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12 List Building Tools to Rapidly Grow Your Email List

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Introduction

Building an active and engaged email list should be a top priority of every website owner. But how do you do it?  When it comes to email list building, there are several tools out there that can help you do this. We’ve analyzed the top 12 and how you can use them.

Never underestimate the power of building an engaged email list. This list will be the first to receive special offers, blog posts, webinar invitations, new product launches. They will be loyal fans, brand advocates and therefore highly likely to convert.

If you’re actively sending traffic to your website it could be argued that this is of little value if they aren’t transacting with you or at least giving you their contact information.

From pop-up customizers, to lead magnets and even marketing automation software, it’s never been easier to quickly build an email list.

You just need the right tools to do so. Here are our top picks.

Why You Need To Build Your Email List

With over 3.9 billion daily email users registered and 47% of marketers stating that email marketing is their most effective marketing channel, it’s obvious that email list building is now an essential requirement for any modern business.

In a study by DMA, they found that 91% of marketers rated email marketing as an important part of their marketing strategy.

By actively building your email list you’re building an audience that wants to find out more about you and stay up to date with your latest offers and news. These are essentially “warm” leads that have a much better chance of converting than a brand new click from a Paid Search ad.

When you build your email list you’ll be able to consistently find new leads, nurture prospects, and eventually convert visitors to customers.  

While building an audience on Facebook or LinkedIn is a quick way to get in front of potential customers you’re essentially “renting” the audience. But by building your email list they are yours and can become one of your greatest fixed assets.

This is because email marketing is one of the best ways to nurture an engaged audience. This engagement is what boosts business revenue through increasing customer lifetime value. 

Research shows that for every $1 spent on email marketing, expect an average return of $42. This is the highest return on investment for any digital marketing channel.

Added to this, further research has shown that almost 50% of customers actually want to hear from their favorite brands every week.

So to summarise:

  1. Building an email list gives you an engaged audience that’s fixed. They will always be there ready to receive product updates and special offers.
  2. They do want to hear from you
  3. You will likely get a positive ROI on email marketing activity

So the next question is, how do you go about building your email list?

Give Them a Reason to Sign Up & Stick Around

If you’re a well-established brand customers may willingly sign up to get the latest news and offers from your brand. If you’re a smaller business you may need to incentivize them a little bit.

It’s important to show visitors a reason to sign up, and this could come in many forms. Research from GetApp has shown that 22% of newsletter subscribers do so to get deals or special offers, 21.4% to get news updates and  21% do so to get interesting articles or content.

Offering discounts to new subscribers is a common way of incentivizing visitors to sign up for your newsletter. And it works.

We recently ran this type of campaign for our client Daily Steals which resulted in a 28% uplift in lead capture.

It will be important to decide on what incentive you want to offer before you start creating your list building strategy. But you’re not done there.

Once you’ve given them a reason to sign up, you need to consistently give them reasons to stick around. This is where nurturing your audience so it’s as engaged as possible is vital.

Statistics show that out of 14.5 billion emails sent per day, 45% of those are spam emails and further data suggests 73% of all emails are unwanted promotions for sales or products. 

Added to this in 2019 Americans were estimated to have lost around $703,000 by falling victim to email scams. So, when you do start collecting emails make sure you do it in a compliant way and adhere to any legislation such as GDPR.

You don’t want to be sending emails to people who don’t want them, or that are completely irrelevant to their needs.

So once they are in your database what are the next steps? Do you have a welcome email sequence set up? Do they go into a specific segment purely for offers? Do you introduce other product categories they may be interested in?

Having these next steps laid out will make sure you’re on the path to an engaged audience.

Once you have your strategy nailed down you’re going to need a tool to help implement it effectively and help you grow your email list.

16 Of The Best Email List Building Tools

If you’re a budding entrepreneur or business owner it can be hard to know which list building tool to choose from with so many available. 

We’ve comprised a list of our best-rated list building tools and an overview of their features to help narrow down the selection when it comes to growing your email list.

Yieldify

Lead capture is one of our core product offerings, and we consistently get our clients more signups, grow their customer database and revenue.

Yieldify offers on-site behavior segmentation that allows you to gauge customer intent for optimal levels of engagement. 

Whether your message is a discount code, your unique value proposition, or value-added services, it triggers at the perfect time to deliver a high impact.

As a fully managed service, our team will lay out a complete email list building strategy for you. A team of designers will also ensure you have an eye-catching sign up that sticks to your brand guidelines.

Some of our results:

Email Marketing Software

Mailchimp

It’s estimated that on average, out of 306 billion emails sent a day, 1 billion of those are sent using Mailchimp. It’s an impressive stat for an equally impressive platform.

Mailchimp contains many different features that make growing your email list easy. 

Mailchimp allows for complete customization and personalization of the emails you send to subscribers and has easy segmentation features that mean users can be categorized into relevant campaigns based on their behavior. 

Crucially though it features integration with WooCommerce and other eCommerce platforms. 

The plugin allows you to create targeted landing pages, overlay popups, and embedded sign up forms within your eCommerce platform and automatically integrates the designs with the brand theme. 

Mailchimp even optimizes all of its user-created landing pages, popups, and sign up forms to be of the highest quality to maximize conversions, and pre-personalizes the emails in advance once the email addresses have been captured. 

Klaviyo

Klaviyo is an email service provider with a focus on marketing automation and is a tool specifically designed for eCommerce businesses.

Klaviyo also offers A/B testing tools as well as segmentation that groups users by their behavior, open or bounce rates, and even their demographics like age or location.

Due to Klaviyo being designed with eCommerce and online business in mind, it also seamlessly integrates with Facebook to maximize social media marketing. 

Segments or email lists can be transferred into Facebook as pre-designed Custom Audiences. Once a Custom Audience is inputted it can be targeted on the platform with relevant adverts.

Segmentation was a key element for Yieldify when working with travel and transport website BusBud.

We identified that a substantial fraction of new visitors were not progressing past the top of the funnel. Off the back of this, we developed a strategy aimed at optimizing lead capture. This would allow Busbud to continue to engage abandoning visitors via email until they were ready to make a purchase.

Upon exit, new visitors were shown a lead capture overlay offering messaging that was hyper-personalized to that singular user. The message included route, price, and market appropriate translations, all triggered in real-time.

This strategy allowed us to increase BusBuds’ email marketing revenue by +40% and due to the personalized approach, we achieved +100% higher email open rates than the industry average.

Contents & Giveaways

Rafflecopter

Rafflecopter is a unique email list building tool that is entirely focused on the creation of contests and giveaways across your website, social media pages, and blogs. 

Giveaways work especially well in list-building strategies because users must either enter an email address to participate or enter one to claim their reward should they win. 

Rafflecopter contains features like custom theme designs, email list integrations, and abilities to track metrics such as the number of entries originating from social media networks. 

Whilst these are limited to paid accounts only, free accounts can still set up and run a giveaway which is a useful feature to determine whether that particular type of campaign would work for the business.

Landing Page Builders

LeadPages

Landing pages or squeeze pages are dedicated pages that place the reader’s entire focus on your email opt-in. However, to create landing or squeeze pages that convert and grow your email list, the pages must be correctly designed. 

LeadPages is a landing page and squeeze page builder that doubles up as a comprehensive list builder. 

Its emphasis on good user experience means it packs features like optimized UX templates, dynamic copy tools, offer overlays, and a checklist of tactics to include like the Fear of Missing Out (FOMO), and social proof.

As well as landing pages, there is the option to create opt-in forms designed for specific campaigns like loyalty programs or pre-sale notifications, as well as alert bars, and popups like welcome popups and exit-intent popups.

One of the best selling features of LeadPages is its ability to also supply detailed analytics reports which offer real-time conversion optimization tips.

Overlay & Pop Up Builders

Hello Bar

Another list building tool that can speed up the growth of an email list is Hello Bar. HelloBar is a popup tool that creates exit-intent popups, timed popups, and floating sign up bars.

Exit-intent pop-ups are especially important for retaining visitors who could be about to leave your site without converting. 

For eCommerce retailers, exit-intent popups recapture visitor engagement by offering value. Exclusive discounts, access to pre-sales, or free content giveaways like gift guides, meaning you can prevent abandonment and instead secure an email address.

Alongside deploying exit intent technology to correctly time popups, Hello Bar also recognizes the importance of great copy.

Even when offered value, visitors still need to engage with the messaging they’re greeted with. HelloBar takes this into account by giving users access to a team of dedicated copywriters who will review the website’s goals and suggest optimizations geared for high conversion rates.

Exit-intent popups helped Yieldify boost French home retailer M6 Boutique’s conversion rate by 13%. 

Yieldify targeted visitors predominantly on the cart page and triggered exit-intent popups when the visitor showed abandonment intent. 

The copy offered enticing free delivery carts with just one item and a singular delivery charge for carts with two or more items. This incentive helped reduce cart abandonment and increase conversions simply by offering value.

Thrive Leads

Thrive Leads is a list building tool that is designed primarily for integration with WordPress and WooCommerce.

In a single plugin, Thrive Leads collates multiple variations of signup forms. A drag and drop editor means that each form can be designed and optimized depending on the campaign that it relates to. 

Thrive Leads offers ten types of signup forms and alongside traditional options such as embedded and inline forms, Thrive Leads also provides Screen Filler Overlays, Content Locks, and Scroll Mats.

Overlay options such as Screen Filler Overlays, Content Locks, and Scroll Mats cover entire pages to remove distractions, focusing your visitors’ attention solely on acting like subscribing. You can view all the different options you have here.

Online retailers can deploy entire page overlays to encourage access to exclusive content like loyal customer programs or exclusive sales. 

To support the multiple signup forms, Thrive Leads also includes a dashboard that reports important metrics. This lets you track the performance of campaigns over time and subsequently identify where your most valuable traffic originates from.

Sumo

Sumo is a list building tool that prides itself on being exactly that. Sumo provides a variety of concise, effective list building popups. 

What makes Sumo unique from other list builders is the technology built into each type of popup. Its popups contain technology such as Smart Mode, a feature that detects when a user hovers the address bar and thus looks to be leaving. 

Smart Mode popups then recapture the abandoning visitors’ attention by overlaying the entire screen with a shaking animation. 

As well as Smart Mode popups, Sumo provides other nonintrusive options such as a scroll bar popup. Upon a visitor scrolling through a percentage of the page, a popup will appear in the bottom right corner. 

This form of popup works at its optimum when coupled with pages containing engaging content, or that can help identify user intent. 

For example, a user scrolling through a seasonal fashion trends guide is displaying clear user intent that they are interested in owning a seasonal piece. In this scenario, a scroll bar email capture popup with a CTA offering to be informed once a presale begins, or to be sent personalized recommendations could provide an easy and effective email capture.

Quiz & Survey Builders

Interactive content may not seem like one of the most essential list building tools, but it truly is underrated when it comes to lead generation.

Interactive content allows for effective engagement with your audience. Opportunities to share competitions, giveaways, and contests on social media platforms can result in more subscribers – especially if the interactive content is gated to require an email address before entering.

Typeform

Typeform is a web-based platform you can use to create anything from surveys to apps, without needing to write a single line of code. It helps make collecting and sharing information comfortable and conversational. 

Typeform will allow you to create engaging quizzes and surveys for website visitors that can be used for email capture.

Typeform also integrates with popular email marketing software such as Klaviyo, ConstantContact, MailChimp, and more.

Outgrow

Outgrow is a content creation tool that allows you to make contests, surveys, giveaways, and quizzes. These can be customized to almost any brand and campaign.

Interactive content like quizzes and calculators can help eCommerce retailers with their personalization strategies. 

For example, by creating a quiz that matches a visitor with their best-suited fall look, retailers can then implement a signup feature to be notified of outfits or products the visitor would be interested in.

Other worthy mentions

SignUpAnywhere

Whilst building your email list using your website visitors will always be important there are offline methods that shouldn’t be overlooked. One of which is QR codes.

SignUpAnywhere allows you to easily create simple and engaging forms that can be accessed from QR codes.

These QR codes could be placed in-store, on menus, in magazines, or in any form of print advertisement. 

SignUpAnywhere will allow you to easily export this data into a spreadsheet or if you use MailChimp or Campaign Monitor data can be sent automatically to your account.

ChatBots

ChatBots also present another way to build your email list. You’ll still have to come up with a strategy here that takes into account timing and the incentive used.

However, as your visitor is already actively engaged with you in chat you have a slight advantage here as you may know what they are looking for.

In the example below electric bike builder COWBOY uses a chatbot to ask the user for their email once it knows that they are interested in the brand and when their bikes will become available in their city.

In Summary:

To summarise, email list building tools are necessary for growing eCommerce email subscribers.

The right tools enable retailers to engage with their visitors, driving and converting new business.

Enticing new subscribers couldn’t be easier with easy, incentivized sign up opportunities. 

Overlays, pop up and sign up forms can all display the right messaging to the right people at the right time, effectively growing your email list.

Holiday Marketing Statistics: 5 Takeaways from 2020

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Find out the key holiday marketing statistics from peak season 2020 and discover our top tips to beat the Q1 slump.

2020 was truly a year for change, especially when it came to the eCommerce sector.

With COVID-19 acting as a strong catalyst for growth, retailers witnessed website traffic and consumer demand reach unparalleled levels. This was amid a monumental shift in shopping behavior as the world’s population became locked down at home in a bid to control the coronavirus.

With this in mind, we felt it fair to assume that peak season was likely to be one for the record books. So, in October Yieldify commissioned a research study, gathering opinions from 400 eCommerce leaders and 2000 consumers* to predict what might happen in the coming holiday season.

In this blog post, we’ll explore how those predictions matched up to reality. Starting with the top 5 holiday marketing statistics and takeaways:

1. Despite an uptick in website traffic to eCommerce stores, conversions decreased by 2% year-on-year. Thus, underlining the crucial need to deploy conversion rate optimization tactics. (Data source: Yieldify)

2. Consumers continued new exploratory shopping habits. 58% of Cyber Weekend purchases were made by new visitors vs the 29% predicted, which presents a retention challenge to retailers post-holiday season. (Data source: Klaviyo)

3. Higher consideration was given to online purchases this year, averaging 6.3 online sessions vs 5 in 2019. With more touchpoints to contend with, customer journey mapping will be more relevant than ever. (Data source: Yieldify)

4. Discounts declined in value and popularity in 2020 with 5% fewer emails featuring discount-related subject lines and 30-39% discounts yielding the most consumer interest. Proving that marginal sacrifice, while effective, is not critical to success. (Data source: Yieldify & Klaviyo)

5. Finally, email marketing proved a crucial channel for Cyber Weekend. Over 165 million emails were sent on Black Friday alone, which were directly responsible for 537,000 orders placed. This adds emphasis to having an effective lead capture strategy all year round. (Data source: Klaviyo)

A season of higher clicks but lower conversions

In line with all expectations, consumers hit eCommerce websites hard over the holiday season and sales skyrocketed.

According to an analysis by Digital Commerce 360, for the five days beginning Thanksgiving Day through to the following Monday, also known as “Cyber 5,” traffic rose by 26.4% versus 2019. This caused a 35.7% uplift in online site visits versus 2019 when looking across November and December as a whole.
However, amid this onslaught of new visitors came high competition between brands. Visitors approached purchases with higher consideration, and securing conversions took an average of 6.3 sessions versus 5 in 2019.

So yes, opportunities were rife to significantly increase revenue. But this placed retailers under intense pressure to make outstanding first impressions with their new audience or risk abandonment.

Overall, eCommerce websites saw a 2% decrease in conversions, suggesting that not every onsite customer journey was up to the task.

The holiday marketing tactics that did work

While it’s true that overall conversions decreased, there were a whole host of tactics that eCommerce retailers deployed successfully.

In fact, the results for 2020 further highlighted the importance of having the right marketing tactics and conversion rate optimization strategy working together. It’s clear that success simply cannot be guaranteed from sheer acquisition alone.

Back in October, our predictions showed that marketers placed high importance on email and website personalization to drive conversions. Now let’s take a deeper dive into how these tactics worked out for brands during the holiday season.

Email marketing

Over Cyber Weekend, email activity for eCommerce brands was off the charts. Record volumes of emails were sent to consumers and Black Friday proved the most popular. Klaviyo emails hit over 165 million inboxes in a single day.

And the result? Just short of 5 million orders were placed during October and November. All of which can be directly attributed to those emails sent.

Klaviyo’s client, Angel Jackets, echoed this sentiment. They saw great success from their ‘step into the New Year in Style’ email campaign.

“Email marketing worked out great for us. We use Klaviyo for email promotion. We sent a year-end email to our customers and mentioned – step into the New Year in Style. Not only the sales were good, but the click rate was also above expected.”

Syed Ali, Angel Jackets

Top tip for Q1: Make money while you sleep by using marketing automation for welcome emails, abandoned cart reminders, and more. Then, hone your approach through A/B testing, experimenting with different content, subject lines, or timing of emails in a series.

Website personalization

On the Yieldify side, we implemented a whole host of holiday eCommerce CRO strategies for our client base. These ranged from list building strategies, wishlist campaigns, social proof, gift guides, and checkout reminders.

One particularly effective way we saw retailers driving urgency and in-session conversions was utilizing countdown timers.

This worked because many holiday visitors were shopping with a date in mind and were mindful of delivery delays as a result of COVID. This made counting down to delivery deadlines an incredibly effective tactic to nudge procrastinating gifters to convert.

By targeting users that had an item in their basket with a campaign visual such as the above, conversions increased by 8.5% on average.

Top tip for Q1: Effective conversion rate optimization (CRO) depends on segmenting and targeting accurately. Use behavioral segmentation to combine dozens of attributes to effectively launch messages that move your user towards conversion.

Getting more juice from the squeeze of each customer interaction

Simply put, the post-purchase experience is arguably just as important as the initial conversion. This is the key opportunity for brands to capitalize on that initial success, encourage repeat purchases, and drive higher customer lifetime value (CLV).

While 42% of Cyber Weekend purchases were made by repeat buyers, a huge 58% were made by first-time visitors. This presents a challenge post-holiday season of turning those visitors into long-term loyal customers who, according to Barilliance, are:

  1. 65.2% more likely to add an item to cart than a first-time visitor;
  2. 73.7% more likely to convert than first-time visitors;
  3. Projected to spend 16.2% more per transaction.

A tactic that we saw used successfully to do this was triggering campaign messaging on the confirmation screen as shown in the below example:

By targeting users at the very last point of the purchase journey, retailers could encourage repeat purchases while still in-session.

The ultimate goal here is to dissuade the customer from leaving your website for as long as possible by capturing their interest at the exact moment where you have the customer’s full attention.

On average, 4% of users converted a second time, while still in-session, when shown a variation of the above message.

But what about AOV?

When you consider that the average order value for eCommerce retailers decreased by $7 across the holiday season 2020 – a boost of 16.2% from returning visitors sounds particularly enticing.

And increasing AOV for both new and returning users can be as simple as featuring a progress bar.

Progress bars are a great way to help shoppers track their acquired offers, and encourage them to continue spending more to get more.

Brands that deployed this tiered tactic not only increased AOV but also saw uplifts in conversions. Thus, making it a perfect tactic to bring through to Q1 strategies.

Top tip for Q1: Lifetime value might center around what a customer does on your website, but making sure that they return is half the challenge. Use email Remarketing to send smart, behaviorally-determined cart abandonment emails to ensure that you’re always front of mind.

Have we witnessed the death of the discount?

Following on from the tactics that worked, next, let’s look at the effectiveness of the messaging used – specifically discounts.

In our peak season analysis, we predicted that approximately 30% fewer brands would be offering discounts.

And for those that did, the discount amount was projected to be less than in previous years. The most popular discount levels for 2020 came in at 11-20% and 21-30% off.

Peak season 2020 discount statistics

These assumptions were supported by a post-holiday analysis of the email subject lines sent through Klaviyo during peak season.

While discount messaging was still popular, 5% fewer discount-orientated emails were sent. Also, across October and November, the percentage of non-discount focused subject lines came in at 69.8% and 63.8% respectively.

But did this Scrooge-like take on discounts pay off?

According to our latest data insights, yes!

Looking at the average click-through rate and average incremental click sales uplift, it is clear that offering 30-39% was the sweet spot to hit. This was far less than the stereotypical 70-80% off headlines seen in previous years. In fact, interest steeply fell when retailers offered 40% off or more.

As we move into Q1, more and more brands are starting to move away from margin giveaways, and with consumer demand remaining strong for eCommerce it’s hardly a surprise.

But what other incentives can retailers use?

Ultimately the answer to this will vary from brand to brand and the challenge is to experiment until you find the one that works best for your audience.

In the below example of our client, female fashion retailer Petal & Pup, incentivize visitors to share their email address in exchange for email alerts of new arrivals.

Petal & Pup case study

With 100’s of new styles being added to the website every week and the nature of fast fashion, where items sell-out exceptionally quickly, this messaging is spot on for their audience.

In just three months, Petal & Pup achieved a 116% increase in leads captured per week. Thus, supercharging new customer acquisition to fuel future email engagement. 

Another solution for avoiding margin sacrifice unless absolutely necessary is switching up the exact time at which discounts are being presented. For example, try running tests across different points of the customer journey such as upon exit intent or upon a certain number of sessions instead of upon entry. The results might just surprise you!

Top tip for Q1: Many eCommerce retailers deploy thresholds on their sites, encouraging users to spend a little more to unlock discounts or perks such as free delivery. The problem is that many users never see them. Use content personalization to bring these messages front-and-center at the ideal moment.

In conclusion

After reviewing our selection of holiday marketing statistics, the tried and tested solution to overcoming the Q1 slump is simple: Effective customer journey optimization that combines both website personalization and email marketing together with one clear goal – revenue.

With visitors spending more sessions on-site before converting, the number of touchpoints has risen. To succeed, you need to optimize these touchpoints to encourage conversions, shorten the purchase cycle, and secure the all-important next sale. Ideally, without the need for a discount.

As the world continues to change throughout 2021, one thing is certain and that is that further change is coming for eCommerce retailers. Ultimately, it will be the retailers that can react to evolving consumer trends the fastest, with proven marketing strategies such as those we referenced, that will see the best results.

Happy 2021 everyone!

* 3 online surveys were conducted with a panel of potential respondents. The recruitment periods were 8th July 2019 to 31st July 2019 and 31st July 2020 to 21st August 2020. A total of 400 respondents completed the first two surveys. 200 respondents residing in the UK and 200 respondents residing in the US. Only senior marketers or eCommerce directors at retailers with an eCommerce presence were eligible to take part and complete the survey. A total of 2000 respondents completed the third survey1000 respondents residing in the UK and 200 respondents residing in the US. All questions within the survey were verified to be MRS compliant by a marketing research company specializing in online and mobile polling.

How To Create a Successful Ecommerce Sales Funnel + Tactics to Test Out

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Do you have a robust consumer-focused marketing model? What does your customer journey look like? Can you tell me about re-engagement paths?

Let’s set the jargon aside for a moment and think about jam instead. To make jam, you need fruit and a whole lot of sugar. You boil the sugar and the fruit together for a set amount of time, and then you pour the hot mixture through a funnel into sterilized jars, which you seal to secure your confection.

“I didn’t come here to learn to preserve raspberries!” I hear you, “How does this relate to ecommerce?”

The answer? It’s all in the funnel.

Your business is a Mason jar, and consumers are the jam. You need a sales funnel to bring them in, and we’re going to teach you how to create one. 

In this article, we’ll learn about:

  • The buyer’s journey.
  • Typical barriers to purchase.
  • The four main stages of a sales funnel.
  • How to optimize each part of your marketing model.

By the time you reach a conclusion, you’ll be a pipeline marketing maven. 

Let’s get started.

What Is an Ecommerce Sales Funnel?

Simply put, an ecommerce sales funnel is a visual representation of your customer journey. Consumers enter the top of the sales funnel and move down, stage by stage until they (hopefully) become repeat customers.

Some consumers slide through the funnel quickly, going from a lead to a fan in the blink of an eye — they see something they want; they buy that thing; they become a brand advocate. Other consumers navigate sales funnels like three-toed sloths, taking months or years to reach your checkout page.

So, which consumers do you target? The answer: both. If you craft your sales funnel carefully, it’ll act as an effective conduit for quick decision-makers and procrastinators.

Every business has a unique sales funnel — but basic pipeline anatomy stays the same across the board. If you sell low-cost items (for example beauty products, apparel, toys, or pet products), your sales funnel will probably be fairly short. Why? Because the cost won’t be such a barrier to purchase. Using the same logic, if you’re in the luxury market (high-end watches, expensive jewelry, cutting-edge tech, or vehicles), your sales funnel will likely be longer.

Do You Need a Sales Funnel for Your Online Store?

In short, yes — you absolutely need a sales funnel for your online store. 

Winners keep score, and successful businesses invariably think about where their customers come from. A well-planned sales funnel can help you drive traffic to your site, improve your conversion ratio, build your customer base, and grow brand awareness.

