Developing successful Ecommerce is developing successful brand loyalty. To continue a positive and profitable relationship, it is crucial to know your target market and to cater to their specific needs.
Defining Customer Lifetime Value (CLV)
A customer making a purchase is great, but the goal is to create pathways for repeat purchases. The Customer Lifetime Value is a metric to measure the predicted worth of a customer over their entire time of buying from you. This metric is crucial to efficiently allocating your resources for customer acquisition and customer retention.
Segmenting Your Customers
First figure out who your shoppers are. This should include the creation of buyer persona profiles. Understanding your customer segments should influence your decision making throughout your Ecommerce site. The customer-centric marketing means maintaining a relationship with your customers, and facilitating repeat business.
Calculating a Segment’s CLV
Once you know who the different segments are, you need to figure out how to rank their profitability. In smaller businesses that do not have copious amounts of customer data, much of this may need to be estimated. Entrepreneur offers a simple equation that is helpful for this situation.
Choosing Your Channels
Now you need to figure out how to reach these people. The amount of channels can seem overwhelming, so focusing efforts on using a couple of channels well will be more effective than a catch-all strategy. You can use your buyer personas to help make decisions here. For example, if your most lucrative buyer persona is young, perhaps leveraging social media would be a better option than focusing on email.
Organic search and PPC remain the primary drivers of Ecommerce traffic and sales. In order to capitalize on these two traffic drivers, you need to understand keywords and adwords. This is when it pays off to have already segmented your consumers. You know with much more specificity what each segment of consumer is searching for. This allows you to create effective long-tail keywords that will have a higher ROI than competing for general terms. Google’s Adwords keyword tool will also assist you by showing how many people are searching for particular terms.
Creating content can be an effective way to maintain customers. You will stay top-of-mind and increase customer loyalty leading to repeat purchases. Content also feeds back into your SEO which will increase traffic and new customer acquisition.
Create a strategy that continually engages customers in order to develop another stream of recurring revenue in your store. With that constant stream, you’ll be able to better forecast sales and create a corresponding budget that fits your needs. Check out our Guide to Better Budgeting below for more information.