them with value that extends beyond discounts and deals.

This approach not only helps in avoiding a post-BFCM slump but also strengthens your brand’s relationship with its customer base.

Email & SMS

24 Campaigns to Boost Your E-Commerce Revenue🔥📈

Other considerations / key takeaways

As the dust settles on the frenetic pace of Black Friday and Cyber Monday, ecommerce brands barely have a moment to catch their breath before the next major event on the retail calendar looms large: Christmas

As we wrap up our exploration of strategies for Black Friday/Cyber Monday (BFCM) and beyond, here are some essential takeaways to guide your e-commerce journey:

Forge Your Own Path: Remember, you have the power to create your own peaks in the ecommerce landscape. Don’t just follow the crowd; carve out unique opportunities that align with your brand’s identity and customer base.

Smart Discounting: If participating in BFCM, be strategic about your discounts. Avoid eroding your margins with excessive price cuts. It’s about finding the right balance that attracts customers without compromising your profitability.

Innovative Offers: Consider alternative promotional strategies, such as offering a free gift with purchase. This can often be more appealing to customers and more cost-effective for your brand than traditional discounts.

Inventory Management: Keep a close eye on your inventory levels. Efficient management is crucial to meet demand without overstocking, ensuring a smooth customer experience and maintaining healthy cash flow.

Leverage SMS Marketing: In a landscape crowded with BFCM promotions, SMS marketing can be a powerful tool to cut through the noise. It offers a direct and personal way to reach your customers, often with higher engagement rates than email.

Final Thoughts

As you navigate the bustling world of ecommerce, these considerations can serve as guiding principles.

Whether it’s BFCM, Christmas, or any other peak season, the key is to stay true to your brand’s values, understand your customers’ needs, and continually adapt your strategies for sustained success and growth.

What’s next: Christmas?

As the dust settles on the frenetic pace of Black Friday and Cyber Monday, ecommerce brands barely have a moment to catch their breath before the next major event on the retail calendar looms large: Christmas

Christmas is a critical date in the calendar so it’s important to pivot your strategies and be ready.

Here’s some key tips to help you transition from BFCM to Christmas:

1.Reassess Offers & Sales Targets

Post-BFCM, quickly analyse BFCM data to understand customer behaviour and preferences. Use these insights to tailor your Christmas offers.

2. Inventory Management

After the BFCM rush, assess and replenish inventory to avoid stockouts during Christmas.

3. Logistics and Fulfilment

Clearly communicate last order dates to ensure Christmas delivery, managing customer expectations.

4. Marketing & Promotions

Utilise your email list, especially those who engaged during BFCM, with targeted Christmas promotions.

5. Customer Service

Prepare for increased customer service inquiries and consider extending support hours or staffing.

The transition from BFCM to Christmas is a critical phase for e-commerce brands.

It requires swift action, strategic planning, and adaptability.

By effectively managing offers, inventory, logistics, and customer engagement, brands can capitalise on the momentum of BFCM and turn the Christmas season into another significant success.

💡Important: For those brands that switched your email flows to specifically BFCM, don’t forget to change them back immediately once it’s over.

Email & SMS

Black Friday Cyber Monday - Email & SMS Playbook

Looking for more information?

Here are a few more articles we think will interest you.

Filter

How we increased a brand’s email revenue by €442,000 in 12 months
E-commerce StrategiesFlow Building

How we increased a brand’s email revenue by €442,000 in 12 months

January 17, 2024
How we increased a protein brand’s email revenue by €442,000 in 12 months Although we…
E-commerce StrategiesLead Generation

How you can use a ‘Breadcrumb’ technique to drive email sign-ups and increase your revenue

December 4, 2023
In this article, we’ve broken down various BFCM strategies and plays. We look at important…

Helping 6,7 & 8 Figure E-Com Brands nurture, convert & retain more customers

Black friday cyber monday

Navigating BFCM: A Comprehensive Checklist

By E-commerce Strategies

It’s that time of year again as the e-commerce industry prepares for its biggest event of the year: Black Friday and Cyber Monday (BFCM).

These iconic days in the retail calendar provide brands with a crucial chance to increase sales, draw in new clients, and establish their market presence.