You need data to build a funnel. Before you begin, think about where your leads usually come from. Do people interact with your company on social media? Can you capture consumers via Facebook or Twitter ads? If you figure out where your potential customers “live,” you can target them appropriately and usher them into the top of your pipeline.

4 Stages of an Ecommerce Sales Funnel

We mentioned sales funnel structure earlier. Now we’ll look at four main funnel components, and then we’ll talk about tactics you can use to optimize your marketing strategy.

1. Awareness stage.

Consumers in the awareness stage are brand new on the scene. They found out about your company via Google (this is where SEO tactics pay off), or a paid Facebook ad, or an influencer. Are you a legitimate company, or are you running a scam? Do you sell a product they might like? Do they have a problem you can fix? These folks don’t know yet.

You need to make a great first impression — and fast. You need to educate these folks about your business and favorably position your brand. Think of yourself as a gardener: this is the seed-planting phase of your marketing plan.

Tactics to try out:

Use social media: Social media sites aren’t particularly effective ecommerce sales platforms, but they’re fabulous places to find new leads. Sites like Facebook, Twitter, and Instagram offer two main marketing tools: paid ads and pages, or profiles. You can use both avenues to grow brand awareness and boost your business success.

In a recent survey by Blue Fountain Media, 90% of respondents said that social media helped them gain considerable exposure for their companies. Search engine rankings, brand reputation, inbound traffic, conversion rate, and brand loyalty all improved after social media marketing campaigns.

“Successful companies in social media function more like entertainment companies, publishers, or party planners than as traditional advertisers.” – Erik Qualman.

Create ranking blog content: Starting a new blog is a fantastic organic marketing strategy. You don’t need a massive advertising budget to create high-quality content — you need to find your unique brand voice. Consumers regularly subscribe to blogs they find interesting, and they share posts they find relatable. If you produce good content and position yourself as a thought leader, you’ll naturally drive traffic to your ecommerce site.

Blog posts make great advertorials, too. In a nutshell, advertorials are advertisements disguised as editorial content. They read like journalistic articles and blend in with host sites — magazines, blogs, online newspapers — where they explain expensive or complicated products. Successful ecommerce companies often use affiliate blogs as advertorial hosts.


Create look-alike audiences for Facebook ads: When it comes to marketing, big data is your friend. Imagine marketing your product to 100,000 clones of your best current customer. Science fiction? Actually, no. Facebook Lookalike Audiences make it easy to find people whose characteristics match your existing consumer base.
Facebook Lookalike Audiences are easy to set up.

You begin with a source audience — a custom group you create with page fan, pixel, or mobile app data. Facebook AI analyzes that source audience and then delivers your Facebook ad to a brand new similar audience. Hello, increased conversion rate.

2. Consideration stage.

By the time they reach this juncture, consumers know who you are and what you sell. 
They’ve identified a need — a “pain point” — and they’re looking for solutions. They begin to think about buying your product. They might decide to subscribe to the RSS feed on your blog or your newsletter. If you offer a paid content upgrade, you’ll see an uptick in interest at the consideration stage.


This is the mid-funnel phase. You have to work a little harder to get results — a call to action won’t cut it here — but you’re one step closer to checkout. You need to show these people customer testimonials, curated product descriptions, and other compelling content.

Tactics to try out:

Utilize social proof: What is social proof? It’s essentially peer pressure wrapped up in a tasteful bow. Tooting your own horn is one thing, but when real consumers praise your product, you gain genuine street cred. Trustpilot or Google reviews, on-site testimonials, and social media comments are all forms of social proof. 


For best results, display as much positive social proof as you can on each product page. Respond to complaints and tackle customer service issues promptly to build a good reputation. The more successful you look, the more successful you’ll become.

“When people feel insecure about something, they look around for validation. Show them that other people trust you.” – Francisco Rosales.

Optimize product pages: Great product pages drive conversions. According to a recent study by ecommerce experience platform Salsify, consumers across the board expect to see at least six good-quality images and two videos per product. Use crisp, clear, professional-looking images, and make sure they’re optimized for online use so that they load quickly.

To bump up your SEO strategy, write unique product descriptions — and make them interesting and relatable. Begin sentences with action words; tell readers how your products will improve their lives. 


If applicable, use drop-down lists and radio buttons to make customization intuitive. Make essential information (dimensions, shipping costs, etc) easy to find, and end with an enticing call to action (CTA

3. Purchase stage.

Consumers in purchase limbo want to buy — but they’re not 100% convinced they want to buy from you. Not yet, anyway. 

Your job at this stage is to make the decision as easy as possible for them. You need to prove that you’re better than the competition: you offer better products, or better shipping options, or better aftercare, or better prices.

Try adding an exit-intent popup to your page. These clever little ads appear when consumers try to leave your site: offer a discount, free shipping, or a time-limited bundle proposal to give your conversion rate a lift.

Tactics to try out:

Reduce checkout friction: Evaluate your checkout process. Is it frictionless? Are there nasty surprises lurking in the shadows? A 2019 survey by the Baymard Institute found that half of the customers abandoned their shopping carts because of unexpected shipping fees and other unplanned expenses. A further 21% left because they found the checkout process too long and complex.

Nix hidden postage costs, enable an easy-to-navigate payment gateway, and, if you can, offer a variety of alternative payment options — PayPal, Apple Pay, Klarna, and cryptocurrency. Encourage account creation at this stage, too. Eliminate as many form fields as possible, and only ask for essential information. 

If visitors don’t complete checkout, send them abandoned cart emails enhanced with coupon codes.

4. Retention stage.

Your sales funnel doesn’t end with a customer’s first purchase. Repeat customers are an invaluable part of ecommerce success — after all, it’s much cheaper and easier to retain a customer than to attract a new one. This vital, final part of the marketing pipeline keeps your consumer base coming back time and again.

Points-based loyalty programs, value-driven client accounts, subscriber-only special offers, and periodic customer retention email series all help maintain a healthy connection. If you run a larger company, consider using a customer relationship management (CRM) platform to nurture rapport.

“Loyal customers — they don’t just come back, they don’t simply recommend you: they insist that their friends do business with you.” – Chip Bell.

Tactics to try out:

Implement cross-sells and upsells: Don’t be afraid to use personalized email marketing to offer existing customers upsells, cross-sells, and add-ons. You can use your subscribers’ purchase histories to hone product recommendations, reach out, and ask for feedback. Many big-name brands send follow-up emails every 30 days — not too often, but not too infrequently, either.

Many popular SaaS ecommerce platforms support loyalty plugins. To get started, simply install the app, tailor your loyalty program, and promote it as much as possible. Many ecommerce retailers also create referral programs.

Best Practices for Your Ecommerce Sales Funnel

Let’s end this guide with a sales channel strategy best practice recap. Implementing these tips will help you maximize conversions on your site:

  • Make sure your navigation is easy to follow: Create easy-to-use menus that take customers where they want to go. Optimize your site search to help visitors find the products they’re looking for.
  • Make it easy to buy: Streamline your checkout, eradicate unexpected shipping expenses, and offer consumers multiple payment options (PayPal, Apple Pay, Klarna, and cards).
  • Remove hesitation: Erase as many barriers to purchase as possible. Offer free shipping and free returns, answer presale questions with a chatbot, and display security badges in a prominent location.

Wrapping Up

To create an effective sales funnel, you have to understand how each part of the buyer’s journey works — and why. A well-planned marketing pipeline can help you gain new leads, retain existing customers, and build brand awareness for a brighter future in ecommerce.

Business intelligence tools and analytics can help you understand which marketing tactics are the most successful for building a strong sales funnel. 

How to Create Squeeze Pages That Convert with 5 Real-World Examples

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If growing your email database is top of the agenda for 2021, you need to start utilizing squeeze pages.

These particular type of landing pages are a great way to quickly build your email list in conjunction with other list growth solutions 

If you’re completely new to squeeze pages, then this guide is perfect for you! We detail everything you there is to know about squeeze pages and look at some of the best examples from leading eCommerce brands, including PlayStation, Karen Millen, Subway, and others. 

We will cover:

1. What is a squeeze page
– Squeeze page vs. landing page
– Squeeze page benefits
2. Real-world examples of eCommerce squeeze pages
3. Squeeze page design best practices
4. Best squeeze page builders

What is a squeeze page?

A squeeze page is a type of webpage that is used solely to collect contact data from website visitors. The page “squeezes” information, such as email address or phone number, by offering a single conversion action.

In order to persuade visitors to share their personal data, squeeze pages often feature some type of incentive: A special offer, discount, access to exclusive content or community.

Squeeze page vs landing page: What’s the difference? 

In a nutshell, a squeeze page is a stripped-down version of a landing page. But it also serves a slightly different purpose:

  • A landing page is created to inform and can feature several conversion actions, eg: email opt-in, content download, product purchase, etc.
  • A squeeze page is created solely to generate email or SMS opt-ins.

Now, that doesn’t mean that a squeeze page equals a signup form. These pages still feature the typical elements of a landing page, such as heading, value proposition, social proof, etc.

What squeeze pages don’t usually offer is deeper navigation into the rest of the website. In other words, when you land on a squeeze page you have only two options: To convert or to exit. On a typical landing page, you’re allowed and even encouraged to navigate to other pages, including the website’s homepage.

Here’s a typical landing page layout:

Squeeze page vs landing page

Compare it to a typical squeeze page design: The latter contains a single call-to-action, does not offer deeper navigation, and puts all the focus on getting that email opt-in.

Squeeze page vs landing page

Do squeeze pages really work?

You may be wondering: But why wouldn’t I want to restrict visitors from navigating to other parts of my website?

The simple answer is that by eliminating distractions, such as links to other pages, you force the visitor to focus on the message and offer that’s in front of them right now.

As a business, of course, you need to make a conscious decision when to use squeeze pages and when are you better off with a typical landing page. The usage really depends on your campaign goals.

One such example could be a fashion brand that’s running a PPC campaign to draw attention to its newly launched newsletter. A typical landing page can feature the opt-in form, but it will also have lots of other distractions. So you’ll be better off optimizing the post-click experience to include a single conversion action: Get people subscribed to your newsletter.

Squeeze page example

Another scenario would be a wine merchant offering a free wine tasting guide as a download on their website. The download can surely be initiated via a single signup form or an email capture overlay, but chances are you need a bit more space to explain the value of downloading this free guide.

A squeeze page here serves the purpose of providing more details about the guide, and also effectively squeezing the desired information, i.e. email address, from the visitor.

Squeeze page example

5 real-world examples of eCommerce squeeze pages

Now that we’ve covered some theoretical scenarios for when squeeze pages can benefit eCommerce, let’s take a look at real-world examples. The below come from a variety of eCommerce brands: From beauty to fashion to electronics.

Malin+Goetz

As part of its Black Friday marketing strategy, beauty brand Malin+Goetz ran a giveaway campaign enticing people to “play their cards right,” or, in other words, unlock prizes by joining the brand’s mailing list. The prizes ranged from £5 off your next order to miniature samples.

Squeeze page example - Malin+Goetz

The campaign was effectively promoted via multiple channels, from social media to email. It featured a responsive squeeze page that rendered well and was easy to use both on desktop and mobile.

Squeeze page example - Malin+Goetz

Once the visitor has chosen their card and unlocked their prize, Malin+Goetz also sent a reminder email containing a unique code to redeem the prize. The email naturally includes a nudge to start shopping for the holidays with links to their best offers.

Notice how cohesive this entire campaign is across channels and devices. It’s simple yet effective, because the visual identity and the messaging stays embedded in the consumer’s mind.

Key takeaway from Malin+Goetz: Keep your squeeze page design cohesive with other assets, and copywriting to-the-point.

Email marketing followup example

Karen Millen

Here’s another Black Friday example, only this time from the fashion industry.

A well-known retailer, Karen Millen, capitalized on the influx of peak season traffic by creating a squeeze page inviting people to sign up for Black Friday deals alerts and the possibility to win £500.

To add a sense of urgency and encourage users to sign up they have also added a live countdown timer to enforce the message of missing out. Again the design is simple with one email capture field.

Key takeaway from Karen Millen: Use interactive elements, such as countdown timers, to instill urgency.

Squeeze page example - Karen Millen

Sony PlayStation

The launch of PlayStation 5 was a highly coveted event in the gamer community. Recognizing the high demand, Sony created a way for people to “register their interest” in the new console ahead of its official launch.

Whilst the squeeze page design is rather bare bones, this is still an effective way to collect customer data with little to no friction. 

Key takeaway from PlayStation: Include enticing, high-quality imagery of your products.

Squeeze page example - Playstation

Shavekit

Shavekit utilized a couple of smart engagement tactics to get their website visitors to convert. Besides their simple and straightforward homepage, the brand also uses a browse abandonment overlay to stop people from leaving their website.

This particular overlay leads the user to a perfectly-crafted squeeze page.

Browse abandonment overlay example - Shavekit

Shavekit use bright and attention-grabbing imagery and feature the sign-up form above the fold where it gets the most eyeballs.

They also break down the unique selling points of their product into easily digestible bits. Even at a glance, the visitor is receiving all the information they need to know that could tempt them into subscribing.

To persuade visitors further, Shavekit also makes sure to include social proof from real-life customer reviews, supported by their social media handles. Plus, a quick FAQ section aims to remove additional signup barriers.

Key takeaway from Shavekit: Include social proof (reviews, testimonials, trust badges, etc.) to instill trust in your visitors and make it easier for them to convert.

Squeeze page example - Shavekit

Subway

Finally, let’s take a look at a squeeze page that is geared towards SMS opt-in.

Subway wants to keep their customers engaged with their latest offers, and to do so, they’ve created a simple squeeze page to get people to sign up to SMS notifications.

Starting with a high-impact hero image that clearly explains the offer, to a further incentive (6-inch sub for $2.99) down the line, Subway makes it clear for people to opt-in.

Key takeaway from Subway: Make sure you include links to your Privacy Policy and T&Cs in case visitors want to double-check that their data is going to be handled safely.

Squeeze page example - Subway SMS opt-in

How to design a high-impact squeeze page: Best practices 

To make your squeeze page is highly converting and correctly optimized, there are some best practices to follow. Ensure your squeeze page includes:

1. An enticing value proposition. If visitors don’t feel that they will benefit from your offer, they won’t engage. Make sure your squeeze page makes the value proposition clear and enticing. Keep the details concise so that they’re quick to understand, but try and include as many persuasive or unique selling points as possible. 

2. Social proof. Social proof can be included on squeeze pages to instill FOMO, or to reassure customers that the exchange is worth doing. Testimonials and reviews can be added that highlight happy customers’ feedback, as can social proof counters such as “X loyal members and counting,”, or “X people downloaded in the last 24 hours.”

3. Keep it brief. A squeeze page should only contain an encapsulating headline, three or four bullet points that highlight the benefits of your proposition, and a one or two field form designed to capture email addresses without distraction. Providing too much information and too many visuals can overload your visitors with information and be detrimental to your list building efforts.

5. Obvious CTA. Squeeze pages should contain no more than one call-to-action and it should be clear but also creative. You can opt for something simple like “Subscribe” but also for something a bit more whimsical, like “Join the VIPs.”

Best CTA strategies

3 tools to help you create squeeze pages faster

InstaPage: InstaPage is a dedicated landing and squeeze page builder offering over 100 already made and highly optimized page templates. Pages are easily created with a drag and drop builder and items such as buttons, headlines, images and videos, and different length forms can all be added.

ClickFunnels: ClickFunnels gives various funnel options optimized for lead capture, sales, event, and even membership funnels. However, most notably ClickFunnels includes a Squeeze Page Funnel option. This option collects visitors’ email address, then directs them to a further Thank You page when sign up is completed. The editor is drag and drop, so the pages are simple to create and can contain customizable elements like headlines, images, input forms, and video widgets.

PageWiz: PageWiz is designed to be a versatile page builder that allows for the easy creation of various marketing pages including lead capture pages and landing pages. The landing pages come with pre-installed A/B testing tools, which supply real-time stats to help you identify which pages are converting. PageWiz stands out from the crowd with its built-in lead management system. A section dedicated to leads compiles leads generated from your page, as well as sending them to your chosen email service provider. 

In conclusion 

Squeeze pages are useful list building tools that can help eCommerce retailers capture email addresses in a way that overlays and pop-ups cannot.  

Squeeze pages are versatile, meaning they can be deployed for a number of different campaigns. Merchants could set up a squeeze page to entice visitors to sign up for loyalty programs, just as travel agents could direct their audience to download supplementary guides.

Make sure the benefit of converting is clearly and concisely displayed, then ensure that you deliver on it once a visitor has entered their email address. Provided you offer something of value and you follow our tips, your squeeze page will elevate your conversions.

Content Personalization: 5 Examples to Jumpstart Your Strategy

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Content personalization for eCommerce

80% of consumers say they are more likely to shop with brands that provide a personalized experience. So how do you get started with content personalization and what are some good examples for eCommerce? Read our blog to find out…

There has been explosive growth in eCommerce in recent years, with total eCommerce sales projected to reach 19.2% by 2024, a near 10% jump from 2018. However, this rosy picture is not without its thorns.

Mobile connectivity, while a godsend for consumers, can be a real challenge for retailers trying to meet – and exceed – customer expectations.

Take a look at the picture below… Not so long ago, the dissatisfaction from receiving an order like this would’ve ended with a couple of disgruntled remarks to the restaurant employee. Today it’s a whole different story: A Tweet sent out to hundreds of followers, a negative Yelp or Google review, a scathing article in some pop media outlet, or even a petition (yes, those happen!) can appear within seconds and tarnish the brand reputation for years to come.

Managing customer expectations | Yieldify

In fact, according to Salesforce research, 67% of respondents said their standards for good experiences are higher than ever. Modern consumers expect consistency, immediate and responsive service, but above all – personalization.

In the same survey, 84% of customers said being treated like a person, not a number, is very important to winning their business. A successful online store today must not only curate high-demand products or services but also provide tailored shopping experiences and personalized content.

Let’s dive deeper into content personalization and learn from practical eCommerce examples that are leading the way in personalization.

What is content personalization?

In a nutshell, content personalization is the process of tailoring content that is visible to the customer based on their profile or preferences.

To illustrate with a basic practical example, imagine landing on an international website and having the content displayed in your native language. Ultimately, a well-crafted content personalization strategy means two friends could be looking at the same website and see different information.

There are a variety of ways to implement content personalization on your website, but they usually come down to customizing based on the following types of data:

  • Demographic datademographic data includes factors such as age, gender, race, education, employment and income information, marriage status, etc. Knowing this eCommerce businesses can show different promotional offers to single parents vs retiring couples.
  • Contextual data – Gartner defines contextual data as “any relevant facts from the environment.” When talking about content personalization, this can mean things like device or browser that is used, geographic location and weather conditions, social media interactions, etc. 
  • Behavioral databehavioral data refers to the information gathered from the activity on the website and is usually related to purchasing and usage behavior, occasion and timing, benefits-sought, loyalty, etc.
Content personalization - Customer data types

Customization vs personalization

Slightly different but often mixed into the same pot with personalization is customization. Customization is different from personalization in that customization is actively done by the user (think of actions like filtering or sorting on a results page), whereas personalization happens to the user based on rules predetermined by the business.

Think of it this way: You adjusting your screen brightness at night is customization. Your smartphone automatically recognizing the time of day and setting your screen to night mode is personalization.

The two are interconnected, however. A customer who’s always choosing to filter items by Low-High price might be categorized as price-sensitive and thus shown different personalized content than someone who filters the other way around.

Here’s an example from Bombinate, an online store for highly curated menswear clothing, furniture, and interior decor sourced from European craftsmen.

Content personalization example - Bombinate

The brand is aware that it attracts various audiences and not all offers will be equally relevant. While on their website people can navigate to chosen categories themselves, it could pose a challenge to personalize communications via other channels, such as email. Bombinate found a solution.

When you sign up, you get to choose your email preferences to tell Bombinate whether you’re interested in home and furniture, men’s fashion, or both. You can also set the frequency of emails so you get content that you want and when you want it.

You’ve explicitly customized the marketing communications that you receive from the company, but the company also gets to personalize their messaging based on this explicit data.

Why is content personalization important?

We’ve already established that consumers expect personalization as part of their shopping experience. But it’s important to understand that this need is not self-inflicted.

On the contrary, online consumers are targeted by a neverending stream of promotional messages, which makes the process of shopping rather overwhelming. Studies have shown that having too much choice can be a turn off to shoppers. The term “overchoice” or choice overload, coined by Alvin Toffler in his 1970 book Future Shock, describes how people can experience cognitive impairment when presented with too many options

According to the Kellogg School of Management, one way to combat choice overload is to help customers narrow their options based on their preferences. People like the idea of hundreds of options but only want to be presented with the best and most relevant to their needs when it comes to decision-making. Personalizing the content on your site is the only real way to accomplish that consistently.

“Choice overload can leave you dissatisfied with the choice you made, what is often described as ‘buyer’s remorse.’ Or it can even lead to behavioral paralysis, which Bockenholt explains as a situation ‘where people are faced with so many choices that they can’t decide among them and make no choice at all.'”

Ulf Bockenholt, professor of marketing at Kellogg

Here’s a good example for financial services. A study performed by Columbia University Business School professor Sheena Iyengar featured 800,000 employees across 647 companies who were offered retirement packages that had either two options, or 59 options. When offered two options, there was 75% participation, with 59 options participation dropped to 60%.

This goes on to show that personalization matters on both the experience and conversion level. According to Yieldify’s “research into personalization trends post-COVID-19, these are the main motivators to pursue a website personalization strategy:

Website personalization motivators

I’m a small eCommerce business – should I pursue personalization?

The short answer is yes. The long answer is… YESSS! Kidding.

First, let’s reiterate the fact that eCommerce has experienced 10 years’ worth of growth in only three months following the COVID-19 outburst. What this means, in plain terms, is that there’s more choice and more competition than ever before.

So if before you might’ve been the only online retailer selling freshly roasted coffee beans to coffeeholic in your area, chances are you aren’t anymore.

What’s more, you mustn’t delude yourself that you’re only competing with other coffee roasters in your area. Globalization means that shoppers can have their coffee shipped from almost anywhere else in the world in a matter of days. And don’t forget about replacement competitors, such as energy drinks, caffeine tablets, concentrates, et al.

Direct and indirect competition explainer

7 inspiring content personalization examples for eCommerce

1. Aveda 

Aveda is a popular beauty brand with a significant online presence. One of the key things in providing a good user experience for Aveda is to match their products to specific concerns that a customer might have.

However, problems arise when even the customers themselves don’t really know what those concerns are. Is my skin dry or dehydrated? Do I have scalp irritation or is normal to have itchiness here and there? In the store, this would be as easy as having a consultant take a look and decide what’s what. But online it’s a whole different story…

To prevent customers from buying the wrong product or abandoning the site altogether after not being able to find a suitable solution, Aveda has been creating a series of interactive quizzes, such as their Hair & Scalp Check.

Content personalization example - Aveda

The quiz asks 10 questions about things such as hair texture, problem areas, and desired results. Then, the algorithm cross-references your answer with 4 million possible combinations and spits out personalized product recommendations, salon treatments, as well as personalized how-to content.

Aveda proceeds to invite users to save their results by creating an account on their page and promising to “make your dream” towards having dream hair that you’ve fantasized in the quiz a reality.

Content personalization example - Aveda

2. Petal & Pup

Petal & Pup is an online fashion brand that despite its small team and limited resources were able to deploy multiple personalization solutions on their eCommerce website.

By simply landing on their homepage, you can immediately notice some personalization tactics in place. For example, Petal & Pup offer website visitors to search their website by using voice control. This is particularly helpful if a lot of their visitors are using mobile devices, or if the brand has intel that their shoppers prefer to do it this way.

Another easy-win personalization tactic is currency. Petal & Pup have offices in Los Angeles and Brisbane, however, they sell globally and their website is able to recognize a visitor coming from the United Kingdom. Displaying product prices in the visitor’s currency removes the unnecessary burden of having to calculate conversion and see whether they can afford the product or not.

Content personalization example - Petal & Pup

But Petal & Pup don’t stop there. Working with Yieldify they’ve deployed specific messaging for their loyal customers. To facilitate new conversions, the brand highlighted new arrivals based on their previous purchases. This tactic resulted in a 17% conversion rate uplift from returning customers.

Read the Petal & Pup case study to learn more!

Petal & Pup case study

3. Alo Moves

Alo Moves offers online yoga, fitness, and meditation classes, and is part of Alo Yoga, an online retailer of workout wear. The reason why Alo Moves deserves a spot on this list is because they’re exceptionally dedicated to content personalization.

First, every new Alo Moves’ user journey begins with an onboarding survey. This is where you can set your preferences, such as classes you’re interested in, your experience level, your goals, and even your favorite teaching style so that you’re matched up with the best possible instructor.

