Set Out to Conquer 2017
Contents
01 | Combat high returns by filtering recommendations
and providing excellent customer support................................ 4
02 | Sell-off excess stock or stock that is old and out
of season........................................................................................... 8
03 | Combat lower margins from discounted stock by
driving increases in AOV.............................................................16
04 | Increase conversion by creating a sense of
urgency in your store................................................................... 22
05 | Rise above the noise with personalized emails................ 29
06 | Increase customer retention with Personalized /
Triggered Emails .......................................................................... 32
07 | Acquire new customers by increasing and
personalizing your advertising efforts......................................35
08 | Drive traffic to your store with social.................................37
09 | Use content to build your brand......................................... 44
10 | Make Q1 work for you for the entire year by
converting sales customers into long-term sales................... 49
The start of the new year can signal a host of obstacles for those in the ecommerce business.
According to our data, online retailers see a 36% drop in revenue from the dizzying heights of
the festive season, with this figure sinking even further during February, when revenue sits at 14%
less than the yearly average. Of course there are multiple factors behind any revenue drop, which
means there is no silver bullet. Instead you need a strategy that addresses each issue in turn - ideally implemented before the new year arrives.
With over 20,000 merchants using Nosto we have access to a great deal of insight on the working
of the average ecommerce store. So, we spoke to a number of our clients about the challenges they face during Q1. What we found was that, despite vertical specific issues, many ecommerce merchants face the same problems. Turning to our in-house Ecommerce Specialists we
have strived to create a multi-faceted strategy to tackle these. In this whitepaper you will find an
exploration of the issues raised, tried and tested recommendations to deal with them and reallife examples of the solutions in practice.
Here’s to turning
adversity into opportunity.
SEASONAL REVENUE TRENDS ACCORDING TO NOSTO’S OWN DATA
Nov 2015 saw over 20% more revenue than the yearly average. We see this peak in Dec 2015 with
almost 25% more revenue than average. Revenue then drops sharply in January, reaching an all-time
low in Feb 2016, which saw almost 15% less revenue than average.
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01
Combat high returns by filtering
recommendations and providing
excellent customer support
The problem:
The beginning of the year is a unique time when it comes to returns. With seasonal sales driven
predominantly by the purchasing of gifts, more items than average are found to be not quite the
right fit. While it may cause domestic issues on the big day itself, the repercussions for merchants
can be a lot bigger; not only does it take a big chunk out of the profit you thought you had made
but you are also making a further loss due to the cost of postage and packaging (particularly if you
offered free packaging originally). Although return rates differ from vertical to vertical analysts say
the average is anywhere between 25% and 50%, and with this set to rise swiftly after the holidaythe number becomes worryingly high.
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As little as 7% of products could be
driving 50% of returns.
The solutions:
IDENTIFY TROUBLESOME PRODUCTS IN ADVANCE
One of the first tactics to fighting returns is to stop them occurring in the first place. In fact, research has shown that reducing returns by 1% increases net profit by 1%. To do this use data analysis to identify your ‘toxic items’- those pieces which drive the highest amount of returns. Research
has found that as little as 7% of products could be driving up to 50% of returns. This is particularly
dangerous when these items have been to shown to have a domino effect, their inclusion in an
order making it more likely that the whole order will be returned. In a recent article by Ecommerce
Week it was revealed that M&Co announced £415,000 worth of savings after identifying the top
10% of frequently returned items, then going on to remove them from active promotion.
At Nosto, we have a Blacklist feature which enables retailers to automatically prevent certain
items from being included in product recommendations. If you do your recommendations manually make sure to give these items lower precedence, and when configuring the layout of your store,
if your items are not filtered by attributes such as price, put them lower down in the listings.
GIVE YOUR CUSTOMERS AS MUCH INFORMATION AS POSSIBLE
The more informed your shoppers are on exactly what they’re buying, the less likely they are to
make a purchase that they will regret and then return. Make sure you give as much information
as possible in the product description, as well having clear and detailed product photos. But also
consider going one step further and enabling customer generated reviews, this will allow shoppers
to discuss issues that may normally drive returns, as well as giving you insight into the type of information they want to know about your products.
CHECK OUT THESE GUIDES FOR MORE INFO:
How to create the perfect ecommerce product page by Nosto
Ecommerce product descriptions: tried & tested advice by Econsultancy
Is Your Awful Product Photography Losing You Sales by Shopify
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Our client, Country Dreams does a great job of this with multiple detailed photos for each product.
Bonus tip:
A key issue in the fashion industry is inconsistent or unusual product sizing. Reviews will help this
to some extent, as will stating the models height and size worn. But for a more extensive solution
consider using technology such as Virtusize, which tells shoppers the exact dimensions of the
clothes and allows them to compare the fit to previously purchased items. Make the process as
smooth as possible to encourage shoppers - rather than items - to return.