They’re not only about flashy sales and crazy shoppers. However, the amount of planning and thought that goes into a BFCM typically makes the difference between a decent one and a fantastic one.

A checklist serves as your strategic blueprint. It helps you to anticipate every scenario, streamline your operations, and create a customer experience that not only drives sales but also builds loyalty.

Black friday cyber monday

Your checklist before the checklist 

Before we get into the checklist, there are a few housekeeping aspects to take care of.

These will underpin the checklist and although some may seem obvious, it’s important we tick all the boxes.

  1. Website Optimisation: Ensure your website can handle increased traffic. Optimise for speed and mobile responsiveness, as a significant portion of customers will shop from their phones.
  2. Inventory Management: Have a clear understanding of your inventory levels to avoid stockouts or overstocking. Use historical data to forecast demand and plan accordingly.
  3. Customer Support: Scale up your customer support to handle increased inquiries and potential issues. Consider extended hours or chatbots to manage the load.
  4. Shipping and Fulfilment: Clearly communicate shipping deadlines and costs. Consider offering special shipping promotions or guarantees to incentivize purchases.
  5. Retargeting Campaigns: Use retargeting ads to bring back visitors who have shown interest in your products but haven’t made a purchase.
  6. International Customers: If you serve international markets, consider time zone differences and local customs for BFCM deals.
  7. Post-BFCM Engagement: Plan for how you will engage customers after BFCM. Consider follow-up campaigns, requests for reviews, or teasers for upcoming holiday deals.

🛑Proceed with caution

Cyber Monday and Black Friday are known for their deals.

But, in their haste to seize this opportunity, companies must exercise caution to stay clear of the traps associated with broad discounting tactics.

Cutting costs can occasionally backfire, particularly if it affects your most devoted clientele.

These VIPs could feel devalued or even slighted if they witness new customers getting the same or even bigger discounts when they have regularly picked your brand at full price.

The secret is to approach discounts with a scalpel rather than a sledgehammer, rather than completely avoiding them. Here, segmentation is your friend.

You could potentially offer your most loyal customers exclusive products, bundled deals, or loyalty points that can be redeemed for future purchases.

This approach not only maintains the perceived value of your products but also enhances the customer experience for your most valued patrons.

Choosing your offer

Fail to prepare, prepare to fail.

Success on Black Friday demands careful planning months in advance; it is not a last-minute endeavour. This kind of foresight makes it possible to develop solutions that are both appealing to clients and distinctive in a crowded market.

There needs to be an omni-channel approach that ensures cohesion of messaging, offers and brand assets.

When it comes to BFCM, simplicity often reigns supreme.

A retailer may choose to use simple, attention-grabbing offers that stand out from the competition. A generous and simple offer would be a “Buy One, Get One Free” discount on specific items or a flat 30% off storewide.

A further strategy that might work well is a tiered discount scheme along the lines of “Spend $100, Save 15%; Spend $200, Save 25%,” where higher spending levels result in larger discounts.

These kinds of promotions benefit from both raising average order value and maintaining consumer clarity.

A store can determine which deals were more popular during prior peak periods and adjust their Black Friday approach by looking at historical data.

By using a data-driven strategy, the company can make the most of tried-and-true methods while offering clients discounts that are both simple to understand and even simpler to take advantage of.

Your Ultimate BFCM Checklist

But it’s not just about slapping on any high number. It’s about choosing the right anchor that aligns with your product’s value, your brand’s integrity, and your audience’s expectations. It’s a delicate balance where credibility meets desire.

Anchoring not only influences the attractiveness of a price but also the perceived value of a product. A higher anchor can enhance the perceived quality, while a lower anchor might suggest affordability. The key is aligning your anchor with the value proposition you want to communicate.

