I have been working for clients from almost every industry and each presents exciting new challenges.
Large or small companies generally have very specific problems found in the Conversion Rate, in the CAC (Customer Acquisition Cost), AOV (Average Order Value) and LTV (Lifetime Value).
In this guide, I'll explain through a simple tactic how to lower customer acquisition cost and generate new sales.
The One Time Offer
Once I analyzed data available in Google Analytics, Heap or somewhere I can read analytics, I created an acquisition strategy that leverages a very simple concept: One Time Offer, which is an offer available only once and at that moment for a potential customer.
It's a very simple concept, it's one of the 6 of Cialdini's rules (scarsity), present in many popular platforms such as Wish and Aliexpress.
Upon registration, the potential customer landing on "Thank You page" where you can give him much more information about the offer: you can talk about the benefits or the value that this offer could driven to him.
Shortly after, an initial email with coupon is sent to him.
If you have an high CAC, up to 30% of a customers' LTV, with this tactic it's possible to acquire a new customer, giving him a timed special offer. Our main goal isn't sell something or make single sell but it's qualifing him, feeding him with interesting contents and products, at the right time, as much as more in line with his interests.
Who wants to be bombarded with uninteresting contents? I don't think anyone would like to receive only email offers or one-size-fits-all content via newsletters.
This happens in many e-commerce, not understanding that you're burning / saturating your customer base, generating many and many inactive customers.
Most of the information you need to scale your business or generate new revenue streams is under the hood, in your order database.
1 – Customer Base and RFM Analysis
2 – Attracting the correct audience
What may interest an e-commerce the most is the acquisition of new customers who are much more interested in the products that it's selling. The answer to this question is certainly given by the "Champions" and "Loyals" segments which "should generate" a significant part of total sales. I used the conditional because, stand to my experience, I found few clients correctly having this composition.
In platforms such as Facebook and Google, it's possible to create a similar audience (LAL - Lookalike) importing that segments. You can follow this guide, which explains step by step, how to import and create Facebook LAL campaigns.
It's equally important to exclude from the selected audience all those people who have liked the page, have visited the e-commerce in the last 30 days and have had a minimum interaction with your company.
That's because if you want to grow your business, acquiring new market shares, you need to be sure that all new customers are really fresh new!
3 – Creating a Landing Page
The landing page structure is critically important, as it make the difference between significant percentage conversion points.
The OTO (One Time Offer) is represented in the landing page using by a countdown which communicates the scarsity concept. The price and product need to be clearly visible and the problem or the benefit your special offer need to be writting using a good copywriting on the left side of the form.
These values need to be clearly explained because they drive the potential customer to filling the form or leave the page.
The form was created using a quite large and clickable fields, with a large submit button and a clear Call To Action.
4 – Marketing Automation for qualifying the lead
Once the potential customer's email has been acquired, an email with the coupon is sent shortly after to obtain the discount or offer proposed on the landing page.
Lead purchase is monitored over the next few days to understand which of these potential leads have purchased and therefore have become potential customers of the company.
All leads that have not purchased yet are sent reminders in the following days, to "push" them to the bottom of the funnel.
It's clear that the acquisition cost could drop dramatically if this tactic generates big numbers and inside in a structured strategy.