For those items you do (inevitably) encounter returns on, concentrate your efforts on how you
manage that interaction. Although returns are a pain they can also be an indication of a serial
shopper - Zappos have previously been quoted as saying that their most frequent returners (with
a 50% return rate) are also some of their best customers. Not a group you want to treat badly. This
starts before the item is sent back by making sure your returns policy is both clear to see and clear
to understand. You should also offer a fair timeframe for them to return the item and either free or
reasonably price postage. And if you’re a multichannel retailer make sure to allow people to return
items to local stores if that is their preference.
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Paul Evans have a very concise and very fair returns policy, positioned clearly on the page.
Your most frequent returners might also be
your best customers
WANT TO GO ONE STEP FURTHER?
Consider reaching out to people who have made a return, encouraging them to buy again
with personalized recommendations. If they had a good experience when returning the
initial purchase then there should be nothing to stop them purchasing again.
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02
Sell-off excess stock or stock that is old
and out of season with discount sales
The problem:
The changing of the seasons can mean that ecommerce merchants face an excess of old stock
that is no longer of priority to shoppers. This causes problems for a number of reasons- not only is
cash flow tied up by these products but they also take up space in your storage (and on your site).
All of this means they can effectively be costing you money and slowing you down your ability to
move forward.
The solution:
SALES
Suggesting a January sale is hardly groundbreaking but discounting old stock is a great way to
claw back some extra cash, make room for new items and drive traffic to your store (something
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we’ll look at in more detail later). And this is exactly why so many merchants choose to partake in
this trend. But how you go about it in the most effective way possible?
Site-wide discounting is great for making a big splash or if you have a lot of stock to get rid of,
but generally discounting should be strategic and focused on getting as much financial return as
possible from items that are no longer your biggest attractions (that said, it is often good practice
to mix in a few good sellers as loss leaders).
Deep analysis of your store and customers can massively aid you in driving value in these situations, helping you choose what to discount or even identify ways to avoid discounting at all. Some
multi-national retailers use international differences in taste and seasonality to help them decide
when to cut prices and when to keep products full price. For example, instead of immediately
discounting products that aren’t selling in Germany, they might simply hide them from German
shoppers and sell them for full price in Spain.
Personalization software is a good way to optimize sales automatically, learning as
it does, what a shopper likes and dislikes. It also recognises if they are particularly
discount driven. This helps you to take some of the targeting work out of the equation,
making your sales smart.
If you are a larger retailer you may want to consider the opening of an online outlet store to enable
you to discount as a form of excess stock disposal all year-round but for smaller merchants a sale
section should be more than sufficient. Alternatively, you may want to consider 3rd party companies and resellers, or even B2B go-betweens like BoxFox who will appraise and sell your excess
stock to re-sellers for you.
FLASH SALES
Flash sales create a sense of excitement and instill a sense of urgency, this tends to make them
more effective and enables you to get rid of stock quickly, without having to commit to monthlong discounts. ln fact, flash sales have been shown to generate a 35% lift in transaction rates. As
Chris Poad, Director of Fulfillment for Amazon, North America, states “What we’ve learnt from the
flash sale phenomenon is that you can create a consumer scene out of scarcity and urgency for
a product that was otherwise a problem”. Again, you can choose to outsource by going through
third-party flash sale companies or host them within your store.
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2.
1.
1. Swedish company Indiska use a “Other people have also thought” recommendation to lead
sale driven buyers further into their website.
2. Caliroots have their flash sale as the central
focus of their site, directing all attention
towards the imminent sale.
Flash sales create a sense of excitement
and instill a sense of urgency.
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If you do choose to run a flash sale there are a few things to keep in mind:
»» CONSIDER THE LENGTH OF YOUR SALE, too short and people may miss it, too long
and the sense of scarcity that drives flash sale buying diminishes. The best length for
you will depend on your business but three-hour flash sales have been shown to generate the best transaction-to-click rates — 59% higher than other sale lengths.
»» COMMUNICATE SALES EFFECTIVELY, posting a countdown to your social pages and
emailing your customers. Email is important, representing 18% of the referrals to flash
sales websites. You can also inform people that come to your site with a pop-up. But
beware, bombarding people will quite likely turn them off altogether. An invite and a
reminder is standard practice.
Orelia use a pop-up to inform people of their daily one day advent sales.
»» FLASH SALES ARE MORE EFFECTIVE IF THEY ARE INFREQUENT. Too regular and
the sense of occasion is diminished - for that reason, pick your date and time carefully.
Dig into your data to figure out what is best for your business but generally transaction
rates have been found to be 23% higher for evening flash sales, with the amount of
revenue per email also being higher, by 30%.