  1. Decrease Time Delays: Shorten the time delays for abandoned cart and browse abandonment flows to capture high-intent customers more quickly.
  2. Update Subject Lines: Revise your email subject lines to highlight BFCM deals.
  3. Personalise Messages: Ensure flow messages are personalised with the recipient’s first name and relevant dynamic content.
  4. SMS Priority: Give priority to sending text messages to SMS subscribers within your flows.
  5. Countdown Timers: Incorporate countdown timers in emails to create urgency.
  6. Turn Off Smart Sending: Disable smart sending for key flows so customers receive timely alerts about BFCM sales.
  7. Prepare BFCM-Specific Content: Develop new content specifically for BFCM to add to your flows.
  8. Track Changes: Keep a record of all BFCM-related changes to revert back after the event.
  9. Welcome Series Adjustments: Update your welcome flow to align with BFCM promotions and remind subscribers of the welcome offer.
  10. Abandoned Cart Strategy: Adjust the timing and content of abandoned cart messages to align with BFCM sales.
  11. Browse Abandonment Strategy: Modify browse abandonment messages to include BFCM deals and recommendations.
  12. Post-Purchase Engagement: Add cross-sell or upsell messaging related to BFCM in post-purchase communications.
  13. Price-Drop Flows: Consider pausing or adjusting price-drop flows to focus on BFCM announcements.
  14. BFCM Content in Flows: Add BFCM-specific blocks or content to your flows and set reminders to remove them after the sale.
  15. Build BFCM Pathways: Create BFCM-specific pathways in your flows for a targeted approach.
  16. Create New BFCM Flows: For more detailed analytics, create entirely new flows for BFCM.
  17. Post-BFCM Analysis: After BFCM, revert changes, analyse performance, and clear any queued emails.

Adding BFCM Content to your Flows

A couple of points above touch on editing your email flows to incorporate some BFCM messaging.

Although this is a great way of personalising the communication and keeping it relevant, you should also exercise caution before doing so.

Ask yourself will implementing these changes yield a substantial return on investment?

It’s essential to ensure that the ‘juice is worth the squeeze.’

Don’t mindlessly dive in and begin changing your pre and post-purchase email flows.

Evaluate the potential uplift in engagement and conversions against the time and resources required to implement these changes.

Updating Key Flows

While it might be tempting to overhaul every aspect of your email flows for BFCM, it may be more beneficial to focus on high-impact areas.

Consider the following:

  • The Welcome Series

Update your welcome emails to immediately engage new subscribers with your BFCM narrative.

Key tip 💡

Update your welcome flow to match any changes to your sign-up form (e.g., a new BFCM discount).

  • Abandoned Cart/Checkout Flow

Integrate BFCM deals to recover lost sales by reminding customers of what they’ve left behind, with an added incentive.

Key tip 💡

Shorten the time delay before your first message to 30 minutes to convert high intent browsers as quickly as possible. Also, remove (or replace) any discounts that do not align with your BFCM sale.

  • Post-Purchase Follow-Up

Use this opportunity to cross-sell related BFCM offers or to encourage sharing of the deals on social media.

Key tip 💡

Encourage customers to refer their friends or leave a review of their order

Remember, the goal is to create a cohesive experience that not only captures the urgency of BFCM but also aligns with your brand’s voice and customer journey.

By thoughtfully updating your email flows, you can create a seamless and relevant narrative that guides your customers through the BFCM season and beyond.

Enhancing Post-Purchase Clarity

It’s critical to be in constant and clear contact with clients after they’ve made a purchase during the busy Black Friday period.

Your post-purchase cycle can be greatly streamlined with the help of an app like Wonderment, which provides personalised touchpoints and real-time tracking updates to keep customers informed at every stage.

Wonderment helps your customer care team by automating transactional updates, and it also improves the customer experience by providing proactive delivery notifications and interactive tracking pages. These pages fulfill two functions: they can be optimised with well-placed calls to action to promote repeat business, and they plainly display order status, giving users peace of mind.

Using an app like Wonderment can help boost post-purchase profitability, lowering the amount of “where is my order?” inquiries, and improve consumer satisfaction in the high-stakes world of Black Friday sales.

The Road Ahead

BFCM is more than just a weekend of sales—it’s a litmus test for your brand’s operational efficiency.

By taking the time now to meticulously plan, to ensure that every team member is informed and every strategy is cohesive, you set the stage for not just meeting but exceeding customer expectations.

In doing so, you don’t just capitalise on a peak sales period; you build a foundation for loyalty and growth that will pay dividends long after the last deal has been snapped up.

Keep in mind, the most successful brands are those that have BFCM circled on their calendars from day one. A successful peak season begins with strategies developed early in the year and not the beginning of Q4.

