Increasing average order value (AOV) is a tried-and-true strategy for maximizing revenue from existing customers. You’ve been there, done that. However, now that the subscription eCommerce market is growing by leaps and bounds, you may want to consider how you can apply this strategy to your subscription customers.
Despite the increasing use of messaging apps and social media, good old email continues to outperform them all when it comes to customer acquisition, retention and revenue. And when you create personalized emails that deliver relevant messages and offers to specific audiences – like your most profitable or engaged customers – the power of email really becomes apparent. One survey concluded that segmented email campaigns (vs. one-size-fits-all campaigns) could increase email revenue as much as 760%! Another survey reported that targeted emails generate 58% of companies’ overall revenue. That’s nothing to sneeze at.
We know you’re running a business. You need to optimize conversion rates and grow your revenue. This requires an eCommerce site that provides a seamless shopping experience. However, to stay competitive in the long term, this also requires you to build your brand. What does this mean? Brand building is about more than increasing brand recognition. Successful brands are those that elicit an emotional connection (e.g., by creating a desired culture/lifestyle, promoting the brand story and purpose), making consumers care so much so that it entices them to purchase the eCommerce brand’s products.
Use of SMS, aka “texting,” for eCommerce is on the upswing, but still widely underutilized, creating major opportunities – particularly with subscriptions and customer service, in our opinion – for brands that are quick to the punch.
If you don’t offer your customers a subscription rental option, maybe you should. The last five to six years have seen a continued shift in consumption patterns from traditional purchasing and ownership to an increase in subscription-based services of the future. According to McKinsey, the subscription eCommerce market has been growing by more than 100% year over year. Although this includes subscription boxes, like razors, food and cosmetics, there also is a growing trend for subscriptions that enable access over ownership, such as rentals for designer clothing, high-end luggage or sporting equipment. In fact, a study by UPS showed that Millennials are nearly five times more likely to rent online than other demographics.
If you can make a subscription model work for your eCommerce business, what’s not to like? Subscriptions can deliver more predictable revenue, more opportunities to upsell or cross-sell, and higher customer lifetime value (LTV). We work with many brands that ask us about subscriptions and how to integrate a subscription platform like ReCharge into their Shopify or Shopify Plus stores. We think subscriptions can be an exciting way to grow an eCommerce business, and have seen the most success with replenishment goods, like razors and vitamins, and curated items, like fashion and beauty boxes.
When your customers buy your products, it’s theoretically a sale that could happen anywhere – in a competitor’s online store, for example. But when your customers purchase your brand’s experience, lifestyle or community, they’re buying something unique they can only get from you. And that keeps them coming back.
Optimizing your eCommerce site for online mobile shopping is no longer a “nice to have” – it should be an essential part of your business strategy. Studies show that 60% of traffic on eCommerce sites is via mobile device. Google reports that more than 40% of online transactions are made on mobile devices, and other statistics show that mobile sales are projected to make up nearly 54% of total eCommerce sales in the US within the next two years.
We're bringing together industry experts and experienced brands for a two-day enterprise eCommerce conference held on April 11th-12th, devoted to sharing insights and lessons learned on how to adapt for success.
As the eCommerce industry continues to boom, competition grows fiercer. To stand out from the pack, online brands must focus on the quality of their user experience. Leveraging the power of Shopify Plus helps online brands find the sweet spot for their target market. Discover how to maximize your store's potential by improving user experience with Shopify Plus.