hether you’re new at E-commerce and are just starting up your store, or an expert with many years under your belt, getting new customers never stops being relevant.
The thing is, for any business, sales can be unpredictable.
If you want to grow your business consistently and profitably, you need to come up with a process in order to bring in as many sales as possible in a systematic way. This process is typically known as a user acquisition funnel - which takes leads from not being aware at all of your product or service, into buying them.
Whenever you want to bring in new customers, you first have to find them. With some research, you know exactly who you need to pinpoint with your ads, known as your “Target Audience”.
You start out with a broad audience and spread awareness on your store (We’ll explain that in a moment). From there you start getting followers, people who check out your store, etc. People are becoming aware! Your Facebook pixel starts gathering all that data and your funnel starts closing in. Our cold leads are now becoming warm leads because they know about our store.
The next objective is to target these warm leads, people who facebook knows are similar to the ones who have followed us on our social media and are actively looking for products or services like the ones we are selling. These are the ones who are interested in signing up for our email lists, purchasing and now we have to convince them to become our customers.
At the very end of our funnel we have our small selection of hot leads who have strongly suggested they want to buy from us. They have signed up for our email lists, added our products to their cart, followed us on social media…all they need to do is purchase! These leads which we need to give a small push to in order to have them buy from us, this could be something like a discount code or offer.
Whenever we acquire new leads, we need to take them through this process. There are many possibilities online in order to get these leads - we’ll show you exactly how you can find them.
Do you ever scroll through your instagram or facebook and see a sponsored post pop up - which just happens to be about a similar product to the one you were just looking for yesterday? Or maybe you were on your favorite website and on the side columns you get the same type of ad?
These are paid advertisements which have the necessary data in order to target a specific audience. Due to their extensive measurement tools, these allow you to optimize your ads in order to only target the audience you meant to reach. When used correctly, paid ads can net you amazing results.
These platforms all charge by user impressions, or how many times someone performs an action with your ad. The charge rate depends on the region, competition and action requested for that ad, among other options.
Target Your Audience - With the metrics available, you can directly target the niche that your business is looking for. As your facebook pixel gets more data, you can narrow down on the users which will make your store succeed.
Rapid Scaling - By paying for traffic, you are guaranteed to get customers coming to your business. Through A/B testing you can find the target group which nets you the most results and double down on that group - resulting in profitable scaling.
Profitable - Before you needed to pay large sums of money to have a marketing agency get customers for you, now with paid ads you can invest smartly in order to ensure you are getting profits from the money you put in - and you choose that quantity to meet your budget.
Learning Curve - With a few youtube videos you can learn how paid ads work, it’s not all that complicated. However, if it’s done incorrectly, it can result in money + time lost. Be sure to get well educated on the subject before investing money into ads.
Could be Expensive - Yes, I know I just said it was profitable but hear me out. Due to algorithm changes and rise of competition, the CPM (Cost per impression) has gone up - and continues to rise year after year. What this means is that companies will have to work on creating stunning ads, improving their conversion rate, customer retention and average order value in order to profit off these ads.
We’ve all seen it - our favorite instagram/youtube/blogger influencer promoting a product on their stories, pages and videos. These are usually paid partnerships in order to target the influencer’s niche. It’s become very popular and is one of the best ways to get customers.
What you have to do is find someone who has a solid following in your niche, is very active on their social media sites and has an active audience which is always leaving likes/comments.
Trust and Credibility - Having an influencer promote your product or service is like having a close friend of yours give you a referral - you trust them. This makes anyone who likes the product go in and directly buy it. If someone they are a fan of buys from this website, they don’t think twice about doing it as well. It gives your brand more credibility when people are telling people to purchase, it’s not the same as having an ad pop up on your screen to a website you’ve never seen before.
Niche Targeting - While working with an influencer does not allow you to access all the metrics that a paid advertisement platform would, you can still target influencers who are in a certain niche. Their followers are all people who might be interested in your product/service.
Combining Influencers with Paid Ads - This is a tactic many e-commerce brands do. By working with influencers, there is lots of organic traffic coming into your store. All of this data can then be used to retarget with paid advertising. By combining the two, you can get some stunning results!
No Tracking - Unlike paid ads, you can’t really see your ROI from a statistics standpoint. In order to get the most out of influencer marketing, you would need to utilize UTM tracking links or other similar processes in order to do that.
Scammers - Some influencers use bots in order to grow their pages and blow up their comments/likes. You have to be careful and do your research to make sure that the influencer is legit. Not only that, but also create a contract to make sure that once you pay, the influencer holds up their part of the deal.
