Read on to learn how to find the right products, how to vet suppliers, and much more in this complete sourcing guide. 

Understanding online product sourcing 

Online product sourcing is the process of finding suppliers of the products you want to sell. 

The product sourcing process involves the following:

• Identifying a product you want to sell: Ideally, you’ll know everything about the product you want to sell, from its size and color to its function. The more specific you can get, the better. 
• Analyzing vendors: Find people who make the product you want to sell, and determine what makes them different from the competition. At this stage of the process, you’ll also research pricing.
• Making deals with your partner: You’ll need contracts that specify costs and delivery terms, among other details. These negotiations are critical to your success. 

Types of product sourcing 

Product sourcing options in today’s market are vast, whether you want to sell an original and new product in your online store or something you’ve seen elsewhere.

These are a few types of product sourcing methods you can use to sell online goods and services:

Do-it-yourself (DIY) products & services

Machine-made products can be durable, beautiful, and relatively inexpensive. But the Journal of Marketing reports that these items are missing a critical element: personal craftsmanship. Handmade products have more value to discerning buyers because they’re made with care by an individual and not a machine. 

Selling DIY products comes with a range of benefits, including:

• Strict quality control 
• Unique products
• Tight control over raw materials 

Many artisan products are made by small or independent businesses, which you can find through web searches or on platforms like Etsy. Just ensure that you’re clear with the makers that you intend to resell their products at a markup. Be sure, too, to research and adhere to the guidelines of any selling platform you use, as some prohibit reselling certain types of products.

Manufacturers or wholesalers

Many manufacturers and wholesalers have warehouses filled with high-quality products you could sell to your customers. Wholesale products can come with discounts, and you could opt to pocket those profits. 

Wholesalers could allow you to find more profitable products to sell to your customers. If the partner you choose has plenty of diverse inventory, you could pick and choose items you want. 

You could choose a direct-to-consumer (DTC) model and push products right from the warehouse to your buyer rather than stepping into the middle of the purchase process. Companies like Nike use this model, and it represents an increasingly large portion of the company’s revenue each year. 

To use this model, find a manufacturer or wholesaler with a product you like, and set up contracts that allow you to sell those items to your customers. 

Dropshipping

Imagine finding a product, processing the sale, and asking another vendor to fulfill the order. Dropshipping makes this possible. 

With dropshipping, you won’t need to invest in maintaining inventory or staff in-house to fulfill orders. You could also offer a wide selection of products immediately, with no need to maintain that inventory yourself.

You can find the right dropshipping supplier by doing the following:

• Contacting manufacturers directly
• Heading to a trade show
• Using Google search 

Trade shows 

Thousands of trade shows happen every year, and 90% of attendees say they’re searching for new products, according to Exponents. You could examine product quality in person at trade shows, and the connections you make could deepen in further conversations. 

Find a trade show devoted to the products and services you want to offer, and take your time wandering from booth to booth. Take home plenty of business cards and samples so you can hold more in-depth conversations later. 

Improving your product sourcing strategy

Whatever sourcing methods you choose, developing an effective product sourcing strategy is critical. Here are some key steps to follow:

1. Conduct thorough product research 

According to Google, more than half of all shoppers do research before they buy to ensure they’re making the best choice possible. You should do the same. 

Conduct this research on various platforms, including:

• eBay 
• Etsy 
• Amazon

Dive into specifications, features, customization, raw materials, and more. Gaining extensive knowledge of your product will help you choose the appropriate supplier during your outreach. What’s more, you’ll be able to share that detailed information on your product pages. 

2. Learn from other businesses 

You’re not required to start from scratch. Plenty of other companies use online sourcing methods. You can learn from their successes and mistakes. 

Reach out to peers at trade shows, on social media, and through email. Ask them how they found the perfect products and suppliers for their businesses. Invite them to share their mistakes as well, and take notes. 

The ecommerce market is vast, but it’s also close-knit. Chances are, you’ll find someone willing to mentor you as you get started. 

3. Evaluate supplier performance 

Your supplier is critical to your success, so it’s important to make this decision carefully. 

Don’t rely on the company’s marketing materials to make your choice. Dig deeper. For example, take the time to read online reviews. 

Once you’ve found someone that seems right for you, initiate a trial period. Set up a few mock orders with trial payments and see how the process goes. These dry runs can reveal issues you’ll want to avoid. 

4. Craft a backup plan 

Working with just one supplier can be risky. If something goes wrong, you’ll be left with no alternative way to make your customers happy. 

To avoid this, ensure that you always have another supplier in the wings. 

Using a product sourcing agent

A product sourcing agent is a third party that can locate and source products and manufacturers on your behalf. 

Plenty of sourcing agents exist, and you should choose them carefully. Below are the items you should check before you hire this important person to work for you. 

Business license 

A business license provides legal permission for a company to do business within the city and/or state in which they’re located. A license can also help you track a company in case your agent does something wrong. 

Industry expertise 

Experience matters. The longer an agent has worked with suppliers, the better they’ll be able to serve you. 

Ask your candidates for resumes and references. Look for a history of working with companies that are in a field similar to yours. 

Effective communication skills

Your sourcing agent should be prompt, pleasant, and responsive. They should be capable of working both with you and with your potential suppliers. They might represent you at trade shows, addressing product quality. And they might set up your dropshipping agreements too. 

If you’re working with overseas companies, your sourcing agent could be a critical part of your product sourcing strategy. They should speak the same language as your potential suppliers, and they should understand the customs of those suppliers. 

Start your business well with proper product sourcing 

Product sourcing can be an effective way to deliver value to customers. You could make all the products yourself, or you could find someone else to make them for you. By the same token, you could research your products yourself, or you could hire someone else to do the work for you. 

Build a strategy that suits your needs, skills, and goals, and make sure to learn from the experience of similar businesses. 

FAQs on where to buy products to sell online

What are the best sites to use when looking for wholesale suppliers?

Use Google to identify top vendors and suppliers, or run searches for topics like “best wholesale suppliers” and read blogs written by companies about these topics. You can glean valuable tips from those with more experience than you.

Can you use dropshipping in other countries?

You can, and this strategy can reduce your shipping costs if your buyers and suppliers are in the same country. 

The post Where to buy products to sell online: Sourcing 101 appeared first on Recharge.

This stands to reason, given that the average consumer was participating in five retail subscriptions by the end of 2021, according to PYMNTS. That’s up from fewer than two, on average, just before the pandemic. 

If you’re considering leveraging this booming market to grow your ecommerce business, you’ll need effective subscription management software. Read on to learn what subscription management software can do for you, and how to choose the right one for your business.  

What is online subscription management software?

Subscription management software helps companies track and manage all activities related to the sale of subscription-based products and services, including:

• Storing information related to customer subscriptions
• Interfacing with a payment gateway
• Automating subscription workflows

Subscription management vs recurring billing software

Subscription management software is sometimes called subscription billing management software or recurring billing software. This is a bit of a misnomer. 

Subscription management refers to the exchange between a business and its customers. Plenty goes into this interaction. Businesses must manage every part of the subscription lifecycle, from order and fulfillment to returns, exchanges, and feedback. Recurring billing plays a role, but companies should also gather customer data and create ways to allow subscribers to manage their own subscriptions.  

Recurring billing software can take payments from PayPal and other revenue streams. But these products aren’t subscription management solutions, as they can’t help with the other facets of running a subscription service. 

Advantages of using subscription management tools 

These are a few known advantages of investing in the right subscription management tools: 

1. Improved customer experience

It’s hard to overstate the importance of pleasing your customers. CA Design Form reports that it’s even more important than price. Disappoint them even once, and you risk losing them forever.

Subscription management software can help you understand what your customers want.  

If renewals spike after you share a product (or you’re hit with extra cancellations after a price increase), you’ve got data you can use to make your customers happier. Using that data could lower your churn rate. 

2. Increased customer options 

Consumers love flexibility, and they seek it out in their online subscriptions. They may love some of your products and want multiples each month, but they might like to skip a shipment every now and then too.