»» IF YOUR FLASH SALE IS SUCCESSFUL IT WILL MEAN A SPIKE IN TRAFFIC TO YOUR
STORE - you need to make sure your site is able to handle that. If there are technical
glitches on the day, not only is there going to be a huge disruption to your customer’s
UX but they are likely to tell people about it too! 44% of comments analyzed on the
Facebook pages of sites holding flash sales were found to be negative. So you better
get it right. Make sure to load test!
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Estée Lauder offer a free gift for fragrance purchases over $55, enticing customers to spend that little bit
more.
GIVEAWAYS
If discounting isn’t working consider taking it one step further and
giving stock away. This may feel counter-intuitive but can benefit
your business in a number of ways. You can use small pieces as
freebies, either with purchases or in exchange for newsletter subscriptions, or use them as an incentive to encourage shoppers to
spend more (i.e. “spend $100 dollars and receive a free gift”). Remember though, reserve this tactic for low-cost pieces - you don’t
want to hurt the balance sheet too much.
BUNDLING
Another way to offer a deal that will see your lesser-loved merchandise fly out the door (and a little extra money fly in to your
bank account) is to bundle items together into a bigger, more attractive, and slightly discounted offering. This is generally most
effective with small to medium items. If you are simply bundling
more of the same item together, the driver a matter of quantity but if you bundling together a range then consider either complimentary products of the pairing of a more successful item with a
less popular piece.
Organic Surge bundle
together three of the same
product in different scents
and offer a small discount.
This is a great guide to creating a Flash Sale if you want more tips.
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DONATE
A chance for you to do good while clearing space in your warehouse! Yes, you will take a financial
hit but it is also likely to do great things for your brand’s reputation - many companies sacrifice financial gain for the greater good and find that they gain loyal customers in return. Take Patagonia
who encourage their customers to buy used versions of their products online or repair the ones
they have before buying more.
Patagonia created a whole film to promote the idea that clothes should be repaired or sold on,
reducing the consumption of new products.
Many companies sacrifice financial gain
for the greater good.
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And in a gesture that was particularly on-brand American retailer REI, who sell outdoor gear,
chose not to participate in Black Friday this year, instead giving their employees a paid day off to
spend away from shops and at one with nature. Customers were encouraged to do the same and
asked to share their experiences on Twitter and Facebook with the hashtag #OptOutside. While
this decision will no doubt have financial repercussions for the company the (free) coverage and
increased customer engagement, will no doubt bring financial returns of their own.
REI made their decision to opt out of Black Friday the focus of their site, giving them maximum opportunity for press coverage.
By asking users to use their hashtag on Black Friday, REI not only created user generated content but
increased their exposure.
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It’s also worth noting that you may be
eligible for tax deductions
on charitable giving so get giving!
Bonus tip:
Now you have got rid of your old stock it’s time to get new pieces in! But when considering your
options make sure to look at your data to spot trends as to what did and didn’t sell, decreasing
your chances of excess stock next time around. An ABC analysis will allow you to make informed
decisions, as the LOKAD site explains;
“ABC analysis is a inventory categorization method which consists of dividing items into three
categories, A, B and C: A being the most valuable items, C being the least valuable ones. This
method aims to draw managers’ attention on the critical few (A-items) and not on the trivial many
(C-items).”
Based on data point such as volume, profit and turnover, this will give you a good idea of the items
that do not meet your Gross Margin Return on Investment (GMROI) requirements.
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03
Combat lower margins from discounted stock
by driving increases in AOV
The problem:
As we have seen, sales can be a useful tool during the slower seasons. But at what cost? Yes, you
may be bringing extra traffic to your store and getting rid of excess stock but there is no ignoring
the fact that discounts for the buyer means less profit for you. With many merchants feeling the
pinch of lower margins during this period, it is important to balance this- specifically, by increasing
average order value.
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The solutions:
PERSONALIZED RECOMMENDATIONS
Shoppers may know what they have in mind but that doesn’t mean that you shouldn’t always be
suggesting other relevant pieces from your store. Recommendations tailored to an individual’s
likes and dislikes (as documented by their behavior on your site) are going to be more appealing
- in fact, 54% of retailers that use automated product recommendations increased their average
order value year on year.
But a spray and pray approach is only going to take you so far, if you are looking to achieve a certain objective, such as increase average order value, then your approach should be strategic. For
this metric consider the following...
Boomerang use 1:1 product recommendations on their homepage in the form of a “recommended for
you” section, as well as curating best selling items in the “most popular lists”.
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»» UPSELL - Upselling involves persuading a shopper to spend a little more than they had
planned, and, according to Econsultancy, can drive over 4% of revenue. To do it, keep
in mind what they were originally wanting to buy while suggesting items that give you
more of a financial return - items from the same category that are either more expensive or have a higher profit margin. So, for example, if a person is looking at computer
in your mid-range, suggest that they buy the same model but with higher specs, costing a little bit more.
Top Office successfully uses a “Similiar Products” recommendation section to show more
expensive alternative items.
