The following is a guest post written by Angelica Valentine from Wiser.
It just boils down to two questions: how do retailers get shoppers to check out? Secondly, how do they get them to come back? These are big questions, but they can be addressed using a data-driven approach.
If you know where the majority of your customers come from, you can devote more time and dollars to the most effective avenues. Pay per click advertising works for many retailers and others choose to sponsor posts on social media. The vast majority (89%) of shoppers start by searching online before committing to a purchase. While you might feel like you can’t impact shoppers at this early stage, this is far from true. Your SEO rankings matter. A lot. This is evidenced by the fact that 62% of online searchers click on one of the top three search results. Reevaluate your keywords and add unique meta titles and descriptions to improve your search ranking. Whichever route you choose to focus on, make sure that you have the data to back up your decision and continue to collect it periodically to validate your effort.
When shoppers get to your site, they have to like what they see. From layout to assortment, your store needs to wow as quickly as possible to keep the shoppers’ attention. After all, most shoppers decide whether they will stay on a site within eight seconds. Your assortment should be a point of differentiation for your store. Of course, you should carry all the top products that your competitors have, but you should also consider some exclusive products that can’t be found anywhere else. More than 75% of shoppers will leave a site if they can’t find a product they want. The solution is to have everything shoppers want and recommend a few things that they didn’t know they wanted.
Timing is everything. When you figure out what times are most popular for your customers, you can capitalize on this knowledge. That’s what big box retailers do. Dynamic pricing used to be a privilege that only the biggest retailers could afford, but times are changing. Now retailers of all sizes can implement a dynamic pricing strategy that reprices their products in real-time to stay competitive and profitable at all times. Dynamic pricing software does this by tracking competitors’ pricing to inform a retailer’s internal strategy. When traffic is high or stock is low, raise prices to capture more profit or prevent an out of stock situation, respectively. When it’s slower than usual or you want to clear out stock, lower prices to get products moving.
This is the million dollar question that can best be addressed using marketing emails and retargeting ads. In the days and weeks after a customer completes their purchase, retarget them with complementary products. Keep them updated on sales and promotions with well-crafted emails. Coherent Path found that returning customers spent 150% more than first time shoppers that were motivated primarily by sales. Knowing that returning customers generate more value, utilizing the data-driven strategies outlined above can help target your most valuable customers and increase Customer Lifetime Value.
Angelica Valentine is the Content Marketing Manager at Wiser. Wiser is a dynamic pricing and merchandising engine that monitors, analyzes, and reprices retail products in real-time. Wiser enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through powering the development of a sound pricing strategy.