Subscription management software allows you to offer bespoke subscriptions based on customer preferences and past purchases. A customizable experience is hard to beat, and your order management system can help ensure it’s fulfilled properly every time. 

3. Increased affordability

Building your own subscription management system, complete with customizable options and pricing plans, would require a whole staff of developers. A subscription management solution could eliminate that expense. Choose an out-of-the-box solution for your business, and you’ll save the most money. 

4. Automated processes 

Customers are (understandably) nervous about sharing billing information with a company. That discomfort can grow if you don’t process their payment properly or regularly. There’s no room for error in this area of business.

The right software can ensure that orders are processed properly on a schedule your customers can anticipate. This prevents potentially costly human error, and frees you up to focus on other aspects of your business. 

Subscription management software features 

Not all subscription management solutions are created equal. Do your homework and look for a business subscription management software partner that offers these key features:

1. Multiple payments accommodation 

Your subscription membership management software should accept payments from popular credit card companies, but some go further. Your solution could also work with digital wallets, accept bitcoin, and interact with PayPal or Venmo. The more options you provide, the less likely it is that a customer will abandon their shopping cart. 

2. Secure storage

Customer subscriptions require payments, and if your service isn’t secure, you risk violating your buyer’s trust. PYMNTS reports that more than half of customers refrain from storing payment information online due to security concerns. If your customers don’t share their data, your billing process for repeat purchases will be considerably more cumbersome. 

To avoid that, your vendor should store sensitive information securely, and protections should be listed clearly for customers. Earning your customers’ trust is worth the effort. 

3. Notification features

Subscriptions can run automatically, but you will need to interact with your customers periodically. You might have new subscription models to share with them, or your pricing strategies might change. 

Notification features allow you to easily share this information with your customers. You can also use these systems to share promotional options to help increase your average order value. 

4. Seamless automation

Your software should run in the background, managing customer subscriptions and handling billing processes without direct supervision. This automation allows you to focus on other mission-critical tasks, such as training your customer support staff and developing new products. 

5. Ease of integration

Integrations are critical. Your subscription management software should play nicely with your existing CRM, payment gateways, and more. 

The application program interface (or API) makes this functionality possible. Without it, you’ll lose time trying to make two pieces of software get along. The best solution is one you don’t have to think about too often.

Streamline ecommerce operations with online subscription management software

An online subscription management tool is critical for any ecommerce business looking to use subscriptions to increase revenue, deepen customer connections, and boost customer retention. 
Assess your current payment management needs and billing platform so you can choose a subscription management software that serves your business and customers. 

The post 4 advantages of using subscription management software appeared first on Recharge.

In a study by Litmus, more than 90% of marketing professionals said email marketing campaigns are at least somewhat critical to their success. What’s more, the average ROI of every dollar spent on email marketing is $36, which is far higher than any other marketing channel. 

To achieve this kind of marketing ROI, read on to learn how to design effective email marketing campaigns that help grow your ecommerce business. 

What is email marketing design?

Email marketing design involves the form and function of the information you send to email recipients. Your email marketing design impacts your messages’ readability and the effectiveness of the user experience, which can then impact your engagement, click-through rates, and conversion rates. 

Companies with exceptional email marketing design often codify their strategies, rules, and assets. When they develop a new email, they pull from those references rather than reinventing the wheel again and again. This way, they maximize the efficiency of their processes, while all the messages they send have a consistent look and feel to increase brand recognition.

Essential elements of a marketing email 

A successful email marketing campaign is comprised of multiple well-crafted individual messages. Understanding the critical elements of these emails can help ensure that every message you send advances your marketing agenda. 

These are the elements you should include in every email you send: 

A compelling subject line

When consumers open their email inboxes, they see lists of subject lines. Those little bits of content serve as previews, telling them which email they want to open or discard.

On average, businesses achieve a 17% email open rate, according to Influencer Marketing Hub. To hit or surpass that average, make your email subject lines compelling to entice readers to open them. Consider A/B testing your subject lines to see what gets the best open rates, track your performance over time, and double down on the strategies that work. 

Interesting images & design

You can talk about the benefits of your products and services at length in email copy, but showing potential customers what your products look like or how they work can have an even deeper impact. 

Including images can also provide a visual break from lines of text, making it easier for consumers to read your emails all the way through.  

Company branding 

The more frequently you can expose consumers to your brand colors, fonts, logos, and voice, the more likely they are to remember you. 

Think of branding as a form of future-proofing. You may send email messages to customers who aren’t yet ready to buy. Later on, when the urge to shop hits them, they may recall your brand and make a purchase. 

Clear, engaging copywriting

With so many emails in your customers’ inboxes, it’s important to make your messaging clear, engaging, and to the point. Avoid including long, unbroken blocks of text, and keep your sentences punchy and your paragraphs short for easier reading and skimming. 

Focus on communicating the reasons consumers should try your products or services, and make sure the voice and tone matches your brand guidelines, to ensure a consistent experience. 

Clear CTAs

Your call to action (CTA) tells consumers what to do next. Use them sparingly, but ensure that they’re meaningful and clear. 

For example, you might want consumers to make a purchase, sign up for a recurring subscription, and enroll in a rewards program. But if you put all three CTAs in your email, you’ll confuse your customers. 

Each email should have one CTA, placed sparingly but prominently in your message. You can include CTAs in the form of clickable buttons to give your customers an easy, intuitive path to making a purchase.

Comprehensive footers

You’re legally required to tell customers who you are, where you’re located, and how they can opt out of future messages if they want. Place all of this critical data in your email footer, and add social media and website links for those who want to learn more about you. 

Email design best practices 

Here’s what savvy marketers do when planning their email campaign: 

Research your audience

You may have hundreds of topic ideas for emails, but what do your consumers actually want to read about? 

Dig into your email list and segment your contacts based on criteria like:

• New vs repeat buyers
• Customers loyal to just one item vs those who might be ready to branch out
• Customers ready to visit you in person vs who prefer online interactions
• Specific ages or demographics 

The more you understand your audience’s interests and behaviors, the better you can serve them with the right messages. 

Personalize your email messages

Email templates can streamline design and ensure all messages match your brand guidelines, but customers respond better to emails that are personalized. In fact, SmarterHQ reports that 72% of customers will only engage with emails that are tailored to them. 

Personalize email messages by:

• Including your customer’s name
• Highlighting items they’ve purchased before and might want to replenish
• Discounting an item that has been lingering in their shopping cart 

Keep mobile devices in mind

4 in 10 emails are read on mobile devices, according to Statista. You want your emails to look great and be easy to read, even on smaller screens. 

Test your messages on mobile devices before you send them. Ensure the images scale, any clickable buttons are easy to tap, and the text is clear (and not too blocky). 

Stay on brand 

Stay consistent in your tone, voice, images, logos, and other elements. Your email marketing campaigns should work as an introduction to your website. Otherwise, your customer experience might feel disjointed, potentially causing confusion and limiting your sales. 

Leverage templates for efficiency

Email marketing templates can make launching campaigns faster, easier, and more efficient. Start with a generic version provided by your marketing software, but make sure to tailor it to your audience and campaign. 

Add alt text for visual elements

About 2.2 million people have some kind of vision impairment, according to the World Health Organization. Chances are, some of those people are included in your email marketing list. Alt text can help you connect with them.

Alt text is a tiny descriptor of each image included in your email message. People using screen readers and other assistive technology will use alt text to understand what you’re trying to convey with images and videos. 

As an added bonus, that same text can help people engage with an email even when they’re in a space with a slow or low internet connection. 

Use web-safe fonts

It’s tempting to experiment with fonts, especially if your tone is playful. But choose the wrong font, and you’ll render your email unreadable on some devices. 

Web-safe fonts work across different browsers and devices, so all recipients can interact with your content. Safe choices include:

• Arial (sans-serif)
• Brush Script MT (cursive)
• Courier New (monospace)
• Garamond (serif)
• Georgia (serif)
• Tahoma (sans-serif)
• Times New Roman (serif)
• Trebuchet MS (sans-serif)
• Verdana (sans-serif)

Leverage A/B testing

Plenty of email marketing programs include A/B testing functionality. This allows you to create two versions of the same message. Your program will send each variant to a small portion of your list and record the performance of each. If one variant is a clear winner, it goes to the rest of your list, while the loser is discarded.