Content personalization example - Alo Moves

Once you’ve established your preferences, Alo Moves will go on to tailor their website content to match your choices. For example, this is what their homepage looks like to a logged-in user who’s expressed interest in yoga at the beginner-intermediate level:

  • Alo Moves recommends daily classes at beginner to medium difficulty.
  • Alo Moves reminds the user of classes they’ve started watching but haven’t finished.
  • Alo Moves understands that someone’s interest in yoga could mean they’re curious about meditation and mindfulness too.
  • They also recommend niche takes on yoga, like Hygge Yoga or Yoga for Golfers.
Content personalization example - Alo Moves

4. Adidas

Back in 2017, adidas made headlines by announcing the launch of their mobile app built around Salesforce technology to deliver personalized shopping experiences to their increasingly young customer database. The app was introduced as a means of achieving adidas’ 5-year goal to generate €4 billion from digital commerce by 2020.

The app is a replica of adidas’ online store but also has custom features like a news feed of personalized video content and articles, customized product recommendations, services chatbot, wishlist, curated gift guides, and more. The app is also supposed to get smarter and learn more about the user as they go:

“The app gets to know the consumer’s sport and style preferences and learns from his or her behavior and interaction with adidas across all our digital touchpoints.”

Joseph Godsey, Head of Digital Brand Commerce, adidas
Content personalization example - adidas

5. Rocksbox

Rocksbox is a a jewelry subscription service that offers highly curated pieces to its membership base. According to Chanel Li, VP of Business Operations at Rocksbox, “Every single item we recommend to our customer, every single physical piece we put into a customer’s hand, we’ve specifically picked out for that customer.”

Rocksbox operates based on shoppers building their style profiles. This is done via an online survey and browsing through the company’s extensive wish list to mark your favorite pieces. Then, Rocksbox stylists sift through all the data points and curate a personalized jewelry box.

Content personalization example - Rocksbox

Another nifty feature Rocksbox offers to stand out from the competition is wishlisting on social media apps. Once you connect your Instagram profile to your Rocksbox account, you can wishlist items directly on Instagram and the company’s algorithm will sync them to your profile.

This creates a seamless experience for the user. And the results speak for themselves – the #wishlist idea quadrupled the brand’s following on Instagram and the overall approach to personalization has led to an $8.7 million investment

Content personalization example - Rocksbox

Common personalization myths you need to ignore

So far we’ve established what content personalization is, why it matters to modern eCommerce businesses, and how some of the industry innovators are using content to personalize their shopping experiences.

Last step in our guide is to debunk some of the most common myths surrounding the personalization practice.

Myth: Personalization is not very effective

Truth: According to Epsilon, 80% of consumers are more likely to shop with brands that provide a personalized experience. Personalization has been proven to positively affect online user experience, which in return yields higher conversion rates, higher AOV, better retention, and CLV. You can see proof of that on our case studies page

Myth: Personalization is too invasive

Truth: Personalization can be too invasive, but it doesn’t have to be when done right. In fact, 83% of consumers in an Accenture study said they don’t mind giving away their personal information in order to receive a tailored experience. What’s important here is that businesses understand the value of that information, collect and store it complying with government regulations, and ultimately act upon it in a way that’s relevant to consumers.

Myth: Personalization ROI is impossible to measure

Truth: Personalization as a concept might be elusive, but its performance is highly trackable and measurable. To prove personalization success at Yieldify, we use incremental revenue reports that basically show how much more money you’ve generated thanks to deploying personalization strategies on your site.

Website personalization ROI | Yieldify

Myth: Personalization requires a big budget

Truth: The good thing about personalization is that it’s not a cookie-cutter marketing tactic. What works for one brand might not work for another. Same way, where some brands can invest millions to develop complex machine learning personalization solutions, others can achieve just as good an impact by deploying simple content personalization tactics like email sign up forms, exit-intent overlays, dynamic coupons, etc.

Myth: Personalization requires technical expertise

Truth: The level of technical expertise needed to execute a personalization strategy will really depend on how sophisticated you want to get, and also the personalization technology that you choose. For instance, if you go with self-service solutions, chances are you’ll need to summon some help from your website developers. However, with a fully-managed service like Yieldify, all your personalization tactics are done for you by their team of account managers, designers, technical engineers, and data analysts.

Website personalization solution - Book a Yieldify demo now!

How to Use Content to Drive eCommerce Sales: 5 Tried and True Techniques

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Ecommerce content marketing

Don’t let your content be drowned out by the competition. Here are five simple but effective techniques to create compelling eCommerce content that engages and converts your customers.

The internet has never been more important than it is now. The COVID-19 situation led to a massive increase in online sales, driving eCommerce platforms forward faster than ever: In three month’s time, U.S. eCommerce achieved 10 year’s worth of growth!

On the flip side, standing out from the competition has never been more important – or more difficult.

Ecommerce growth 2020 - The Quickening

Some 24 years later, content is still the reigning king when it comes to standing out in a saturated market. And with eCommerce getting more crowded than ever before, quality eCommerce content is what can help you cut through the competition and straight into customers’ hearts (and pockets).

Using personalized content in your sales cycle is an effective method to persuade prospects into converting, customers into returning, and loyalists into promoting your business through word of mouth

Keep reading, and you’ll find out what eCommerce content to create in order to drive more visitors to your website and effectively convert it into paying customers.

5 types of eCommerce content that boosts traffic and sales

1. Educational content

Educational content is arguably the most important type of eCommerce content your business can create. Why? Because it allows you to answer audience questions about your brand and products before they are even asked: Why is your product better than others? How much does it cost? What are the benefits it provides?

But before you can create good educational content, you have to figure out what your visitors want to know.

Search Engines such as Google or Bing can provide these answers in related search phrases or commonly asked questions sections that appear when you search for your target keyword.

Let’s say you type in a search query “button-down shirt” – the SERP will show related searches, such as “button-up shirt vs button-down shirt” and “button-down shirt meaning.” What this tells you is that people want to know the difference between button-up and button-down shirts, as well as the origin of the term. Use this knowledge to create content that answers these queries and positions your business as a problem-solver in the customer’s psyche.

Ecommerce content - educational content

Alternatively, sites such as Answer the Public, an online keyword tool that collates autocomplete data from various search engines, can present relevant phrases and questions users are searching around your keyword. 

In fact, when it comes to educational content, the playing field is vast and far-reaching. You can write texts, shoot videos, draw illustrations, etc. Each has positive and negative sides, so the best approach is to mix things up. Below are some of the most popular types of educational eCommerce content that your business can make use of:

Text-based educational content

Text-based content is the most common way of informing customers about products and their uses. You can’t sell anything without some form of textual content: Product name, description, care guidelines, etc.

The length and breadth of the text usually depend on the product itself. For example:

  • If you’re selling white goods (various home appliances and other electrical goods), lengthy poetic texts aren’t going to get you anywhere. All your customers want to see are product specifications, price, customer ratings, potentially some kind of comparison chart;
  • Whereas if clothes are being sold, feel free to include descriptions that highlight the product’s comfort, unique design details, various styling options, real-life examples from customers who purchased in the past, etc.

The ultimate goal of educational eCommerce content is to provide more details about the product, how it works, and its benefits. A great example is ProFlowers – a US-based flower retailer who created an entire Florapedia® to provide their customers with in-depth flower guides.

Ecommerce content - educational content example

Included in the Florapedia is their 151 Types of Flowers Common in the U.S. list complete with images, seasonality, soil needs, and more. When you hear marketers reference high-quality content this by far is one of the best examples to illustrate what they mean!

Ecommerce content - educational content example

The results of this piece of content speak for themselves as well. A quick look into Ahrefs shows this piece bringing in over 16,000 visits every month.

Ecommerce SEO content example

Visual content (photos and images)

We all know the old saying about an image being worth a thousand words. The same applies to content marketing. Attention-grabbing product images can attract new customers right away, while the text provides more information.

About 60% of customers are attracted to images or presentations showing why they need the product and how it helps. This is because, according to research undertaken by the conglomerate corporation 3M, visuals are processed 60,000 times faster than text. This allows your storytelling to gain speed, potentially helping consumers to move through their decision making faster. 

A fine example of this is outdoor brand Jack Wolfskin who uses high-quality shots of their clothing items in action accompanied by clear product photography showcasing the item in more detail. This allows customers to picture themselves owning the item, as well as research their unique qualities.

Ecommerce product photography

Infographics

Infographics are really a mix of text-based content and images. They are perfect for reaching out to a specific niche audience by showing statistical data, timelines, trends, and tutorials. Infographics provide relevant information that is easily shared across other websites and social media. You should aim to make infographics around topics and questions related to your industry. These can address common myths, or even tips that can help potential customers.

Take a look at this example from Dreams, a UK supplier of beds, mattresses, and other sleep equipment. The infographic highlights common problems people face whilst trying to get to sleep and provides actionable tips to overcome these.

Ecommerce content example - Infographics

Video content

Videos are still a big thing in digital marketing. Technology giant Cisco projected that by the year 2022, online video will be responsible for 82% of all consumer internet traffic – 15 times higher than the amount in 2017. Their predictions are only supported by findings from Hubspot, who discovered that 72% of customers would rather learn about a product or service by watching a video

Their reason for becoming one of the most used methods of promoting products in the near future may be related to research undertaken by Insivia which also revealed that video viewers retain 95% of a message when watching it in a video, compared to retaining 10% when reading it in a text. As video content is easily shareable across all platforms, it possesses the power to captivate people for extended amounts of time.

Video marketing strategy chart

Primarily, eCommerce videos allow you to quickly inform customers about your products and offers, nudging them to purchase without thinking twice. However, other benefits of eCommerce video marketing include their ability to drive organic traffic if they are optimized correctly for search engines. 

According to the animation studio Moovly, if a video is embedded on your website you’re 53 times more likely to rank on the first page of Google. As YouTube is also now owned by Google, uploading the right content and ensuring to have an engaging thumbnail and search-optimized titles can send traffic back to your website provided you have put the link in its description.

See UK-based folding bike manufacturer Brompton. These guys have completely occupied the top results by answering a query that’s crucial for their businesses: “fold a brompton.”

Ecommerce content - SEO video

For eCommerce websites especially, videos also serve as vital tools in helping to build trust. Explanatory videos alleviate consumer fears regarding the quality of the product by allowing viewers to vicariously experience its usages and benefits, helping to sway them to a purchasing decision. 

One company that does this particularly well is Yieldify client cosmetics brand Milk Makeup with their subscriber count sitting at an impressive 92K. Their makeup tutorials go down pretty well with most clearing the 20k view mark. You can see a great example of an informative and engaging video below:

2. SEO content

Driving traffic to your website is vital in ensuring eCommerce sales. Whether the traffic is paid or organic, without it, your website will not be visited by potential new customers, let alone convert. 

For small retailers, organic traffic is of greatest importance because the costs associated with it are zero to none. How?

Well, to get organic traffic up you’ll obviously need to invest in some SEO tools, such as Ahrefs or Moz, maybe an SEO agency or a freelance specialist, outsource some content creation if you don’t have the resources in-house. However, the achievements gained from search engine optimization are long-lasting and don’t require an additional budget to support them.

On the contrary, a paid advertising campaign is only effective until it’s running. This means you only get exposure when you throw money at it – whereas with SEO you get money long after the initial investment.

SEO vs SEM comparison

To climb Google’s rankings, your eCommerce content must be optimized in such a way that when visitors type your target keywords into Google, your eCommerce site appears. In the beginning it can be a trial and error process, but some tips to help you increase organic traffic are:

  1. Optimizing landing page text, website copy, blog content, and product descriptions for long-tail keywords;
  2. Adding optimized alt-text to any product or site images;
  3. Optimizing page meta titles and descriptions;
  4. Adding well-written user-generated content to product pages;
  5. Writing blogs around popular search queries;
  6. Adding schema markup to product and landing pages.

Below we’ll detail two good examples of websites with high organic traffic. First, we have Gymshark. Gymshark is one of the fastest-growing and well-known brands within the fitness industry. Their core target market is those living an active lifestyle. 

Whilst their primary target keywords may be queries such as “mens gym clothing” or “womens gym leggings,” Gymshark doesn’t limit itself to these keywords alone. As you can see below their blog section drives a considerable amount of traffic, according to Ahrefs.

Ecommerce SEO content example - Gymshark

As part of Gymshark’s content strategy, they target anyone who shows they are into health and fitness. You can see some examples below.

Targeting people who search for these keywords allows Gymshark to reach their target audience, provide valuable content, and build brand awareness. While these users may not purchase on their first visit, they can be retargeted with social media ads or subscribe to a newsletter and receive email nurture sequences that will nudge them to convert later. 

Ecommerce SEO content example - Gymshark

Our second example comes from Best Buy. Their Canadian website has its own blog subdomain that targets non-commercial keywords that Best Buy’s target audience is searching for. As you can see below it also drives a large amount of organic traffic.

Ecommerce SEO content example - Best Buy

A lesson to take from both of these examples is to explore your niche and think of as much content as possible around it. As you can see, when you finally optimize everything, your organic traffic can provide results you never thought possible and drive 1,000% more traffic than organic social media

3. Gated content

Gated content is content that requires any form of information submission in order to unlock it. This usually means that visitors have to leave their email address to access content that is otherwise unavailable, i..e behind a gate.

Gated content is widely used as a B2B lead generation tactic in the form of whitepapers, eBooks, reports, etc. But it might as well be utilized by B2C retailers. In fact, all those “Subscribe to get $10 off” messages can be treated as gated content in the context of eCommerce.

Lead capture overlay by Yieldify

Another way to deploy gated eCommerce content on your site is to invite customers to pre-order something. Pre-ordering is a popular tactic among musicians and brands, especially those releasing limited edition vinyl records. However, recently fashion and beauty retailers have started utilizing the pre-ordering tactic as well. Here’s an example from Typology Paris:

Ecommerce gated content

4. Curated and user-generated content

The content that you create about your brand, products, and services can only go so far. You need real, unbiased opinions from your customers or subject matter experts to prove the true value that your business brings.

Curated content is perfect for that. Curated content comes in many different forms: From user-generated content (UGC) like photographs, video reviews, and testimonials to magazine features, guest interviews, etc. Depending on the format, you can republish this content on your company blog, reshare on social media accounts, include in email sequences, and more.

Two great examples of curated content campaigns come from Apple and J.Crew. Both of them utilized branded hashtags and took user-generated content to another level: Apple with its #ShotOniPhone campaign that’s turned into an annual contest, and J.Crew with its #NationalStripesDay that is now bigger than the brand itself.

User generated content UGC example

6. Content advertising

The concept of content advertising is commonly confused with content marketing and content strategy. However, content advertising has to do with the promotion of the content rather than its creation.

E-commerce businesses can choose to promote their content through PPC (pay-per-click) advertising options offered by Facebook Ads, Google Ads, Google Display Network, AdSense, and so on.

It’s a good way to nurture prospects without being too pushy. By using tracking pixels to know when somebody landed on your website, you can create retargeting ads and serve relevant content until the person is ready to make a purchase with you.

Target is a brand that does this quite often. Besides retargeting customers with the products they viewed, they also run content advertising campaigns promoting useful assets, such as the Stroller Guide in the example below:

Content advertising example

In conclusion

There are dozens of methods you can use to increase sales, but they all come down to promotion, sharing, and advertisement. To run a successful eCommerce business, you must first gain the trust of as many clients as possible, and after that, your website will be self-sustaining, and it will generate its own traffic.

You must take care of every step in the buying and selling process to increase sales and make your brand stand out in the crowd. Connect with other websites, including high-authority resources that prove your claims, and watch as your sales go up at a steady pace. Utilize everything you can to spread the word about your product, and success will follow!

5 Tips On How to Sell Luxury Items Online

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How to avoid crucial mistakes when selling luxury items online? In our blog post, we look at 5 strategies that will ensure your luxury marketing is on-point and sales-oriented.

By the year 2025, online luxury sales will have tripled their contribution to the global high-end market, exceeding $91 billion and accounting for 20% of all luxury sales made. This is because of an operating model the consulting corporation McKinsey refers to as ‘Luxury 4.0’.

In Luxury 4.0, luxury brands and retailers leverage data to better understand their customers, identify emerging preferences, and streamline the processes of transforming ideas into products.

Luxury marketing statistics

Increasingly, online shopping and digital experiences are having greater impacts on how consumers choose to purchase luxury goods. 

McKinsey estimates that around 80% of luxury items bought online today are heavily digitally influenced, with consumers engaging with up to 15 digital touchpoints in their luxury purchasing journeys.

In part, this could be attributed to the generational shift that has begun to take place throughout the luxury market. Whereas before older shoppers were the target audience of luxury retailers, newer, affluent Millennial buyers, born between 1981 and 1994, and Generation Z consumers, born between 1995-2010, are now accounting for around 40% of all luxury purchases

In 2019 alone, Millennials and Generation Z consumers generated 100% of all global luxury industry growth.

With both generations now driving sales of luxury goods, and both having grown up in the age of constantly evolving digital technological advancements, luxury eCommerce retailers have never been better placed to take advantage of, and optimize for, the digital market.

When it comes to selling luxury goods online, there are lessons to be learned from luxury fashion retailers like Net-A-Porter and Farfetch, two brands that have both successfully embraced digital luxury retail. 

FarFetch especially accredits its early adoption of technologymost notably, personalization – in its establishment as a market leader. Meanwhile, Net-A-Porter revolutionized high-end retail by incorporating mobile and artificial intelligence technologies alongside data-driven strategies into its brand identity. 

In this article, we’ll break down on how to sell luxury products online using five simple steps luxury eCommerce retailers can implement immediately into their luxury marketing and sales strategies.

5 Tips on How to Sell Luxury Items Online

1. Use personalization to drive incremental sales

In its Global Powers of Luxury Goods research, Deloitte noted that the rise of eCommerce and the availability of digital channels accessible to luxury brands were creating a consumer need for both large-scale and high-quality personalized content

Nowadays, consumers want to be treated as individuals, and this need is intensified when it comes to making high-value purchases. 

One way Net-A-Porter personalize their shopping experience is by offering EIP memberships. EIP (Extremely Important People) members unlock special privileges including a personal shopper that delivers the luxury goods to a home address, waits until the products have been tried on, and then collects any items that need to be returned. 

There are also pre-order services, abilities to shop new products 36 hours before they become available to other shoppers, private sales, and surprise gifts available to EIP members. 

Luxury marketing example - How to sell luxury items online

To become an EIP, however, it is rumored that members must have accrued around $70,000 in sales across a 12 month period. Incredibly, whilst Net-A-Porter’s EIP’s only make up 2% of its consumer base, they generate 40% of its sales

Luxury eCommerce retailers can take advantage of this high-end consumer desire and follow by Net-A-Porter’s example, even if they are only a small to medium-size business.

Segmenting audiences by their lifetime consumer value and then advertising select sales or early shopping opportunities to the highest-ranked consumers could be one way to encourage other customers to make similar purchases in order to unlock the same privileges. 

Alternatively, simply offering attention-focused customer service across the board could ensure your brand stands out from competitors by highlighting consumer individualism as a key-value and subsequent USP. Net-A-Porter also does this by advertising 24/7 Fashion Consultants.

When selling luxury products online, cross-sell strategies that recommend products to consumers based on their previous purchases, cart or wish list items could also be effective in delivering a standout, individualized experience.

Cross selling strategies | Yieldify

Consumers who are greeted with a personalized experience are known to spend more and are more likely to become loyal customers, leading to repeat purchases and higher LTV.

2. Unify online and offline experiences

Whilst digital channels and the rise of online shopping are driving factors in the disruption of brick and mortar sales, luxury consumers are still driven in-store because of brand experiences. 

Many luxury goods require an element of in-person service that can’t always be replicated online with e-commerce: Expert measurement and fitting, tailoring, customization, etc.

Stores like Gucci and Bvlgari offer shoppers plush, uniquely designed showrooms, jewelry maker Tiffany’s lets you advise with a diamond expert and customize engagement rings to your liking, whilst Burberry goes one step further by partnering with Uber to help transport customers to their nearest store. 

Luxury marketing example - How to sell luxury items online

To drive visitors into stores where they could become consumers once satisfied with having had a luxury shopping experience, it’s important to unify the connection between an online and offline presence. This is known as the reverse omnichannel strategy

Using a search engine optimization strategy known as geotargeting, you can suggest local stores to visitors upon their arrival to your site and could be one way to direct them into a brick and mortar store. 

Likewise, offering buy online pick up in-store (BOPIS) services with distinct CTAs across landing and product pages, or highlighting exclusive, only available in-store products could encourage in-person shopping.

3. Clearly signal your value

Value proposition doesn’t just extend to the benefit that your product will have on a consumer’s daily life. It also includes your brand

Products from high-end retailers are automatically regarded as high-quality and worth their money because of the luxurious connotations associated with their brand. For example, if a luxury retailer uses higher quality materials than any other brand, this is part of the perception that consumers of the brand buy into when purchasing their products. 

See how Dior instills value in their product by showcasing the unique process that goes into making each handbag:

Just like how storytelling is a key component of any marketing, if your brand is built from a particular heritage, or history, tell this story through prominently displaying your value signals or insignias throughout your online experience.

4. Tell your story on social media

Social media can play a crucial role in helping luxury eCommerce retailers convert visitors to consumers. An example of a successful luxury marketing campaign on social media was Burberry’s ‘Tale of Thomas Burberry’ shot by Oscar-winning filmmaker Asif Kapadia. 

The microfilm featured prominent acting stars like Lily James and Domhnall Gleeson and depicted the life, struggles, and entrepreneurship of Thomas Burberry, the brand founder.

The film was posted firstly on the brand’s Facebook page before it went viral, generating over 15 million views and being hailed as one of the best holiday season advertisements of all time. 

For Burberry, the popularity of the film worked across multiple levels. The video generated mass engagement whilst also helping to cement the brand’s identity and USPs in viewers’ minds. All the items worn in the film were available to buy at Burberry’s store, advertising the products again, and again, across multiple channels, to multiple viewers. 

Luxury eCommerce stores can therefore use storytelling to not only engage copious visitors and potential consumers with their brand identity but to also generate engagement with their products. 

By advertising the story behind the manufacturing of certain products, visitors may be likely to invest in the perception and may visit the site to learn more about the luxury product being advertised.

5. Invest in content

As a natural accompanier to storytelling and social media marketing, pouring resources into high quality, relevant content can drive sales from both existing and new consumers.

The benefit high-quality content marketing gives luxury brands is its ability to communicate the elevated level of the brand’s aesthetic to the designated target audience throughout its language and appearance.

Content can take the form of informative blogs, well-produced videos, in-depth guides, and even emails and must give off the same feeling as handling a glossy, luxury brochure. 

Louis Vuitton produces in-depth city guides that it hails as Magazines (also available in mobile app format). These guides promote insider tips as to the best places to visit in a city that isn’t necessarily featured in tourist publications. At the same time, as advertising these revered spots, the guide does of course suggest which fashion pieces would complement which outfit, and which outfit would be best to be worn where. 

Luxury marketing example - How to sell luxury items online

These exclusive guides are not only sought after by their audience, they are bought too – at the price of $25 an edition. They work effectively because Louis Vuitton knows their audience seeks insider knowledge and this feeling of exclusivity is vital for high-end brands to capitalize on when selling luxury. 

Producing content that promotes uniqueness and has a sense of insider sheen will resonate with and then engage high-end buyers. For eCommerce retailers, one example in peak holiday season could be to release a Gift Guide that offers exclusive insight into the products that will be Christmastime best sellers. 

As a multichannel content marketing strategy, following the release of that guide with an email marketing sequence or blog content series that takes particular products and focuses on their USPs will issue repeated, non-pushy reminders, and may drive purchases when combined with CTAs.

Where to sell luxury items online

Creating luxury brands takes time and consistency. But there are other ways you can sell luxury items online in the meantime.

1) Create your own website – Your own website should eventually be the main place where your sales are coming from. If you’re advertising online this is the place you’re going to be sending them so you need to make sure it’s ready to convert and

2) Reach out to high-end department stores – If you know where your ideal customers regularly shop it makes sense to try and get in front of them here. This could be both online and in store. Department stores such as Harrods and Selfridges could be prime targets. But if you’re just starting out you might be better off identifying smaller local stores that may wish to list your luxury items.

3) Look to sell via online platforms – Online market places such as, Current Boutique, Poshmark and ThredUp could be great places to start selling your luxury goods.

Luxury marketing case study: Turnbull and Asser

Turnbull and Asser is a bespoke shirtmaker, clothier, and tie maker established all the way back in 1885. Perhaps unsurprising for the first brand to receive the Prince of Wales’ Royal Warrant, it has a strong commitment to product excellence and impeccable service, whether from its flagship store on London’s Jermyn Street, online, or with its partners around the world.

Turnbull and Asser used the Yieldify Conversion Platform to create and deploy onsite messaging, generating new leads, increasing conversions, and improving the overall site UX. Read the full Turnbull and Asser case study here.

