What type of e-commerce
Posted: Wed Dec 04, 2024 8:36 am
According to a definition reported in the book Lean Analytics by Alistair Croll and Benjamin Yoskovitz, in order to guide a marketing strategy it is essential to establish what type of relationship you intend to establish with your customers. To do this, the authors suggest calculating an annual repurchase rate , a metric based on the following question "what percentage of my customers from last year will buy from my site again within 12 months?". Again, this is a calculation "philosophically" not far from the Customer Lifetime Value (which we discussed in this post). Projecting the probability of repurchase of the same user on your e-commerce site allows you to classify your model according to different typologies.
All acquisition
If less than 40% of users will buy a new product in the following year then the business focus is unbalanced on acquisition. For example: someone who sells very expensive equipment list of australia consumer email for certain types of sports can imagine that the probability of repurchasing the same products is quite low. This means that in addition to investing more in new visitors, medium-long term strategies will have to be oriented towards customer satisfaction, so that they become brand ambassadors to other people.
Hybrid model
If 40-60% of users will buy again within the year, then it is necessary to work on a mix of activities aimed at both acquiring new customers and repurchasing those already acquired.
Loyalty model
If 60% of users will buy within the year then it is clear that marketing investments must be aimed at bringing the already acquired user to a new purchase, especially to maximize the investments made in acquisition. Loyalty programs are essential and must be consistent between online and physical stores (when there is one).
Conclusions
Whichever model you identify with, there are some aspects that remain constant in the choice of investing in acquisition or loyalty. The first is the issue of user recognition: whether the consumer has not yet purchased or is a loyal user, it is essential to immediately identify which segment they belong to. Distinguishing between types of users means directing your strategies based on the objective. The second aspect is that of experience. You certainly have a lot of information on customers already acquired that in all cases is useful for defining the best processes to convert new ones. Furthermore, as far as the new user is concerned, it is essential to imagine a good level of customization , to ensure that navigation lasts a long time and is rewarding: certainly starting from navigation even when anonymous and refining the commercial proposal, as interactions increase. And what type of e-commerce are you? Let's talk about it!
All acquisition
If less than 40% of users will buy a new product in the following year then the business focus is unbalanced on acquisition. For example: someone who sells very expensive equipment list of australia consumer email for certain types of sports can imagine that the probability of repurchasing the same products is quite low. This means that in addition to investing more in new visitors, medium-long term strategies will have to be oriented towards customer satisfaction, so that they become brand ambassadors to other people.
Hybrid model
If 40-60% of users will buy again within the year, then it is necessary to work on a mix of activities aimed at both acquiring new customers and repurchasing those already acquired.
Loyalty model
If 60% of users will buy within the year then it is clear that marketing investments must be aimed at bringing the already acquired user to a new purchase, especially to maximize the investments made in acquisition. Loyalty programs are essential and must be consistent between online and physical stores (when there is one).
Conclusions
Whichever model you identify with, there are some aspects that remain constant in the choice of investing in acquisition or loyalty. The first is the issue of user recognition: whether the consumer has not yet purchased or is a loyal user, it is essential to immediately identify which segment they belong to. Distinguishing between types of users means directing your strategies based on the objective. The second aspect is that of experience. You certainly have a lot of information on customers already acquired that in all cases is useful for defining the best processes to convert new ones. Furthermore, as far as the new user is concerned, it is essential to imagine a good level of customization , to ensure that navigation lasts a long time and is rewarding: certainly starting from navigation even when anonymous and refining the commercial proposal, as interactions increase. And what type of e-commerce are you? Let's talk about it!