Testing like this can help optimize the performance of each email. You’ll also learn more about what works (and doesn’t) with each message you send, making you a better marketer over time. 

Measure your email performance

What doesn’t get measured is difficult to improve upon. Dive deep into your performance after each campaign. How many people opened your messages (open rate)? How many clicked on a CTA button (click-through rate)? How many made a purchase (conversion rate)? How many unsubscribed?

Track these metrics for each email and each campaign, and try different tactics to improve them. Your goal should be for each campaign to perform better than the last. 

Must-have ecommerce email marketing campaigns

There are numerous opportunities to use email marketing to move customers along your conversion funnel. Below are some essential email campaigns to consider building: 

Welcome email

Companies send welcome email messages to new subscribers to do the following:

• Confirm their subscription: If the message bounces back, you know this address should be deleted from your system. 
• Thank them for joining: This helps solidify the relationship you’re forming with this subscriber. 
• Entice a purchase: Consumers are very engaged when they sign up for recurring email messages. Build on that by encouraging them to buy right away. 

Cart abandonment reminders

Often, a customer will choose a product but not complete the purchase. This creates an opportunity to engage with that customer and make the sale.

Cart abandonment email messages invite customers to return to the site and finish the purchase. You can include a discount or offer to cover shipping costs to help close the deal. 

Econsultancy reports that the average order value of purchases made through these emails is 14.2% higher than normal purchases, which could suggest that some companies include upsell opportunities in their reminders, too. 

Curated product recommendations

Identify the ideal buyer for a product or service and you can send email messages to that customer segment. 

This way, you’re sending something to them based on their habits, behaviors, or characteristics. This level of personalization can be more compelling for customers looking to make a purchase, as it shows that your brand understands their preferences and tastes.

Referral messages

These types of emails encourage your subscribers to essentially join your sales staff. Offer them a discount or perk for recommending your product or service. 

Upsell/cross-sell emails 

Upselling involves recommending a more expensive, more premium item to a customer instead of their original purchase. Cross-selling involves recommending an additional product to an existing or recent purchase. Both tactics can deepen your customer’s connection with your brand and boost your average order value. 

Discount offers 

A discount offer could encourage customers to buy something without breaking their budget on an item they can’t quite afford normally. Consider adding an expiration date to create a sense of urgency and encourage impulse purchases. 

Order confirmation emails

Your customer placed an order and can’t wait for it to arrive. Set expectations with an order confirmation email. Remind your customers of what they bought, how much it cost, and when it will arrive. 

Survey/feedback requests

Collect valuable feedback from your customers with a survey embedded in an email. Keep it simple. Even one question could give you actionable insights.

Reengagement/win-back emails

You’re sending email messages, but some consumers may not be interacting. A re-engagement email message can help turn things around before those people unsubscribe. Reach out with your best content and offer perks to win those customers back. 

Thank you emails 

If customers do you a favor by leaving a review, referring a customer, or otherwise helping to further your marketing plans, send them a thank you email to deepen that connection. Consider including a discount to ensure they know how much you appreciate them.

Connect with your target marketing through comprehensive design strategies

A well-crafted and implemented email marketing strategy can help you reach the right consumers with the right messages at the right time. Each message you send is a chance to grow your business.

Research your audience, be consistent in your branding, and show your products in their best light. Personalize your messages as much as you can and pay attention to what works, and you’ll be on your way to effective email marketing. 

FAQs on ecommerce email marketing design ideas & best practices

How often should a company send marketing emails?

Experts don’t agree on a specific email marketing pace. Some companies send many emails, while others limit their interactions. 

In general, it’s best to let your customers set the pace. Ask them what types of email messages they want to get from you, and ask them how often they want to hear from you. Base your schedule on this feedback.

What does an email design system include?

Email marketing design systems include templates, images, logos, standards, and templates. Think of them as a one-stop shop for all of your email marketing needs. 

How do you prevent marketing emails from going into the spam folder?

Ensure that you use opt-in technologies. Everyone who gets your email messages should expect them because they asked for them. Next, clean up your lists regularly and remove any addresses that don’t work.

Finally, ensure that your messages are relevant and interactive. The more consumers participate, the more useful your emails will seem to email platforms like Google. 

The post Ecommerce email marketing design ideas & best practices appeared first on Recharge.

Read on to learn what AOV is, how you can calculate it, and what you can do to increase it. 

What is average order value (AOV)?

The average order value (AOV) metric is a measurement of the average amount buyers spend per order. Of all KPIs in ecommerce, this is one of the most important, and can help guide future business decisions. 

A high AOV shows your customers are buying many products or just a few high-priced items, resulting in greater value per transaction. Data like this can help inform your marketing and pricing strategies, as well as your approach to product development.

It’s crucial to not only track your overall AOV, but also your increases and decreases in AOV to determine trends and patterns in customer behavior. For example, if your AOV decreases during certain seasonal periods, you can incentivize customers to spend more per order during those times with an offer of free shipping when they meet a certain order minimum .

How to calculate AOV

To calculate AOV, divide revenue by your total number of orders over a set period of time. Here’s a quick formula you can use:

Remember: For this formula, you must set a period of time that’s meaningful for your customer base, and track the total number of orders completed within this time frame. 

AOV calculator options

In addition to formulas, you can use online calculators to determine your AOV and sometimes even track it in real-time. Ecommerce websites like Shopify include these calculators in their merchant-facing tools. You can also find online AOV simulators that calculate this figure for you by comparing the total number of orders to the total revenue spent in your online stores. 

Tips to increase AOV

By strategically increasing your AOV, you can get more value out of each customer transaction. Now, let’s dive into some key tactics for increasing AOV for your ecommerce store.

Cross-selling & upselling

Product recommendations can represent up to 30% of your ecommerce sales, according to BusinessTech Weekly. If you’re hoping to increase your AOV, look for ways to push your customers to buy what you want them to buy.

Cross-selling and upselling are two key ways to incorporate product recommendations into your marketing strategy:

• Cross-selling: Encourage your customer to buy an item closely related to one already in their shopping cart. With cross-selling, your customers are adding an item onto their original purchase to increase the value of the transaction.
• Upselling: Convince your customer to upgrade to a bigger, better, and more expensive version of the item they intended to purchase. You could add features (like two cameras on a phone instead of one) or functions (like a coffee maker that can also brew tea).

With both cross-selling and upselling, it’s important to personalize your recommendations. To position your brand as a trusted resource, your suggestions must be tailored to your customers’ interests. 

Product bundling

Entice customers to buy curated assortments of items—also known as product bundles—instead of buying each item individually. You can do this for multiples of the same item, providing a volume discount to entice customers. 

You can also curate bundles of products you sell that pair well together, like a computer with a keyboard, saving your customers time and potentially money by taking advantage of the bundle. Another popular bundling strategy is offering customers the ability to build their own product bundle so they get the exact items they want in their order.

When product bundling, be sure to monitor and track your cart abandonment and conversion rates, and note if customers ditch the bundle without buying. If so, you may need to offer a deeper discount on the package or vary the products you pair together in the bundle. 

Boost your ecommerce store’s AOV 

A higher AOV can mean bigger profits for your company. What’s more, the strategies you use to increase your AOV may also lead to better customer experiences that retain your customers for longer and lead to higher levels of customer satisfaction and brand loyalty. 

Knowing your AOV can also help you improve your marketing and customer retention strategies.To create lasting improvements over time, be sure to tailor your strategies to your unique customer base and products, track your metrics over time to identify patterns, and make adjustments accordingly as needed.

FAQs on calculating AOV

Why is AOV important?

Average order value (AOV) is a measurement of how much consumers spend per order, on average. Increasing this figure is an effective way to ensure that you make the most out of each transaction.

What is the difference between average order value and annual contract value?