Key takeaways

Hopefully, our tips above will provide you with some useful ideas when it comes to selling luxury items online. Results in this area can take time as you will need to build your brand image and customer base.

Like what you’ve seen here? Download our free ‘Luxury eCommerce Blueprint’ eBook, featuring the luxury eCommerce cheat sheet, to get even more tips and advice on digital marketing and selling luxury goods online.

Luxury marketing FAQs

How do I sell high end luxury products?

The best ways to sell luxury items online are to avoid site-wide discounting, making your value signals clear, providing exceptional customer service, and making your service personal.

How do you price a luxury product?

The price of luxury items or products should reflect the key messages of the brand; high quality, heritage, and exclusivity.

How to Take Your Online Store to the Next Level With Conversational Commerce

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Conversational commerce is a hot topic among eCommerce marketers. In this blog post, we take a look at the key benefits of conversational commerce and easy steps to get you started.

In a brick-and-mortar store, having friendly, knowledgeable, and attentive sales assistants is a powerful way to increase sales. That’s been the case since the first stores in history. So how can eCommerce merchants offer that same kind of sales-boosting service, but digitally?

The answer is conversational commerce – a marketing and sales tactic based on back-and-forth digital conversation. It takes the in-store sales associate experience and translates it to an online format.

Conversational commerce example

But conversational commerce usually isn’t just a human agent sitting in front of a screen instead of behind a store counter.

Hiring a human team big enough to be available 24/7 for shoppers in all time zones isn’t practical or possible for most brands. Instead, eCommerce businesses now have the tools to automate conversational commerce using chatbots.

Let’s start by taking a brief look at how conversational commerce came about and discuss why chatbots (especially Facebook Messenger chatbots) are an ideal solution for automating this type of commerce. Finally, we’ll cover how your own eCommerce business can get started with conversational commerce bots.

What is conversational commerce?

Conversational commerce is a new sales method for the digital age. It gives shoppers a way to directly interact with brands in real-time in the format of a back-and-forth chat. Conversational commerce allows prospects to get their questions answered instantly as part of a live dialogue, instead of one-sided, delayed messaging (like email). 

Conversational commerce not only makes for a pleasant customer service experience, but it moves shoppers more quickly down the funnel toward a conversion.

Predicted chatbot use cases

The best part: Conversational commerce is easy to automate, so brands of all sizes can watch their sales go up on autopilot. Chatbots are the most widely used solution for automation of conversational commerce because they’re easy and inexpensive to build, and available to help customers 24/7. 

Facebook Messenger chatbots in particular have become extremely popular. Messenger already has over 1.3 billion monthly users, and it makes sense to meet shoppers where they are.

A brief history of conversational commerce

The term “conversational commerce” was coined in 2015 by Christopher Messina, an American blogger most famously known as the ‘inventor of the hashtag‘. Messina wrote an article about an emerging trend he’d begun to notice: Businesses were starting to invest more in messaging channels and focus on selling there.

Since then, this sales technique has exploded in popularity. It’s no surprise since people are more active on messaging apps than ever before. Users have over 7 billion conversations every day on Facebook Messenger alone. And while messaging is primarily a way for people to communicate with friends and family, they’re now interested in chatting with businesses that way, too.

Over 56% of messaging-app users globally say they’ve messaged brands to get more information in all stages of the buyer’s journey.

Conversational commerce statistics

As a result, online businesses now communicate with customers through Facebook Messenger, WhatsApp, and many other messaging channels. No-code, drag-and-drop software makes chatbot building easier than ever, so businesses can automate this messaging for maximum efficiency.

Conversational commerce benefits

Online stores of all kinds have started taking a keen interest in this type of commerce, especially in the form of chatbots. Let’s look at some of the benefits that conversational commerce offers:

1. Saves time and resources

You don’t need a huge team of highly trained customer service agents to be available 24/7. If you automate your conversational commerce strategy with a chatbot, it can take care of up to 80% of routine inquiries for you. Your human team will no longer have to waste time responding to repetitive questions, so they can focus on other tasks.

2. Improves customer experience

If you automate your conversational commerce efforts, customers can get instant assistance. They don’t have to search for FAQ pages or wait days for email responses from a human agent. Most common queries can be solved by a chatbot, which means instant, helpful service that will delight your customers.

48% of consumers would rather connect with a company via live chat

3. Increases sales

Conversational commerce is a great way to provide personalized product recommendations to customers to encourage them to buy. Chatbots can be set up to do this seamlessly. They can ask a few basic questions about the shopper’s needs, recommend products and answer questions about them, then share links where the user can learn more and buy.

Ecommerce chatbot example - Tommy Hilfiger

4. Offers the personalization element

When you converse with another human, you gather information about them by asking questions. Chatbots work the same way. Once they know a few things about the customer and their preferences (through the process of conversation), they can personalize future interactions

They can offer tailored product recommendations, share relevant coupons and sale notifications, and more. 80% of customers say they’re more likely to buy from a brand that offers personalized experiences, so this factor is crucial for eCommerce success.

5. Helps brands stand out

Conversational commerce is becoming more popular by the minute, it’s true. But a strong conversational commerce experience will still be a novelty to many shoppers. If you design it right, it can be the memorable element that sets your brand apart from your competition – and keeps customers coming back.

Getting started with conversational commerce

The advent of no-code tools for building chatbots has made conversational commerce accessible for all brands. Here are a few basic steps to help your eCommerce store get started:

Analyze your support queries. Look at what your prospective customers ask about most often, then equip your chatbot to handle these needs and inquiries. You can have it answer FAQs or recommend products, for example.

Use no-code software to build a free Messenger chatbot. Tools like that will make the actual building process easy and non-technical, so you can focus on engaging conversational design instead.

Add a Facebook Messenger chatbot to your website. Don’t limit your chatbot to social media messaging apps. You can utilize it in different ways by adding the chatbot to your website or linking it to your Facebook and Instagram ads, so you can reach even more prospects.

Monitor the performance of your chatbot. Look for drop-off points where users might be getting confused or missing something, and correct or streamline those areas of the chat experience.

Taking your eCommerce chatbot to the next level

Once you’ve built a basic eCommerce chatbot, there’s lots you can add to it to make it even more useful for customers (and profitable for you):

Add artificial intelligence (AI) to your chatbot. Build an AI chatbot that can handle an even larger percentage of customer interactions on its own. Even no-code software often offers this capability. AI is far less intimidating than it sounds, and almost any business can take advantage of it to improve their conversational commerce capabilities.

Gather other contact information. When you build a chatbot in Facebook Messenger, you can always reach out to the user again later. The chats are linked to their Facebook account. But since 73% of consumers shop on more than one channel, the omnichannel approach is becoming more and more important. Your chatbot can easily request and store contact information for users on other channels, so you can reach out to them via email and SMS too.

Share information about relevant promotions. Conversational commerce can help you win repeat business as well. You can set your chatbot to notify users when you’re having a sale, especially if it’s on a type of item they’ve shown interest in before. Or, it can share coupons to get customers to buy again.

Join the conversational commerce revolution

Marketing evolves fast. Your eCommerce brand needs to keep up in order to keep sales rolling in and stay ahead of the competition. Conversational commerce is already booming, so don’t miss out!


This article was written by Bojana Vojnović from Chatfuel. Bojana is a content strategist with a finger on the pulse of the world of Messenger chatbots. She oversees a content creation strategy that helps business owners take their brand to the next level.

The Complete Guide to STP Marketing: Segmentation, Targeting & Positioning

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What is STP marketing and what role does it play in boosting conversions and revenue? We look at the Segmentation, Targeting, Positioning framework illustrated by real-life examples.

Segmentation targeting positioning marketing is a core concept in modern-day marketing. Without it, marketing campaigns would be generic, have little to no personalization, and overall would not be able to convert at a level most businesses would deem effective.

Let’s delve into the intricacies of the STP Model and see how implementing this framework into your eCommerce business can yield amazing results.

Table of Contents:

1. What is STP marketing
2. The STEP formula
3. Benefits of STP marketing
4. STP marketing example: The Cola Wars
5. How to build an STP marketing strategy

What is STP marketing?

STP marketing is an acronym for SegmentationTargeting, and Positioning – a three-step model that examines your products or services as well as the way you communicate their benefits to specific customer segments.

In a nutshell, the STP marketing model means you segment your market, target select customer segments with marketing campaigns tailored to their preferences, and adjust your positioning according to their desires and expectations.

STP marketing model: segmentation, targeting, positioning

STP marketing is effective because it focuses on breaking your customer base into smaller groups, allowing you to develop very specific marketing strategies to reach and engage each target audience

In fact, 59% of customers say that personalization influences their shopping decision and another 44% said that a personalized shopping experience would influence them to become repeat customers of a brand.

STP marketing represents a shift from product-focused marketing to customer-focused marketing. This shift gives businesses a chance to gain a better understanding of who their ideal customers are and how to reach them. In short, the more personalized and targeted your marketing efforts, the more successful you will be.

The STEP Formula

If you are looking for a simple way to remember and summarize the STP marketing concept, the acronym STEP is extremely useful:

Segmentation + Targeting Equals Positioning

This formula clearly illustrates that each segment requires tailored positioning and marketing mix to ensure its success. Let’s take a closer look at each of the three steps in the STP marketing model.

Segmentation

The first step of the STP marketing model is the segmentation stage. The main goal here is to create various customer segments based on specific criteria and traits that you choose. The four main types of audience segmentation include:

  1. Geographic segmentation: Diving your audience based on country, region, state, province, etc.
  2. Demographic segmentation: Dividing your audience based on age, gender, education level, occupation, gender, etc.
  3. Behavioral segmentation: Dividing your audience based on how they interact with your business: What they buy, how often they buy, what they browse, etc.
  4. Psychographic segmentation: Dividing your audience based on “who” your potential customer is: Lifestyle, hobbies, activities, opinions, etc.
4 types of market segmentation

Targeting

Step two of the STP marketing model is targeting. Your main goal here is to look at the segments you have created before and determine which of those segments are most likely to generate desired conversions (depending on your marketing campaign, those can range from product sales to micro conversions like email signups).

Your ideal segment is one that is actively growing, has high profitability, and has a low cost of acquisition:

  1. Size: Consider how large your segment is as well as its future growth potential.
  2. Profitability: Consider which of your segments are willing to spend the most money on your product or service. Determine the lifetime value of customers in each segment and compare.
  3. Reachability: Consider how easy or difficult it will be for you to reach each segment with your marketing efforts. Consider customer acquisition costs (CACs) for each segment. Higher CAC means lower profitability. 

There are limitless factors to consider when selecting an audience to target – we’ll get into a few more later on – so be sure that everything you consider fits with your target customer and their needs.

Website personalization targeting criteria | Yieldify

Positioning

The final step in this framework is positioning, which allows you to set your product or services apart from the competition in the minds of your target audience. There are a lot of businesses that do something similar to you, so you need to find what it is that makes you stand out. 

All the different factors that you considered in the first two steps should have made it easy for you to identify your niche. There are three positioning factors that can help you gain a competitive edge:

  1. Symbolic positioning: Enhance the self-image, belongingness, or even ego of your customers. The luxury car industry is a great example of this – they serve the same purpose as any other car but they also boost their customer’s self-esteem and image.
  2. Functional positioning: Solve your customer’s problem and provide them with genuine benefits.
  3. Experiential positioning: Focus on the emotional connection that your customers have with your product, service, or brand.  

The most successful product positioning is a combination of all three factors. One way to visualize this is by creating a perceptual map for your industry. Focus on what is important for your customers and see where you and your competitors land on the map.

Perception mapping example
A perceptual map of popular clothing retailers

Benefits of STP marketing

If you aren’t already convinced that STP marketing is going to revolutionize your business, we’re breaking down the key benefits that STP marketing has over a traditional marketing approach.

Because STP focuses on creating a precise target audience and positioning your products/services in a way that is most likely to appeal to that audience, your marketing becomes hyper-personalized. With personalization:

  • Your brand messaging becomes more personal and empathetic because you have your customer personas and know exactly whom you’re talking to;
  • Your marketing mix becomes more crystalized and yields higher return on investment because you’re no longer wasting budget on channels that your audience simply ignores;
  • Your market research and product innovation become more effective because you know exactly whom to ask for advice and feedback in the development phase.

Yieldify’s recent research shows that eCommerce leaders are adopting personalization at an unprecedented rate – 74% of eCommerce sites now claim to have now adopted some level of personalization strategy. Their reasons?

Fifty-eight percent found that personalization helps increase customer retention, 55% cited conversion and 45% found that personalization actually helped minimize the cost of new customer acquisition

Website personalization motivators

Finally, STP marketing levels the playing field. The framework allows small businesses and startups to find success in their niche markets when they normally wouldn’t have the reach to compete with the larger whole-market businesses in their industry.

STP marketing examples: The Cola Wars

STP marketing has been around for a long time – and it has been effective for just as long. We’re going to take a look at a real-world example of STP marketing so you can see how it has worked historically in increasing conversions and revenue.

Back in the 1980s, when Pepsi-Cola was trying to claim some of the market share from Coca-Cola, Pepsi used segmentation to target certain key audiences. They focused on an attitude and loyalty segmentation approach and divided the market into three consumer segments:

  1. Consumers with a positive attitude to the Coke brand who were 100% loyal to Coke.
  2. Consumers with a positive attitude to the Pepsi brand who were 100% loyal to Coke.
  3. Consumers with a positive attitude to both brands, with loyalty to both, who switched their purchases between both brands.

Pepsi had always focused their marketing efforts on the third segment, as it was the most attractive and had the highest return on investment. Focusing on customers loyal to Coke was considered a waste of time and money, as they were unlikely to change their purchasing habits.

However, that all changed with the launch of New Coke in 1985…

STP marketing example - Cola Wars 1985

The new iteration of Americas’ favorite beverage missed the spot with a lot of loyal consumers, so Pepsi swopped in. In fact, as Mental Floss points out, “Coke’s headquarters received upwards of 1,500 calls a day, up from the usual 400, with virtually all of them complaining about the change.”

Sensing the change in consumer sentiment, Pepsi began targeting loyal Coke drinkers. The rival brand also refocused its positioning – Pepsi started drumming up the fact that Coca-Cola, supposedly, changed its classic Coke with New Coke to resemble more the taste of Pepsi. Their marketing campaigns were brutal (well, in today’s terms at least):

That same year, Pepsi announced a 14% spike in overall product sales. Pepsi was able to use STP marketing strategies to increase their market share and convert Cola-loyal customers to Pepsi-lovers.

How to create an STP marketing strategy: The full STP model

We covered the three stages of the STP marketing model, looked at the benefits and examples of this approach. While this provides you with an excellent overview of the concept, we want to get into the detail of creating an STP marketing strategy that serves your business.

Below you will find 7 steps to creating a solid marketing strategy using the full STP model.

1. Define the market

The global market is far too big and far too vast for anyone – even the biggest corporation with the most resources – to address. That’s why it’s important to break it down into smaller chunks and clearly define the part you are going after.

Typically, to evaluate your business opportunity, you will need to define your TAM, SAM, and SOM: Total Available Market, Serviceable Available Market, and Serviceable Obtainable Market.

Addressable market - TAM, SAM, SOM

Think of it as an iceberg. The very top peeking from under the water is your SOM – that’s the portion of the market that you can effectively reach.

SAM is is the portion of the total available market that fits your product or service offering. Whereas TAM is the total available market, in other words, “the overall revenue opportunity that is available to a product or service if 100% market share was achieved.”

For example, back when Airbnb was starting to pitch investors, they used the TAM, SAM, SOM model to explain their business potential. Their total available market (TAM) then was valued at $1.9 billion dollars and included any type of accommodation that travelers were booking worldwide.

Airbnb TAM, SAM, SOM

Because their service offering was targeted more at the budget travelers who were using online booking engines to find their stay. In this case, the SAM was valued at $532 million dollars. Lastly, their SOM came in at $10.6 million dollars and signified the revenue obtainable for Airbnb.

Similarly with a consumer product, we can look at Diet Coke and say that its TAM would include the total beverage market. Its SAM would narrow it down to soft drinks, and SOM would zero in on the carbonated sugar-free drinkers out there.

There are several routes you can choose when defining a market. You can do so by:

  • Industry classification (agriculture, retail, transportation, etc.
  • Product category (apparel, health and beauty, food and beverage, etc.)
  • Country (United States, United Kingdom, etc.)

2. Create audience segments

Now that you’ve adequately defined your target market, it’s time to segment it using geographical, demographic, behavioral, and psychographic variables. 

Each segmentation variable helps you tap into a different aspect of your audience and when you use them in unison you can create niche segments that really make an impact on your overall marketing effort.

For example, if you split your serviceable obtainable market into men vs women (demographic variables) you are still left with a pretty broad audience segment. However, if you start layering other segmentation variables on top, you can create a precise audience that you can make the biggest impact on.

Perhaps you go after women (demographics) in the United States (geographics) who prefer to spend money on luxury products (psychographics) who follow you on social media or have visited your website in the past (behavior).

Behavioral segmentation benefits - Engagement levels

As you can see, this layering method creates a hyper-focused audience segment that allows you to create an extremely personalized experience. And as we mentioned before, personalization has a huge impact on the success of your marketing efforts.

3. Construct segment profiles

When you’ve landed on your viable market segments, it’s time to develop segment profiles. Segment profiles are very similar to your ideal customer personas but they act as subsets of your main persona – they are detailed descriptions of the people in each segment

Describe their needs, behaviors, demographics, brand preferences, shopping traits, and any other characteristics. Each profile should be as detailed as possible to give you and your business a good understanding of the people within each segment. This will allow you to compare segments for strategy purposes.

4. Evaluate the attractiveness of each segment

Cross-referencing your findings with available market data and consumer research will help you assess which of your constructed segments can bring in the biggest return on your investment. Consider factors like segment size, growth rates, price sensitivity, and brand loyalty. 

With this information, you will be able to evaluate the overall attractiveness of each segment in terms of dollar value.

Audience segment evaluation - attractiveness factors

5. Select target audience/s

Now that you have detailed information on all of your segments, you need to spend some time deciding which ones are the most viable to use as your target audiences. You’ll need to take into account your overall business strategy, the attractiveness of the segment, and the competition that exists in that segment.

The best way to determine the most viable segment is by performing cluster analysis. Quite a complex and technical topic on its own (check out this guide to get more insights), clustering in the context of eCommerce segmentation means using mathematical models to identify groups of customers that are more similar to one another than those in other groups.

Cluster analysis for segmentation

Your ideal audience segment is one that is both large and still growing, and you are able to reach with your marketing efforts. You’ll also want a segment that aligns with your business strategy – it makes no sense to focus your efforts on a segment of men in Australia if you are phasing out your menswear and don’t offer free shipping to Australia. 

6. Develop a positioning strategy

Next, you need to develop a positioning strategy that will give you the best edge to compete in the selected target audience. Determine how to effectively position your product, taking into account other competitors – focus on how your positioning can win the largest amount of the market share.

There are several positioning strategy paths you can follow:

  1. Category-based positioning – This calls for determining how are your products or services better than the existing solutions on the market.
  2. Consumer-based positioning – This calls for aligning your product/service offering with the target audience’s behavioral parameters.
  3. Competitor-based positioning – This is a pretty straightforward approach that calls to prove you are better than competitor X.
  4. Benefit-based positioning – This calls for proving the benefits that customers will get from purchasing your product or service.
  5. Price-based positioning – This calls for distinguishing based on the value for the money people get when purchasing your product/service.
  6. Attribute-based positioning – Competitors, price, and benefits aside, this calls for zeroing in on a unique selling proposition that makes your product or service stands out from the rest.
  7. Prestige-based positioning – This calls for proving that your products supply a certain boost in status to those who purchase.

7. Choose your marketing mix

The last and final step in this long and winding process is to actually implement your strategy. For that, you will need to determine a marketing mix that will support your positioning and help you reach the target audience(s) that you’ve chosen.

A marketing mix consists of the so-called 4 Ps: Product, Price, Place, and Promotion:

  • Product takes into consideration factors like variety, quality, design, branding, features, packaging, services, availability, convenience.
  • Price takes into consideration factors like pricing strategy, list price, penetration price, premium, discounting, payment methods, credit terms, payment period.
  • Place takes into consideration factors like channels, coverage, location, inventory, logistics, trade channels.
  • Promotion takes into consideration factors like advertising, public relations, social media, sponsorship, influencer marketing, content marketing, product placement, sales promotion.

A carefully-curated marketing mix will ensure business success. However, if you do leave gaps in it, all the precious work you did at the previous stages might go to waste.

Determining marketing mix - the 4Ps of marketing

Here’s an example to illustrate a poor marketing mix: Let’s say you want to sell a luxury skincare product to women in their 40s.

Your goal is to position it as a high-end addition to their skincare routine that targets concerns related to mature and aging skin. So you invest in print marketing and get your product featured in a couple of popular women’s magazines that skew towards the 30+ audience. You also make sure to price the product accordingly so it indicates the luxury category.

However, your packaging is cheap and poorly designed, while the product itself is sold in drugstores.

This inconsistency, which isn’t aligned with the overall positioning strategy, will prevent you from reaching your target audience in the first place; those who get reached will experience dissatisfaction resulting in negative word-of-mouth, which will eventually make your sales slumber.

Conclusion 

Using the STP process, businesses can identify their most valuable customer segments and create products and marketing communications that target those customers. This helps you create engaging, personalized marketing campaigns that convert visitors to customers at a high rate. 

If you want to use clever segmentation and behavioral targeting methods in your eCommerce marketing strategy, get in touch with Yieldify and we’ll be happy to help!

STP marketing FAQ

What is STP in marketing? 

STP marketing (Segmentation, Targeting, and Positioning) is a three-step marketing framework. With the STP process, you segment your market, target your customers, and position your offering to each segment.

What is an example of STP?

The most classic example of STP marketing is the Cola Wars of the 1980s. Both Pepsi and Coca-Cola used STP marketing to increase their market shares after the introduction of New Coke.

What are the 3 steps involved in STP marketing?

The three main steps within STP are: Segmenting your market (segmentation), identifying your target market (Targeting) and deciding on how you will position your brand (positioning)

Holiday eCommerce: 7 CRO Tactics Your Website Needs This Peak Season

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We analyzed our data and handpicked 7 conversion optimization tactics known to boost holiday eCommerce sales. Check out these campaign ideas designed to make an impact before, during, and after the 2020 peak season.

If you’re selling anything anywhere in the world, then there’s slim chance you haven’t heard of the Cyber 5: A five-day period from Thanksgiving through Cyber Monday that marks the beginning of the holiday shopping season.

For consumers, this month-long affair leading all the way up to Christmas is best defined by an onslaught of marketing campaigns, deals, and discount offers enticing to shop until they drop. 

For retailers, on the other hand, it’s the most profitable time of the year. In fact, holiday eCommerce sales account for about 30% of the total eCommerce revenue each year!

Holiday eCommerce stats - Sales from 2015 to 2019

Statista’s data shows that in 2019, holiday season revenue for online stores reached $135 billion dollars, which means it was increasing by an average of $14.75 billion ever since 2015. But what does it mean for the 2020 peak season and beyond?

Holiday eCommerce: Market insights 

This year, online shopping has experienced a boom. Ushered by the COVID-19 pandemic, social distancing, and stay-at-home rules, consumers flocked to the internet to buy everything from groceries to clothing, office supplies, exercise equipment, and even stuff like bidets.

In three months, eCommerce experienced three years’ growth. The leap, christened by McKinsey as ‘The Quickening‘, has thrown many marketers’ projections out of whack and gave a valid reason for staggering claims that eCommerce is set to top $1.1 trillion dollars for the first time ever.

Ecommerce growth 2020 - The Quickening

So, answering the question of what to expect from holiday eCommerce this year is as difficult as ever and is best approached with a data-driven mindset. Let’s look at some 2019 holiday eCommerce statistics to get a better idea of what’s coming.

2019 holiday sales statistics

  • Total 2019 U.S. holiday sales reached $722.6 billion (+4.1% lift from $694.32 billion).
  • U.S. holiday eCommerce sales reached $135.35 billion (+12% lift from $119.54 billion in 2018).
  • Cyber Monday 2019 was the biggest online shopping day in U.S. history with $7.9 billion in online sales.
  • Holiday eCommerce conversion rate reached 4.3% on desktop and 1.8% on mobile.
  • Holiday eCommerce average order value (AOV) reached $152.95 USD.
  • 34.5% of 2019 holiday eCommerce spending happened via smartphone.

2019 holiday consumer behavior

  • 60% of U.S. consumers said they start holiday gift shopping before December.
  • Home improvement was the leading holiday season eCommerce category by YoY growth.
  • Amazon was the preferred online store for Christmas gift shopping among U.S. adults.
  • Buy online, pick up in-store (BOPIS) option was implemented by 60% of U.S. retailers.

