Want to grow your e-commerce store's profits? If so, you should optimize it for a higher customer lifetime value (CLTV). As your e-commerce store CLTV increases, so will its profits. Customers will spend more money on products, and potentially related services, during their relationship with your e-commerce store if it has a high CLTV. The end result is lower marketing costs and higher overall sales revenue, which is the formula for growing profits.
You should allow customers to create an account. By offering account creation, more customers will return to your ecommerce store to place additional orders. It will essentially streamline the process of checking out. Customers can check out faster and more easily if they have an account.
With an account, customers won't have to manually enter their information for each order. Their names, shipping addresses, email addresses, payment methods and other information will be saved to their accounts. They can log in to their accounts to quickly place neworders.
For a higher CLTV, upselling and cross-selling can help. They are marketing tactics that involve showing product recommendations to customers based on the products they are viewing. Upselling specifically involves the recommendation of a more expensive product, whereas cross-sellinginvolves the recommendation of a related or complementary product.
Upselling and cross-selling products will encourage customers to spend more money. With upselling, they may purchase a premium version of a product that costs more than the product they are currently viewing. With cross-selling, they may purchase a different but related product. While they are different marketing tactics, upselling and cross-selling can both increase your e-commerce store's CLTV.
A loyalty rewards program can lead to a higher CLTV. According to a study conducted by Incentive Solutions, a loyalty rewards program can increase the average number of orders customers place by 319 percent. In other words, customers will place over three times as many orders as they would normally place if your e-commerce store has a loyalty rewards program.
A loyalty rewards program will provide customers with an incentive to stay with your e-commerce store and continue buying it products. You can award customers loyalty points, for instance, that they redeem for gifts or branded merchandise. To earn more points, customers will place more orders.
If your e-commerce store doesn't already have one, you should consider installing a chatbot on it. Chatbots are programs that simulate a live customer service representative. They feature a text-controlled interface -- typically displayed as a pop-up box -- in which customers can ask questions.
How can a chatbot increase your ecommerce store CLTV exactly? Customers often have questions, and before placing an order, they'll want answers. You probably won't be able to immediately respond to each customers' email, nor will you be able to answer their calls 24 hours a day. Fortunately, a chatbot can fill these gaps by offering around-the-clock customer service. Customers can type their questions in the chatbot's interface to receive answers.
You should still offer traditional methods ofe-commerce customer service. A chatbot isn't a replacement for email or phone customer service. It just serves as an alternative support method that customers can access anytime. When used as part of your e-commerce store's completecustomer service strategy, a chatbot can drive a higher CLTV.
Customers may spend more money if they have personalized interactions with your e-commerce store. A survey conducted by Infosys found that over three in four customers are influenced by personalized interactions. It makes customers feel special and appreciated. At the sametime, personalized interactions foster loyalty while driving up CLTVs.
You can personalize email interactions by mentioning customers' names in the subject line and message body. You can even personalize chatbot interactions by linking the program to your ecommerce store account system. Like with email marketing software, chatbots can be programmed to address customers by name.
Charging customers a fee to return products may sound harmless, but it could backfire. Roughly two in three online customers will check an e-commerce store's return policy before placing an order,according to Invesp. If you charge customers a fee to return products, they may reconsider their purchase decision.
Allowing customers to return products for free,on the other hand, will encourage them to place orders. They'll feel assured knowing that they can return their products without paying a fee. And if a customer chooses to return a product, he or she may apply the refunded money towards the cost of another product.
Remarketing ads can have a positive impact CLTVs. Also known as retargeting ads, they are online ads that are specifically shown to users who've already engaged with your e-commerce store. If a customer viewed a product page but didn't place an order, for example, you can show him or her a remarketing ad for that product.
Remarketing ads are available in many of the same formats as other online ads. The difference is that remarketing ads only show to users who've engaged with your e-commerce store. Engagement can something as simple as viewing a product page, or it can be a combination of actions like viewing a product page and adding the product to a cart but not checking out.
You can buy remarketing ads on most of the top digital advertising networks. Search engine advertising networks like GoogleAds and Microsoft Advertising offer them. Remarketing ads are also offered by several social media advertising networks, including Facebook Ads and Twitter Ads. Each advertising network has its own requirements for remarketing ads.Nonetheless, they all allow you to target your e-commerce store's customers with highly relevant online ads.
Some customers will likely spend more money than others. Even if your e-commerce store has a low CLTV, though, there are ways to increase it. Allowing customers to create accounts, upselling and cross-sellingproducts, launching a loyalty rewards program, installing a chatbot,personalizing interactions, offering free returns and buying remarketing ads can all increase your e-commerce store's CLTV.