Annual contract value measures how much a consumer spends each year on a multi-year contract. Average order value measures how much consumers spend in each visit to an online store during a specified time. 

The post How to calculate AOV (average order value): Formula & calculator options appeared first on Recharge.

Creating a loyalty program is a popular method for boosting customer retention. The customer loyalty management market is valued at $5.5 billion and is expected to surpass $24 billion by the end of 2028, according to Statista. 

In this article, we’ll explain the various types of loyalty programs used by ecommerce businesses. We’ll also cover essential tips for starting your own loyalty program designed to retain customers, deepen those relationships, and grow your business. 

Understanding customer loyalty programs & their different types

A customer loyalty program offers perks (like discounts, loyalty points, or other incentives) as rewards for certain customer actions, like repeat purchases. This type of program is designed to encourage increased engagement and continued interaction with your brand. 

Some loyalty programs offer points with each purchase, allowing customers to unlock discount codes with a certain number of points. Others entice customers with other benefits, like advanced notice of new sales or free gifts for certain milestones. 

The airline industry created some of the first modern loyalty programs, where consumers racked up “frequent flyer miles” with their trips—but only if they bought from the same brand. These programs still have enormous swaying power for consumers in the industry today.

Plenty of variations of loyalty programs exist, and understanding each type could help you determine which is right for your customers and brand. 

These are some of the most popular types of customer loyalty programs: 

Points-based loyalty programs 

Points-based programs begin with enrollment. Customers provide their phone number or email address, or they download the business’s app. The business then tracks every purchase that customer makes. Each purchase comes with a point or points, which can eventually be redeemed for rewards. 

Loyalty programs like this are relatively easy to kick off and manage, which might explain their immense popularity. Customers have likely used something similar previously, so explaining the system is often relatively easy. 

Tiered loyalty programs

Tiered loyalty programs and points-based programs are similar. Both involve tracked purchases and racked-up points, but a tiered program has special appeal. 

Why? Repeat customers unlock special rewards at predetermined point levels. For example, everyone might get a 10% discount for a repeat purchase. But customers that spent $100 in a month might unlock a 25% discount. 

VIP loyalty programs

With a VIP loyalty program, your most loyal customers gain access to the program, which offers them exclusive perks, like discounts or free shipping. 

The terms for entering the program all depend on your business goals. For example, to grow your LTV, you might offer a VIP membership for customers who make a certain number of repeat purchases.

Gamified loyalty programs 

Gamification is a hot topic in the marketing world. If customers can interact with a brand and have fun in the process, they’re more likely to come back for more. 

You could offer your loyalty program members the opportunity to spin a virtual wheel to unlock new discounts. Or you could ask your participants to tackle a challenge (like purchasing a specific item) to earn badges or stars. 

Coalition loyalty programs 

Boost customer retention across multiple brands through a coalition loyalty program. In these programs, the perks earned with one company apply to all companies who participate in the program. 

Companies with several nested brands often use this approach. But smaller companies could link with partners to create this type of program. For example, if you sell phone cases, you might propose a coalition loyalty program with a cellphone company. 

Value-based loyalty programs 

Tying participation in your customer loyalty program to a donation to a beloved charity can be an effective strategy for certain brands. This type of program may create a deep emotional response for customers, who may begin associating your brand with making the world a better place. 

How customer loyalty programs benefit your business

If you’re not sure creating a rewards program is right for you, keep reading to dig into the key benefits for both businesses and consumers. 

Loyalty programs can establish emotional connections

According to Harvard Business School professor Gerald Zaltman, 95% of purchase decisions are made subconsciously. An effective loyalty program can give customers an emotional connection to your brand, and those feelings can keep them choosing you over competitors. 

Your customers might feel a bit of excitement when your subscription box appears on their doorstep. Or they could look forward to your clever email messages. Those doses of excitement and joy can translate into repeat purchases. 

Loyalty programs can improve customer retention

Increasing your customer retention rate by just 5% could increase your profits by 25% to 95%, according to research by Bain & Company. While acquiring new customers is important, customer retention is a crucial strategy to cultivate sustainable long-term growth. 

Loyalty programs can create authentic brand advocates

The majority of consumers do research before they buy something. They want to make the best possible choice, and they dig into data to find out more. 

Loyalty programs can create a dedicated customer base that is more likely to make repeat purchases. Those customers might share positive experiences on social media, in person, or through online reviews, improving your brand reputation. 

Some loyalty programs encourage this behavior and offer more points for shares and referrals. 

Loyalty programs can smooth out sales cycles

Small businesses often face boom-and-bust cycles. They might sell plenty of products around the holidays, but then see a slump in sales afterward. A loyalty program can help reduce the impact of these sales waves.

Reward customers with the right perks and benefits, and they may spend money with you during periods that might normally be slower. You might even increase this benefit by adding special rewards during those traditionally slower seasons. 

Loyalty programs can increase your average order value 

Many loyalty programs reward customers for bigger purchases. The more a customer spends, the more perks or bonuses they earn. And as they spend more over time and increase their lifetime vlaue, the more they might unlock new levels of saving. 

Loyalty programs can reduce operational costs

How much do you spend on finding new customers? How much time do you devote to inputting data in your customer acquisition database? By increasing the lifetime value of current customers, a loyalty program can free you to focus on keeping them happy, rather than finding replacements for them. 

Loyalty programs can deliver actionable insights

Marketing and sales teams have plenty of trackable metrics. But often, the information they have is limited. They may know how many people visit their ecommerce website, but they don’t know much about what they buy repeatedly. 

Loyalty programs can track purchase behavior, customer logins, and more. This customer data can help inform the way you market your offerings. 

For example, if data from a loyalty program indicates that customers consistently buy one product more than any other, your R&D team might build variations on that product. 

Essential tips for creating a customer loyalty program that works 

A good customer loyalty program can significantly increase your bottom line. To understanding the critical elements of effective loyalty programs, follow these six steps:

1. Pick a memorable name 

Your potential loyalty program members must remember the name of your brand’s offering. An ideal loyalty program name is short, simple, and effective. Look for ways to play on your brand name or product line to make your program concept intuitive for your customers.

2. Tie rewards to customer values

You can reward customers with discounts and giveaways, but the best programs may also appeal to your customers’ values.

For example, more than a third of customers are willing to pay more for sustainable options, according to Simon-Kucher & Partners. Based on that insight, you might offer your loyal customers an eco-friendly perk like a tree planted for each order placed. 

Find out what your loyal customers care about, and look for ways to mirror those values in the benefits you offer. 

3. Reward a multitude of actions & offer customers a variety of valuable rewards

Some of the best loyalty program examples reward customers for non-purchase actions, such as watching or sharing social media content. 

Additionally, mixing up traditional perks like discounts with other options like events, product launches, and donations could give more customers a reason to join your program. 

4. Apply omnichannel strategies to your program 

Ensure that customer loyalty builds both online and in-store. Let customers gain loyalty points in person with strategies like offering punch cards, or encourage them to show a login screen on their phones to scan at checkout. This sense of continuity can help keep customers engaged no matter how they interact with your brand. 

5. Add external partner products & services as rewards

Customers may want rewards and incentives that accrue (and can be used) outside of your brand. Find a partner with a similar type of program, and you could combine forces to do even more. Both your businesses will benefit.

Look for ways to tie loyalty points together. For example, points earned at a coffee shop could unlock benefits at the cake shop next door. 

6. Watch out for the most common loyalty program mistakes

Loyalty programs are only beneficial if they’re well designed. Ensure that you’re delivering a great customer experience by avoiding the following mistakes:

• Making your program so complicated that you confuse your customers
• Offering benefits that are too small
• Ignoring customer satisfaction scores 
• Bombarding customers with too many notifications or email messages

Grow your business with the right customer loyalty program 

Brand loyalty is critical for long-term business growth. Rewards programs, especially those that deliver a positive experience, can entice customers to spend more and come back for repeat purchases. 

By researching what matters most to your customers and designing a program that aligns with your business goals, you can create a customer loyalty program that improves your bottom line and keeps customers engaged. 