As we wrap up our comprehensive BFCM checklist, it’s imperative to underscore the significance of foresight and integration in your campaign strategies.

A cohesive, omnichannel approach not only streamlines the customer journey but also amplifies your brand’s message across the vast digital and physical retail landscape.

By ensuring that your messaging, offers, and brand assets are in concert across all channels, you set the stage for not just a successful sale season, but also for building lasting customer relationships.

Best of luck!

Email & SMS

Black Friday Cyber Monday - Email & SMS Playbook

Looking for more information?

Here are a few more articles we think will interest you.

Filter

How we increased a brand’s email revenue by €442,000 in 12 months
E-commerce StrategiesFlow Building

How we increased a brand’s email revenue by €442,000 in 12 months

January 17, 2024
How we increased a protein brand’s email revenue by €442,000 in 12 months Although we…
E-commerce StrategiesLead Generation

How you can use a ‘Breadcrumb’ technique to drive email sign-ups and increase your revenue

December 4, 2023
In this article, we’ve broken down various BFCM strategies and plays. We look at important…

Helping 6,7 & 8 Figure E-Com Brands nurture, convert & retain more customers

Our Address

13 Baggot Street Upper,
Ballsbridge,
Dublin 4,
D04 W7K5

Stay in the loop with our weekly newsletter

Sign to our weekly digest

How Price Anchoring Can Make or Break Your Email Campaigns

By E-commerce Strategies

How Price Anchoring Can Make or Break Your Email Campaigns

In the intricate dance of marketing and consumer psychology, there’s a subtle yet powerful force at play: price anchoring.

It’s the silent influencer that can sway decisions and shape perceptions without a word.

A common saying you may have heard is “What’s the best way to sell a $2,000 watch? Put it beside a $10,000 one”

What is Price Anchoring?

Price anchoring is our cognitive compass, directing us towards what feels like a financial win.

It’s the art of setting a reference point, the ‘anchor’, which customers use as a benchmark to judge subsequent prices they encounter.

This initial piece of information is pivotal, as it can significantly affect decision-making and perceived value.

The Psychology Behind Price Anchoring

Humans have a natural tendency to rely on the first piece of information offered when making decisions, known as the ‘anchor’.

This cognitive bias can significantly influence our shopping behaviour.

For instance, when we see a discounted price next to the original one, our perception of the deal’s value is anchored to the initial, higher price, making the discount appear more substantial.

Steve Jobs Price Anchoring Masterclass 📈🍎

Steve Jobs stood in front of a captivated audience as Apple launched the iPad.

He went through all the impressive features and specifications of the new device. However, Jobs had another trick up his sleeve.

He was about to ploy a price anchoring technique.

A prominent figure of €999 displayed on the screen behind him.

By showcasing the $999 price, he established it as the initial anchor, a reference point that would anchor the audience’s perception of the iPad’s value.

“I am thrilled to announce to you that the iPad pricing starts not at $999,” Jobs declared, “but just $499.”

They had just pulled off one of the oldest, yet most successful tricks in the book – price anchoring.

This strategy is used in almost every industry. Tax luxury car manufacturers, by first presenting their high-end models, they set an anchor that makes their entry-level cars seem more affordable.

Similarly, fashion retailers often display premium lines at the front of the store, establishing a high price point that makes the rest of their collection feel more accessible.

🎩 The Magic of the Right Anchor

But it’s not just about slapping on any high number. It’s about choosing the right anchor that aligns with your product’s value, your brand’s integrity, and your audience’s expectations. It’s a delicate balance where credibility meets desire.

Anchoring not only influences the attractiveness of a price but also the perceived value of a product. A higher anchor can enhance the perceived quality, while a lower anchor might suggest affordability. The key is aligning your anchor with the value proposition you want to communicate.

Implementing Price Anchoring in Your Strategy

✅Set the Stage: Introduce a higher price point early in your email to establish the anchor.

✅Follow with Value: Present the actual offer against the anchor to highlight the deal.

✅Keep it Real: Ensure your anchors are believable and justifiable to maintain trust.

✅Test and Learn: Use A/B testing to find the most effective anchors for your audience.

