Many business owners spend their time optimizing CPA, or cost per acquisition. This begs the question: what’s easier than acquiring new customers? Answer: Reutilizing old ones. Below are two strategies every e-commerce startup can try in minutes.
- Ask them about their old orders: If you have a quality product, odds are that the majority of your customers will be satisfied with any previous purchases. Anywhere from a day to a year after a new customer’s initial purchase, send out a quick email asking them if they liked it. If you use an advanced e-commerce tool like Magento, changes are this process can be automated, but I’d recommend starting out with a more personal approach. By getting your customers thinking about your brand and (hopefully) positive experience, they’ll be far more likely to come back for more.
- Know your products, and upsell accordingly: Sell footwear? Maybe your customer would like a matching shoe bag. Meals? Perhaps dessert/drinks might be in order. Whether at the point of sale or in a follow-up email, most brands have complementary products that can easily be combined to increase sales. This strategy is tried and true: Amazon devotes the area immediately below the product picture to a “frequently bought together” section. In order to incentivize the customer to purchase, try offering discounts or a “buy 2, get accessory x” promotion.
These strategies are clever not in their innovation: major retailers have been using both for years. What makes them clever is their underutilization by new e-commerce stores; in under a day, you could increase sales from existing customers exponentially.