FAQs on loyalty program strategies to keep customers coming back 

What can cause customers to avoid coming back to your business?

Every industry is different, and a customer loyalty program can fail due to market forces outside of your control. But loyalty programs can also fail due to controllable reasons like rewards that are too small, poor marketing strategies, and failure to center the customer experience.

How can I get customers to sign up for my loyalty program?

Ensure that you market the program effectively on every channel you use. Consumers need to know about the program and what it does so they can sign up. Refine your messaging so that the program is clear and attractive to the customers you want. 

The post Strategies for loyalty programs that keep customers coming back appeared first on Recharge.

Facebook retargeting can help with that. This powerful pay-per-click strategy can show ads to people who are already familiar with your brand. This gives you control over who sees your ads, and means you can market to customers who are more likely to buy. These continued impressions can help turn brand awareness into actual purchases.

Read on to learn about seven ways you can use Facebook retargeting to grow your ecommerce business. 

What is Facebook retargeting?

Facebook retargeting allows you to show ads to people who have already interacted with your brand in specific ways. These repeated impressions are intended to move those audience members along your conversion funnel, from awareness all the way to making purchases—and coming back for more.

Facebook retargeting begins with identifying your audience. This can be done with the following data sources:

• Customer contact information you’ve collected through a CRM
• New customers you’ve identified via a Facebook pixel installed on your website
• Shoppers that interacted with your site but didn’t complete a purchase (with data you collected with Facebook SDK)

Facebook links your data to known Facebook users or lookalike audiences similar to your potential buyers. You can then target those people with a series of Facebook ads. 

Why choose Facebook retargeting over retargeting on other platforms?

These statistics help illustrate the potential power of Facebook as a marketing channel. 

• Facebook is popular among U.S adults who earn more than $70,000 per year, and 70% of American adults use Facebook every day, according to the Pew Research Center.
• There are 1.2 billion Facebook users in Asia. Over 419 million users use Facebook monthly in Europe. India is the country with the most Facebook users, with 320 million users.  
• 78% of US consumers made purchases through discoveries made on Facebook in 2018, according to Kleiner Perkins.  

Facebook retargeting strategies to drive ecommerce growth

Facebook reports that at least 3 million companies actively advertise on their platform. Some run simple Facebook ad campaigns with information about their products and services. Retargeting is a more strategically sophisticated way to leverage the considerable power of Facebook as an advertising platform. 

These seven strategies can help you make the most of Facebook retargeting:

1. Find new customers with interest categories and lookalike audiences
2. Leverage Facebook’s custom audience tool
3. Try Meta Advantage+ catalog ads 
4. Leverage the power of video 
5. Share social proof 
6. Optimize with analytics
7. Take advantage of Facebook’s automated rules 

Now, let’s dive deeper into each of these strategies so you can craft a marketing strategy that works for your ecommerce business. 

1. Find new customers with interest categories & lookalike audiences

Retargeting techniques often involve reaching customers that have heard of your brand. But what about potential customers that you’ve never reached? Facebook provides two tools to help reach them:

• Interest Categories: Facebook users posting content, engaging with posts, and scrolling through updates leave a trail of data behind. Their preferences are gathered into interest categories, which you can use to craft a Facebook ad made just for a custom audience interested in a specific product. For example, you might create an ad about pink shoes and share it with people interested in shoes. 
• Lookalike Audiences: Input a customer list, and Facebook can find other users that seem similar based on specific criteria, such as interests, previous purchases, zip codes, and more. You can then target this lookalike audience with ads, leveraging those commonalities. 

2. Leverage Facebook’s custom audience tool 

Facebook is part of a larger ecosystem that includes Instagram and Snapchat. Using custom audiences, you can reach potential customers across those platforms. 

Custom audiences start with lists. You might fill a list with people who:

• Have visited your website
• Have interacted with your app
• Are on an active customer list
• Have engaged with your in-person store

Facebook allows you to create up to 500 custom audience lists, and to target those lists with custom ads. This is a valuable way to potentially retain existing customers and entice them to make repeat purchases. 

3. Try Meta Advantage+ catalog ads 

Retargeting ads work best when they are specific. They can help drive sales by reminding potential customers of a product they almost bought but didn’t. Catalog ads make this possible. 

Meta Advantage+ catalog ads (formerly called Dynamic Product Ads) allow companies to upload a product catalog and set up an overarching campaign. Facebook will show customers products tailored to their interest. And retargeting can remind customers of items they reviewed but didn’t buy. 

4. Leverage the power of video 

eMarketer reports that 46% of US Facebook users are watching videos on the platform at any given time. It behooves any ecommerce business to get in front of that considerable audience. 

Video lets you share the benefits of your product and services in engaging ways. Invest in producing effective video, and show it to the right people using retargeting. 

5. Share social proof

Customer testimonials can help skeptics understand why your products and your brand are worth their attention. They can cut through the marketing noise and help boost conversion rates. 

Gather reviews from sites like Amazon, Google, or Shopify, and work them into retargeting ads to help convince potential customers. 

6. Optimize with analytics

Facebook offers powerful tracking tools that can help justify your ad spend. These tools can also help Facebook get better at delivering ads to the right people at the right places in your conversion funnel.

For example, Facebook Pixel gathers data on people who visit your website. The Conversions API is a similar tool, but it’s intended to consider your brand’s marketing data and work with Facebook’s systems to enhance ad targeting and cut costs across Meta services.

7. Take advantage of Facebook’s automated rules 

Facebook’s automated rules help you run your ads efficiently, even when you’re off the clock. Create custom rules that:

• Pause underperforming ads
• Boost ads that are outperforming others 
• Limit ad share when your customers aren’t online

This can save you both time and money by making sure your ads are earning their keep.

Create opportunities for growth with Facebook retargeting ads 

When it comes to winning customers, you need more than just a good first impression. 

With effective Facebook retargeting, you can generate a continual series of impressions, each calibrated to meet potential customers exactly where they are in your conversion funnel. 

By leveraging this marketing tool effectively, you can help move those potential customers along that funnel—all the way to buying from you. 

FAQs on ways to use Facebook retargeting to drive ecommerce success

How long can you retarget on Facebook?

Retargeting ads last indefinitely. They don’t automatically expire, so they’ll keep working as long as you want them to do so. You can retarget on Facebook as long as you like.

What is the maximum audience size for retargeting Facebook?

Facebook doesn’t set a maximum audience size at this time. Your audience size might be limited by how many customers are on your lists. 

What is the difference between remarketing and retargeting?

Retargeting involves showing ads to people who have interacted with your site without purchasing anything. Remarketing is similar, but it typically involves more traditional methods like email. 

The post 7 ways to use Facebook retargeting to drive ecommerce growth  appeared first on Recharge.

Forbes reports that the subscription service market may reach $904.2 billion by 2026. If you’re considering implementing a subscription model for your online store, read on to learn exactly what it takes.

What are subscription services?

A subscription service lets customers sign up to receive products or use services for an automatically recurring fee. 

Amazon was one of the first ecommerce companies to use a subscription model, starting in 2005. Countless companies have since followed suit, such as Netflix, which boasts more than 2.5 million subscribers. 

How can a subscription service business model help your ecommerce business?

Let’s explore some of the potential benefits of adding a subscription service to your online store. 

1. Boost customer retention 

The Harvard Business Review reports that the cost of converting new customers is 5 to 25 times higher than the cost of retaining existing customers. Making those relationships last longer is a key way to widen your margins and grow your business. 

Recurring subscriptions can help make that happen. Automatically recurring payments can keep your customers engaged and help you reduce churn by building a relationship with subscribers and offering them ease and convenience. 

2. Develop a captured market 

A subscription-based business model offers exceptional upselling and cross-selling opportunities. If you’re selling curated subscription boxes, you could invite customers to add one more item to each box.  You could also introduce new products to your subscription customers, potentially deepening their relationship with you and your offerings.

3. Increase LTV 

Customer lifetime value (LTV) is a measure of the total income you can expect to receive from an average customer across the entire relationship. It’s a critical metric and calculating it is relatively easy: multiply customer value by the average customer lifespan. 