One of the best tools to turn potential leads into customers is by utilizing email lists. Because most people that come to your store won't buy on the spot, by getting their email you can retarget them. Several studies have shown that investments in email lists produce the most ROI compared to other lead generation options.
There are many ways to build an email list. You could set up a funnel, use ads in order to promote a discount code in exchange for an email, have users sign up in exchange for value...etc. Once you have a large enough email list, you can run email campaigns and set up automated emails to send targeted messages to your list through email marketing services like Klaviyo (Our personal preference). These emails can be personalized and triggered based on behavioral data to help you turn leads into customers.
Increase Lifetime Value- One of the biggest benefits to building an email list is that it gives you the ability to market to customers over a long period of time, extending the lifetime value of each customer acquired. Once the email is collected, you can set up email automation to continue engaging the customer and recommending new products.
Target Warm Leads- When you target the users who are in your email list, they already know about your store, so marketing to them is easier. The next step would to be convince them to buy, which can be done by offering them an incentive, such as a discount code.
Create a Waiting List - Whenever you are about to have a big launch, creating a landing page with an email sign up will ensure you get sales on the first day. By promoting the product beforehand, you can see how many users are interested in purchasing your product once it goes live.
Spam - As more and more companies utilize email marketing, the spam filters are being upgraded and harder to bypass - this makes it hard for your business to deliver emails to your clients. An estimated 50% of emails are considered spam. You can tackle this by following best practices to improve deliverability rates and encouraging users to follow on social media as well!
Bad Quality Emails - Just like in every aspect of your ecommerce store, the quality of what you put out - and what you receive - needs to be great. Not only do your emails have to be stunning, but your email list needs to be so as well. If you have an email list of 1000 people, but half are fake emails or email accounts that never open what you send to them, that can drop down your delivery rates. Clean up your list regularly to ensure you are only sending emails to the people who are checking them out.
The number one way to get customers is through word of mouth. You are more than likely going to trust a friend that tells you to purchase from a site than from an ad that pops up in your screen. There is more trust involved and less risk of losing money.
In order to use referrals as a new customer acquisition strategy, it is up to the business owner to make it easier for those loyal customers to recruit their friends. Have you ever seen on websites where they have "Invite a friend and you both receive X?" That is referrals marketing.
You can set up a referral program that is similar in which your existing customers are rewarded each time they get someone new to purchase from your business. Apps like Referral Candy and Smile.io offer ways to encourage customers to refer friends through marketing emails, discounts, and incentives for both the customer and their newly recruited friend.
Cost Effective- Since personal referrals are so effective, using a referrals is usually seen as a low-cost form of new customer generation. The fees associated with setting up a program include a subscription to a referral program app and the discounts given to the new customers who are invited.
Customer Loyalty - Because they get a discount off their next purchase, your customers are more than likely to come back and purchase from your store again. So not only have they brought in a new customer, but their lifetime value has gone up as well. They become your loyal customers.
No Guarantee- While you may launch a referral program, if people don't fall in love with your products or don't want to recommend it - they won't. It's a great bonus to have in your store, but make sure your products/services are great first.
Create a Community Through Social Media
While working with influencers is nice, imagine becoming an influencer. You will have a loyal following who purchase your products, brand ambassadors to help market and a community that will support your brand. Sounds nice, right?
Though it takes quite a bit of work, it is the best way to ensure your brand is constantly evolving and becomes the best at its niche.
There are many ways to build a following on social media. Although almost all of them require time, consistency and content to attract new followers and keep them engaged.
Organic Traffic - Though you need to spend time and money in order to build up your following, once the ball is rolling you are set. Your followers will spread the word on your brand, your content will be shared by outlets and all your potential customers are in one place.
Social Proof- Because you have a community that supports your brand, anyone who has never tried it will see that it is solid just because of the numbers. With likes, comments and followers they instantly receive a feeling of trust when deciding whether to purchase from you or not.
Takes Time and Dedication - Building a community is not something that is easy. If you've tried to blow up your instagram page, you will know this. It takes time, dedication and a lot of work in order to get it going, but it's worth the slow grind.
Not in Control - Whenever you try to grow your brand through these platforms, you are subject to any and all changes. The algorithm might switch right when you figured it out. Constant updates might completely change how the apps worked before. The platform all of a sudden stops your content from reaching a certain amount of people. Everyone switches over to a new platform. Your ability to reach that audience and convert them into customers will always be controlled in some part by the platform itself.
We hope this article has helped you all out! Brabus Media is always available to take care of any questions you may have.
We are here to help.