»» CROSS-SELL - Cross-selling boosts the average order value of a customer by recommending complementary products to those a shopper is already considering purchasing. It drives less revenue than upsell at 0.2%, but when automated it is such a simple
thing to do that it would be silly not to. Generally the suggestions will be smaller ticket
items as people are more likely to make impromptu purchases if the cost is negligible
compared to what they were already buying (think about how often you pick up a pack
of gum or a chocolate bar at the checkout of the supermarket). For these reasons,
accessories are a very popular choice - if someone is buying electrical goods, suggest
batteries, if they are buying a shirt, recommend cufflinks or a tie.
»» BROWSING HISTORY - Browsing history recommendations remind customers what
they have engaged with but not put in their cart. By adding this functionality to your
site you make it more difficult for customers to forget or leave behind items that they
were insterested in. This naturally increases their chances of spending more (as well as
improving their user experience).
54% of retailers that use automated product
recommendations increased their average order value
year on year.
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Eton successfully use the cross-selling technique by offering ties to accompany the shirt being viewed.
NOTE:
Consider where you place these recommendations on your site- a product page is
the obvious choice but so too is the cart page very effective. Keep in mind that you
do not want to disrupt the journey to checkout or have them leave the cart page
however, so make it as easy as possible to add the extra items to their order on the
same page. One way in which to do this is to have an “add to cart” button attached
to the product recommendation, this will put the item into the cart without taking
them through to the product page.
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And while we’re at it, don’t just think where these recommendations are but experiment with innovative ways to present them- for example, when a person adds an item to their basket why not
use a pop-up to suggest further products?
Oka use pop-up technology to recommend items relevant to the piece which has been added to the cart.
FILTERING
When recommending products on your website consider filtering them so that those which will
earn you the most money are pushed to the forefront. This can be done in the previously covered
up-selling, cross-selling, as well as browsing history related recommendations and ‘Best Seller’
lists.
Alternatively filter recommendations, particularly on the cart page, to show smaller-ticket items
that are more likely to be purchased by impulse.
PACKAGE DEALS
We have already mentioned bundling as a method of getting rid of excess stock but it is also an effective technique for increasing average order value. People are more like to buy and spend more
if they will get a discount for doing so. Nintendo is an example of a company that has used this
to great effect - when offering a bundle option of console and game, they’ve had 100,000 more
hardware sales, and a million more video games sold.
People are more like to buy and spend more
if they will get a discount for doing so.
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THRESHOLD REWARD
Offer rewards for orders that reach a minimum value - this could be a discount, a small gift or free
shipping: 83% of consumers say free shipping is the number one thing that would get them to
shop online more. If you are using recommendations this a good place for them - show not only
how much there is left to spend before they reach the threshold but also the pieces that would get
them there. And if you have excess stock then consider killing two birds with one stone by using
those pieces as the free gift.
Junique use space on the cart page to suggest items that will help a customer’s
eligibility for free shipping, therefore encouraging them to spend a little bit more.
83% of consumers say free shipping is
the number one thing that would get them
to shop online more.
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04
Increase conversion by creating
a sense of urgency in your store
The problem:
Sometimes we all need that little extra push across the line - whether it is getting up in the morning, deciding what film to watch, or treating yourself to that new watch you’ve had your eye on.
Communicating with your customers at the pivotal moment can mean the difference between a
shopper who walks away and a shopper who walks away with an item that they love.
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The solutions:
There are a couple of ways to help make that buying decision easier...
POP-UPS
Pop-ups have a bad reputation. In the 2000s they were often associated with malware and,
with overuse, became an annoyance. But they are back and being put to better use than ever
before. In fact, Nosto customer Greatdays saw a 60% increase in conversion and 18% increase in
average order value from using them. To ensure you are using them properly think about when
to use them and what they should offer.
»» DISCOUNT POP-UPS – The clue is in the name. Discount pop-ups allow you to tempt
customers to the checkout with money-off their purchases. With 32% of customers
leaving because they deem the overall price to be too expensive, this could be just the
thing you need to convince them to stay on track to the check-out. Time-limit these to
make them more effective and ask for an email address in exchange to allow for data
capture on top!
An offer could be just the thing to make them reconsider leaving empty handed.
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»» ABANDONED CART POP UPS – Shoppers with items in their cart are already highly engaged, if they go to leave it’s an opportunity wasted. If you don’t want to tempt them
with a discount then ask for email details so that they can save the items in their cart,
greatly increasing the chances of their return.
Yumi Kim use a pop-up triggered by exit intent to allow shoppers to save the contents of their cart, making it easier for them to return and also expanding their database.
Shoppers with items in their cart are
already highly engaged.
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EMAIL
»» ABANDONED CART EMAILS – If you already have an email address for an abandoning
shopper with items in the cart you can skip the pop-up stage altogether and send an
email directly to their inbox with the items they left behind. Even better, automatically
add generic recommendations related to these items as well- if they left behind the
products for a reason then your suggestions may be just the thing they are looking for.