2020 holiday eCommerce predictions

Based on the insights from Yieldify’s Peak Season survey of 400 UK & US eCommerce marketers and 2,000 consumers, there’s an increasing divide between the two camps. 

On one side, 33% of marketers are choosing to opt out of 2020’s peak season campaigns compared to only 6% last year. Their positivity around improving the previous year’s results has also dwindled to only 45% saying they’re confident in their abilities to increase revenue. They cited concerns about a reduction in consumer demand, followed by increased competition with other eCommerce websites.

2020 peak season revenue trends

However, this is not at all reflected in the consumer report. In fact, according to Yieldify, 34% of consumers plan to increase their peak season spending. What’s more, the majority plan to mainly shop online with 48% of consumers heading to familiar websites and nearly one-third (29%) planning to shop on mostly new websites.

Holiday eCommerce stats | Yieldify

This huge disconnect between what marketers think consumers want vs what they actually want is where the opportunity lies for smart and agile eCommerce leaders. With less competition for an increased and more engaged customer base, marketers have a great opportunity to increase market share this peak season (and beyond).

7 CRO tactics to win this holiday shopping season

In order to help your store come out on top this holiday shopping season, we’ve delved into our proprietary data and client campaigns from last year and developed a list of holiday eCommerce specific strategies known to turn browsers into buyers. 

Cross-referenced with our research into website personalization trends after COVID-19, these tactics will help you differentiate your brand from the competition, improve your eCommerce customer experience, target promotional offers to customer segments, and make this sales period your most profitable yet.

Jump to a section:
1. Holiday lead capture
2. Holiday wishlisting
3. Social proof
4. Countdown timers
5. Holiday gift guides
6. Cart reminders
7. Return redirects

1. Holiday lead capture

The peak season, as well as the months leading up to it, are a great opportunity to grow your email list. And knowing that email marketing is consistently rated as the highest ROI marketing channel, it’s undeniably important to utilize in your holiday marketing campaigns.

As Campaign Monitor research shows, 116 million emails were sent on Black Friday seeing the highest number of opens and clicks. Another 106 million emails were sent on Cyber Monday. Overall, 20% of 2019’s holiday website traffic was coming from email.

That’s why our number one tactic is holiday lead capture. Here’s how to do it right:

  • Start your holiday lead capture campaigns early to get the maximum number of signups.
  • Offer holiday-specific incentives, such as access to pre-sale, exclusive discounts, and offers.
  • Update your creative to reflect the holiday theme.
  • Add your lead capture forms to high-traffic landing pages.
  • Experiment with timing, i.e. show the form immediately after load vs some time on the page.

Pro tip: Go one step further and develop a fully-fledged EDM marketing campaign. Not sure what EDM marketing is? Check out our blog post.

Holiday eCommerce CRO tactics - Lead capture overlay

2. Holiday wishlisting

With some retailers opting out of 2020 peak season campaigns altogether and others starting their promotional offers super early (looking at you, Amazon), even your most loyal customers might be confused as to what they can expect from your store this holiday shopping season.

To prevent customer attrition, offer your visitors a wishlist functionality. Inviting them to create an account and save items to their wishlist not only grows your database but it also creates brand attachment for peak season and beyond.

  • Start your wishlist campaigns before holiday promotions to people have time to create their lists.
  • Send wishlist reminder emails to get those customers back to your store.
  • Use the customers’ wishlist data to further personalize your marketing efforts.

Pro tip: Incorporate the data you get from the wishlisting customers into your social proof campaigns. For example, display a “Most Wished For” banner on popular items. Not sure how? Get in touch!

Holiday eCommerce CRO tactics - Wishlisting

3. Social proof

The fear of missing out (FOMO) is a powerful motivator, and with holiday eCommerce shoppers looking online more than ever, social proof will be an effective way to build urgency and drive conversions. 

For the duration of the holiday shopping period, consider running social proof campaigns on both product listing pages (PLPs) and product detail pages (PDPs) alike. Use copy that suggests scarcity and creates an urgency to purchase, such as: 

  • In high demand
  • Selling out fast
  • Sell out risk
  • Almost gone

Pro tip: Use real-time social proof to display customer activity here and how. For example, “X items sold in the last 24 hours” or “Only X items left.” For more social proof examples, head over here.

Holiday eCommerce CRO tactics - Social proof

4. Countdown timers

Continuing down the path of marketing psychology, we have another tactic that is known to toy with consumer minds and create urgency to purchase: Countdown timers

Timers are a great way to encourage shoppers to convert in-session because it makes them anticipate the feeling of regret if they miss the opportunity. eCommerce stores can use countdown timers in a number of ways: From flash sales and limited edition products to holiday campaigns, such as Black Friday and Cyber Monday sales.

Don’t forget you can also have your timer count up towards a specific date, for example, 10 days left until Thanksgiving sale!

Pro tip: Optimize your countdown timers for different devices. Whereas a pop-up overlay might work on desktop, mobile requires a different approach and is best served by a floating banner. See how M.J. Bale used countdown timers to boost conversions. Download the full case study here.

Holiday eCommerce CRO tactics - Countdown timers

5. Holiday gift guides & recommendations

Don’t forget that the holiday peak season is not just about people shopping for their own needs. Gift shopping comes in strong with 9 in 10 Americans (89%) planning to buy gifts for friends and loved ones, and 54% of consumers taking recommendations from retailers, according to NRF.

Holiday gift guides are a great way to improve your eCommerce store’s experience by making site navigation easier, gift-searching more straightforward, and your brand more top of mind for the consumer. It is also a powerful tool for eCommerce websites to use cross-selling and upselling campaigns, and boost ancillary revenue.

  • Create a variety of gift guides based on relatable traits, such as price (gifts under $50), gender (for him, for her), relationship (for dad, for co-worker), hobbies (cooking, reading), etc. 
  • Include gift bundles to increase your average order value.
  • Tap into influencers to curate and promote a gift guide to their followers.

Pro tip: Create a toaster campaign that shows up once the visitor has added an item to their shopping cart. Show highly-targeted and relevant offers based on that user’s in-session behavior. Not sure how? Get in touch!

Holiday eCommerce CRO tactics - Gift guide

6. Shopping cart reminders

While cart abandonment is a constant challenge faced by eCommerce marketers, it seems like COVID-19 might have introduced even more things to worry about come peak season. Looking at Statista’s data, the average cart abandonment rate across industries in March 2020 reached 88.05% (before it was usually cited to be around 75.6%).

Cart abandonment rate statistics 2020

While the rate might be different, reasons for cart abandonment remain the same. Usually, shoppers abandon their carts due to high shipping costs, unexpected taxes, and discount codes not working. Also to blame is the habit of comparison shopping.

Knowing how important holiday eCommerce sales are to the overall revenue of the business, deploying smart cart recovery tactics is crucial for any holiday marketing campaign. Here are our top tips:

Pro tip: Remind visitors of past shopping sessions and streamline their progress to checkout with shopping cart reminders. These can be effectively combined with urgency tactics like inventory warnings and discount deadlines to drive speedy conversions. Not sure how? Get in touch!

Holiday eCommerce CRO tactics - Shopping cart reminders

7. Return redirect overlay

Congrats! You did everything there is to optimize your eCommerce store for holiday season conversions. You got the traffic, made the sales. Not to rain on your parade, but inevitably, you’re going to be faced with returns. And a lot of them.

The reality is that many customers buy products with an explicit plan to immediately return some or all of their items. When it comes to holiday frenzy with discounts and gift shopping, this becomes even more true.

Holiday eCommerce return rates

Don’t fret. Here’s a clever strategy to make those returners convert again. Using behavioral segmentation, you can target customers who have returned a product and serve them a personalized overlay with a copy that acknowledges their return and offers to find a better suitable item.

Pro tip: It’s important to know the reasons behind a customer’s return, otherwise this tactic might not be effective or even cause more dissatisfaction. Try to gather as much data as you can on the reasons behind a return and create targeting segments accordingly.

Holiday eCommerce CRO tactics - Return redirect

Not enough holiday CRO tactics? Get in touch and we’ll share 10 more!

Peak season is just around the corner and it’s important to start sowing the seeds – or in your case, holiday marketing campaigns. We can help you reach maximum exposure on your holiday promotions, turn browsers into buyers, abandoners into loyalists, and more.

All you have to do is get in touch with our team and we’ll share 10 other CRO tactics that our team has carefully curated for this holiday season.

CRO for eCommerce stores - Get a Yieldify demo

The Complete Guide to EDM Marketing

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EDM marketing complete guide

Never heard of EDM marketing? You’re probably not the only one. In this blog post, we seek to define how EDM marketing differs from regular email marketing campaigns, and illustrate with real-life examples.

In 2020, 306.4 billion emails are sent and received every day worldwide. Almost everyone in the world has an email address and email marketing continues to boast the highest ROI, making email marketing strategies essential for your business’s marketing efforts.

Email marketing ROI chart
Marketing channel ROI ratings

If you’re already using email marketing – and more importantly if you aren’t – EDM marketing is the next logical step to improving your marketing efforts.

What is EDM marketing? EDM marketing, or Electronic Direct Mail marketing, is a marketing tactic used by companies to target a large group of potential customers and focuses on building relationships to increase overall sales.

At its core, EDM marketing is all about delivering your offer via e-blasts. But upon closer inspection, we see that it is much more complex than a regular email marketing campaign.

Electronic Direct Mail marketing encompasses multiple media channels including printed marketing materials, social media, text message marketing, and even out-of-home (OOH) advertising to reinforce and retarget the message of your campaign.

Let’s dig into the ins and outs of EDM marketing and how you can implement EDM campaigns into your marketing strategy.

First up: What exactly is EDM marketing?

EDM marketing is all about strategically building a list of potential customers that you can connect with by sending out engaging email communications to the different segments of your list. It allows you to engage directly with your customers – both potential and existing – to build relationships, drive conversions, and foster brand loyalty.

As mentioned before, however, EDM marketing is more than just email marketing.

An EDM marketing strategy uses various forms of media – email, social media, printed materials, text messages, out-of-home, and more – to help build your list and convert people to customers. By using other forms of marketing communications, you can reach potential customers and reinforce the campaign message. (We’ll go into more detail below)

The versatility and flexibility of Electronic Direct Mail marketing mean that it can work for almost any business. Whether you are running an eCommerce business, a service-based business or even a non-profit, EDM marketing can help you increase your conversions and grow your email list.

Lead capture solution for eCommerce - Book a Yieldify demo now!

EDM marketing vs email marketing: What’s the difference?

You may still be asking yourself what the difference is between EDM marketing and email marketing – both use emails to build a list and grow conversions so understandably they seem very similar from the outset.

While an email marketing campaign is just that – sending emails through a third-party provider in hopes that those emails convert customers – an EDM campaign is much more complex.

A fully-fledged EDM marketing campaign starts with e-blasts but follows up with retargeting ads to capture those that have seen the email, a supporting social media campaign, and even billboards or printed ads in magazines.

EDM marketing vs email marketing

These supporting marketing campaigns build on the message that was first sent out in the email and each works as one of the many needed brand touchpoints that will help to convert prospects into customers, and one-time customers into repeat customers. 

The marketing Rule of Seven states that a potential customer needs to “see or hear your marketing message at least seven times before they take action and buy from you.”

An EDM marketing campaign helps you reach those seven touchpoints by creating a comprehensive marketing strategy that goes beyond simple email communication as you do with email marketing.

The benefits of EDM marketing campaigns

While a lot of the benefits of using EDM marketing are similar to those you get when using email marketing, the main difference is that multi-channel targeted campaigns generally show better results than a standard email campaign. 

Saves time and costs

Both EDM and email marketing are extremely cost-effective – once you have your list, you can email them at quite a low cost based on a schedule you set out for your business. You can create beautiful emails using templates or the skills of an in-house design team at a fraction of the cost of creating a traditional mailer.

Time is also saved because you can do everything in-house without needing to turn to a printer or delivery service to get your message to your audience.

Builds trust and increases conversions

Being able to speak directly to your audience is one of the ways that a business can build trust with its customers – and email marketing is the most effective way to do this.

In fact, BCG study found that, for millennials, trusting a brand is second only to loyalty discounts in importance when choosing which companies to support. And a 2019 study by Edelman found that 62% of consumers are loyal to brands they trust, with another 51% stating that they would advocate for brands they trust. 

Brand loyalty chart

One of the greatest elements of EDM marketing is that you are working with a list of people who have given you their direct permission to contact them via email. They have opted-in to receive your communications, so you know that they are interested in hearing from you.

Because of this, they are more likely to engage with the content that your business sends. This allows you to build trust with your audience by sending them timely and engaging emails. And by building trust, you will be able to convert them into a paying customer.

Enables advanced personalization

EDM marketing campaigns give you the opportunity to highly personalize your email strategies based on how you segment your audience – more on that later!

Because of this, your business will be able to connect with your audience on a more authentic level, offering them information that is actually useful to them. No more sending out an email to a global audience promoting free shipping within the United States – with proper audience segmentation you can accurately address the different sections of your audience.

Email marketing is all about gathering leads and trying to build a relationship with them. EDM marketing takes it one step further and tries to leverage the valuable information you have already collected to improve how you market to your list of leads. 

Lead capture solution for eCommerce - Book a Yieldify demo now!

7 steps to building a foolproof EDM marketing campaign

If you’re ready to implement an EDM marketing campaign, you’re in luck – they start quite simply, and then expand as time goes on. There are 7 steps to implement EDM marketing in your business, and the process starts much like a simple email marketing campaign.

Step 1: Choose an email service provider

If you already have an email service provider (ESP) of choice, then you’re ready to move to Step 2 – congrats! If this is the first time you are implementing any kind of email marketing in your business, you’re going to need to find an email platform that works for you.

ESP integrations

If you are implementing EDM marketing, we suggest moving away from a simple spreadsheet and investing in an email marketing software – features like list segmentation, autoresponders, automated workflows, and analytics alone make it worthwhile.

There are a lot of great options out there, and you will need to do a bit of testing to see what works best for you. Thankfully, most email marketing platforms offer you some kind of free trial – VerticalResponse gives you 60 days, while ActiveCampagin gives you 14 days and Constant Contact has a 30-day trial. Both MailChimp and Sendinblue have “free forever” plans with limited features for smaller list sizes.

You’ll want to ensure that whatever platform you choose, you have the ability to segment your list and to send automated email campaigns that are triggered by parameters that you establish.

Step 2: Build your list

The success of any email or EDM marketing campaign lies with your list of leads. You want to ensure that the names on your database are legitimate and that you are consistently cleaning your list (most software can help you with this!).

If you’ve been in business for some time, you should consolidate all of your contacts into one list. Pull contacts from email accounts, your eCommerce and CRM platforms, and your existing email list. 

If your business is new and you are building your list from scratch, you’ll need to spend some time coming up with an email list building strategy.

  • Create a lead magnet – A 30-day trial, a 10% discount code, an interactive quiz – all of these work well in enticing your audience to sign up.
  • Offer multiple ways for your audience to sign up – Use lead capture forms, embed forms in your content, implement floating action buttons, and more to effectively collect email addresses on your website. 
  • Have a dedicated page for lead capture – Create a strong lead capture page and link to it from your social media profiles, ads, marketing collateral, etc.
  • Don’t forget offline – You can use your physical stores and other physical presence to get people’s emails into your database.
Lead capture page | Yieldify

When building an email list at scale, there are some best practices you can follow to help improve the effectiveness of your strategies. Here are the key ones:

  1. Laser-focus your targeting – If you are an eCommerce store that sells cookware to avid bakers, it doesn’t make sense to target people who only show interest in dining out.
  2. Choose your triggers carefully – Consider the different times that your lead capture form can trigger: In exit, on timer, on scroll, on inactivity, etc. Determine how you can layer them to effectively capture the most leads.
  3. Personalize when you can – This is an opportunity to segment your list even further and deliver a personalized experience that will resonate with your audience. Use dropdown menus and radio buttons to gather additional data on your subscribers.
  4. Limit the use of CTAs – Instead of overwhelming visitors with too many calls-to-action, limit how many CTAs you have on a page or on a form. This will definitely lead to more conversions.
  5. Be transparent about your intentions – Be clear about what information you are asking for, why you’re asking for it, and how it will be used.
  6. Keep your forms simple – In general, the longer the form, the fewer submissions you’ll receive. So keep your forms as short and simple as possible. 
Lead capture form - Dropdown menu

Step 3: Segment your list

Once you’ve built your list, it’s time to start segmenting. To be able to send your subscribers the most targeted, applicable content for them, you need to segment your list accordingly. If you are having a sale on women’s dresses, it doesn’t make sense to inform your male subscribers.

How you segment your list will depend on your objectives and the information that you have collected from your audience. There are four types of segmentation you can apply:

  1. Demographic
  2. Psychographic
  3. Geographical
  4. Behavioral
4 types of market segmentation

Demographic segmentation is the “who” of market segmentation. It looks at identifiable non-character traits like Age, Gender, Ethnicity, and more. For example, demographic segmentation might target customers based on their income, so your marketing budget is wasted on targeting people who cannot likely afford your products.

Psychographic segmentation is the “why” of market segmentation. It looks at your customers’ personalities and interests like Hobbies, Life goals, etc. It can be harder to identify this set of demographics, but they can be incredibly valuable in your marketing efforts.

Geographic segmentation is the “where” of market segmentation. It is incredibly easy to group your customers via physical location and it can be done in several ways: Country, Region, City, Postal code.

Behavioral segmentation is the “how” of market segmentation. It may be the most useful of all for eCommerce businesses. It does need some data to support it but most of this can be found on your website. The segments available include Spending habits, Browsing habits, Loyalty to brand, and more.

Behavioral segmentation benefits - Messaging accuracy

Segmenting your list lets you address your customers’ needs, market directly to them, and send effective emails every time. It’s integral to an EDM marketing strategy.

Step 4: Create your email campaign

This is it! You’re ready to create your campaign and send an email to your list. Depending on which email platform you went with, the steps to create your campaign will differ slightly. But there are some key email marketing tips you can use when building your campaign:

  • Ditch the technical jargon – Speak directly to your audience in a language they can relate to.
  • Make your emails pop with visuals – Break up large blocks of texts with images.
  • Write a catchy subject line – Your subject line is the most important part of your email because it determines whether or not people see your email.
  • Stick to your brand – Be consistent in your email design, tone of voice, sending intervals, etc.
  • Don’t get sneaky with your unsubscribe button – Anti-spam laws are no joke, so be sure to have a visible unsubscribe button or link in the footer.

If you aren’t sure where to start when it comes to the types of email campaigns to send, these are great options for eCommerce businesses:

  • Special offer announcements
  • New arrivals / Product launches
  • “We miss you” type emails to lapsed customers
  • Holiday specials
  • Re-orders / Back-in stock notifications
  • Sale reminders
  • Introduction to your brand and USPs
Ecommerce email marketing examples - The Bakerista and Quip

Step 5: Set up your autoresponders

Take advantage of autoresponders to help you automate your email communications. Autoresponders are emails that are sent automatically to your list based on the triggers you set within your email platform. Triggers can be:

  • A specific action, like when someone opts into your list and a welcome email is sent.
  • Timed release, like a week after signing up to your list, a discount code is sent.

If you’re looking for ways to include autoresponders in your EDM marketing campaign, try some of the following:

  • A birthday greeting
  • Bills, receipts, shipping confirmations, and other transactional emails
  • Product recommendations
  • Content built around visitor behavior on your eCommerce website
  • Abandoned cart reminders
Ecommerce email marketing examples - Aerie and Everlane

Step 6: Enable tracking

If you are running a marketing campaign of any kind, you must be tracking your results. Without analytics, you can’t fully understand how your campaigns are impacting your marketing objectives. Here are some of the key metrics you should be tracking for your EDM marketing campaign:

  • Open rate – How many people open your email.
  • Clickthrough rate (CTR) – How many people click on a link in your email.
  • Click-to-open rate – Compares the number of unique clicks to unique opens.
  • List growth rate – How many new people subscribe from your list.
  • Email sharing rate – How many people are sharing your email.
  • Unsubscribe rate – How many people unsubscribe from your list.

Most email platforms will be able to give you this information – coupled with Google Analytics, you should be able to track all the metrics you need to measure the success of your EDM marketing campaigns.

Step 7: Run complementary marketing campaigns

Depending on your goals, complement your electronic direct mail campaign with campaigns on other media channels, such as remarketing pay-per-click ads, social media posts, SMS remarketing, web push notifications, print advertising, or other offline strategies.

For example, if you’re promoting a new product launch and you’ve sent an email blast to your list, you can follow it up with targeted social media ads, SMS reminders on launch day, as well an advertisement in a magazine.

Let’s look at the “Back in Stock” email example from Blanqi, a nursing and maternity brand. Blanqi sent a promotional email to let their customers know that their popular Girl Shorts were back in stock.

EDM marketing campaign example - Blanqi

From there, Blanqi continued to adjust its eCommerce merchandising strategy and used a website hero image that promotes the Girl Shorts. It also served a “Welcome” lead capture overlay with radio buttons to be able to segment subscribers based on their needs.

EDM marketing campaign example - Blanqi

The brand also ran paid social media campaigns on Facebook and Instagram, as well as social media influencer sharing to get the word out.

EDM marketing campaign example - Blanqi

And finally, Blanqi sent out another email to subscribers who had shown interest in both postpartum and maternity clothing that highlighted some of the ways you can style the Girl Shorts.

EDM marketing campaign example - Blanqi

By creating these multiple touchpoints and segmenting their list so they are reaching their target audience, Blanqi ensures that their customers and potential customers are aware that the Girl Shorts are restocked and on sale.

You are creating multiple touchpoints where you know your audience will be so that you can reach them more than once. The email is just the starting point.

In conclusion

EDM marketing is a continuous effort to build a personalized brand experience through your marketing. It is all about creating trust and building relationships that convert with your customers. 

If you’re unsure of how to get started, feel free to connect with our team and we’ll be able to offer you tailored lead capture and email remarketing strategies to boost your revenue and customer loyalty. Also, check out our Daily Steals case study where we managed to get over 125,000 additional email subscribers and increase conversions by 4%.

Daily Steals case study | Yieldify

EDM marketing FAQ

? What is EDM marketing?

EDM marketing is an acronym for Electronic Direct Mail marketing. It’s a marketing tactic used by companies to target a large group of potential customers and focuses on building relationships to increase overall sales.

? What are the benefits of email marketing?

Email marketing is a low-cost, high-ROI marketing solution that helps you to build trust with your audience. This trust leads to increased conversions and repeat customers.

? How can email marketing be more effective?

Email marketing has an ROI of 4400% – it is undoubtedly one of the most effective marketing strategies. By utilizing strategies like EDM marketing, you can make it even more effective by using strategic targeting, segmentation, and the addition of other marketing channels.

The Best E-commerce Conferences and Events In 2020 [Always Updated]

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With many e-commerce events and retailer trade shows canceled due to COVID-19, we sourced some of the best e-commerce conferences you can still attend in 2020. Note: We’ll keep this list updated with new information.

COVID-19 has turned marketers’ lives upside down, with event marketing and B2B trade shows taking one of the hardest hits. At the beginning of March, we’ve seen numerous e-commerce conferences being canceled and trade show organizers pulling the plug after corporate partners and attendees backing out due to coronavirus uncertainty.

The “grim reaper” of e-commerce conferences took mercy on no one: we’ve seen global giants like Shoptalk, Shopify Unite, RetailX drop at the same rate as smaller niche events.

E-commerce conferences 2020 | Yieldify

Nevertheless, a major trend has emerged. Businesses that were either planning to attend or host their own physical event decided to shift their focus online. In a matter of days, virtual events started popping up promising the same immersive experiences and networking capabilities of a face-to-face event…but from the comfort of your sofa!

According to Bizzabo, 57% of marketers had to pivot their events to virtual due to the impact of COVID-19 with a whopping 92% saying they plan to incorporate virtual events into their strategy going forward even though almost ¾ haven’t run virtual events in the past.

Source: Event Outlook Report (Bizzabo)

So while we can still expect physical events to return sometime in Q4 or the beginning of 2021, they’ll likely never be the same. And not only due to post-COVID-19 safety regulations, but also the fact that event budgets will be relocated or cut significantly.

So where to go if you still want to network with your peers, learn about eCommerce trends and strategies from leading retailers, or simply showcase your eCommerce brand? Here’s our – continuously updated – list of best e-commerce conferences and retail events to attend in 2020.

Best e-commerce conferences and retail events in 2020

Events in June

Southeast eCommerce Mini Summit [VIRTUAL]
June 16, 2020, 2:00 PM – 5:00 PM EDT
A day of networking, presentations, and panels from e-commerce industry leaders.

Selling With Conversational Commerce: The Unfair Advantage For Your Online Brand [VIRTUAL]
June 16, 2020, starting at 5:10 PM BST
A session on how to create engaging multi-channel messaging at scale, including chat campaigns, that boost conversion rates and improve ROAS and how to measure the impact on your brand growth.

