The great American economist Milton Friedman once said that the “sole purpose of a business is to generate profits.” Over the years, many have disagreed with Friedman, saying that making money is the goal of a business, not its purpose.
Regardless of which side of the debate you stand on, you know that your e-commerce firm needs to make money to survive. A profitable company is more likely to serve its customers and achieve its overarching purpose – the one you have set it to be.
So how can your company boost its sales and profits?
This article will show the various ways that can help you boost your e-commerce firm’s sales and profits with the right strategies and technologies.
Read on!
Implement a Loyalty Program
Did you know that your current customers are 50% more likely to try new products and could spend 31% more than new customers? Also, you are 60-70% more likely to sell to existing customers than to the 5-20% of your new customers. These facts show that existing customers can be a rich source of sales for your brand. And one very effective way to boost sales from this avenue is to implement a loyalty program. With a loyalty program, you can show existing customers that you appreciate them and want to build a relationship with them.
There are a number of loyalty programs that encourage people to purchase more. For instance, in the case of a points-based program, customers can accumulate and exchange points to get discounts from you. A well-implemented points-based program can encourage shoppers to make multiple purchases from your brand.
On the other hand, a tiered and premium loyalty program can also encourage more sales by making customers feel special and rewarding them for their loyalty. By showing shoppers that the brand values their customs and appreciates their support, you can nudge them towards buying more and spending more from your brand.
Understand Customers with Customer Data Platform (CDP)
Say you want to understand your customers in a much better way. To know them, you would require data – a quick list of their behaviors, habits, and recent purchases. In such cases, Customer Data Platform (CDP) can help. A CDP is a great tool for finding all the answers and creating a customer-first marketing/sales approach. A CDP collects customer data from multiple touchpoints, channels, and devices. It provides a unified customer database that lets you get a 360-degree view of customers.
Since many brands require data, they rely on the other firm (data brokers) to provide one. However, the accuracy of such customer data cannot be guaranteed. In case of CDP, it takes the required first hand information and performs a sharper analysis to keep the data accurate for the further processes.
Once you get this information, you can use it to understand customer behaviors and their buying patterns. Brands also use this approach to segment the desired audience from those where conversation level could be low, and create a customized marketing plan. When you get the customer profiles in your hands, the way ahead to attract customers and encourage them for a purchase becomes easy. Over time, a CDP can help you improve customer experiences – which can ultimately translate into brand loyalty and higher sales.
Invest in an Email Service Provider (ESP)
It’s a known fact that with every $1 you spend on email marketing, you can earn an ROI of $36. Simply put, email marketing works. By investing in email marketing and the right ESP, your brand can boost sales and make more money.
An ESP is a platform to send email marketing campaigns to your subscribers. Whether these subscribers are prospects, leads, or current customers, they are all people who want to hear from you and are open to a relationship with your brand. Here, a robust ESP can be the most valuable element of your brand’s email marketing program. It can help you keep track of subscribers and create email campaigns that resonate with their needs or challenges. You can promote your brand and let people know how your offerings are better/cheaper/more unique than your competitor’s offering.
You can also send reminder emails to those who abandoned their carts and send attractive discounts to convert reluctant browsers into regular shoppers. You can even send exclusive promo codes and special offers to reward loyal customers and upsell or cross-sell products to increase the size of their shopping baskets.
ESP tools can also help you automate many email campaigns. You can create multiple autoresponders – to welcome new subscribers, nurture new leads, confirm purchases, ask for customer referrals, etc. – and set them up to go out automatically at your preferred times. With an ESP, you could save a lot of effort while also providing useful content that can earn subscriber’s loyalty, attract them to your store, and boost your sales and revenues.
Conclusion
E-commerce has changed the way the world shops. People want to make a purchase from online stores to save time, access more products, and enjoy personalized shopping experiences. Your e-commerce brand has many opportunities to connect with these interested buyers and create a memorable space in their hearts – and wallets! To gain support and sales for your brand, you need the right set of strategies and modern technology. With the picture, we elaborated above, you should now be clear on what you need to do!
Need more tailored advice about sales-boosting strategies for your e-commerce brand? Want to know which tools you need to increase revenues and profits?
Contact Ergode, and we’ll show you how you can get ahead of the curve in your chosen niche.