Organic Surge send an email to customers who have abandoned their cart, reminding of the items they looked at and
recommending relevant items on top.
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FILTERED RECS
Convincing shoppers to buy at the last minute is one thing but how about making sure they
are more engaged with your products in the first place? By personalizing the customer journey
through product recommendations you attract customers to move deeper within your site with
the items that are right for them. This generates higher levels of buying intent from the beginning
of the journey which greatly increases the chance of conversion.
Some examples of recommendations done right…
Product page: Without Prejudice use the space of
their product page to not only recommend relevant items, but to also show the shopper what they
looked at previously so that they are less likely to
forget something.
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Category page: Skin City use ‘top lists’ on their
product page to show the most popular products from that category. This allows shoppers
to be lead by crowd logic and reassures them in
their buying decisions.
Shopping cart: Another example from Without Prejudice, who employ the same techniques demonstrated on their product page on their cart page. Not only does this offer a consistent shopper experience but is a good use of sometimes wasted web real estate. Again, the “You might also like” section
encourages them to buy more and the “recently viewed” section ensures they don’t forget anything.
Product recommendations
are a good use of sometimes
wasted web real estate.
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Search page: Flight Club use their search results page in a very interesting way; when a customer mistypes a brand name, they suggest the items that other people who have made the same mistake went on
to browse or buy. This makes use of what would normally be a dead end and allows shoppers to continue their customer journey.
Avoid dead ends and let
customers continue their journey!
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05
Rise above the noise with
personalized newsletters
The problem:
When surveyed 52% of people said that they felt overwhelmed by the number of bargain-promoting emails they receive on a daily basis, which isn’t surprising with over half of all emails received
being of a promotional nature.
So, at a time when many online stores are using the same boastful sale tactics to lure customers in
how do you stand out from the crowd?
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The solutions:
PERSONALIZED NEWSLETTERS
First things first, nothing is going to make your email an overnight success if you aren’t adhering
to some basic rules - your newsletters should look good, be interesting to your customers, and as
a general rule should only spend 20–30% of the time selling your company directly. Now, that’s
the basics covered - once you have achieved these things, personalization can add another layer
of interest to your communications. In the same way that people are more likely to pay attention
to a conversation about themselves so too are they more likely to read an email that is targeted at
them directly! At Nosto, we have seen that personalized triggered emails have an average clickthrough rate 10x higher than the industry standard.
There is of course a number of ways to do this. Firstly, if you can, insert their name into the subject
line (if you can’t, at least put effort into making the subject line stand out - you can A/B test this),
then use tags to insert their name and greet them personally once the email is open. Lastly, offer
them personalized recommendations from your inventory to maximize CTR and conversion. There
are three approaches you can take here-
»» BROWSING HISTORY – Sometimes it is just about letting people pick up where they
left off. We are busy people, we see things we like, plan to come back and never make
it. By giving them a reminder of the pieces they left behind you make it easy for them
to complete the purchase.
»» BROWSING & BUYING RELATED – That said, sometimes people won’t buy items because they weren’t the right ones in the first place. Help them to find other, more relevant pieces by suggesting alternatives based on what they looked at or previously
bought.
Nosto’s personalized triggered emails have an average
click-through rate 10x higher than the industry standard.
Top Lists are great, they help you highlight the most successful pieces in your store
but they aren’t always relevant to the individual. Combine top lists with personalized
recommendations by showing them the most popular pieces related to them according
to their previous buying behavior.
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2.
1.
1. Wakakuu tailor their emails to the individual by making product recommendations a
central focus of their newsletter.
2. Björn Borg keep their newsletters timely and
current by highlighting best-sellers for both
women and men.
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06
Increase Customer Retention With
Personalized / Triggered Emails
The problem:
While you may find that the sales keep the crowds coming in January, February is normally a
much quieter time - with revenue shown to be at the lowest for the entire year. But with it being
approximately 50% easier to sell to existing customers than to brand new prospects your existing
customer base could be the answer. That said, bringing customers back to your store after a expensive holiday season and the temptation of the January sales is quite the challenge.
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The solution:
PERSONALIZED EMAILS
»» WE MISS YOU EMAILS - Hopefully you took advantage of the activity during Black Friday and Christmas to gather as many contact details as possible. If so, this is when it is
going to pay off. If you didn’t then your existing database will do! We miss you emails
are a great way to remind previous customers that you have a load of lovely products
for them to buy. These can be generated automatically and triggered by the lapse of a
set period of time since their last visit. Again, to cut through the inevitable email noise,
make sure to personalize the email with recommendations based on their browsing
and buying behavior.
Yumi Kim allow their product lead email to draw customers back to their store, reminding
customers of the pieces they had previously been interested and then highlighting trending
items on top.
