This is a guest post from Majid Ghaffari of LimeSpot.
There’s more to marketing an eCommerce store than simply setting up your store and advertising! It’s not like having a brick-and-mortar store where you can be discovered by people just walking or driving past; you need to take a more active role in marketing to your customers. Simply buying an ad on Google or sending out random posts on social media won’t work.
To succeed in eCommerce marketing, you need to realize smart acquisition funnels that deliver conversions at low costs. You need to master skills to reach stable/sustainable traction and you need to track your customer acquisition costs and lifetime values, so you know how much you can theoretically spend to acquire a customer.
That might sound complicated and technical, but it doesn’t have to be that way! That is why we’ve put together this list of five marketing channels and the tactics for leveraging them without investing huge amounts of money or time.
So without any further ado, here are five low-cost tactics for boosting conversions in your Shopify store.
5 Low-cost Shopify marketing tactics
1) Email Personalization
Don’t believe those who say email is dead. Email is very much alive, and is one of the best tools in your marketing toolkit. Sending emails costs virtually nothing (especially when you send to a large number of people), yet it can have an enormous payoff. This is why your email list is one of the most vital tools in your marketing toolkit.
Sending sales or nurture emails to an email list is a given, of course. These communications are most effective when you can categorize your customers into different segments and personalize your content based on what you know of the buyer’s preferences.
Send personalized email campaigns
Shoppers who are re-visiting your store or new visitors who provide their email address in trade with a discount code/offer are a great target for personalized email campaigns. Just ask clothing retailer Dungarees, who targeted these shoppers with emails that didn’t just remind them what was still in their shopping cart, but added some AI-powered recommendations as well; e.g. Related items, You May Like, Frequently bought together, etc. This tactic helped Dungarees bump up conversion rates 18.4%, and led to a whopping 500% increase in revenue per visit.
One way to deliver personalized product recommendations via email campaigns is our eCommerce app Approach. It uses AI to automatically segment customers and deliver personalized product recommendations to each segment. This typically converts two to three times better than non-personalized offerings.
Add personalized product recommendations to transactional emails
Shopify also has extensions like Spently that notify buyers after every purchase, or if they abandon their shopping carts. Through integration with our product recommendation API, Spently can add personalized product recommendations to the transactional emails of Shopify stores. You can also set up auto-notifications to follow-up and re-engage inactive customers without you lifting a finger.
2) Dynamic Remarketing
Remarketing is online advertising that targets ads to people who have already visited your site. The great thing about remarketing is that people who have visited you before and expressed interest in your products are more likely to convert into actual buyers. This helps make it a very stable, low Cost Per Acquisition (CPA) channel.
Retargeting efforts come with a ton of eye-popping statistics, like the 400% increase in ad responses, reports of 70% upticks in conversion rates, and more. And don’t worry about potential customers getting turned off by seeing your ads too many times—the research shows that conversions actually increase over time, meaning the more often someone sees your ads, the more likely they are to buy!
One great way to apply dynamic remarketing to your store is Facebook dynamic product ads. These dynamic ads let you target users based on specific behaviors, making them an easy way to get your feet wet with remarketing ads.
3) Drive Conversions with Social Proof
Reviews are one of the most cost-effective and influential ways to get customers to convert. Customers tend to trust each other’s opinions over that of the store owner. You can take advantage of that by leveraging social proof as part of your marketing. Have a system in place for soliciting reviews from your customers (maybe through email notifications, or by offering them a discount code) and be prepared to respond to each and every one—even the bad ones! You’ll find that responding to negative reviews might just change that customer’s perception of your store, especially if you can solve the problem that caused the negative review in the first place!
Shopify extensions like Yotpo, Stamped, Loox, and Judge.me can enrich the customer experience by allowing reviewers to upload photos along with their reviews, which you can then display to other customers in curated galleries. LimeSpot’s personalized product recommendations display the review average of product reviews, which (if your reviews are good) results in a higher CTR (click-through rate) for stores.
New customers are a nice cash boost, but it’s repeat customers that make you the real money. With the right Shopify extensions, you can delight your loyal customers and maximize your Customer Lifetime Value.
Set up loyalty programs, such as bonus point systems that reward customers based on how much they spend. LoyaltyLion is one of our favorite apps for creating special promotions specifically for your most loyal customers.
You can display loyalty bonus points, test and optimize your loyalty offers, encourage customer referrals, and ultimately increase customer engagement, retention and spend.
5) AI-Powered Product Recommendations
Consumers value merchants who know them. We don’t mean in terms of referring to them by name (although that does help), but in terms of their shopping preferences.
As a merchant, you can simplify your customers’ shopping experiences by offering products you know they will be interested in. As the most popular customer personalization tool on Shopify, LimeSpot makes it easy for your Shopify store to highlight suggested items your customers are more likely to buy.
Product recommendations help solve one of the biggest barriers your customers face when shopping: the problem of choice overload. Studies have shown that when a person has too much to choose from, they often make no choice at all. Recommendations help narrow the selection field and ease the decision-making task.
You can also upsell or cross-sell an item related to the item a customer has already purchased. You would gather this data by predicting what a customer would logically need after purchasing the initial item. For example, if you know that if a customer buys boxing gloves from your Shopify store, they will most likely need hand wraps to go along with them.
If you can, validate this assumption by looking at your sales data to see if this is actually the case. Then display these upsell/cross-sell items in multiple areas of your store, e.g. a product carousel at the bottom of a featured products page labeled “Customers Who Bought This Also Bought.”
Personalization works both as a sales tool (e.g. website personalization) and as a marketing tool (e.g. personalized email marketing). The overall objective is to make it easier for your customer to purchase multiple items in one visit.
Experimentation is the Key
Of course, just because everything we mentioned above can convert, it doesn’t mean that it will convert. Also, there is no one-size-fits-all solution for boosting conversions. Every store needs to find a way to connect specifically to their own unique audience.
That’s why it’s important to incorporate an A/B testing routine into your Shopify marketing. A/B testing can help you increase conversions, grow your social reach more quickly, and find more cost-effective ways to market your store. In general, it’s one of the most important tactics for growing an eCommerce site!
In an A/B test, you compare two marketing tactics to see which will give you the best return. Make sure you test them one at a time, otherwise you won’t know which tactic is the one that’s affecting your numbers. Eventually, you’ll be able to determine which mix of marketing tactics will get you the best bang for your buck.
A/B testing isn’t complicated, but there is certainly a science to it. LimeSpot Personalizer has a robust A/B testing feature to help you set up and compare two different layout variations (called Experiences). Once live, they will appear in your online store based on your configuration.
LimeSpot will then start measuring the performance of each experience so you can determine which one should be applied to the next iteration of your online store.
Visit LimeSpot today and discover just how easy it can be to apply A/B testing to your online store.