This post will look at two more mistakes that e-commerce merchants make that prevent
their brand from growing.
Ignoring LTV
Most firms focus on return on ad spend (ROAS), which is an important KPI for
beginners in the sector. However, experts advise that when you get bigger, you
must track lifetime value (LTV) as
well. This analyses how much money a client will generate for the business.
Simply put, ROAS takes into consideration the first transaction and LTV looks
at all subsequent purchases that the buyer will make. Thanks to this, you can
optimise your cost of acquiring new customers, that of engaging existing ones
and that of driving brand advocacy.
Neglecting first-party data
As a brand grows, a business is forced to reach out to colder audiences.
These are consumers who are not always ready to complete a purchase
immediately. To avoid unnecessary costs and to help your brand scale, you must
focus on maintaining relationship with these customers instead of having to
continually advertise to connect with them. To create a connection, e-commerce
firms must encourage shoppers to share their email and phone number. This will
allow merchants to build a database of prospects that they can reach out to
whenever they want to share information about promotional
events, product launches or VIP events. As such, you must not
underestimate the importance of first-party data.
Reach out to customers and create a connection © Royalty-free image
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