Do you need to find new ways of decreasing customer acquisition cost (CAC), generating more profit and increasing revenue for your ecommerce brand?
There are three proven practices to increase return on ad spend (ROAS) without optimizing, over complicating, or even touching your Facebook and Google Ad campaigns.
It’s called the Ecommerce Growth Formula, and it can be used to 2X ROAS and increase online revenue with Facebook Ads and Google Ads significantly when used correctly.
Here’s how it works:
- Convert more customers & the traffic you’re already getting
- Get customers spending more & increase AOV
- Get customers buying more frequency & increase LTV
Here are some strategies that you can start implementing today to begin getting the formula working in your favor to increase revenue and profitability of your overall sales funnel.
NOTE: Results will vary based on total inbound traffic.
Convert more customers & the traffic you’re getting
Page speed affects both conversion rate and SEO. So, improving your pages load speed can help increase both traffic driven to your page and conversion rates (which will also factor into lowering you advertising costs). Clients expectations for how quickly a page should load is between 2-4 seconds and even a 1 second delay could decrease your conversion rate by 7%.
Clearly define your Unique Selling Proposition
If there isn’t anything unique or different about your product, how will sales result.
The Unique Selling Proposition for your brand helps guide your dream customer to establish a New Belief.
This leverages the uniqueness of your brand in the marketplace. Being able to clearly communicate this to your potential customers let’s them know the heart of your business and why you are different. You must be able to define the value you offer and the problem you solve that sets you apart from your competitors. If you don’t yet have this hashed out, it’s very recommended that you invest some time into your setting USP sooner than later.
Validation & Social Proof
By definition, social proof is a psychological tool that can influence the actions, attitudes, and beliefs of other people which is a great thing for ecommerce businesses to utilize. Positive social proof can influence us to buy from a new company while negative proof has the opposite effect.
Spending time investing in social proof will be an undisputable asset to your business. There is no denying that the review quantities on Amazon hold incredible clout when buyers are making their choices on where to spend their money. You can include requests for reviews in part of your post purchase email drip campaign or use one of the many apps that automate review asks like this to start building that part of your business.
Other psychological triggers for credibility include number of followers on Instagram and Facebook. For less established brands, focus on getting your first 1000 followers on both platforms before you begin advertising. People want to see that you look legit.
100% money back guarantee (Min. 30 day)
These guarantees are like insurance policies for consumers. Having a “100% Money Back Guarantee” clearly stated on your site gives the purchaser feelings of satisfaction in their shopping experience and likely will leave them feeling confident in returning to the store for future business.
Display this guarantee in the form of a visual badge on all of your Product Detail Pages as well.
Make it known and visible.
Don’t get in the way of the sale.
Reducing cart abandonment by offering the entire check out process on a single page helps your customer complete their purchase more quickly.
These types of pages are high converting for time-conscious customers and these days, that’s mostly everyone!
Increasing completion of checkout will increase overall site conversion rate, decrease customer acquisition cost AND increase return on ad spend.
Clear & Easy Return Policy
Not having a clear & risk-free return policy, is a quick deterrent for new customers.
If luck is one your side, you may pick up a single item purchase, but the chances of a customer risking a higher ticketed item, or multiple items, without a fair return policy is significantly decreased. These policies also offer that feeling of security and confidence that the product they are buying is guaranteed to be what it is represented to be. It also keeps you in the playing field with your competitors.
Get customers spending more & increase AOV
There are several simple things that you can quickly implement that will raise your AOV so that you see immediate benefits. The first would be offering free shipping with a minimum order value. It’s no secret that customers love free shipping. “I consider myself an avid online shopper and if there is a threshold to get free shipping, especially free express shipping, I always go back to try and meet that amount.” -Rachel, 36
Pre-Purchase Order Bump
How thoughtful is it when you’re shopping at a store and you’ve decided on a product and an employee of the business recommends a second product that you may not have known about that is a great partner for what you had already chosen?
Shopping online, at a new store can be overwhelming. Customers may not have the time to research your entire catalog, so using an app to mindfully cross-sell products before someone checks out, helps to increase your AOV and adds value to your customers shopping experience.
If upselling or an intentional order bump isn’t already a big part of your marketing strategy, it needs to be in order to maximize your store’s potential. An example could be to showcase a newer model of a product and drive home the benefits of spending more on the updated model. This way, your customer feels confident in the product and, in turn, doesn’t mind spending more money with you.
Post Purchase Upsells
If we could offer you a way to increase your revenue by 15-30%, post purchase upsells are it. At its core, this is a strategy used by marketers to increase AOV. It’s all about knowing your buyers and persuading them to spend more than they had originally planned. By exposing the customer to complementary products AFTER the purchase, it eliminates the risk of distracting the buyer with other offers and scaring them off from making that initial purchase.
Bundles & Quantity Discounts
Bundling your products not only offers an opportunity to increase your AOV, but also gives you a platform to showcase some of your best products that will help get customers to buy into your brand and become lifetime buyers. Bundling 2+ of your best-sellers on a discounted scale (2 products at 10% off, 3 products at 15%, etc) will easily increase your AOV.
Get customers buying more frequently & increase LTV
LTV is easily overlooked when you’re in the trenches of getting your ecommerce store up and running. You want to see sales fast and see money in the bank ASAP. But it’s an incredibly important metric to factor in from early on and really nurture those customers from the point of acquisition. Staying in touch with these new customers by way of email sequences is a great, automated way to get them to come back to your store more frequently.
Weekly EMAIL content campaigns
Everyone likes to buy things, but no one likes to be sold to. Weekly content is a great way to educate customers on the benefits of owning a product like yours without shoving offers, discounts, and sales pitches in their face. It adds value to their experience and who doesn’t appreciate that!
Offer campaigns every 4 weeks
Start a customer loyalty program
There are a plethora of benefits in a loyalty program. The key, however, is to offer your customers valuable incentives whether that be free shipping, access to new products, freebies, and discounts on future purchases. These simple, yet effective, programs motivate your customers to keep coming back to your store to buy. In turn, this will increase both LTV and often AOV as well.
Implement conversational commerce
Live Chat options help gently nudge a customer towards making a purchase with quick answers to questions that could tip the scale in your favor. It’s also a great tool to upsell your customers in real time.
There are several free and paid options to look into. A great one is if your store is on Shopify, you can take advantage of their new partnership with Facebook and love chat directly through Messenger.