5 Methods Of Driving Revenue Growth In E-commerce

When it comes to e-commerce, a great deal rests on fostering loyalty among your would-be customer base. It’s easier to keep hold of existing customers than it is to win over new ones. Moreover, happy customers can act as evangelists for you brand, and generate a buzz around any new products and services simply by participating in active online communities.

So loyal customers are what drives revenue growth, then what strategies can we employ to foster loyalty among customers?

Be Up-Front With Your Value

Nowadays, brands are expected to be more than just organizations which sell things. They’re expected to have values, too. If customers share in those values, then they’ll be accordingly more willing to pay for the products and services in question. For example, if you make clear that your business is committed to planting trees, then customers who also appreciate trees might be more inclined to shop with your company due to your brand differentiation.

Research indicates that ‘authenticity’ is highly prized among consumers. It’s therefore important to be careful when it comes to perceived falseness or posturing, which might backfire – especially if your brand doesn’t have a history of advocacy in a particular field.

Create The Right Incentives

A good loyalty program will provide an incentive for customers to engage with your brand. If you’re successfully made a sale, then you might offer vouchers and discounts to customers who leave reviews for a given product. On the other hand, you might offer rewards on social media to customers simply for following and engaging with you.

Offer Exclusives

Everyone likes to feel special, from time to time. If you make customers feel like they belong to a special, prestigious class because of the energy they’re putting into supporting your brand and engaging with your community, then they’ll be that much more likely to persist. You might even offer a tiered system for exclusives, where customers are ranked according to their participation and customer engagement.

The staircase effect here actually pushes customers to engage even more: if they’re at the threshold of being promoted, then they’ll put in extra effort to make the transition. Among the exclusive services and features you might offer is the ability for premium customers to offer more specific feedback. When customers can see that you’re acting on their suggestions, they’ll be more likely to value your brand; moreover, some of those suggestions might turn out to be good ones!

Take Advantage Of Referrals

Referrals are a simple way to generate new customers from existing ones. You’re effectively offering those existing customers a cut of the profits that you’ll ultimately generate from the new ones that they refer. It’s a form of marketing that’s incredibly effective, as if you get the rewards right, it can spread exponentially as you get customers online.

Optimize Your Site For Mobile

Furthermore, you should also optimize your site for mobile users to drive your e-commerce revenue growth. With over 80% of Americans owning a smart phone, you should first look to increase your mobile site’s loading speed. According to recent studies, a 1-second page delay could cost you up to $2.5 million lost every year. In addition, you should try to personalize the shopping experience on mobile. Notably, over 2% of millennial shoppers report that their mobile shopping experiences could improve with personalized offers. To start gearing your promotions and deals towards specific customers and demographics, you can ask for your customers’ location or personal information. Often, this allows businesses understand buying behavior. Then, you can understand buying behavior to personalize incentives.  Definitely, optimize your site for mobile to increase your sales revenue.

Reach Out To Repeat Customers

Moreover, you should also spend time reaching out to repeat customers to keep positive customer loyalty. According to recent data, repeat clients often contribute to over 40% of the revenue. In addition, the revenue from the purchase of one repeat customer is nearly equivalent to orders from five new shoppers. Therefore, it is essential to keep a positive relationship with returning customers. Ideally, you should send your customers emails and messages whenever you have a new campaign. Additionally, you can also reach out to customers on their birthday or for holiday marketing. Undoubtedly, this is a great way to show gratitude for your returning customers. In short, reach out to repeat customers to drive your e-commerce revenue growth.

There are several methods of driving revenue growth in e-commerce. First, you should be up-front with your value. Next, it is essential to create the right incentives. In addition, you should offer exclusives and take advantage of referrals. Of course, you also need to optimize your site for mobile and reach out to repeat customers. Implement these methods of driving revenue growth in e-commerce.