A subscription service can help you increase your LTV by lengthening those relationships and increasing the amount customers spend with you. Increasing that metric creates wider margins, empowering you to invest in finding more customers. 

4. Generate predictable revenue 

In a subscription-based business model, payments occur on a recurring basis, generating a predictable revenue stream. This makes it easier to plan and scale your business and to demonstrate performance to stakeholders. 

5 steps to implement an online subscription service that sells 

Below we’ll cover five key steps for adding subscriptions to your ecommerce business.

1. Choose a subscription model

Before you can launch your subscription service, you’ll need to choose a subscription model. There are three main types: 

• Curation: Merchants assemble a box of curated products (or let shoppers build their own) and send them directly to their customers. 
• Replenishment: Often referred to as the “subscribe-and-save” model because merchants will typically offer discounts to their repeat customers. It’s a great model for subscription businesses who sell products that customers use on a regular basis. 
• Access: Access is a subscription model which includes memberships, and gives exclusive access to early releases, discounts, gated content, and more.

The right model for you depends on the kind of product and services you offer. Once you’ve selected your model, make sure to clearly communicate the benefits it offers to your customers.  

1. Curate your products 

Consumers can be overwhelmed by endless choices. To avoid “scrolling fatigue,” curation is key. Dig deep into your sales history. Determine what products are most popular with your existing customers and if any of your products are the right fit for a replenishment subscription model.

If you sell the same candles to the same people every month, bundling those products into a subscription box could be smart—and help you capture recurring revenue.

2. Create a pricing model 

Pricing is critical to the long-term success of a subscription service. You want your customers to feel they’re getting a good value when they see those recurring charges on their monthly bank statements. 

To that end, determine how much your competitors charge. Find out what sets you apart and craft a subscription pricing strategy accordingly. From there, test your pricing and pay attention to conversion rates, optimizing as you go. 

3. Develop effective & consistent branding

Your loyal customers should immediately recognize your brand elements, from the visuals to the messaging. And new customers should be enticed by what they see and encouraged to learn more. 

Once your branding is established, make sure it shows up consistently on your products, in your social media content, and in your marketing campaigns. 

4. Leverage photography 

If you’re hoping to convince customers to subscribe to receive your products again and again, you’ll need to show them those products are worth the money. Great photography can help with that.

Invest in high-quality product photography and then display them on social media platforms, in online ads, and on your website. Plus, make sure to write a detailed product page that gives customers all of the information necessary to make a decision about the product. 

5. Identify shipping & billing options

Forbes reports that automated billing is critical for business growth. It minimizes potentially costly human errors and frees up more of your time to spend on delivering an exceptional customer experience and growing your business.

For customers, shipping options are important. After finishing checkout, they want products quickly. Ensure you’re working with an ecommerce business partner that offers professional fulfillment services that get items to people quickly and easily. 

Increase revenue by creating a subscription service 

Subscriptions are a powerful tool that can help grow an ecommerce business with predictable revenue and longer, more profitable customer relationships. Take the time to implement the model effectively and reap the benefits. 

FAQs on how to implement an online subscription model that sells

What subscription service best practices should I know about?

Market leaders follow a few key rules:

• Test your product and concept before you launch your subscription service.
• Keep prices low at first, especially if you’re entering a tough market.
• Give consumers a choice about how often their subscriptions renew and, if possible, what’s included each time.
• Fix payment and shipping problems fast. 
• Stay in touch with your customers and ensure they don’t leave you due to a fixable issue (like shipping). 

The post How to implement an online subscription model that sells  appeared first on Recharge.

Curious about how to check the mobile-friendliness of your site? We have everything you need to know below. 

What are the differences between mobile-friendly, mobile-first design, & mobile-first indexing?

Consumers can access sites via mobile devices (smartphones and tablets) or traditional devices (desktop computers and laptops). While optimizing for both types of devices is critical, search engines like Google prioritize mobile usability.

A mobile-friendly website may not have been designed for mobile devices, but it looks good and functions beautifully for mobile users. By contrast, a mobile-first design was made with smartphones and tablets in mind from the start. The mobile version comes first, and then developers determine what the site might look like on a desktop. 

Google seems to approve of this idea. In 2016, the search engine started experimenting with mobile-first indexing. In 2020, these experiments became part of Google’s operating procedures.

With mobile-first indexing, Google loads your website using a smartphone web browser, and you’re ranked in Google search based on how your page performs in that mobile context.

4 ways to determine if your website is mobile friendly 

A mobile site should always be:

• Legible, even on small screens
• Usable, so people on the go can tackle critical functions with their phones
• Fast, so pages load almost instantly
• Easy to navigate, so people can move around quickly

The following tools can help you understand if your site meets these benchmarks:

1. Google’s mobile-friendly test

Check your page’s mobile functionality, speed, and design within about a minute using Google’s mobile-friendly testing tool. It’s free, and you don’t need a Google Search Console account to use it. 

To use this tool, do the following:

• Open Google’s test site
• Paste your web page URL into the testing bar 
• Tap the “Test URL button”

Google won’t give you step-by-step instructions to fix your functionality, but you can still learn a lot about how well your site works in a small screen size environment. 

Potential results include the following:

• Page isn’t usable on mobile. This might mean you’re using incompatible plugins like Flash, breaking responsive design rules about viewports, using tiny text, or placing clickable elements too close together. 
• URL isn’t available. This result suggests your page is blocking google bots. If Google can’t crawl your page, it can’t check your website. 
• Page is usable. If you’ve done all your coding properly, you’ll get a green light with no additional data.

For many people, Google’s mobile test is both accurate and easy to use. But if you dislike it, you can also tap into mobiReady or Page Speed Insights to run similar tests. 

2. Your desktop browser 

If your website design is responsive, shrinking screen size is a quick and easy way to check for usability on different devices. Simply grab a corner of your window and pull it to a smaller shape. Online elements should shift accordingly.

If you have strictly mobile versions of your website, this method won’t work. Instead, you can tap into browser developer tools like Lighthouse. 

Google’s Lighthouse is available for both Chrome and Firefox. This technical tool is often difficult for non-coders, but developers can use it to run quick tests and deliver usability reports about style sheets, pop-ups, and more. Those reports can help you guide future development. 

3. Chrome DevTools

Google’s Chrome DevTools is a web development tool that allows developers to both view and edit websites. If you’re using Google Chrome, install these tools as an extension, and you’ll be ready almost immediately.

DevTools includes the following:

• A console, offering developers the opportunity to spot code errors
• A Document Object Model (DOM) inspector for quick visualization of all page elements
• Editing tools for Cascading Style Sheets (CSS) styles, JavaScript code, and other online elements

To use this tool, do the following:

• Open Google Chrome, and launch the site you want to check
• Hover anywhere on the screen and right-click
• Choose “Inspect”
• Toggle the device toolbar to “Responsive” 

If your site shrinks, it’s responsive and therefore mobile-friendly. 

4. Google Search Console

Use a free tool from Google to stay on top of your site’s mobile-friendly design and coding errors. You have to sign up for Google Search Console, but once you do, you’ll get a powerful amount of data.

Search Console will show you how well your site is performing, including metrics about your search results. Find out how often google bots crawl your content and get reports about errors and performance issues. 

Improve user experience & your bottom line with a mobile-friendly website

Use free tools to monitor your website and work with a developer to correct any errors you find. Don’t be intimidated by the technical language, your developer will know what to fix. But ask for regular reports and screenshots so you can ensure you’re meeting Google’s mobile-friendly standards and delighting those mobile-browsing visitors. 

FAQs on making your website mobile friendly

How can you make Cascading Style Sheets (CSS) and images light?

In coding terms, something that is “light” doesn’t require a lot of processing power. Light items load quickly, which is crucial in the mobile environment. You can try compressing images and embedding videos to make those elements lighter. To optimize your CSS, remove unneeded styles, and tap into compression and caching. 

What does responsive web design mean?