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»» ORDER FOLLOW-UP - There is a lot to be said for striking while the iron is hot, especially when you consider the fact that, as customer loyalty company Sweet Tooth
state, a customer becomes increasingly more likely to buy from you as their amount of
purchases increases. Take advantage of this by sending recent shoppers an automatic
follow up email. Not only is this good customer service but it also gives you an opportunity to suggest further purchase; either accessories to go with their recent purchases
or other items that their buying habits indicate to be of interest.
Organic Surge follow up with recent customers by highlighting further possibilities for purchase
by showing them products related to their previous purchases.
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07
Acquire new customers by increasing and
personalizing your advertising efforts
The problem:
While you want to bring old customers back to your store, you don’t want to give up on attracting
new customers altogether. The problem is competition is fierce and with many other companies
experiencing the Q1 dip, it is only going to get fiercer, with everyone pulling out all the stops.
Standing out from the crowd is therefore imperative.
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The solution:
RETARGETING
‘Online advertising [that is] is targeted to consumers based on their previous Internet actions’. In
other words, like the other forms of personalization we have discussed, taking the browsing or
buying behavior of visitors to your site and using it to personalize their customer journey. In this
case, the application is adverts that recommend products that they are likely to buy. Does it work?
Well, 54% of consumers find personalized ads to be more engaging and 45% find them more
memorable and compared to “static-one-size-fits-all” ads - automated, dynamic product ads can
generate performance improvements of up to 400%.
JUNIQE use re-targeting to show best-seller product-level
ads to people who have recently visited their store.
You can personalize both your display and social advertising efforts using these ad types:
»» BEST SELLER PRODUCT ADS - highlighting real-time trending items from your store.
Nosto customer Eton, saw 13 x CTR on prospecting Best Seller product ads.
»» PERSONAL RE-ENGAGEMENT ADS - Target customers who have visited your store
previously by recommending products picked just for them based on their previous
shopping behavior. Eton saw 11 x ROAS on ads of these type.
»» ABANDONED CART RECOVERY ADS - Encourage shoppers who selected items but
didn’t quite make it to checkout by recommending products related to what they had
in their cart. Eton saw 19 x ROAS on Abandoned cart recovery ads.
»» POST-PURCHASE ADS - Encourage converted customers to continue their spree by
suggesting items that are relevant to what they have already bought.
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08
Drive traffic to your store
with social
The problem:
Traffic and revenue are not inextricably linked, but they do tend to have an impact on each other. With revenue dipping in January and February it is likely that if you look under the hood your
traffic will be suffering too. Fix this and you are likely to see a positive impact on the bottom line.
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The solution:
If the shoppers aren’t coming to you, you need to go to them - and with the average internet user
spending 1.72 hours per day on social media platforms, it’s a good place to start. Social media use,
while prone to slight fluctuations, is not heavily affected by the changing of the seasons in the
same way ecommerce traffic is. This means it provides you with a consistent method of reaching
out to your target market. As discussed above, social advertising is an effective way to drive traffic
from social media sources, but with social media creating a new platform for interaction, so too
does the approach we take to communicating with our customers has to change. In fact, some
of the most fruitful ways to engage with prospective buyers fall outside of traditional advertising
techniques.
SOCIAL COMPETITIONS
With people feeling the post-holiday pinch, now is the time to use freebies as a form of entice
them back to your store. Competitions are a good way to promote your brand, encourage certain
social interactions and ultimately highlight items in your inventory in a way that is more interesting
to your customers.
»» PHOTO OR VIDEO CONTESTS – These have been shown to get the most engagement
and are a good way to turn your customers into promoters - ask customers to include
your products in their entries and all of a sudden they are creating the adverts for you!
Make sure to get them to tag your store or use a hashtag so you, and anyone who is
interested, can keep abreast of all the entries.
Photo or video contests have been
shown to get the most engagement
and are a good way to
turn your customers into
promoters.
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»» SOCIAL ENGAGEMENT POSTS – Spread the word by asking customers to like or share
a post about one of your products for a chance to win it. This takes advantage of network effects and ensures your items are making their way onto the timeline of people
who are not yet interacting with your brand, as well as getting existing fans or customer more heavily engaged. Remember, though - whatever competition style you choose,
make sure the barrier to entry isn’t so high as to deter people.
2.
1.
1. Om Nom Nom Cookies encourage their social followers to take and share a photo of themselves with
their product to be in with a chance to win a t-shirt.
2. Drinkwel encourage social engagement by asking people to simply like their post to enter their
product-lead competition.
Spread the word by asking customers to like or
share a post about one of your products
for a chance to win it.
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»» CAPTION COMPETITIONS -
Are another a fun way to interact with your customer,
encouraging people to comment on a post which will result in naturally feature higher
in people’s timelines and extending your reach.
Tauck ask their followers to come up with a funny cation for their photo, allowing them a fun
way to engage with the brand.