Transformations: Change is hard – how do we own change and win? [VIRTUAL]
June 18, 2020, starting at 12:00 PM AEST
Organized by Trustpilot, this webinar will discuss transformation journeys faced by e-commerce brands right now. Panelists from Yieldify, Web Profits, Couriers Please, and Klarna.

eTail Canada Virtual Event [VIRTUAL]
June 18, 2020, 12:00 PM – 3:30 PM EST
The eTail Canada Virtual Event will give you tips, tricks, and lessons learned from the top minds in retail eCommerce and omnichannel.

eTail Virtual Event [VIRTUAL]
June 22-23, 2020, 12:00 PM – 4:00 PM ET
The eTail Virtual Event is an online free-to-attend summit, bringing together tops mind in e-commerce and omnichannel providing the latest insights with the convenience of an on-demand digital event.

#TrendsOfTomorrow Ep.1: Budget-friendly hacks for eCommerce growth [VIRTUAL]
June 24, 2020, 03:30 PM BST
#TrendsOfTomorrow is a new virtual event series by Yieldify. Each month, our industry experts will share their top recommendations on a key area of e-commerce, followed by open office hours where we’ll answer your burning questions.

Shoptalk Virtual: Resurgence of Retail: A New Era of Shoppers and Stores Emerges [VIRTUAL]
June 25, 2020, starting at 1:00 PM EDT
In this session, Shoptalk will conduct three 10-minute interviews with leaders at three different retailers to highlight how each of them has approached store reopenings and what they’ve learned about what does and doesn’t work as they strive to win over COVID-wary shoppers.

Signifyd FLOW Virtual Meetup [VIRTUAL]
June 25, 2020, 9:30 AM – 7:00 PM BST
Signifyd FLOW Virtual Happy Hour brings together like-minded thought leaders, local merchants, and members of the e-commerce community to collaborate and empower each other during this unprecedented time of COVID‑19.

Northeast eCommerce Mini Summit [VIRTUAL]
June 30, 2020, 2:00 PM – 5:00 PM EDT
A day of networking, presentations, and panels from e-commerce industry leaders.

Events in July

eTailing Summit 2020 [PHYSICAL TURNED VIRTUAL]
July 06, 2020
The summit continues to follow the award-winning structure that brings key e-commerce and digital managers from online retailers together with leading solution providers for focused one-to-one meetings via a pre-arranged itinerary of virtual business meetings.

Shoptalk Virtual: Changes in Consumer Behavior: Shoptalk Retail Framework for COVID-19 [VIRTUAL]
July 09, 2020, starting at 1:00 PM EDT
During this session, the Shoptalk team will provide an update to the Shoptalk Retail Framework for COVID-19 based on recent data and analysis related to changing consumer behavior. This update will look at how the new era in retail is being shaped by shoppers transformed by the COVID-19 experience.

B2B Online Virtual Event [VIRTUAL]
July 15-16, 2020, 12:00 PM – 4:00 PM EST
The B2B Online Virtual Event is an online free-to-attend forum, bringing together top minds in B2B manufacturing and distribution eCommerce and omnichannel providing the latest insights with the convenience of an on-demand digital event.

Events in August

eTail Asia 2020 [PHYSICAL]
August 04-06, 2020
eTail is designed to help e-commerce merchants increase the profits from their online business. Inspiring keynotes, over 30 hours of intimate discussion groups, disruptive strategies, peer to peer conversations, and connections with the top minds at Asia’s most successful retailers.

B2B Online Chicago 2020 [PHYSICAL]
August 05-06, 2020
The most disruptive digital, eCommerce, and omnichannel content. With 900+ B2B leaders exclusively in one place at one time, this is the only meeting place to shape the future of the industry.

iMedia Online Retail Summit: Australia [PHYSICAL]
Rescheduled: August 24-26, 2020
iMedia Online Retail Summit provides an intimate environment for senior online retail marketing executives to converge, debate, and discuss the major strategic issues they face in online retail. 2020 theme: Partnerships: great alone, better together.

#TrendsOfTomorrow: Personalization after COVID-19 [VIRTUAL]
August 26, 2020
The COVID-19 crisis has drastically changed the landscape of eCommerce, with the industry jumping forward 10 years in a 90-day period. But what does that mean for innovation, particularly in the field of personalization? Join Yieldify on August 26th to learn more about the results of a personalization survey conducted with 400 eCommerce leaders.

MivaCon 2020 Digital Day [PHYSICAL TURNED VIRTUAL]
Rescheduled to August/September 2020
The MivaCon 2020 Digital Day is all about empowering independent sellers. Merchant attendees will receive exclusive insights from top e-commerce experts on what they need to stay competitive, relevant, and profitable.

Events in September

eTail Asia & ANZ Virtual Summit Week [VIRTUAL]
September 07-11, 2020
Accelerate your digital transformation with proven strategies from leading retailers, get your eCommerce, digital marketing, and e-delivery capabilities ready for COVID-19, and discover how the latest strategies, tools, and technologies are being leveraged.

One-to-One Monaco 2020 [PHYSICAL]
September 01-03, 2020
The theme chosen for the 2020 edition will allow participants to better understand the expectations of a more committed and responsible consumer, and the challenges of market players who are massively accelerating in this process.

Shoptalk 2020 [PHYSICAL]
Rescheduled: September 14-17, 2020,
Everyone who’s anyone is at Shoptalk. Over 8,000 individuals attend Shoptalk each year from almost 3,000 established retailers and brands, startups, tech companies, investors, real estate operators, media, Wall Street analyst firms, and more.

iMedia Online Retail Summit: New Zealand [PHYSICAL]
Rescheduled: September 14-16, 2020
iMedia Online Retail Summit provides an intimate environment for senior online retail marketing executives to converge, debate, and discuss the major strategic issues they face in online retail. 2020 theme: Partnerships: great alone, better together.

Paris Retail Week [PHYSICAL]
September 15-17, 2020
Paris Retail Week 2020 will bring together trade professionals at Paris Expo Porte de Versailles in an ever more experiential format. Conferences, Workshops, Pitching, Awards, Innovation Tours, Store Tours, and announcements of new innovations will energize this event dedicated to sharing knowledge, experiences, and best practices.

Savant eCommerce London [PHYSICAL]
September 16-17, 2020
Savant eCommerce London will explore both established and innovative approaches for you to efficiently drive profitability within your organization.

eCommerce Under the MiCROscope: Cart abandonment [VIRTUAL]
September 23, 2020
With planning for peak season underway, Yieldify’s CRO experts are back with a special focus on cart abandonment and how to stop it. In this short session, we’ll be dissecting a selection of real eCommerce website live to show us best practice (and missed opportunities) when it comes to getting from cart to conversion.

Ecommerce Under the MiCROscope Episode 2

The Virtual B2B E-Commerce Summit [VIRTUAL]
September 24, 2020
Ready to get inspired by our virtual B2B summit for manufacturers, wholesalers and distributors? You will learn the latest and most practical information on how to succeed in e-commerce.

E-commerce Summit 2020 [PHYSICAL]
Rescheduled: September 28-29, 2020
The E-commerce Summit is an exclusive, invitation-only conference for retailers and brands. Focusing on the European market and the following three verticals: Fashion & Lifestyle, Home & Living, and Food & Care-, the top trending topics on E-commerce will be widely addressed.

Savant eCommerce Stockholm 2020 [PHYSICAL]
September 29-30, 2020
This year, Savant eCommerce Stockholm will explore the methods and strategies, both tried and new, for you to effectively drive profitability within your organisation.

eTail Virtual Event [VIRTUAL]
September 29-30, 2020
The eTail September Virtual Event is a 2-Day online, free-to-attend summit, bringing together tops mind in retail and providing the latest insights with the convenience of an on-demand digital event.

E-commerce Expo London 2020 [PHYSICAL]
September 30-October 01, 2020
E-commerce Expo is the UK’s largest event dedicated exclusively to the e-commerce industry. Focusing on customer acquisition, retention, and fulfillment, E-commerce Expo addresses the key areas to get your business growing.

Events in October

E-Commerce Day REMOTE [VIRTUAL]
October 01, 2020
Get educated, motivated, and inspired by over 50 E-commerce Expert Speakers, Including Merchant Keynote Rebecca Minkoff.

Bloomreach Connect Global Online Summit [VIRTUAL]
October 06, 2020
Meet the brightest minds from the worlds of tech and commerce. The 5th edition of this flagship event will bring a global speaker lineup and an immersive digital experience live from your home.

Savant Supply Chain Congress [PHYSICAL]
October 06-07, 2020
Savant Supply Chain is always at the forefront of developments in your sector. An energizing and high-level event like no other in the supply chain space, it brings together 130+ Heads of Supply Chain, Logistics and Planning from Europe’s most established and most innovative B2C supply chains.

Drapers Digital Festival 2020 [PHYSICAL]
Rescheduled: October 07, 2020
An immersive festival featuring essential content from industry leaders, live awards judging, competitions, fringe events, and a celebration of the industry’s digital triumphs.

eTail East 2020 [PHYSICAL]
Rescheduled: October 13-15, 2020
eTail is a three-day conference designed to help e-commerce merchants increase the profits from their business. Action-packed stories, disruptive strategies, strategic conversations, and connections with top minds at America’s most successful retailers.

eTail Australia 2020 [PHYSICAL]
Rescheduled: October 13-15, 2020
With over 250+ retail decision makers exclusively in one place at one time, this is THE meeting place to benchmark your business with the best and shape the future of your industry.

Online Retailer Sydney 2020 [PHYSICAL]
Rescheduled: October 19-20, 2020
This October, hundreds of stakeholders, large and small, will come together to access the latest trends, strategic insights, solutions, tech and connections that will make a positive difference to their business in 2020 and beyond.

iMedia Online Retail Summit: South East Asia [PHYSICAL]
Rescheduled: October 26-28, 2020
iMedia Online Retail Summit provides an intimate environment for senior online retail marketing executives to converge, debate, and discuss the major strategic issues they face in online retail in a closed forum. 2020 theme: Partnerships: great alone, better together.

PI Live London [PHYSICAL]
October 27-28, 2020
PI LIVE London in an annual gathering of the brightest minds in e-commerce, affiliate, and performance marketing. Our events are carefully curated and designed with both retailers and publishers in mind giving access to great content, leading technologies, and potential partners across two action-packed days.

Events in November

B2B Marketing Expo 2020 London [PHYSICAL]
November 10-11, 2020
Europe’s leading marketing event, connecting the most proactive marketing professionals with the tools, techniques, and innovations they need to be at the forefront of the ever-evolving world of marketing.

Events in December

Digital Travel US 2020 [PHYSICAL]
December 14-15, 2020
Digital Travel is the premier interactive conference for travel executives who are looking to reimagine the customer journey. Join the top minds from hotels, OTAs, airlines, transportation companies, and everything in-between, to share practical insight on how to enhance personalization and improve their online strategies for better cross-channel experiences.

Other events

OroVibe 2020 [PHYSICAL]
Postponed until further notice

eTail Canada 2020 [PHYSICAL]
Postponed until 2021

CommerceNext 2020 [PHYSICAL]
Postponed until 2021

Alibaba Ecosystem Expo [PHYSICAL]
Postponed until 2021

IRCE 2020 at RetailX [PHYSICAL]
Canceled

Shopify Unite 2020 [PHYSICAL]
Canceled

Magento Imagine 2020 [PHYSICAL]
Canceled

Behavioral Segmentation Defined with 4 Real-Life Examples

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Behavioral segmentation definition and examples

What is behavioral segmentation and why is it important to your eCommerce business?

Let’s answer this question and define some key behavioral segmentation examples.

Marketing Segmentation has always been a key component of the most effective marketing strategies. Dividing customers into smaller groups based on their needs and actions ensures you are best placed to efficiently solve their problems and in turn, sell more of your products.

Whilst understanding information such as your average customer’s location, age, and gender are essential first steps to begin addressing those needs, sometimes it is necessary to go one step further. 

Leveraging other useful customer metrics like behavioral data can help you identify how your customers interact with your business.

For example, behavioral segmentation can answer questions like How many times they visit your online store before purchasing?; or Which promotional message – a discount code or a free shipping guarantee – is more likely to nudge them towards a higher-value purchase?

Behavioral segmentation | Yieldify

This level of insight is what makes behavioral segmentation a must-have marketing strategy for eCommerce businesses. In this post we’ll cover:

1. Behavioral segmentation definition
2. Behavioral segmentation benefits
3. Four main types of behavioral segmentation

Purchase behavior
Occasion and timing
Benefits sought
Customer loyalty
4. Behavioral segmentation examples
5. Other types of behavioral segmentation
Customer journey stage
Engagement
Satisfaction
Conclusion

What is behavioral segmentation?

Behavioral segmentation refers to a process in marketing which divides customers into segments depending on their behavior patterns when interacting with a particular business or website.

These segments could include grouping customers by:

  • Their attitude toward your product, brand or service;
  • Their use of your product or service,
  • Their overall knowledge of your brand and your brand’s products,
  • Their purchasing tendencies, such as buying on special occasions like birthdays or holidays only, etc.

Going beyond the traditional demographic and geographic segmentation methods and utilizing behavioral data allows for the execution of more successful marketing campaigns.

At the very least, behavioral segmentation offers marketers and business owners a more complete understanding of their audience, thus enabling them to tailor products or services to specific customer needs. Below we take a look at four more benefits of behavioral segmentation.

Why is behavioral segmentation so important?

Identifies the most engaged users. Being able to filter existing customers and potential prospects that display highest levels of engagement – for example, those regularly opening your emails, or spend the most time with your product pages – enables marketers to make more informed decisions on how and where to best allocate time, budget, and resources. In return, this makes your marketing more cost-effective, as you’re not burning through budget trying to warm up predominantly cold leads. You can focus on those most likely to make a purchase.

Behavioral segmentation benefits - Engagement levels

Improves messaging accuracy. Behavioral segmentation allows marketers to optimize their positioning and marketing messages toward the customer data at hand. Imagine you’ve already identified that 24-35-year-olds are the most active segment on your fashion eCommerce store. Behavioral segmentation allows you to enrich this demographic data by splitting the segment based on their interests and preferences, such as “interested in activewear” vs “interested in formal attire,” or “one-time shopper” vs “wardrobe overhauler.”

Behavioral segmentation benefits - Messaging accuracy

Provides refined personalized experiences. To provide a sense of brand persona and uniqueness, deeply analyzing your audience and resonating with customer needs, wants, concerns, and demands can make noticeable differences. Specifically, personalized approaches, such as displaying complementary products on the website or sending an upsell email after a recent purchase can not only lower bounce rate, reduce cart abandonment, or speed up the purchasing process, but also cement customer loyalty.

Builds brand loyalty. Customers who feel they are being attended to throughout their customer journey will instinctively favor the brand over competitors. Behavioral segmentation enables eCommerce businesses to reach extraordinary levels of customer satisfaction & retention, increase customer lifetime value, and boost long-term revenue. All due to increased targeting accuracy and higher levels of personalization.

What are the 4 types of behavioral segmentation?

There are four main types of behavioral segmentation that help form a complete customer profile throughout their buying journey. Each nuance provides actionable insights, which can be embedded in a variety of marketing channels and encourage customers to act on their purchase decisions.

You can break these down into four main behavioral segments.

Behavioral segmentation types

1. Segmentation based on purchase and usage behavior

Segmenting by purchase behavior disentangles the varying trends and behavior patterns that customers have when making a purchase decision.

Segmenting by purchase behavior disentangles the varying trends and behavior patterns that customers have when making a purchase decision.

This form of behavioral segmentation provides insight into the buying stage that your customer might be in, their role in the purchasing process, the obstacles they are facing, the incentives they’re most likely to respond to and much more.

For example, customers who prefer to undertake research will often turn to search engines or reviews to be assured they are making the right decision purchasing from you, whilst customers that are particularly thrifty may only interact with your brand or product when on sale. 

Ultimately, both of these customer types can fall into the same product affinity category. However, targeting all of them with the same marketing materials and messaging is destined to waste resources. The aforementioned careful consumer may not respond to discount promotions in the same manner as the thrifty one.

This is where segmenting by purchase behavior comes in. You can break these behaviors down into categories depending on:

  • How many interactions with your business does a customer need before proceeding to conversion;
  • What search queries a customer used to locate your brand, product or service;
  • What questions a customer asks when using a live chat or virtual assistant; etc.

Knowing this information allows you to respond to your customer’s needs in a relevant manner.

For example, customers who are in the research phase and are likely to leave to compare prices could be retargeted with a “best price” or “price match” guarantee. Alternatively, a shopper that is keen on social proof and buys in accordance with popularity trends could be targeted with a message suggesting that the item is in high demand, and moving fast.

2. Occasion or timing-based segmentation

Occasion-based segmentation categorizes customers who are most likely to interact with your brand or purchase from your website on either specific occasions or set times.

Occasions could include national holidays like Labor Day, a holiday season like Thanksgiving or Christmas, or life occasions, such as a wedding, new house, or vacation.

Occasion-based purchasing can also occur in a customer’s daily routine. Purchases like a happy hour round of drinks after work and a caffeinated morning drink are all types of occasion-based purchases as they are only bought at precise times.

Grouping customers using this form of segmentation involves monitoring a customer’s purchasing behavior to establish a pattern so that you preempt the targeting process.  

For example, if your store has customers that participate yearly in your Thanksgiving promotions, but do not buy anything else from you throughout the year, you can use this information to market to the customer in weeks in advance.

3. Benefits sought segmentation

Segmenting by benefits sought refers to dividing your audience based on the unique value proposition your customer is looking to gain from your product or service.

Let us explain further. When we make purchases, we do so based on the belief that we will receive a certain value or benefit from using the product or service. 

Even when purchasing something as mundane as toothpaste, we lean towards different value propositions: Some may be looking for whitening benefits while others seek comfort to their sensitive gums. Dividing consumers based on these factors embodies the benefits sought segmentation.

Grouping your data by benefits sought helps you narrow down the specifics of what drives customer purchases, revealing which product feature or service aspect they feel most attuned to. Divide data by these benefit categories when using this form of behavioral segmentation:

  • Quality: What makes your product better than your competitors?
  • Usage: How will it benefit your customer when they use it?
  • Customer Feedback: Are your customers happy with the product or service, or are there areas for improvement?  
  • USPs: What makes your product unique from other already existing products?
  • Additional Benefits: Are there other advantages a customer could receive from purchasing your products or services?

4. Segmentation based on customer loyalty

Loyalty-based segmentation measures the level of loyalty a customer has with your brand, either through a rewards program, number of purchases, or general engagement with your marketing efforts.

Using loyalty-based behavioral segmentation helps you to zero in on existing repeat customers, their needs, behavior patterns, and more. Besides generating repeat revenue from your business, loyal customers are incredibly useful in terms of referrals, word of mouth, and feedback.

Extracting valuable information from this segment can help you optimize future campaigns, improve your value proposition, strengthen positioning, and more. Consider identifying factors such as:

  • What the key behaviors were throughout the customer journey that nurtured loyalty;
  • Which customers are the most appropriate or ideal type for loyalty programs;
  • What factors are most essential in keeping those segments of customers happy;
  • Which ways value received from loyal customers can be maximized.

The most common examples of customer loyalty segmentation can be reflected in the travel industry which regularly promotes frequent flier programs and the finance industry who offer rewards for big-spending platinum credit card members.

Behavioral segmentation examples for eCommerce

When used effectively, behavioral segmentation can produce astounding results, transforming previously cold leads or customers into newly engaged and retained ones. Here we list some real-life examples, so you can see behavioral segmentation at its subtle, very best.

Usage behavior: BabyCentre UK

Part of the Johnson & Johnson multinational corporation, BabyCentre UK is a pregnancy and childcare resource located in the United Kingdom. The company uses a Facebook Messenger app to suggest personalized advice and make targeted recommendations based on the input that it receives from the user, through a series of questions and answers.

Chatbot case study - Babycenter

For example in the promotional images above, when the parent selects weaning as the problem they are encountering, the BabyCentre app engages the user by giving them a list of signs to look out for, as well as then suggesting recipes for when the child is ready for solid food.

This tailored experience provides BabyCentre with actionable data that it can use to segment the user by the information obtained through their selections: For example, their child falling into an age category that experiences weaning. Categorizing by this data can help target the customer with repeat, relevant information – such as recipe guides or other helpful advice.

When Babycentre investigated what drove the highest levels of traffic to its website – the chatbot or email marketing – it revealed that the messenger bot recorded a read rate of 84% and click-through rate (CTR) of 53%. Together the stats made for an overall engagement rate that was 1,428% higher than its email funnel, adding further evidence to how effective segmentation can be when categorized correctly.

Occasion-based: Guinness

One out the box example of occasion-based purchasing segmentation came from a campaign initiated last year by famous Irish stout manufacturer, Guinness.

Guinness gives their brand name to sponsor the Guinness Six Nations Rugby Cup each year and regularly experience sales boosts through fans purchasing their drinks to complement the matches.

However, with industry stats showing that 6.1 million people now actively choose not to consume alcohol, Guinness wanted to find a way to diversify their marketing strategy to appeal to those who don’t drink, whilst also aiming to retain previously existing customers, and those most likely to purchase again from them throughout the time of the tournament.

So, just before the Rugby Tournament was due to begin they aired a 30-second advertisement advertising their new product: Guinness Clear.

Behavioral segmentation example - Guinness Clear
(Source: Ads of. the World)

The campaign used slogans such as “Make it a night you’ll remember,” and “Sometimes less is more” while alluding to the brand new ingredient of H20. The campaign reached 21 million people and immediately generated global media attention, with customers confused as to whether the product was a new product, or whether it was just water – which in the end, it turned out it was.

This process of segmentation worked across multiple audiences. For existing loyal customers, they immediately flooded manufacturers with questions as to where they could purchase the product, whilst those consumers that Guinness knew were more likely to buy, but only in conjunction with the event, were also targeted with a timely reminder of their brand to be enticed once again into purchasing.

Additionally, it had the potential to acquire any new or occasional drinkers who could be won over by a creative marketing campaign.

Benefits-sought: Olay

American skincare brand Olay used benefits sought behavioral segmentation when creating its Skin Advisor. The artificial intelligence beauty tool collects data from customers by asking them five to seven quick questions about their skin. The advisor then reveals the true age of the customer’s skin, and recommend products accordingly.

Beauty eCommerce trends - Olay Skin Advisor

By asking the customer questions based around their skincare routine, and their preferences, Olay can collate data that can influence its product development, allowing the brand to bring out products that are most sought after and most relevant to their customers.

For example, through its Skin Advisor app, Olay gleaned that a large percentage of its consumer base wanted fragrance free products. Originally, these products were not even considered by Olay’s development team, but they were then able to be actioned for manufacturing. 

Olay did the same when data from the Advisor revealed that many customers were seeking Retinol based products, and the subsequent lack of Retinol products in its range was contributing to the brand losing custom. In response, Olay released Retinol 24 which has gone on to be one of the brand’s best selling products and which helped to completely transform their sales. 

Loyalty-based: DavidsTea

Another behavioral segmentation example is that of DavidsTea who uses behavioral segmentation in their loyalty programs.

DavidsTea is a Canadian specialty tea seller who wanted a fun way to personalize their messaging to their most valued customers. Their timeline style emails won general applause across the internet and are ranked as one of the best email marketing examples, ever.

Behavioral segmentation example - David's Tea

As the above screenshot shows, when a customer reaches a specific anniversary with the company, they receive a “look back” email that contains data such as where their first purchase took place and uses the recording of data such as their most purchased teas to give a fun, by weight, comparison.

By receiving this email the customer feels unique and valued throughout their customer journey and will be more inclined to continue purchasing.

Other types of behavioral segmentation

Whilst we have covered the four main types of behavioral segmentation, there are other strategies that encompass different behavioral segments. These include:

Segmentation based on customer journey stage

A customer’s buying journey develops in four main stages, which make up the widely known AIDA model. The AIDA model recognizes this process of deliberation as a sequence of 4 steps: 

  1. Attention: The consumer becomes aware of the brand, product, or service. 
  2. Interest: The consumer’s curiosity develops into a deeper interest. 
  3. Desire: The consumer starts imagining the product in their everyday lives.
  4. Action: The consumer is ready to purchase.

It’s important to note the eCommerce buyer’s journey doesn’t end with the purchase. After the initial conversion follow Adoption (your customer makes repeated, regular purchases) and Advocacy (your customer becomes a loyal supporter of your brand, product, or service, frequently purchasing and actively promoting you by word of mouth, social proof, etc.).

AIDA model in marketing

Segmenting by the customer journey stage gives direction to your business objectives: To pull customers into the attention stage you’ll need strong advertising campaigns, media coverage, influencer support, and all that jazz.