A responsive website is one entity that adjusts based on screen size. If a website moves elements and otherwise shifts when you drag your browser’s screen window, you’re in a responsive environment. If the elements just get smaller, you’re dealing with static design.

What are the basic responsive design principles?

These are the three major principles of responsive design, per the Interaction Design Foundation:

• Fluid grid systems that allow content to fill available space depending on device size
• Fluid images that allow pictures, icons, and videos to scale according to screen size 
• Media queries that allow the site’s layout to shift based on screen size and other parameters

The post How to determine if your site is mobile-friendly  appeared first on Recharge.

In this article, we’ll break down nine mobile commerce trends you can apply to your own business strategy in 2023. 

What is mobile commerce (m-commerce)?

Mobile commerce (m-commerce) is a form of ecommerce that is typically defined as the buying and selling of goods and services online via smartphones and tablets. 

Popular m-commerce formats include:

Mobile shopping

In mobile shopping, transactions take place on smartphones through mobile-optimized websites. Companies using these techniques must ensure that online shopping is quick and easy with a connected device. This way, customers can purchase the products and services they need at any time, whether or not they have access to a desktop computer.

An m-commerce transaction might take place via a social media platform. For example, a user might see a beautiful pair of shoes on Instagram and tap a link to buy them. Curalate reports that 76% of consumers have purchased items they’ve seen in social media posts, proving just how powerful and popular mobile shopping can be. 

Mobile banking

More than 75% of Americans have connected with their banks via a mobile app, Forbes reports. Some may have started the practice during the pandemic when banks were unavailable. Others simply liked the convenience of banking without an in-person visit. 

This is the value of mobile banking, which allows mobile users to track their credit cards, transfer money, make payments, and more by using their smartphones and connected devices. This increases the flexibility, convenience, and speed of the banking process for users, improving the overall customer experience. 

Mobile payments 

Mobile payments solutions allow users to make payments for goods and services right from their mobile device, without needing to handle cash. Mobile payments can be made both in brick-and-mortar stores and online.

Mobile payment options include:

• Digital wallets connected to credit cards or bank accounts
• Sites like PayPal that work as intermediaries for online sales 
• QR codes that connect to sites like Stripe for payments 

Speed is the primary benefit of mobile payment and mobile wallet solutions. Online shoppers and some visitors to physical stores can pay by flashing their phones or tapping in a simple code. 

9 mobile commerce trends to follow in 2023

Understanding mobile and apps commerce trends can help you respond to changing customer demands, ensuring that you’re delivering experiences that surprise and delight.

Now, let’s explore nine trends in mobile commerce to watch in the coming years.

1. Augmented reality 

Augmented reality has the potential to transform the ecommerce industry in new and exciting ways. Do it well, and you could reduce your cart abandonment rate and give your customers a strong understanding of your products and services before they buy. 

Consider Wayfair’s View in Room. This innovative augmented reality tool allows customers to visualize what a product would look like inside their homes. Consumers can place an item in its intended space, and they can stand in front of it to see what it looks like at scale. View in Room also includes some gamification, so chairs can hover over the ground or sprout from the ceiling. 

Tools like this offer customers an immersive and convenient experience, enabling them to interact in real time with a company’s products and services without having to leave their homes.

2. Visual commerce

Online shopping almost always involves photos—after all, customers typically need to see your products before they buy them. But visual commerce tools give these images new life through unexpected angles, virtual reality tools, or both. 

Your visual commerce strategy might involve the following:

• Experimentation: Allow customers to edit the color or design of your product and see how that changes the experience or desirability.
• Augmented reality: Let customers see what your products look like on their bodies or in their homes. 
• 3D visualization: Let customers examine every inch of your product, twisting and turning it as they see fit.

Social media sites like TikTok and Instagram have helped popularize this concept. Now, many people consider it an integral part of the customer experience for mobile users.

3. Social commerce

Studies show that more than 4.74 billion people use social media sites globally. Social commerce involves grabbing users’ attention on mobile devices via social media sites like Instagram, TikTok, or Facebook and enticing those potential customers to buy a product or service. 

Today, social media platforms come with many m-commerce integrations, making it easier than ever to share a product link on these sites. When customers have the ability to use their digital wallets to pay on top of this, the process of shopping through social media is made even faster and more convenient.

4. Voice shopping

Today, voice search technology is relatively commonplace. Instead of reaching for our phones to answer questions (like “How hot is it outside?”), we can just speak the query aloud and get an immediate answer. That same technology can be incorporated into m-commerce to further increase convenience and flexibility. 

For example, a voice search about a product could lead a customer to shopping apps, and a few spoken commands could help the customer complete the purchase.

5. Intelligent chatbots 

If your customers ask the same questions repeatedly, and you’re unable to provide around-the-clock customer service support, intelligent chatbots that are compatible with mobile devices may be a helpful solution for your business. 

Chatbots use AI to understand and learn from human speech patterns. Each time they talk to customers, they learn from them. They can also complete common customer requests, such as initiating returns or handling payment problems. 

6. Omnichannel retail 

Your business may offer both ecommerce and in-store experiences. Loyal customers expect a consistent shopping and brand experience in both environments. 

Omnichannel retail techniques do more than match colors and logos on different channels. They streamline the checkout process, ensuring customers can use the same payment methods in both environments. They allow a coupon’s use in multiple places. And they allow customers to start a purchase online and finish it by picking it up in the store.

7. One-click ordering

With one-click ordering, customers don’t need to complete screens involving billing and shipping. Instead, with one tap, they can complete the purchase. 

Applying this technique could vastly increase your conversion rate. The more you reduce friction in the buying process, the less likely it is that your potential customers will back out before paying. 

8. Progressive web apps 

You can use the same technology you’d lean on to build a website and create something that feels and works like an app instead. 

A main benefit of a progressive web app is that it works whether or not customers have a reliable internet connection. And progressive web apps load incredibly quickly, so customers don’t have to wait for them. 

9. Live shopping

Use live shopping to show customers on a livestream what a product or service looks like in real-time as they follow along on their smartphones.

You can use live shopping techniques on social media sites, but some companies also hold exclusive online events with live shopping opportunities. 

Key mobile commerce benefits 

By paying attention to the trends we’ve just highlighted, you can capture some of the main benefits of focusing on mobile commerce. These benefits include: 

Personalized customer experience

Forbes reports that more than 50% of all customers expect company offers to be personalized. With mobile commerce, you can tap into a user’s browsing history, purchase data, and demographic information to deliver a completely customized experience. 

Seamless browsing & purchasing 

Consumers want a frictionless experience, whether they’re shopping in person or online. Mobile users may want to look at a product on their phones while they’re standing in front of it in a store to access more information about it. 

Ecommerce allows customers to browse a product’s colors, sizes, and upgrades quickly and easily. If they choose to pop the product in a virtual shopping cart, they can complete the transaction quickly and easily.

Flexible digital payment options

“Cash or credit?” Customers once faced these two simple payment choices. Now, online shopping can mean paying for products with a digital wallet, Venmo, PayPal, and more. 

Payment flexibility reduces a customer’s purchase resistance. When they can pay for something in multiple ways, they’re more likely to complete the transaction.

Better mobile checkout flow 

Almost 70% of online shopping carts are filled and never pushed through checkout, according to Baymard. 

M-commerce apps and seamless payment solutions can help lower abandonment rates and increase potential revenue. They allow customers to tap an online wallet rather than inputting every credit card number by hand. And they can finish the process on their phones rather than waiting to head into the office to finish the purchase on a desktop. 

(Nearly) instant customer feedback

It’s critical to understand how your customers feel about your ecommerce business and brand. Mobile commerce techniques can keep you in close contact with the people who matter the most. 

Shopping apps with chatbots can help you solve problems quickly, while online rating tools let customers tell you about their shopping experience. This can help you collect valuable feedback more quickly, regularly, and effectively.

Enhanced customer support systems

In a perfect world, mobile commerce sales would always be frictionless and quick. In reality, customers might encounter problems with your product or fulfillment regardless of the strategies that you use. However, with mobile commerce, you have a unique advantage in the ability to research and solve those problems quickly.