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»» HASHTAGS – Hashtags are great way to start or follow a trend, effectively grouping
posts together, you can either create your own- making your posts searchable- or you
can jump on the bandwagon of something that is already trending, in a bid to send
some the activity around that topic your way. Hashtags can be used in a number of
ways and the way you interact with them will be determined by what type of hashtag
it is -
»»
Hashtags for hashtag’s sake. Some more light-hearted examples are what we
like to refer to as ”hashtags for hashtag’s sake” - a recent example of this was
“#MakeLifeBetterIn3Words”, which encourages user to participate by suggesting, you guessed it, a three word description of something they think would make
life better. Sometimes these type of hashtags are started by a company or charity, sometimes they have a message behind them but they can also occur organically out of the collective boredom of the internet. Either way, they can be
used to your advanatge as people will actively search them to see what other
are saying. A good example of a company using this approach is KitKat’s reply;
A clever use of their slogan, it is on brand and paints their product in a positive light.
Hashtags are great way to start or
follow a trend, effectively grouping
posts together.
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»»
Current affair hashtags - These are pieces that refer to real-time happenings in the
world and can, again, be used to your advantage. For example, when Budweiser sent
this tweet after Kim Kardashian’s nude photos started the hashtag #BreakTheInternet.
This was clever, in line with subject and their brand and so was well received. However, be cautious and be sensitive when using this type of hashtag- attempting to
highjack a serious or upsetting current affair just because it is the most popular topic on the internet right now will not go unnoticed by internet users. Expect rebuke
and quite rightly so.
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»» FORUMS – While Twitter & Facebook may be the first platforms that come to mind
when discussing social, depending on your brand and what you sell, don’t be afraid to
seek out other alternative avenues. Conversations are being had in many nooks and
crannies of the web and the aim of engaging socially with your customers is to find
out where they are having them. LinkedIn particularly has an active group section,
where people of similar interests or professions will come together to discuss. Though
not exclusive to, these are particularly suited to B2B businesses. If LinkedIn groups
aren’t for you, seek out forums that are specific to your area of expertise- do you sell
video games? Then gamer forums are a hotbed of highly engaged enthusiasts. Find
out where your customers hang out online and then make sure you are joining their
conversation in a way that’s authentic and provides them with value.
At Nosto we regularly start and partake in forum discussions with our customers
Conversations are being had in
many nooks and crannies of
the web.
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09
Use content to
build your brand
Unlike our other points, branding is not a problem created by Q1, it can however be an opportunity
afforded to you by this natural seasonal lull. There are many best practice branding activities that
slip to the bottom of the priority list during the crazier ecommerce seasons, content marketing
being one of them. But in a socially engaged world, where brands are expected to be thought
leaders and not just purveyors of goods, this can be a real blow to your brand. One way to increase
traffic to your website when people aren’t necessarily seeking out shopping outlets, is to create
valuable and shareable content. Once you have done your best to beat the Q1 dip, spend some of
this downtime to create content that will engage customers and prospects, helping to boost your
sales all year round.
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Create a blog:
Blogging drives customers to your store, improves your website’s SEO, and allows you to craft
stories around your products, brand and industry that will help you to convert visitors. They key
to content of this style is that it should be relevant and not boastful.. This is a blog, not an in-site
advertising platform. For example, if you store sells gardening equipment then why not write a
post on potted plant projects to keep gardeners busy in the winter months- recommending some
of your indoor items in the process.
»» BEHIND THE SCENES – Your chance to give real insight into your company, this shows
a level of transparency that many shoppers find reassuring. It is also a chance to tell
your story and highlighting your core values. Consider showing how your products are
made, or where your materials are sourced - If you are a company that supports small
business and local suppliers then this your chance to shout about it. Whole Foods do
a great job of this, including blogs from their CEO’s- where they talk on issues such
as fair pay (Whole Foods are transparent in the fact that they cap the amount their
executives, including the CEO’s, are paid at up to 19x higher than the average Whole
Foods wage).
John Mackey, Co-CEO of Whole Foods, hosts his blog directly on the Whole Foods website and uses it to
discuss the issues that matter to him and his company.
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The Cambridge Satchel Company was started by mum Julie. Her very sweet story is one that makes
the company likeable and is shared in this video.
»» TELL YOUR STORY. The blog is also a good place to talk about the vision that brought
your company into being. Google did a really good job of this type of storytelling
in their advert series that showed small businesses such as the Cambridge Satchel
Company setting up shop, going from small home-based businesses to international
best-sellers. But why wait for Google to shine the spotlight on your company when you
can do it yourself?
Be relevant, transparent and interesting
but never boastful….
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»» COMMENTARY PIECES – Every industry has hot topics, trends and industry news. Become a thought leader by reporting and commenting on these. You want to appear not
only to have the inside-knowledge whenever possible but also to have opinions on the
issues that matter to your customers. M&S is a good example, discussing issues such
as the UK bag plastic bag tax and fair prices for milk farmers - all issues that have been
in the news.