However, to nudge customers from desire to purchase you’ll need well-positioned USPs, clear and informative FAQs, associative product imagery, and good website UX. Not to forget that 8 in 10 customers often leave products in their cart, strong remarketing campaigns via email, SMS, or browser will also come in handy.

Our client, Vinomofo, used this type of segmentation to develop a strategy that targeted specific audiences including new, returning visitors, returning clients, and more. New visitors were served with a $15 off incentive, whereas returning clients saw premium services depending on their basket value. Check out the Vinomofo case study in full to learn about the results!

Vinomofo behavioral segmentation case study

All in all, gaining a comprehensive idea of the stage your customer is in, as well as the touchpoints they interact with, allows you to provide more relevant and timely communication that can lead to higher conversion rates.

Segmentation based on engagement

Customer engagement can be categorized by three levels:

  • Occasional: Customers sometimes have contact with your brand, product, or service but not regularly. 
  • Regular: Customers regularly interact with your products or services, but fail to use them to the full extent. 
  • Intensive: Your products or services are embedded in your customer’s life and they buy from you at any opportunity. 

Just like customer journey stage segmentation, grouping customers based on their engagement levels can also help you to understand the reasons why their behavior falls into the appropriate category. 

Engagement segmentation

For occasional customers, surveys could be a useful tool in determining whether they lack the motivation or trust to purchase. Providing regular customers with marketing material that highlights all the features of your product or service may display changes in their behavior. Those who are intensive advocates of your product or service could benefit from loyalty or reward schemes in order to retain their custom and incentivize further word-of-mouth marketing.

Use this information accordingly and adjust both your marketing messages and strategies to appeal to each segment. This will aid customer retention by dividing the relevant materials between those engaged, and those unengaged, and ultimately help to reduce churn.

Segmentation based on satisfaction

Behavioral segmentation based on satisfaction is the most straightforward of them all. Utilizing customer feedback can help you to enhance your product or service by understanding which features your customers most desire, or which could help you edge ahead of competitors.

Use marketing tools like surveys and offer incentives for completing the feedback such as a discount off of their next purchase. These will be worth it in the long run.

Behavioral segmentation by customer satisfaction

In conclusion

Behavioral segmentation is a vital part of any marketing strategy, and implemented in one of the above methods can display data trends and insights that you may have otherwise never have uncovered.

By understanding customer behavior you can use this to improve performance across other channels such as email marketing, SMS marketing, social media marketing, and chatbot marketing to diversify your results.

By segmenting your users by their behavioral data, you gain a more comprehensive look at how you can adjust your messaging, brand, marketing materials, and ultimately products or services in order to stay ahead of the competition and reduce your customer churn.

Audience segmentation for eCommerce - Book a Yieldify demo now!

Behavioral segmentation FAQ:

What is behavioral segmentation?

Behavioral segmentation refers to a marketing segmentation process in which customers are divided by their behavior patterns when interacting with a business. 

What are the four types of behavioral segmentation?

The four main types of behavioral segmentation are based around purchase behavior, occasion-based purchases, benefits sought, and customer loyalty.

What is an example of behavioral segmentation?

Examples of behavioral segmentation include loyalty programs, happy hour events, survey collection, and recommendations, such as possible travel destinations, or ancillary products.

11 Best Resources To Learn About eCommerce Merchandising

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Ecommerce merchandising resources

Looking to learn more about eCommerce merchandising? We handpicked 11 merchandising resources for all types of learners: from online courses to books and webinars – find one that suits you the best!

Most marketers would say that working through their eCommerce merchandising strategy is quite an exciting time. It means you are taking the steps to improve your business model, increase your revenue, and grow a loyal customer base.

The art of displaying products and offers on shelves to increase sales has long been a staple of retail stores. E-commerce merchandising is a relatively new concept in comparison, but it has quickly become just as important for digital stores as it has been for brick and mortar.

We’ve rounded up the best eCommerce merchandising resources, including online learning courses, books, and workshops that will help you create a winning eCommerce merchandising strategy that works for your business.

Best merchandising courses online

1. Fast Track Retail Buying and Merchandising. This beginner course introduces you to the specialized terminology, concepts, jargon, and acronyms of merchandising. This Udemy course will give you a full picture of how everything ties in together to help you fully understand the complexities of the buying and merchandising cycle in your business.

2. Shopify Compass’ store design courses. Shopify has a series of courses in its Compass program (formerly known as Shopify Academy) that can help you create a stunning eCommerce experience that converts visitors into loyal customers.

The first course – How to Design Your Online Store (with Zero Design Experience) – will guide you through the principles of designing an eCommerce website. You will ensure you are designing for your target audience and will also learn how to create your own visual brand.

The second course – Introduction to Strategic Store Content – will teach you how to leverage strategic content to give your online store the strongest ROI. Lessons include learning how to optimize your website using best practices, and how every page on your website can work to lead potential customers through checkout.

The third course – Product Photography for eCommerce – focuses on the importance of product photography for eCommerce websites and teaches you how you can create your own low budget product photography. 

Ecommerce merchandising resources - Shopify Compass

3. The Art and Science of Buying and Merchandising. With this 7.5 hours long online course available exclusively on Business of Fashion (BoF), you will gain a general understanding of the buying and merchandising functions in your business.

Taking this course you’ll get advice on how to use your data along with your instincts to make big business decisions. Finally, you’ll get a look into best-in-class companies and how they execute their buying and merchandising strategies.

4. Retail Management – Merchandising, Distribution and Marketing. While this free course available on Alison focuses mainly on brick-and-mortar stores, the first half of the course has some great lessons that can easily be applied to eCommerce websites. In Module 1, you will learn how to set price points, the basics of visual merchandising, the principles of design, and how to effectively design to attract customers. 

5. Product Styling for a Higher Revenue. Presenting your products in an appealing way in a big part of effective merchandising. Skillshare’s course will teach you how to create visually stunning images that are presented in a way that supports your brand story. Learning how to style your photos gives you the solid foundation you need to create beautiful images that convert.

Best merchandising books

6. Online Visual Merchandising: Structural Elements and Optimization for Apparel Web Stores. Written in 2014, Online Visual Merchandising is one of the first texts about how merchandising can be used in the digital world. Taking an academic angle, this book focuses on apparel online stores, but the lessons learned can be translated into any eCommerce website. 

7. Upstart!: Visual Identities For Start-Ups & New Businesses. If you are just getting started and you have yet to create a visual brand identity for your eCommerce business, Gestalten’s Upstart! is a great place to go for inspiration. This book showcases a range of visual identities that have been created by new businesses and start-ups and is a great way to find inspiration for your own visual merchandising.

Ecommerce merchandising resources - Upstart!

8. The Ultimate Visual Merchandising Handbook. While this whitepaper on visual merchandising is written with retail stores in mind, 90% of the content is easily translated into the eCommerce world. The Tips and Tricks chapter is very applicable and offers some great takeaways and the How-To Measure VM Strategies provides a very interesting take on how to track and measure the success of your visual merchandising initiatives. 

9. The Elements of Visual Merchandising. Another book that focuses mostly on brick-and-mortar stores, The Elements of Visual Merchandising has a lot of wonderful takeaways that can be applied to an online store. The Importance of shopping environment is one section to take note of – how can you create an eCommerce shopping environment that keeps your customers coming back? And the section on creative applications can help you to understand just how far you can go to entice your customers.

Best merchandising webinars and conferences

10. NRF NXT’s 2020 Digital Conference. This annual conference is the biggest retail eCommerce and digital marketing event. Happening virtually on July 20-22, 2020, the NRF NXT conference is known to focus on merchandising strategies as well as other salient topics for eCommerce businesses. This year’s session on end-to-end execution for AI results and creating growth through experimentation will have direct implications for any digital merchandiser.

11. E-commerce Merchandising Informational Webinar. The University of Vermont offers a 4-week intensive course on eCommerce merchandising and this pre-recorded webinar gives you insight into the course but also into the basics of eCommerce merchandising, the current trends in eCommerce merchandising, the 3 biggest issues eCommerce merchandisers face, and a few tips and tricks to get you started.

In conclusion

While eCommerce merchandising is still a new field and the resources available are working to catch up to the times, there are a lot of great places you can get your information from. And most importantly, a lot of the content that has been created over the years for retail merchandising still rings true. Don’t be afraid to take what works for your business and leave the rest behind. Good luck!

5 Must-Have eCommerce Merchandising Tools

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Best eCommerce merchandising tools | Yieldify

Struggling to choose from the variety of eCommerce merchandising tools available on the market? We narrowed it down to 5 must-have technologies that will help you scale your eCommerce merchandising strategy.

Merchandising is essential in the eCommerce world. Effective merchandising helps lead potential customers through the buyer’s journey and aims to convert them into loyal customers before they bounce to a new website.

With a solid merchandising strategy, you can influence potential buyers’ purchasing decisions, which helps you increase revenue, reach sales targets, and make lifelong customer relationships. However, even the strongest merchandising strategy needs technology resources to be fulfilled.

In this article, we’ve rounded up 5 amazing eCommerce merchandising tools to help you kickstart your merchandising efforts:

1. Hotjar
2. Hawksearch
3. Shutter Stream
4. AstraFit
5. Yieldify

5 must-have merchandising tools for eCommerce

1. Hotjar – heatmaps and behavioral analytics

Heatmaps are arguably the most powerful way to visualize and understand what your customers are doing on your website. And Hotjar, the industry-leading heatmap and behavior analytics tool, is a great addition to any merchandiser’s tool belt.

Hotjar provides a variety of ways for eCommerce marketers to optimize their website merchandising strategy. Using their heatmaps tool, you can visualize the clicks, taps, and scrolling behavior of your website visitors. This allows you to see the areas most browsers tend to focus on, as well as the ones they overlook.

Ecommerce merchandising tools - Hotjar

The most common use case is to see how far down your page customers actually scroll. If you have placed important information at the bottom of the product page, such as customer reviews, 360º product close-up video, or – god forbid! – your “Add to cart” button, but your heatmaps show that only 15% of visitors scroll down to see it, it’s a good indication to move that crucial information above the fold.

Hotjar also allows you to make session recordings. You will be able to see in real-time how potential customers are interacting with your eCommerce store. This all but eliminates the guesswork and lets you see exactly what usability issues they may face and what areas of your website are working for you.

Ecommerce merchandising tools - Hotjar

Lastly, Hotjar enables you to gather more feedback and understand what your potential customers want to achieve when visiting your website with their feedback polls feature. You can target questions to customers anywhere on your page to gain valuable information on what is and isn’t working for them on your eCommerce website.

For example, you can ask how the visitor came across your website, what motivated or prevented them from making a purchase, or how to generally improve the website experience. See more Hotjar poll examples here with lots of them focusing on eCommerce.

Ecommerce merchandising tools - Hotjar

2. Hawksearch – next-level product search

Effective search is an essential element of your merchandising strategy. You want a search tool that is simple, functional, and easy-to-use. But that is the bare minimum of what your search needs to achieve – with Hawksearch, it can do so much more.

Hawksearch is a powerful merchandising tool that delivers the right content, at the right time, and allows you to create the best shopping experience possible. With Hawksearch, your product categories can be applied as search filters, and be displayed based on the search results page.

Ecommerce merchandising tools - Hawksearch

You can also add a layer of personalization to search results, to highlight products based using location, weather, past purchases, and more. And finally, you can use the power of machine learning to identify relevant recommendations to show potential customers to upsell and cross-sell based on their behaviors.

Ecommerce merchandising tools - Hawksearch

3. Shutter Stream – 360º product photography

For eCommerce websites, having excellent product photography is a big part of merchandising. In retail stores, it’s easy enough to display your products – customers can pick up, examine, and try on products in person. Online, you need to make sure that your product images are high-quality and appealing to entice potential customers to buy from your website.

Shutter Stream creates software and hardware for eCommerce product photography that is designed for users of any skill level. The goal is to help anyone and everyone create high quality still and 360-degree product images in-house instead of needing to hire a professional photographer.

Ecommerce merchandising tools - Shutter Stream

Shutter Stream Photography Software integrates image composition, camera control, image editing and image processing tools into a single standalone application that helps to automate and batch process standard imaging tasks.

4. AstraFit – virtual fitting room

If your eCommerce website is selling clothing, then let us introduce you to your newest employee – AstraFit. The smart assistant you never knew you needed, AstraFit helps to create a personalized shopping experience by advising potential customers on product sizes and helping them to pick the best fitting clothing.

AstraFit is a must-have merchandising tool in that it gives you a virtual fitting room right on your site by allowing them to see how garments fit their unique figures, by providing them with an easy to understand description of how the garment will fit and feel, and giving them a personalized fit score for each garment they look at.

5. Yieldify – personalized customer journeys

Personalization is key to any strong eCommerce merchandising strategy. You need to make your customers feel like their shopping experience is tailored to their needs, much like a salesperson would in a retail store.

Yieldify is a fully-managed website personalization solution focused on creating highly-converting eCommerce customer journeys. When it comes to merchandising, Yieldify’s solution is multifold:

  1. First, you get a powerful audience segmentation engine, which allows you to create and target specific customer segments based on demographic, geographic, technographic, and real-time behavioral data.
  2. Once you decide who you’re trying to reach, Yieldify’s CRO experts deploy a variety of well-timed campaigns for every step of your customer journey: From lead generation at the awareness stage to dynamic social proof at the moment of purchase, and beyond.
  3. Using behavioral triggers, Yieldify’s personalization engine allows you to deliver tailored messaging based on real-time customer behavior, such as interaction with specific product categories or pages, shopping cart value, site searches, and more.
  4. Yieldify’s team of designers elevate your merchandising strategy by implementing cohesive brand imagery and style in all the interactive elements used to enhance the customer journey.
Yieldify fully-managed solution

To see more about how Yieldify can help you improve your eCommerce merchandising strategy and turn more website visitors into buyers, check out their case studies here.

Yieldify eCommerce case studies

Conclusion

No matter what your eCommerce niche, merchandising is something that you need to implement into your business. A strong merchandising strategy can help you increase your revenue – for example, one study found that personalized product recommendations resulted in a conversion rate that was 5.5 times higher.

Being able to implement a merchandising strategy is not without its obstacles, so finding a good merchandising tool that simplifies processes along the way is priceless.

Next ? 11 Resources to Learn Merchandising From

How to Create a Winning eCommerce Merchandising Strategy

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How to create a winning ecommerce merchandising strategy | Yieldify

Wondering how to create a winning merchandising strategy? Read our blog post to learn about 7 surefire merchandising strategies to boost eCommerce sales.

Often associated with brick and mortar stores, a solid merchandising strategy can make or break your eCommerce store.

If you’ve never given thought to how your eCommerce store is organized, how you present products to customers, or how potential customers move through your online store, now’s the time to dive in and develop your eCommerce merchandising strategy.

Building a strong merchandising strategy is key to increasing your conversions and sales. It helps you determine which products are most likely to be purchased and whether or not the customer has a good experience while shopping.

Merchandising strategy quote

There is a wide variety of merchandising strategies you can employ in your eCommerce store – different strategies will work better for different business models. Read on to learn how to start creating an eCommerce merchandising strategy that is designed to increase revenue.

7 eCommerce merchandising strategies proven to boost sales

Every element of your eCommerce store plays a role in creating an effective merchandising strategy. How these elements interact with each other adds another dimension to your strategy. From your homepage and product pages to menus and checkout process, you need to be aware of how to optimize each element.

When it is boiled down, the purpose of merchandising is to grow your revenue by increasing sales, increasing average order value, and creating loyal, repeat customers.

Here are seven ways that will help you to create a bulletproof merchandising strategy and move the needle on the most important business metrics:

1. Understand your customer journey

How do your customers find their way to your eCommerce store? And once they find their way to your store, what do they do next? Deciphering your customer journey will give you valuable data on how to interact with different customer personas and ensure you are connecting with them at the right time, in the right way.

Mapping your customer journey involves gathering data and thinking critically about how your customers currently engage with you, but the end result is invaluable when creating an effective merchandising strategy.

Download eCommerce engagement map | Yieldify

A customer journey map is a diagram that outlines the steps that a customer takes when engaging with your company. The more touchpoints a customer has, the more in-depth and valuable the map becomes.

Think about how your customers are interacting with your brand: Do they follow you on social media, subscribe to your newsletter, find you via a search engine? However they arrive, every interaction they have with you is an integral piece of information that will help you shape a merchandising strategy that effectively reaches your target customer.

2. Shape traffic accordingly

Once traffic arrives at your eCommerce site, it is important to funnel it to the right places.

More often than not, the first customer touchpoint with your online store will be the homepage. It is important to ensure that your homepage layout is optimized for conversions as this will set the stage for how your potential customers navigate and interact with your eCommerce store.

Keep your design simple, photography effective, and copy straightforward. A study conducted by GoodFirms found that 84.6% of people believe that crowded web design is the most common mistake made in the web design industry.

Ecommerce web design mistakes

Basically, you need to Marie Kondo your eCommerce website. Make use of white space, and most importantly, don’t pull customers in different directions – give them one, max two focal points above the fold.

A great place to guide their attention is to new collections, best-selling products, or an eye-catching sale section that highlights current discounts and promotions.

Your website navigation should be simple, clear, and easy to understand. Think of this as the map to your website – if new visitors can’t figure out how to locate things they want, they will bounce.

Ecommerce merchandising strategy - Homepage

You should have categories and subcategories that are descriptive and a menu logic that is easy to follow. You can also add product images to your main navigation categories to really drive home what it is that they can expect on each category page.

Finally, make sure your search bar stands out and easy to use. According to a survey conducted by InstantSearch, customers that use site search are 3x more likely to complete a purchase on an eCommerce website. Think about using clear language when labeling your search bar and implementing an autocomplete feature to help customers find exactly what they are looking for.

Higher conversions from sessions with search

3. Personalize the experience

In 2020, consumers no longer want shallow, one-off experiences with brands they purchase from. Instead, data shows, more than 60% of modern consumers expect brands to connect with them.

Knowing this, more and more brands are adopting certain personalization strategies to create bespoke shopping experiences for their customers. The best way to do this is to leverage your data and use it to create unique customer segments that you’ll be able to target with personalized offers and messages.

4 types of market segmentation

Quite often, eCommerce marketers look at demographic and geographic factors, such as age, gender, physical location, family status, etc. to craft personalized copy and use selective photography to appeal to a particular segment:

  • A clothing store could choose to highlight their sale on parkas for someone living in New York while a Los Angelite will be served with an offer for swimsuits;
  • A tourism company can change their website hero image to reflect romantic SPA getaways for two vs. family-friendly travel packages;
  • A bank can have multiple microsites with services for a specific age group (student loans vs. retirement plans).

Less popular, but arguably more effective are psychographic and behavioral segmentation. With psychographics, retailers can target customers based on hobbies, values, lifestyles, and more. Behavioral segmentation enables brands to divide their audience based on previous purchasing behavior or real-time interactions with the eCommerce store.

For example, you can look into their previous purchases, purchase frequency, favorite product categories, average order value, and more to create a personalized experience through the touchpoints they are served.

To tie it back to merchandising, you can serve overlays that highlight more expensive luxury goods to customers whose AOV is usually high. Alternatively, those who tend to purchase fewer or cheaper products can be served with cross-selling product recommendations to increase their basket value.

Ecommerce merchandising strategy - Cross-selling

4. Grow the shopping cart

A higher volume of transactions and more items per transaction directly correlate to an increase in profits. A strong merchandising strategy helps you optimize your website to allow for more purchases with a higher value.

Cross-selling is a technique we’ve already mentioned before. It’s designed to get customers to spend more by purchasing related or complementary products. To make the most of cross-selling, you should present related items on your product details page to pique the interest of your customers.

Upselling is another technique that gets customers to spend more by purchasing an ungraded or premium version of what they already have in their shopping cart. Here’s how our client Petal & Pup cleverly used checkout progress bars and product recommendations to boost the shopping cart value.

Ecommerce merchandising strategy - Upselling

5. Generate excitement

Never underestimate the power of a sense of urgency. Merchandising strategies that focus on generating excitement understand that when something is limited edition, seasonal, or low in stock there is a general sense of necessity.

For example, Starbucks’s seasonal drinks are a perfect example of generating excitement. Millions of people wait every year with bated breath for the release of the Pumpkin Spiced Latte – only available for a limited time, this seasonal favorite is a big moneymaker for the coffee chain.

Impulse buys, new arrivals, seasonal items, limited edition, special items, and rapidly growing segments are all different ways to drive excitement. Our client Linenhouse used real-time social proof to indicate how many people viewed a particular product in the last 24 hours, thus showcasing it’s a popular and in-demand buy.

Linenhouse social proof campaign | Yieldify

6. Strengthen your brand image

Strengthening your brand might seem more like a marketing strategy than a merchandising strategy. But enhancing a brand through merchandising looks very different: It focuses on strategies that highlight the quality, service, price, variety, delivery, and presentation of your products.

If you are looking to increase your brand image for merchandising purposes, consider exclusive product offerings, highlighting your USPs and special offers like free shipping and returns, a money-back guarantee, or an extended warranty.

Exit intent overlay - Free shipping | Yieldify

7. Defend your turf

Unless you’ve found an untapped niche, odds are there is some competition in your eCommerce space. By using a turf-defending merchandising strategy, you are actively maintaining and protecting your market share against competitors.

Usually, these strategies take the form of aggressive pricing and promotion strategies. Because this can dig into your margin, we suggest taking an equally proactive but less aggressive approach to defending your turf.

You can leverage customer reviews or testimonials by placing them on the homepage as well as product pages to show potential customers why you are the best choice in the industry. You can also use a variety of trust badges to instill faith in your customers.

Ecommerce merchandising strategy - Customer reviews

In conclusion

Spending the time to build a strong merchandising strategy is a worthwhile investment. Let’s remember once more the 7 merchandising strategies that are sure to boost conversions and revenue:

  1. Understand your customer journey
  2. Shape traffic accordingly
  3. Personalize the experience
  4. Grow the shopping cart
  5. Generate excitement
  6. Strengthen your brand image
  7. Defend your turf

You will need to spend time to determine which strategies work best for your eCommerce business – the above seven strategies can be mixed and matched in an endless variety of configurations. But when you finally land on the perfect strategy, you will see an increase in revenue.

Next ? 5 Must-Have eCommerce Merchandising Tools

Geographic Segmentation Explained With 5 Examples

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Geographic Segmentation for eCommerce | Yieldify

Learn how to effectively use geographic segmentation in your eCommerce marketing strategy. Get inspired by real-world examples from industry-leading brands.

There is no easier route into personalized marketing than market segmentation. By breaking down your customer base into groups, you can target your resources and ensure your audience receives the messaging that is most relevant to them.

There are 4 main types of market segmentation, and each offers a different way to define an audience:

  • Demographic segmentation – grouping customers by identifiable non-character traits like age, gender, or income.
  • Psychographic segmentation – grouping customers based on their personalities and interests, including beliefs, hobbies, and life goals.
  • Geographic segmentation – grouping customers with regards to their physical location.
  • Behavioral segmentation – grouping customers based on their past actions, like spending habits, browsing habits, and brand engagements.
Geographic segmentation in eCommerce marketing

The premise is simple enough, but the key to successful market segmentation is understanding exactly how it can best work for you. Today we’re going to do a deep-dive on geographic segmentation, and discover all the different ways your marketing can benefit from it.

What is geographic segmentation?

Geographic segmentation involves segmenting your audience based on the region they live or work in. This can be done in any number of ways: grouping customers by the country they live in, or smaller geographical divisions, from region to city, and right down to postal code.

Geographic segmentation might be the simplest form of market segmentation to get your head around, but there are still plenty of ways it can be used that companies never think about.

The size of the area you target should change depending on your needs as a business. Generally speaking, the larger the business the bigger the areas you’ll be targeting. After all, with a wider potential audience, targeting each postcode individually simply won’t be cost-effective.

In total, there are six factors that pertain to geographic segmentation and can be used to create customer segments:

  1. Location (country, state, city, ZIP code)
  2. Timezone
  3. Climate and season
  4. Cultural preferences
  5. Language
  6. Population type and density (urban, suburban, exurban or rural)
Geographic segmentation factors

Geographic segmentation benefits

Easy to implement

Geographic segmentation is different from the other types of market segmentation (especially psychographic and behavioral) because it requires fewer data points.

As a result, it offers a quick and effective route into personalized marketing and can offer tangible ways to reach potential customers using only their location as a starting point.

Higher product relevancy

This helps not only to improve sales but also creates a better relationship between customer and business. Presenting relevant items to customers improves user experience, reducing the amount of effort they need to put in to find what they want.

Improved advertising effectiveness

By presenting more targeted ads, you’ll guarantee that more of your marketing budget is spent reaching relevant customers, and less wasted on those who have no need or interest in your product.

This isn’t to say that geographic segmentation is always the best strategy to employ. It has specific uses for specific businesses and industries. Small businesses working in localized areas will benefit immensely from targeting their marketing to just these areas. Big businesses with products that will have consumer hotspots in specific regions will also benefit.