Price Anchoring in Email Marketing

Now, let’s bring it closer to home—email marketing.

When you’re crafting that perfect email campaign, consider your anchors.

Are you leading with a premium product to make the follow-up offer seem more accessible?

Or perhaps you’re presenting a before-and-after price to showcase the deal.

Remember, the anchor is your opening act, the first number your audience sees. It could be a suggested retail price, a crossed-out higher price, or a competitor’s price.

This is your chance to frame their perception.

Price anchoring isn’t just a pricing strategy; it’s a psychological lever that, when pulled correctly, can unlock tonnes of perceived value and customer satisfaction.

Use it wisely!

Looking for more information?

Here are a few more articles we think will interest you.

How we increased a brand’s email revenue by €442,000 in 12 months
E-commerce StrategiesFlow Building

How we increased a brand’s email revenue by €442,000 in 12 months

January 17, 2024
How we increased a protein brand’s email revenue by €442,000 in 12 months Although we…
E-commerce StrategiesLead Generation

How you can use a ‘Breadcrumb’ technique to drive email sign-ups and increase your revenue

December 4, 2023
In this article, we’ve broken down various BFCM strategies and plays. We look at important…

Helping 6,7 & 8 Figure E-Com Brands nurture, convert & retain more customers

Strategies for Increasing Pop-up Opt-ins and Maximising Lead Generation 🚀

By E-commerce Strategies

Outline

  • Introduction
  • The importance of an effective pop-up
  • A/B Testing
  • Different offers to test within your pop-up
  • How collecting zero-party data will enable you to personalise your flows
  • Collecting SMS subscribers through your Pop-up
  • Pop-up optimisation case study
  • Conclusion

Introduction

Research shows that, on average, only 3% of visitors convert the first time they visit your website.

That means a whopping 97% are leaving without purchasing.

Goodbye. Adios. Au Revoir.

Whichever language you choose, they’re gone.

And it’s natural. It’s rare you’ll arrive on a website for the first time, see something you like and purchase without a second thought.

In most cases, a relationship has to be built.

That’s where the power of email comes into play.

What’s the most effective way to gather emails? An attractive, high-converting pop-up form on your website.

Increasing your pop-up opt-in rate is one of the best ways to increase your brand awareness, customer interaction and importantly, revenue.

The importance of an effective pop-up

The art of creating an effective pop-up often lies in simplicity.

We don’t want it overcrowded or with mixed messaging.

The ‘offer’, whatever that may be, should be readable at a glance.

In most cases, it’s usually a discount, a gift, or free shipping.

Here’s a simple framework to increase your opt-in rates:

  1. A headline including a benefit – Free Shipping on Your First Order
  2. A product image – Crisp product shot imagery
  3. Social proof – Over 10,649 5*  Trustpilot reviews
  4. Unique button text – Unlock Free Shipping

Optima Tip 💡

You can also have a different variation of your pop-up for first-time visitors vs returning subscribers.

A/B Testing

Once live, you’ll need to continuously monitor the performance of your pop-up.

Small improvements can have a dramatic impact.

Let’s take an extreme example. You’ve a pop-up underperforming and converting 2% of new visitors to your website.

If you can improve the design, copywriting and offer, bringing your conversion rate to 10%, you’ll have just 5 X your subscribers.

That’s five times more people seeing your brand regularly and understanding what you do.

Optima Pro Tip 💡

Multi-step pop-ups are a great way of collecting zero-party consumer data without hurting your conversion rate. Ask for name and email at step 1 and date of birth or product preferences at step 2.

Different offers to test within your pop-up:

Within a pop-up, you’ve several options of what to test.

The most important point is that you only test one element at a time.

Otherwise, you won’t know exactly what worked or didn’t work.

Here’s some examples of what offers to test:

  • 10% OFF
  • 10$ OFF
  •  FREE Shipping
  • FREE Sample pack
  • FREE Gift with purchase
  • Get 20% cashback (Big fan)

Many brands will default to offering 10% OFF.

However, It’s crucial you understand what makes sense commercially for the overall profitability of your business.

Some brands have a high LTV which can offer a higher percentage upfront to acquire customers.

Almost a lost-leader model.

To use this strategy, you must have accurate data and understand the average LTV of a customer.