M&S gives their take on the issues affecting their industry and that of their suppliers in an
insightful and current blog.
Every industry has hot topics,
trends and industry news.
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»» PRODUCT LEAD / INSTRUCTIONAL PIECES – While you don’t want your blog to be
just another shop front but there are ways to include your products in interesting and
innovative ways. Maybelline do a good job of this, highlighting their products in trendbased tutorials. This is also a form particularly suited to food merchants, with recipe
based pieces and the fashion vertical with “What to wear it with” style blogs.
Topshop interview social media star Anais Gallagher about her Christmas wish-list, which,
of course, includes a number of Topshop items.
Remember to include your
products in interesting and
innovative ways.
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10
Make Q1 work for you for the entire year
by converting sales customers into
long-term sales
The problem:
With heavy discounting driving a lot of your Q1 sales it is likely that a lot of the shoppes you are
attracting and going to be one-off and discount-driven. This means the tactics outlined above,
while helping to get you through one of the bleaker times of the year, will fail to deliver long-term
value to your business.
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The solutions:
LOYALTY REWARD SCHEME
Being discount lead, doesn’t just pose a problem, but also an opportunity. Knowing what drives a
customer is half of the battle- encourage loyalty from these otherwise fickle shoppers by rewarding repeat business. In fact, offering points in exchange for purchases made has been shown to
increase a shopper’s annual visit by up to 20%.
Estée Lauder offer loyalty program members a discount, as well as the chance to accumulate points.
This encourages repeat purchases.
KEEP IN CONTACT
One of the most valuable things you can do with a fleeting visit to your store is use it to gather the
contact details of prospects that would otherwise be lost forever. This allows for continued, timely
and relevant marketing communication, as previously discussed.
Being discount lead, doesn’t just pose a problem,
but also an opportunity.
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Pop-ups are a great way to encourage visitors to leave those precious email addresses, attracting
attention without taking the customer away from he page or item they were looking at. To ensure
someone doesn’t go without giving their contact details, set your pop-ups to trigger as the user is
leaving the store and offer one of the following;
»» Newsletter subscription
»» Discount
»» The chance to sending themselves the content of their basket to their email address
Taft have opted for the discount option, offering 10% off purchases.
One of the most valuable things you
can do with a fleeting visit is use it to
gather the contact details of prospects
that would otherwise be lost forever.
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There we have
it…
A complete strategy to help you not only
survive Q1 but flourish in it. We know
we’ve covered a lot, so let’s re-cap…
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01
Your ow
n perso
checklis nal
t!
Combat high returns by filtering recommendations
and providing excellent customer support
FF Identify troublesome products in advance.
FF Give your customers as much information as possible.
02
Sell-off excess stock or stock that is old and out of
season.
FF Use targeted discounting and well-advertised flash
sales.
03
Combat lower margins from discounted stock
by driving increases in AOV
FF Automate personalized recommendations including
up-selling, cross-selling and browsing history related.
FF Filter recommendations to show items that give
a higher return.
FF Offer package deals.
FF Use a threshold reward.
04
Increase conversion by creating a sense of urgency
in your store
FF Use discount and abandoned cart pop-ups.
FF Enable abandoned cart emails.
FF Use filtered recs across your site.
05
Rise above the noise with personalized emails
FF Tailor emails with the recipients browsing history and
related products, as well as ‘Top Lists’.
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06
Increase Customer Retention with Personalized /
Triggered Emails
FF Send ‘We Miss You’ and order follow-up emails.
07
Acquire new customers by increasing and
personalizing your advertising efforts
FF Retarget customers on both social media and via
display advertising.
08
Drive traffic to your store with social
FF Use social competitions, effective hashtagging and
participate in relevant forums.
09
Use content to build your brand
FF Create a blog with behind-the-scenes, commentary
style and product lead pieces.
10
Make Q1 work for you for the entire year by
converting sales customers into long-term sales
FF Implement a loyalty reward scheme.
FF Gather email addresses with pop-ups to allow for
regular marketing communications.
Choose the solutions that work for you and
implement them as quickly as possible, setting
you and your business up for a successful 2016!
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To find out how Nosto can
help make your Q1 a success
get in touch with one of our
Ecommerce Specialists today
GET IN TOUCH!
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Nosto enables online retailers to deliver their customers
personalized shopping experiences at every touch point, across
every device. A powerful personalization platform designed
for ease of use, Nosto empowers retailers to build, launch and
optimize 1:1 multichannel marketing campaigns without the
need for dedicated IT resources.
Over 20,000 ecommerce professionals in over 100 countries are
using Nosto to grow their business and delight their customers.
Nosto supports its retailers from its offices in Helsinki, Berlin,
Stockholm, London and New York.
sales@nosto.com I www.nosto.com