Your online programs are designed to capture, qualify and convert prospects. You bring in new customers daily, and with each mailing gather more data about your site visitors’ click habits and interests; data which in turn allows you to understand their behavior and optimize conversion. But first-time buyers, while important, generally have a lower average order value than second- and third-time purchasers. Once you’ve converted your prospects to customers, will your current strategy inspire them to purchase again?
The good news: your current customer base is four to five times more likely to convert than prospective customers. Segmenting your customer base, and appealing to their trigger points, is key to driving a second (or third) purchase. Here are some ideas you can implement now to kick-start your own loyalty programs:

Preferred Customers
Preferred customer programs are a great way to generate return purchases. The preferred customer program can be tailored to specific price ranges, giving larger discounts for shoppers who spend more, or it can be targeted to customers who purchase a certain amount in a given time range. To determine which customers qualify for your program you can segment them into audiences based on number of clicks in a campaign, or on number of purchases. Once segmented, you can run a preferred customer program in several ways; free gifts, sneak peaks, private sales, discounts, or other incentives such as free shipping. Remember in your offer to make sure your customers know they are “preferred,” and know why they’ve been selected. Vague offers and descriptions, as well as false criteria, can damage your program’s reputation as well as your own. Also remember to be responsible in your messaging; avoid sending discounts every week or your offers will fall on deaf ears, or worse, be tuned out completely.
Bargain Hunters and Brand-Wagoners
While purchase size speaks volumes about the elasticity of a customer’s shopping budget, the types of products they buy can offer more insight into how they spend their money, as well as how you can provide them the products they’re searching for. Product-type data will help you avoid sending discounts to customers more interested in high-end products than discounts, and vice-versa.
Shoppers often fall into two categories, “bargain hunters” and “brand-wagoners.” Bargain hunters are always on the hunt for great deals – two-for-ones, slashed prices, closeout items, and so on – and make perfect candidates for sales aimed at clearing out your overstock. Brand-wagoners are more interested in quality and are apt to buy brand name, high-end goods; for example, if purchasing a watch, they’ll more likely buy Bulova than Fossil or Citizen. You can segment these groups based on product purchase history, then send high-end product offers from similar categories (i.e. accessories, men’s clothing, women’s clothing, etc.). Your messaging to brand-wagoners should focus on your brand qualities, your customer service, and guarantees of satisfaction.
The Cross-sell
The cross-sell campaign is an important revenue driver for online sales and boosting customer spending. Cross-sell campaigns offer related items in addition to the original product purchase, such as a discounted color printer to go with a digital camera. Autoresponders based on product purchases are a fast, effective, and easy-to-implement cross-sell strategy for online marketers. For example: if your customer purchases a cell phone, an autoresponder can be triggered to send him or her an offer for a hands-free headset. You can send a message to a customer immediately after their purchase to catch their interest while they’re still in buying mode and excited about their purchase.
To sum up, your current customer base is your perfect customer. They’ve visited your site, they understand your goals and objectives, and they like what you’re doing. By capitalizing on the knowledge you gain from their shopping experience, and tailoring unique messages based on their purchases, you can dramatically increase your online revenue!
Happy Emailing,
Lindsay
Filed under: Audiences, Customer Service, Email Marketing ROI Tips, Marketing Tips, Using Autoresponders | 3 Comments »