In some cases, it’s a matter of using what appeals most to your customers.

A free gift could convert more yet actually cost the business less than a 10% discount.

We’ll look at this in more detail in our case study further on.

How collecting zero-party data will enable you to personalise your flows

Zero-party data is information customers intentionally and voluntarily share.

For example, if you ask a customer about themselves or what they’re interested in, the information you collect from the responses is zero-party data.

As an email marketer or e-commerce owner, this information is golden!

Although you need to be creative when collecting such data. Quizzes are an excellent way of doing so.

Let’s use a Jewellery brand for example. We want to have a simplified way of categorising our subscribers.

At the pop-up stage, you could ask them which of the following are the most interested in:

  • Wedding Rings
  • Engagement Rings
  • Costume jewellery
  • Body piercing jewellery

This will enable you to tailor the copy and imagery in your  ‘Welcome Series’.

You can have a personalised welcome flow of emails using the data and preferences you’ve just collected.

Real-life example💡

Sephora, a beauty retailer, used zero-party data to send personalised recommendations to customers based on their skin tone, hair type, and makeup preferences. By doing so, Sephora increased its email open rate by 50% and generated $2.5 billion in revenue.

Collecting SMS subscribers through your Pop-up

When collecting SMS subscribers, you can use a multi-step form. It depends on what the brand is trying to achieve. When collecting SMS and email consent in a single form, you can inadvertently slow down the growth of your email list.

Using the breadcrumb approach is a style we prefer. We can ask for the email and zero-party data on the first step. From here, you can ask the user for their SMS consent. If it makes commercial sense, the brand could increase the reward or offer them access to exclusive deals and VIP membership.

Pop-up optimisation case study

Before onboarding any client, we conduct a full audit. This involves a deep dive into their Klaviyo account but also includes macro-level elements.

The pop-up is often an area where we see improvements can be made. From design to copywriting all the way through to the timing of when it’ll appear.

In the below example, we tested different offers. It’s currently converting at 11%.

Of course, these metrics are only surface-level. You could offer 25% off and have your opt-in rates shoot up but that’s not the right move long term for a number of reasons.

After testing, we arrived at a different offer than the standard 10% OFF.

We found customers valued a free gift with a purchase more than a percentage discount.

As a business, it also made better commercial sense for the client.

Their average order value (AOV) is approximately €73 for first-time buyers.

A 10% discount gave up €7.30 on each sale.

However, the free gift we chose only cost €3 for the client to purchase.

This meant we increased sign-ups and also made an additional €4.30 on each sale.

A win-win situation. 

Sometimes you’ll need to think outside the box. Don’t automatically default to a specific percentage discount.

Understand what the customer values and work from there.

FREE Resources to help your increase your Email Revenue 🚀

Click Here to access free resources
Helping 6,7 & 8 Figure E-Com Brands nurture, convert & retain more customers.

Conclusion

You only get one chance to make a first impression.

Pop-ups will play a significant role in the overall performance of your online business.

Give potential customers a reason to sign up. Spend time understanding their needs and wants.

Like our free gift example above. Customers may perceive this as of higher value than a percentage discount.

If you can build your email list it’ll allow you to develop relationships with your customers.

Educate them on your brand and provide them with valuable information.

Turn them into brand advocates. Having an effective email strategy will help increase average order values as well as customer lifetime value.

Two key metrics for any successful online retailer.

Want to increase your online revenue?

P.s If you own or manage an e-commerce business and would like to scale through email, let’s book in a call 😊

You can DM here or book a call here: https://calendly.com/caolan-optima/15min

Sign up to my weekly newsletter: https://optima-digital.ck.page/newsletter

Looking for more information?

Here are a few more articles we think will interest you.

Filter

How we increased a brand’s email revenue by €442,000 in 12 months
E-commerce StrategiesFlow Building

How we increased a brand’s email revenue by €442,000 in 12 months

January 17, 2024
How we increased a protein brand’s email revenue by €442,000 in 12 months Although we…
E-commerce StrategiesLead Generation

How you can use a ‘Breadcrumb’ technique to drive email sign-ups and increase your revenue

December 4, 2023
In this article, we’ve broken down various BFCM strategies and plays. We look at important…
E-commerce Strategies

Black Friday/Cyber Monday: Strategic Moves or Just Following the Crowd?