An international manufacturer of big four-wheel drive vehicles will achieve more sales targeting customers in rural areas than those who drive congested city streets.

But businesses that sell products that do not depend on region-specific patterns won’t benefit as much from geographic segmentation. Consumers of Corn Flakes are likely to be as common in one region as the next.

Geographical parameters by which to segment

There are several geographical parameters you can use, these include:

Location

Getting the obvious out of the way. Segmenting by location gives you a lot of options. It could be a city, a town, different countries, or even a continent. This can also be used to identify a new geographic location your business may wish to expand into.

Climate

Do you think they are buying winter tires in Dubai? Segmenting by climate helps you identify areas where the climate is appropriate for your product or service.

Culture

When addressing your target market you need to account for cultural variations and sensitivities. For example, In Western cultures, white symbolizes purity, elegance, peace, and cleanliness. However, in China white represents death, mourning, and bad luck.

Population

This can either focus on density or population type. A brand may choose to focus on a densely populated city area, for example, a fitness chain wouldn’t set up a gym in a rural area. You can also overlay demographic information here to find target audiences.

Urban, suburban and rural

These three different environments all need different and specific marketing strategies as customer needs are different. Those in cities and suburbs tend to have more purchasing power than rural areas, so products can be more expensive.

Language

Not every country in the world wants or can be marketed to in English. If you’re running a marketing campaign it will be essential it’s done in the local language. You’ll need to make sure you’re ready to enter a market if all your marketing messages are going to need to be changed.

Audience segmentation for eCommerce - Book a Yieldify demo now!

Geographic Segmentation Examples

An example of geographic segmentation is an ice cream company segmenting a country by how hot different regions are and targeting those specific areas that are hottest and therefore more likely to buy ice cream.

But that’s a very basic example.

There are however a number of different variables that you might consider when setting up your own geographic segmentation. These are the different ways you might choose to target consumers once you’ve decided on the location you want to focus on. Let’s look at how each might best be used.

Example 1: Segmenting based on location

Though all geographic segmentation involves grouping customers by the area they live or work in, here we’re talking about selling purely based on the availability of a product to a certain area. This is a tool that is useful to businesses that only have the infrastructure or facilities to serve customers within certain boundaries.

The food box subscription service Oddbox has, until recently, only had the infrastructure to deliver within the borders of London. However, they have now expanded to deliver to another nearby city, Brighton.

Geographic segmentation example - Oddbox

Using geographic segmentation they were able to target potential customers living in the city and deliver relevant marketing via social media ads. See their ads targeting Londoners and Brighton residents back to back above. As a result, users who weren’t previously aware of Oddbox can be shown the service now available to them.

For bigger, global brands segmentation by country becomes even more important. One brand that always hones it’s advertisements to the country it’s targeting is McDonald’s.

To see exactly how they do this watch the video below.

Whilst the above videos can be used to address an entire country, some brands choose to go even more local and focus on specific cities.

One brand that tried this was Nike with their “Nothing Beats A Londoner” video. The video does a great job of addressing football fans in London by including key landmarks, local football stars, and general life in London.

It worked so well that it shot to the top of YouTube’s trending chart within hours. It was even covered by national newspaperstweeted by London mayor Sadiq Khan, racking up millions of views in the process.

Example 2: Segmenting based on time zone

Time zone marketing is most useful to large businesses, as they are more likely to be operating across multiple time zones. It can also be of interest to smaller businesses if they operate in nations that have more than one time zone, as the United States.

Email marketing is an area that can hugely benefit from segmenting by time zone. Whilst big announcements and press releases should generally be shared at a set time, generic email marketing often benefits from being seen at a certain time of day.

If you are looking to have your customers read your email first thing on a Monday morning, segmenting by time zone allows it to arrive at 8:45 am local time, putting your email right at the top of the pile.

Audience segmentation for eCommerce - Book a Yieldify demo now!

Example 3: Segmenting based on climate and season

There’s nothing worse than a badly targeted advert – except being caught without a winter coat in the middle of a deep freeze. Marketing based on the climate or season in a specific location allows you to present the most relevant information to your audience.

Geographic segmentation example - IKEA

Seasonal offers tend to run for long periods, like the IKEA promotion above, which was marketed to British customers just as the summer kicked in. They can also be extremely time-sensitive, like a supermarket’s promotion of ice cream during an unexpected heatwave.

If you’re targeting an area that is consistently hot, or perhaps for the duration of summer months you could get a bit more creative. The below example from Coca-Cola does just that.

The below outdoor advertisement is in Dallas, Texas. Summer temperatures here are consistently above 95°F so the ad works really well.

Geographic segmentation example - Coca-Cola

Example 4: Segmenting based on cultural preferences

Different regions will have different values that determine whether or not customers decide to make a purchase. In some cases, these values will be determined by the dominant local religion or long-standing traditions and customs, but in other cases, they can be more esoteric local habits that nonetheless need to be understood and catered for.

One of the most common considerations for food manufacturers is religious dietary restrictions. Companies like Haribo that primarily sell gelatin-based sweets, use slightly adapted recipes to cater to the needs of certain demographics.

Geographic segmentation example - Halal Haribo

The German-based company’s main factory in Bonn and their UK factory in Pontefract create their standard range of sweets. Their base in 99% Muslim-majority Turkey, however, makes and markets only halal gummies, using bovine gelatine instead of the porcine gelatine found elsewhere. 

From an advertising point of view it’s also important to consider local culture. A recent example of this is Toyota’s TV adverts for its new car the Camry.

In total eight commercials were made to target different demographics across America.

Geographic segmentation example - Toyota

Toyota even went one step further and ran the commercials in between TV Programmes whose main viewership matched the ads. People would see different commercials based on whether they were watching “Scandal” on ABC, which has a high number of African-American viewers, VS a Spanish-language network show on NBC such as Universo.

Example 5: Segmenting based on population density

Another variable to consider is the density and type of the population in the area you’re targeting. People living in urban areas have very different experiences than those in suburban, exurban, or rural regions.

Being able to segment by population density is especially useful for home and garden retailers. Imagine you’re someone like Home Depot. You probably shouldn’t pitch city-dwellers an electric riding lawn tractor, when you’d have much more luck marketing them a manual push reel lawn mower, which takes up less space and is suitable for small garden maintenance jobs.

Geographic segmentation example - Home Depot
Which lawn mower is more suitable for a city-dweller?

Don’t forget about the other types of market segmentation

Overlaying other types of market segmentation on top of these geographic parameters will allow you to drill down to a specific target market you can run targeted advertisements to. This ultimately will help you achieve customer growth and product sales.

In conclusion

Market segmentation is such a powerful tool for reaching your customers in ways that feel relevant and useful to them. Geographic segmentation is perhaps the simplest way to get your foot in the game.

Think about exactly how your company can best benefit from it: Are you a big company that can utilize different messaging across different regions, or a small business that stands to get a lot more bang for their marketing buck if they target their local area? Maybe your product will be of particular interest to city-dwellers, or most in-demand during certain seasons.

Whatever the case, there’s an opportunity to use geographic segmentation to your benefit.

Get in touch with Yieldify to discuss using audience segmentation to personalize your customer experiences!

Geographic segmentation FAQs:

What is geographic segmentation in marketing?

Geographic segmentation is a marketing strategy that presents potential customers with targeted messaging based on their geographic location.

What is an example of geographic segmentation?

A great example of geographic segmentation is a clothing retailer that presents online customers with different products based on the weather or season in the region they reside in. A customer in New York will require much different clothing in the winter months than one living in Los Angeles.

What companies use geographic segmentation?

Geographic segmentation is used by companies across many sectors, but it’s most useful to businesses selling goods that might be affected by changes in climate or local customs. Companies with very defined regional interest, like sports teams, or small businesses offering local delivery, also benefit from marketing targeted this way.

Video Marketing for eCommerce: 6 Types of Videos That Will Help You Sell More

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Video marketing for eCommerce

Video is known to build trust and increase engagement levels. But what kinds of videos does your eCommerce business need in order to see a revenue uplift? Here, we look at six types of eCommerce videos known to boost sales.

An eCommerce marketing strategy is dynamic and often made up of many separate elements. You’re running ads on social media. You’re writing emails. You’re promoting your product store… 

Having an omnichannel marketing strategy is key to success, but you may still be struggling to create the type of content your audience wants to consume. Look no further than online video marketing.

In this post, we’re going to cover the reasons why you should create an eCommerce video marketing strategy and give you a variety of video ideas to choose from.

Let’s dive in!

4 reasons why your business needs a video marketing strategy

1. Video converts viewers into customers

Your customers are more likely to buy your product if your eCommerce marketing strategy leverages the content medium they prefer. 

Wyzowl found that two-thirds of people (66%) said they’d prefer to watch a short video to learn about a product or service, which is over 3 times higher than people who said they’d prefer to read a text-based article (18%). 

Video marketing strategy chart
(Source: Wyzlow)

Product videos and video content marketing are the tools you should use to sell your products. But that’s not all Wyzowl discovered in their survey. 

Turns out, 80% of video marketers say video has directly helped increase sales.

In return, 84% of consumers say that they’ve been convinced to buy a product or service by watching a brand’s video.

2. Video builds trust between you and your audience

In 2019, Stackla conducted a survey of over 1,500 consumers and marketers in the US, UK, and Australia. The study revealed that 90% of people say authenticity is important when deciding what brands they like and support. This is even more true for younger generations. 

Video is the most human form of digital communication. 

It displays your voice, your face, your eyes as if you’re standing in front of your customers. It lets you show off your personality. And it demonstrates confidence in your brand and products. All of which can create a strong bond between you and your audience. 

3. Mobile users crave video

If you would rather read text or watch a video on your smartphone, which one would YOU rather do? The answer seems obvious, and you probably assumed your audience prefers video, too. 

Well, YouTube confirms it. More than 70% of YouTube watch time comes from mobile devices, according to YouTube’s own research

YouTube usage statistics - mobile vs desktop
(Source: Oberlo)

The best part? Consumers who watch your video content on their mobile devices are nearly 2x more likely to feel a personal connection to your brand and 1.3x more likely than desktop users. This is super important to keep in mind. Make videos that cater to mobile users first. 

4. Video is the best content for social media

From ads to tutorials, videos perform better on social media and get higher engagement more than virtually all other forms of content. So make sure you create a video that grabs attention.

On Twitter, for example, Tweets with videos are ten times more likely to 10x more engagement than Tweets without video. Facebook videos have an average engagement rate of 6.13% compared to just 3.6% for Facebook posts in general.

The newest video platform, TikTok, has the highest average engagement rate posts of any social media platform. And 90% of people say they have discovered a brand or product on YouTube.

It should be obvious at this point that eCommerce success is closely related to having a strong video marketing strategy in place. What you have to figure out now is, what type of videos should you create?

6 types of eCommerce videos you need in your marketing strategy

1. Product close-up

Buyers want to see videos of your product that make them feel as if they are holding it themselves. Product close-up videos zoom in on your product and display specific features viewers may not see in pictures, or demonstrate a function that has to be observed very closely, or simply show off your product from multiple angles. 

Product close-up videos leave nothing to the imagination. You should try to capture as much detail as possible so customers will have a clear understanding of what they’re buying.

Here’s a product close-up example from Truwood watches, showcasing their product in various environments and angles.

2. Product overview

A product overview video goes in-depth into the features and benefits of your product. This type of video usually features a speaker demonstrating how the product works and why your audience should consider buying it. This can also help build excitement for your product, especially when leading up to a product launch date. 

Here’s a product overview example for the Olympus’ OM-D E-M5 Mark III camera. 

You’ll notice he describes many of the top features of the product, how to use those features, how this camera differs from previous versions, and why photographers should buy it. You’ll want to describe your product in a similar way.

3. Video testimonials 

Social proof is one of the most powerful and persuasive motivators to get people to buy your product, and it’s essential to include in your eCommerce marketing strategy. 

Nielsen surveyed more than 28,000 people in 56 countries and found that 92% of consumers around the world trust recommendations from friends and family above ALL other forms of advertising, which represents an increase of 18% since 2007. And Brightlocal found that buyers prefer to read an average of 40 online reviews before believing a business’s star-rating

Here’s a great example of a video testimonial for the Roku device. The goal is to have your customers describe specifically what they like about the product, how it helped them, and how it improved their life or solved their problem.

4. Product tutorial

While the product overview shows off the features and benefits of a product in broad strokes, a product tutorial video demonstrates how a customer can perform specific tasks using the product through step-by-step instructions. 

These types of videos are super important for skeptical buyers who are wary of being disappointed by big marketing claims. Showing them how to achieve a particular goal with your product is a powerful way to convince them to buy it. 

Here’s a product tutorial example demonstrating how to use the Milk Makeup Kush liquid eyeliner.

The other reason product tutorials are a crucial piece of any eCommerce video marketing strategy is because you want your customers to succeed when using your product.

If they buy it but don’t know how to use it, or use it poorly, they won’t remain your customer for long. But if you set them up for success with easy-to-follow product tutorials, they’re much more likely to stick around.

5. Message from the Founder/CEO

A message from the Founder of the CEO video is not used by many companies, but when executed well, it can be a powerful tool to add to your eCommerce video marketing strategy. 

Featuring your company leader in a video is one of the best ways to personalize a brand and develop a deep connection with your audience and customers. A study by Ace Metrix revealed that ads featuring CEOs performed better, on average than ads without a CEO. 

This type of video has many different uses. The CEO of Mancrates created a video where he tells the story of their company and expresses gratitude for what they’ve been able to accomplish thanks to their loyal customers.

One of the most famous examples is the Dollar Shave Club video ad featuring the founder, Michael Dubin, mocking their competition and positioning their razors as a cheaper, superior option.

There are many ways to make a message from the CEO video. In fact, you could produce the other videos on this list, but instead of an actor or other associate in your company, your CEO is in the video. The only requirement is that your CEO is good on camera, authentic, and charismatic. If they check those boxes, then you should definitely produce this type of video.

6. Explainer video

Explainer videos are very popular and widely used to explain your product in a short period of time. They usually tell a story about a customer’s journey from dealing with their problem, finding your product as the solution, and achieving outstanding results with the product. 

Many explainer videos are animated but they can also be live-action. They’re usually 30-seconds to a minute in length. These videos don’t necessarily show off all the features of your product but hit on the emotional reasons why your customer needs a product like yours and shows the outcome of having your product. 

Here’s a great example from Tommy John undershirts. They open with a central problem they know their audience deals with and position their undershirts as the perfect solution. 

How to start incorporating video In your eCommerce marketing strategy

By now you should know why it’s important to use videos in your eCommerce marketing strategy, and what type of videos you can use in different stages of the customer journey.

But where do you start if you want to make the most use of your eCommerce videos? There are a couple of no-brainer steps, such as:

1. Post these videos on your social media channels: YouTube, Facebook, Instagram, TikTok, etc. Make sure to match the dimensions, length, and other technical parameters of each platform. Consider adding subtitles to your videos for people who don’t like to watch with sound.

2. Use them in your lead generation and retargeting ads. Video ads allow you to build an audience of engaged people because you can track their video view statistics. Combined with static image ads and served at the right moment, video ads can generate huge ROAS.

Facebook Ads combinations that work
(Source: Facebook IQ)

3. Embed these videos on your website: homepage, about pages, product pages, FAQ pages, etc. Having videos on these pages will boost average time spent on the site and will likely improve the customer experience by providing answers on the most relevant questions.

4. Serve them across the entire customer journey: from lead capture forms to exit-intent overlays, etc. At Yieldify, we built multiple campaigns for our clients across various eCommerce industry verticals.

For instance, direct-to-consumer sportswear brand HYLETE ran a cart abandonment campaign highlight free shipping and returns to see which type of content – still image overlay or a video overlay – would generate more engagement. The results revealed that video was more effective at driving conversions, with 42.2% uplift versus the control group.

In another example, Yieldify helped France’s leading home shopping network, M6 Boutique, reinforce its core brand values using video. To visitors browsing the M6 Boutique website, Yieldify showed a live stream of M6 Boutique’s TV channel in a corner Notification. As a result, the M6 Boutique live stream gained 150,000 additional views in just a month.

Lastly, we teamed up with the award-winning festival operator We Are FSTVL to create an exit-intent overlay with an embedded highlight reel from the previous year’s event. The brand split-tested click-to-play video with sound against a video that autoplayed without sound. The results showed that an auto-playing video created greater engagement, achieving a +33% uplift in customers clicking through to get tickets.

Click here to see how Yieldify can increase your conversions and show you a better way to use video in your eCommerce marketing strategy. 

Ecommerce video marketing - video overlay

This article was written by Joe Martin from CloudApp.

Joe is CloudApp’s GM and VP of Marketing. With more than 13 years of experience in the industry, he provides strategic guidance on how to build and use the right stack for businesses. Formerly Head of Social Analytics at Adobe, Joe believes marketers need smart training and leadership to scale company growth. Connect with Joe on LinkedIn and follow him on Twitter @joeDmarti.

How to Compete with Amazon: 3 Ways to Take On the eCommerce Giant

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How to compete with Amazon | Yieldify

Are you an eCommerce SMB wondering how to compete with Amazon? Then this article is for you. We look at 3 ways even small and medium retailers can take on the eCommerce behemoth.

From a bookstore outside of Seattle to an eCommerce giant, the story of Amazon is both fascinating and inspiring. That is unless you’re an eCommerce entrepreneur trying to cut a piece of the market share for your business…

The platform that controls 45% of the eCommerce market share in the US (expected to reach 50% in 2021) can seem impossible to surpass and, frankly, quite intimidating to most.

Amazon GMV growth 2021
Projected retail eCommerce GMV share of Amazon in the US (Source: Statista)

Given its size, everyone who sells physical products through an online store is essentially in competition with Amazon. The niche, industry, or the size of your business don’t really matter since this is a platform that boasts about easy access all over the world, fast shipping, and extensive product diversity.

So how do you compete with Amazon in the already highly saturated world of eCommerce? You learn from its competitors!

A behemoth like Amazon attracts the strongest competitors and there’s a lesson to learn from their clash.  Today we’ll discuss three strategies that proved successful in the fight for customers’ attention and engagement, even when acting in the shadow of a giant.  

1. Build the best possible user experience

Content marketing creates a personal connection with shoppers, but they must feel at ease on your site for the connection to be built. What does this mean? 

Page speed matters

The attention of consumers is a priceless commodity these days. And they know this! According to a 2019 Retailer Website Performance Evaluation, 90% of respondents said they had left an eCommerce site that seemed slow to load. If this isn’t enough, 57% of the ones that leave, go to a competitor and 40% go to Amazon!

Google also supports the idea that slow pages make you lose customers and released the below graphic depiction of how fast this happens:

Website speed impact on bounce rate

Pay attention to mobile shoppers

Another issue that could keep customers away from your online store is a lack of compatibility between desktop and mobile devices. 

According to Business Insider Intelligence, in the US alone, there are over $170 billion in smartphone sales and over $34.7 billion in tablet sales in 2020. As such, the m-commerce market (online shopping using a mobile device) is expected to reach 32% of the entire eCommerce market share

Mobile commerce (m-commerce) market growth
Mobile commerce (m-commerce) market growth forecast (Source: Business Insider)

Essentially, if your site is not performing well on mobile devices, you could stand to lose a lot of customers!  

Amazon might not be the best when it comes to user experience (it’s difficult to create flawless user experience when you have so many things to organize). But still, they’re constantly improving their page speed and have a mobile app that encourages mobile users to shop. 

Build a mobile app for your store

A mobile app comes with lots of benefits, among which are: better communication with customers, better engagement due to social media sharing possibilities, and convenience. 

But you can take it one step further and use Augmented Reality (AR) technology to improve user experience. Brands like IKEA, HomeDepot, Sephora, and others use AR in their apps to combine online shopping with in-person shopping by allowing users to run a virtual test trial.

IKEA Place augmented reality shopping app
IKEA Place augmented reality app

While it may seem a bit futuristic, AR is not a new technology and modern mobile devices support it. Furthermore, if you’re a tech-savvy entrepreneur, it’s a good idea to learn React Native, the main programming language used to implement AR features. It will help you understand how the technology works and how to communicate your needs to developers. 

2. Focus on a niche

There’s no doubt that Amazon knows how to provide customers with what they want and need. 

The company uses a blend of fast delivery, low prices, and increasing product diversity to position itself at the top of online shoppers’ preferences. In fact, for many Americans, Amazon is the go-to store for everything.  

This is their strength, however, it’s also their weakness. 

eCommerce can be a soulless world where uniqueness and authenticity are swallowed by a sea of mass-produced generic brands. The fact that you can buy socks, lawnmowers, and inflatable boats from the same eCommerce store tells a story to anyone who wants to listen. 

So, how to compete with Amazon, the “buy everything” eCommerce giant? You start by carving a narrow niche for yourself and care for it like it was your baby! 

The biggest strength of small and medium-sized eCommerce stores stands in their select list of products that cater to a very specific niche. 

Let’s take Beardbrand as an example. This is an online store that sells all things beard-related. From oils to combs, scissors, and trimmers, you can find anything you need to maintain and style your facial hair. 

But this is nothing new. After all, you can find all these products on Amazon as well as in other stores. However, Beardbrand is thriving. 

The reason behind this success stands in the fact that they provide beard aficionados all over the world with a strong sense of community and valuable information. Through engaging and useful content marketing, as well as an exclusive Alliance membership, they positioned themselves as an authority in the niche that offers their customers a unique buying experience. 

How to compete with Amazon - BeardBrand example

You don’t go to their store just to buy stuff. You go to learn and connect with other bearded men who are proud of their looks. 

Use content marketing to your advantage

Content marketing helps brands connect with their audience and create a personal experience that lacks in Amazon’s online marketing campaigns. 

Of course, since Amazon is so big and popular, they don’t really need a content marketing campaign and they can promote their products using their newsletter system and regular ads. 

But smaller brands, without access to such large audiences and marketing budgets, can use content to attract niche customers who want more from the shopping experience (as stated in the Beardbrand example).  

Due to the plethora of platforms available right now, companies can create a wide array of diverse content, in different formats, for different audiences. The secret is to find relevant topics that get the target audience engaged and interested. 

For instance, if your online store sells clothes, your customers will be interested in learning about which materials are best for their needs or how to select the right fit for their body shape. In many situations, blog articles, eCommerce video content, or even short descriptions are extremely useful in promoting your products. 

Think of brands such as Glossier or Away that have started their own online magazines – Into the Gloss and Here Magazine respectively – to provide their customers with fresh, useful, and engaging content that goes beyond their products and taps into their values and the lifestyle they’re selling.

There’s also the option of engaging with influencers who are relevant to the brand. This solution is helpful when everyone creates content on the same topics and you want to stand out from the crowd. Furthermore, influencers expose your brand and products to a prime audience, that’s happy to be provided with recommendations. 

3. Don’t give up your brick-and-mortar store (just yet)

If you know Amazon only as a giant eCommerce retailer, you’ll be surprised to learn they also have physical stores all over the US.  It may seem counterintuitive, especially now when more and more brick-and-mortar stores are closing their doors in favor (or because) of online shopping. 

But maybe it’s time to learn a lesson from Walmart, one of the biggest competitors Amazon has on the global market.

Walmart makes most of its revenue ($514.41 billion in net sales per year) from classic retail that takes place in physical stores. But they also have a strong online presence, coming in second after Amazon.

Top online retail stores in the US
Top 10 U.S. retail sites ranked by unique visitors (Data: eMarketer)

Now, you’re wondering how to compete with Amazon when even Walmart couldn’t, right? 

The trick is to understand that brick-and-mortar stores still have value from a customer’s point of view. But you must take a different approach and combine the offline experience with the online one (like Walmart did). 

Again, your strength stands in a smaller size and a more select audience. A physical store provides a way to interact with customers directly, which can only enhance the overall experience. 

In addition, a well-designed physical store can be a fantastic way to engage your shoppers’ needs to share on social media. Encourage your visitors to post selfies in your store and with your products, and get the word of mouth going. 

Lastly, a fixed location is something that can help trigger your campaigns in Google Merchant Center. Your ads will be displayed to locals interested in the type of products you sell, which is likely to bring more people into the store. 

In conclusion

Ultimately, it doesn’t really matter if one of your biggest competitors is Amazon. They are already established on the market and there’s no way you could beat them. 

But this shouldn’t be your goal. 

Your goal should be to learn from them and their competitors in order to build your own unique and authentic brand. Amazon is a fantastic teacher as they were pioneers in many areas of eCommerce and they continue to innovate and grow even now. Their journey speaks of the power of determination and attention to details, but most importantly, it shows that good customer service can take you a long way. 

In conclusion, if you want to succeed, you must build your eCommerce empire around your customers’ needs, not the other way around. The moment you forget to care for your audience is the moment your strategies will fail. So, before anything else, use the technologies at your disposal to understand who will buy from you and why.