{"id":12580,"date":"2019-03-05T11:53:12","date_gmt":"2019-03-05T10:53:12","guid":{"rendered":"https:\/\/chartmogul.com\/blog\/?p=12580"},"modified":"2024-08-06T11:12:59","modified_gmt":"2024-08-06T09:12:59","slug":"turn-a-first-time-purchase-into-a-high-ltv-customer","status":"publish","type":"post","link":"https:\/\/chartmogul.com\/blog\/turn-a-first-time-purchase-into-a-high-ltv-customer\/","title":{"rendered":"How to turn a first-time purchase into a high LTV customer"},"content":{"rendered":"\n
\"Jenna<\/figure><\/div>\n\n\n\n

Jenna Ochoa is the Partner Marketing Manager at Justuno. She has been working in the e-commerce industry for over 5 years and occasionally writes about it on the Justuno blog<\/a>. <\/p>\n\n\n\n

Thanks for the e-commerce insights, Jenna!<\/p>\n\n\n\n

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For most e-commerce merchants, the need for segmentation<\/a> is obvious once they reach a period of rapid growth. As sales increase, customer segments become increasingly apparent and merchants must understand their customers to scale effectively.<\/p>\n\n\n\n

However, the key to continuing that rapid growth lies in effectively utilizing customer segment information to better market to the website’s overall visitor audience.<\/p>\n\n\n\n

Looking at the marketing funnel<\/h2>\n\n\n\n

Moving website traffic and customers through your marketing funnel is only achievable by segmentation. It’s easy to move everyone through a one-size-fits-all funnel, but you will quickly hit the ceiling on maximum conversions. <\/p>\n\n\n\n

By divvying-up your audience and applying a personalized marketing strategy to each segment, each audience will then have its own funnel, unique messaging and unique incentives to purchase.<\/p>\n\n\n\n

“Segmentation gets people to make decisions”<\/p>Travis Logan, CTO & Co-Founder, Justuno
<\/cite><\/blockquote>\n\n\n\n

The easiest way to get started with segmentation is to go one level deeper in your lead capture data.<\/p>\n\n\n\n

For example, what information are you currently capturing when a new visitor arrives at your site? Most often, e-commerce retailers capture information like name and email address. This is a great start: easy and low barrier to entry.<\/p>\n\n\n\n

But, what would happen if you started to collect product interest, shirt size, shoes size, etc. right in your welcome pop-up? With this information, you could automatically build segments within your new visitor audience. This allows you to send more relevant email marketing to those new visitors after they opt-in.<\/p>\n\n\n\n

Your welcome series could link to the “most popular shoes” that are women’s size 9. Or to top men’s clothing recently purchased.<\/p>\n\n\n\n

By adding extra data to your lead capture campaigns<\/a>, you can easily start building segments that speak to your visitors specific needs, rather than general wants.<\/p>\n\n\n\n

Where are you spending off-site budget and resources?<\/h2>\n\n\n\n

Most e-commerce retailers put a hefty amount of budget into ads. What’s mind-blowing about the ad spend and marketing strategy is that for every $92 spent acquiring customers, only $1 is spent converting them<\/a>.<\/p>\n\n\n\n

That’s crazy!<\/p>\n\n\n\n

At Justuno, we advocate for that measly $1 and help e-commerce retailers understand they can squeeze even more ROI out of their ad spend with a simple practice: mirroring your off-site messaging on-site.<\/p>\n\n\n\n

For example, when you create an ad on Facebook offering $10 off a purchase for the next 48 hours and a visitor clicks the ad, he\/she should see that same $10 off messaging on your website as well as a reminder of when that offer ends.<\/p>\n\n\n\n

It is simple and incredibly effective.<\/p>\n\n\n\n

Over the 2018 holiday rush (October 20, 2018 – January 1, 2019), we analyzed how countdown timers performed across our user base. On average, Justuno users saw an average engagement rate of 8.82% and an average conversion rate of 5.44%.<\/p>\n\n\n\n

What’s important to note here is that message mirroring is incredibly easy to set up.<\/p>\n\n\n\n

By leveraging UTM parameters from your ad campaigns on channels like Facebook, AdWords, affiliates or Instagram, you can trigger pop-ups or message bars to display when those click-thrus arrive on-site. Learn more about that here<\/a>.<\/p>\n\n\n\n

The bottom-line: squeeze more ROI out of the money you’re already spending. On-site messaging is quick and easy to set up and is often the only nudge your website visitor needs to become a customer.<\/p>\n\n\n\n

They purchased! Now what?<\/h2>\n\n\n\n

As e-commerce retailers begin to make more sales, the challenge now lies in getting repeat purchase. Here, again, segmentation is crucial.<\/p>\n\n\n\n

It’s helpful to have an understanding of what<\/strong> your customers purchased, when<\/strong> they purchased, and with what on-site offers<\/strong> they have engaged with.<\/p>\n\n\n\n

This information informs the email marketing campaigns you deploy to initiate repeat purchases from customers.<\/p>\n\n\n\n

Recipients are 75% more likely to click on emails from segmented campaigns than non-segmented campaigns<\/p>MailChimp, 2017<\/a><\/cite><\/blockquote>\n\n\n\n

And, again, we arrive back at on-site messaging. When these folks click-thru from their personalized email what message will they see on-site?<\/p>\n\n\n\n

You can see how the 1:1 marketing loop never sleeps and every step taken to refine this loop will bring you closer to a higher AOV (average order value) and an increase in repeat purchases.<\/p>\n\n\n\n

Creating high-LTV customers<\/h2>\n\n\n\n

High-LTV customers means “high lifetime value” customers. Here’s a handy blog post from Shopify<\/a> to help you better understand what that means for your e-commerce business.<\/p>\n\n\n\n

You can’t achieve high-LTV immediately. It is a “crawl, walk, run” process. But as soon as you start dialing-in your segmentation strategy, you can be more aggressive in pursuing tactics to nurture these customers.<\/p>\n\n\n\n

Here are the must-have elements needed to create high-LTV customers:<\/p>\n\n\n\n