November 21, 2023
In this article, we’ve broken down various BFCM strategies and plays. We look at important…

Helping 6,7 & 8 Figure E-Com Brands nurture, convert & retain more customers

The Paradox of Choice: Why Less is Often More

By E-commerce Strategies

The Paradox of Choice: Why Less is Often More

In the modern age of consumerism, where every brand vies for a moment of our attention, choice has become our constant companion.

From the aisles of supermarkets to the digital corridors of e-commerce, we’re inundated with options.

But what if I told you that sometimes, more choices can actually be detrimental?

Is it possible to have too many choices?

Enter the ‘Paradox of Choice’.

Understanding the Paradox

The ‘Paradox of Choice’ is a concept introduced by psychologist Barry Schwartz.

It suggests that while an increase in choice allows us to achieve objectively better results, it also comes with a cost: the emotional burden of decision-making.

The concept suggests that while we believe more choices grant us more freedom, they can, in fact, do the opposite.

Instead of feeling liberated, we often feel trapped, overwhelmed, and even paralyzed. 😕

We freeze and struggle to decide what we want.

Everyday Encounters with the Paradox

This phenomenon isn’t just limited to big life decisions.

It’s something we encounter daily. Remember the last time you visited a restaurant with an extensive menu?

The sheer number of dishes likely made it harder to decide, not easier.

The anxiety, the second-guessing, and the fear of missing out on a potentially better dish is the Paradox of Choice in action.

Real-Life Business Examples

Bunsen’s Burger Brilliance:

In the heart of Dublin, Bunsen offers a masterclass in simplicity.

Their menu, fittingly printed on a business card, offers a burger. Just that. This strategic choice ensures customers enjoy a straightforward, delightful experience, free from the paralysis of choice.

Head & Shoulders’ Streamlined Success:

The global shampoo giant once boasted 26 different varieties.

However, a decision to reduce this to 15 led to a 10% increase in revenue. This move wasn’t just about reducing manufacturing costs; it was about enhancing the customer experience by simplifying choices.

The Impact on Conversion Rates

Every choice we make extracts a cognitive toll.

The more options we’re presented with, the more energy we expend in making a decision. This can lead to what’s known as ‘decision fatigue’, a state where individuals avoid making choices altogether.

Email Marketing and the Paradox

Just as with

Just as with products or menu items, the Paradox of Choice is incredibly relevant in email marketing. 📧

When crafting emails, it’s tempting to throw in multiple call-to-actions (CTAs) hoping one will resonate.

But in reality, presenting subscribers with too many options can lead to decision paralysis.

By streamlining our CTAs and presenting a clear, singular action we want the reader to take, we can guide them more effectively and increase our conversion rates.

Clarity trumps quantity every time.

Conclusion: The Power of Less

In our quest to offer the best to customers, businesses often equate more with better.

However, as the Paradox of Choice illustrates, sometimes less is more.

By simplifying choices,

By simplifying choices, we can enhance user experience, reduce decision fatigue, and ultimately, drive better results.

In today’s world, where abundance is celebrated, it might be time for businesses to take a step back and ask:

“Are we empowering our customers or overwhelming them?” Because when it comes to choices, perhaps less is, indeed, more.

At Optima Digital, we pride ourselves on our award-winning strategies that don’t just generate traffic but amplify revenue and enhance customer lifetime value.

Our recent accolades attest to our proficiency, but our true success lies in the triumphs of the brands we partner with.

If you’re an e-commerce brand committed to outpacing the competition, optimising returns, and deepening customer loyalty, we’ve limited capacity available.

We’re looking for brands to partner with for Q3 of 2023 and beyond!

Book a chat with us here: https://calendly.com/caolan-optima/15min?month=2023-10

Looking for more information?

Here are a few more articles we think will interest you.

Filter

E-commerce Strategies

The Paradox of Choice: Why Less is Often More

November 2, 2023
The Paradox of Choice: Why Less is Often More The Paradox of Choice: Why Less…

Helping 6,7 & 8 Figure E-Com Brands nurture, convert & retain more customers