Mobile commerce chatbots and automation let you tap into machine learning to solve customer complaints and concerns. The increased connectivity that mobile commerce creates can lead to an enhanced customer support experience.

FAQs on mobile commerce trends

What are the challenges in mobile commerce?

Many m-commerce challenges are similar to those of ecommerce in general. These challenges may include:

• Size constraints: Smartphones have small screens compared to desktop computers. While photography is critical, images might need to meet certain size requirements to accommodate this format.
• Platform changes: Mobile devices vary by their manufacturer and operating system. Strategies that work well on one smartphone may not function exactly the same way on another. 
• Typing challenges: Shopping experiences often require customers to type to make searches and find products or services. Depending on the device, typing may be slightly less convenient on a mobile device than on a desktop.

How can I design effective mobile commerce applications?

Creating mobile apps and m-commerce tools takes time and expertise. Consider working with a development team with plenty of ecommerce business experience, and ask for demonstrations on mobile phones.

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Perceived value refers to your customer’s preconceived idea about the worth of your products and services. If you reframe your product as more desirable or functional, you could make it more attractive. And you could raise the price accordingly.

Consider caviar. In the late 1800s, saloons gave away the salty delicacy to sell more drinks. Now, it’s associated with high costs, wine drinking, and luxury. The product stayed the same, but the customer-perceived value changed. 

Understanding this core marketing concept could help you charge the right price for your goods and services. Do it right, and you could prove to customers that your product is better than the competition, allowing you to attract more business.

What is perceived value?

Perceived value is a measurement of a potential customer’s preconceived idea about your product or services. In essence, it’s a distillation of how much a customer is willing to pay for a certain product. 

The perceived value of a product is based on a variety of factors, including:

• Product quality: Do you use quality raw materials? Are your design and production teams the best in class?
• Partnerships: Do you have a connection with another high-quality brand? 
• Social proof: Have you sold enough of your product that consumers can hear about it from someone they trust?
• Testimonials: Do you have buyers willing to share exceptional experiences about your brand?
• Social media presence: Social media sites can boost customer perceived value if your products and services are shown in a flattering light. Do you create content like this? Do your customers?

This is a short list of factors. The Journal of Marketing shows others you could tap into.

Why does increased perceived value matter to brands?

A higher perceived value can help you to do the following:

• Conduct effective marketing campaigns: If you want to make your product seem luxurious, that goal could drive every marketing decision you make, from how you showcase your products to the channels you use. 
• Set prices higher: When the perceived value of a product is high, your raw costs can become much more manageable. When you know what customers are willing to pay, you know what you can charge.
• Increase your profits: A targeted marketing campaign around a product with a high perceived cost can result in a higher conversion rate and bigger profits. 
• Change course: Consider Louis Vuitton. The Wall Street Journal reports that the global brand increased handbag prices by about 7% in the midst of a global recession, betting that a higher price point would make the items seem rarer and more luxurious, and therefore more enticing. Raising prices in this manner is called “reframing,” and it can be a powerful way to associate your brand with luxury. 

How perceived value impacts sales 

If you’re hoping to reframe your product using perceived value techniques, plenty of opportunities exist. You could highlight your product’s:

• Functionality
• Desirability 
• Exclusivity
• Connection
• Luxury pricing

Let’s dig into each one of these concepts.

Product functionality 

Perceived value can rise when customers understand just how helpful or useful your product really is. 

The team at Tesla understands this well. A base model of the electric car costs a little more than $47,000. But a fancier version of this car can hit 60 mph in less than two seconds, and owners can drive it for more than 600 miles without charging it. Prices start around $200,000.

Explain what your product can do in terms people can understand, and your customer perceived value can rise accordingly. 

Product desirability 

Shoppers spend more than $300 per month on impulse items, according to Slickdeals. They might buy yours if it seems desirable enough. 

Your product’s desirability plays a big role in your perception of value. People are willing to pay more for something that seems deliciously interesting, even if they’re not sure they really need it right now.

Product exclusivity & availability 

If your product is hard to find or somehow tied to exclusivity, it’s automatically associated with a higher perceived value. If it appears your product is so wonderful that everyone needs it, your future buyers may be willing to pay more to get it. 

That said, exclusivity can be a double-edged sword. If your item sells out, customers might look for other versions that are readily available. The key is to ensure your product seems exclusive while still being available—a delicate balance that’s worth striving for.

Product connection

Products that create an emotional connection with buyers can also create positive perceived value. People are often willing to pay a higher price for something that makes them happy. They might be willing to pay even more to repeat that experience. 

Product pricing

Customers love deals. Two-thirds of buyers have made a purchase based solely on a coupon or discount, RetailMeNot reports. That said, a higher price can increase perceived value. 

Companies that never put their products on sale and who always charge a premium create the appearance of exclusivity and luxury. These companies imply that they don’t need to make deals. Some buyers may jump to ensure they don’t miss out. 

When setting your pricing strategy, look closely at your target market and the competition. You could find a sweet spot that improves your perceived value. 

5 tips to improve your product’s perceived value 

Your perceived value is closely tied to your product’s price. The higher the value, the more you can charge. Here are some tactics for helping your customers feel like they’re getting a good deal, even when paying a premium.

1. Lean into social media 

Many American adults spend at least part of every day interacting with social media sites like Instagram and Facebook.

Leaning into these tools can help you communicate directly with your customers. You can tell them about an item’s functionality and demonstrate its desirability, all while keeping it top of mind. 

2. Strategize pricing

Your pricing strategy should always stem from target market research. Some potential customers can spend more than others. Some markets are saturated, while others are light. 

Your products matter too. If you’re marketing a limited-edition product, you might be able to set a higher price. But if you’re selling an item that will be regularly available, you should price it accordingly. 

3. Find social proof

Connecting with an influencer is a powerful way to boost your perceived value. Almost 40% of consumers trust influencers more than brands, CRM Essentials reports. 

If your marketing budget is too small to pay an influencer, reach out to happy customers. Online product reviews and word-of-mouth testimonials can also help to boost your perceived value. 

4. Reframe cost

While high prices are often associated with luxury and a high-value proposition, low prices can work in the opposite manner. Set your fees too low, and you may look like a bargain brand that makes cheap items. 

Consider how your current price reflects the value of your products. You might find that raising prices boosts your profile.

5. Boost exclusivity 

Customer perceived value can rise if a product is only available for a limited time or to a small subset of people. Exclusivity can spark fear of missing out, and some customers will buy to ensure that they’re part of a special group of insiders. 

You could reduce the supply of an existing product, place a higher price on it, and call it exclusive. Or you could look for a way to change a current item to make it more special. Make a limited number of these special edition items and sell them at a high price to create and leverage exclusivity.

Increase perceived value & boost sales 

When customers associate your brand with quality, exclusivity, value, and functionality, they’re more likely to buy. The more your value proposition rises, the more likely you are to close sales. 

Pay close attention to your pricing strategy, ensuring that you’re using numbers that boost your perceived value. And tap into traditional and social media campaigns to give customers (and influencers) a chance to spread the word about your products. 

FAQs about perceived value 

What is the difference between the actual value and perceived value?

Your product’s actual value is a measurement of costs associated with manufacturing and profit. A perceived value is a measurement of what consumers think your product is worth and how much they’re willing to pay for it. This value could be closely tied to your actual value, or it could be much higher (or lower) depending on your brand and product attributes.

What is the perceived value theory?

In psychology, perceived value refers to a customer’s belief that a brand meets or exceeds expectations. It’s an emotional judgment call that consumers make, and it is possible to influence those judgments. 

How do you measure customer perceived value?

Determine how much it costs to make and market your product. Add in how much you spend in overhead and how much you need to make in profit. This is your product’s base cost. 

Now, dig into your market. How much do competitors charge for the same thing? Are there luxury versions of the product that cost more? How much do your add-ons also enhance the value of a product?

Some companies develop an intuitive sense of customer-perceived value. But others use trial and error. They set a price, watch sales, and adjust accordingly. 

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