One of the most important terms in business is the customer lifetime value (CLV), sometimes written as CLTV, and sometimes referred to as lifetime value of a customer.
Simply put, it’s a metric companies use to grow their business and learn more about customers.
Defining Customer Lifetime Value
Companies use CLV to measure the time they would need to generate money they invested in earning or getting a new customer.
CLV also helps companies understand how much revenue a single customer can generate for them during the span of their business relationship.
Imagine a company that wants to acquire a new customer. The CLV would be the metric it uses to forecast how much it would need to spend to acquire that customer and how much that customer would be worth for a given number of years, or the length of time the company determines.
If your company is looking to acquire long-term revenue-generating customers, then customer lifetime value would be an essential part of your process.
“The longer a customer continues to purchase from a company, the greater their lifetime value becomes,” HubSpot explains.
Why Is CLV Important?
CLV is an important metric “because it helps you make decisions about how much money to invest in acquiring new customers and retaining existing ones,” explains Shopify.
If your company maintains a good customer support and customer success team, it can enjoy a long-term relationship with customers and turn them into loyal buyers. A lack may result in higher churn.
It’s important for companies to understand what customer lifetime value is because it’s how they can associate profit to customer relationships.
CLV is used to guide companies into calculating how much they need to invest to maintain a relationship with their customers.
For example, if your company estimates CLV at $200 for a single customer relationship, then you shouldn’t spend more than $200 to maintain that relationship. Otherwise, you would be making losses.
Calculating Customer Lifetime Value
So how do companies measure CLV? There’s a way to calculate it.
Shopify explains the equation as being:
“CLV = average value of a purchase X number of times the customer will buy each year X average length of the customer relationship (in years)”
Let’s put this into an example. If you own a shoe store, an athlete or marathon runner who buys 4 pairs of shoes from you per year for eight years, would have their CLV equation looking like this:
$100 per pair of shoes X 4 pairs per year X 8 years = $100x4x8= $3,200
On the other hand, a mother buying shoes for her two-year-old daughter would be purchasing at $20 a pair and her purchases would differ year after year. Her CLV would look like this:
$20 per pair X 5 pairs per year X 3 years = $20x5x3 = $300
In other words, the athlete would have a higher CLV than the mother, from a business perspective.
Benefits of Knowing CLV
By calculating the customer lifetime value for various customers, you can make many important business decisions.
According to Shopify, these are the top four reasons you need to know your CLV:
How much money do you need to spend to acquire similar customers and have a profitable relationship
What kinds of products do customers with the highest CLV want
Which of your business’s products have the highest profitability
Which of your clients or which types of your clients are the most profitable for your business
One of the most important options provided by Facebook for businesses is the Facebook Pixel. Companies, small and large, use it for tracking purposes.
But what is the Facebook Pixel and how does it work?
That’s what we will be talking about today.
Facebook Pixel Basics
Facebook introduces its Pixel as “a piece of code for your website that lets you measure, optimize and build audiences for your advertising campaigns.”
Simple yes, but let’s explain it further.
You’re a business and you have a website. There is a lot of data you need, such as: Who are these people visiting your website? Where are they coming from? What pages do they visit? Which pages do they leave?
If these people are coming because you’re creating ads on Facebook, are they converting? Or people landing then leaving?
How Does the Facebook Pixel Work?
When you have a Facebook Pixel installed in your website, you can use it to track people’s actions when they visit your webpages. For example, you can track actions like buying a product or service.
Once they take an action, the Pixel is activated and reports the action taken. This means, you will know when a customer clicks your Facebook ad and converts on your website.
The “pixel also tracks user-generated events, such as sites visited, products added to cart, checkouts initiated and purchases made. So much as submitting a lead form on a website with a pixel gets thrown into the mix,” explains Adage.com.
“You’ll also be able to reach this customer again by using a Custom Audience. When more and more conversions happen on your website, Facebook gets better at delivering your ads to people who are more likely to take certain actions. This is called conversion optimization,” Facebook explains.
What can the Facebook Pixel do?
Its primary function is to “track.” But here is a list of tracking options that the Facebook Pixel can perform:
1) Measure conversions across multiple devices
2) Optimize delivery to people who are more likely to take action
3) Create custom audiences from visitors to your website
4) Give you more data about your website traffic
How to Set Up the Facebook Pixel?
Adding the Pixel to your website isn’t difficult. You can even do it yourself if you can access your website’s code, you can step-by-step instructions using Facebook’s Help Centre, or you can have your developer set it up for you. Most people and businesses prefer the latter option.
Last but not least
If you’re just starting out, it would be a good idea to embed the Facebook Pixel into your website early on so you can track your audiences and their actions across your site. It will collect the data from your visitors and send it back to you.
“By targeting broader ranges of people you think will respond positively on your site, you’ll help feed the hungry pixel much-needed data that will later help you build lookalike audiences,” says Adage.com.
Facebook is a common go-to advertising platform, offering various audience options for advertisers including today’s topic: the Facebook Lookalike Audience.
Having surpassed the 2.6-billion daily active users mark, Facebook will remain a top contender when it comes to advertising dollars.
What is Facebook Lookalike Audience?
Facebook’s Lookalike Audience is one of several audience types Facebook allows advertisers to target when creating ads on its platform.
Like its name suggests, a lookalike audience is similar to your current audience.
Basically, you are telling Facebook “This is my audience now show me who is similar to them so I can target them with my ads.”
Here’s what Facebook says about its lookalike audience option: “[It’s] a way to reach new people who are likely to be interested in your business because they’re similar to your best existing customers.”
Facebook notes that when it’s time to “grow your business,” that’s when you use your custom audience to create a Lookalike Audience.
“Lookalike Audiences are lists of people to target with advertising who are similar to (or ‘look like’) the people currently engaging with your business,” Facebook explains.
HubSpot describes Facebook Lookalike Audience as a “sophisticated audience matchmaker for marketers.”
Benefits of Lookalike Audience
This Facebook audience type allows advertisers to reach and target the best customers for a brand. It is like levelling up from Facebook Custom Audiences, which you use as the basis for your lookalike audience.
Lookalike audiences “increase the probability of generating high-quality leads and offer more value on ad spend,” explains HubSpot.
How to Create a Facebook Lookalike Audience
Like the Custom Audiences, you can get your targeting data from several resources. These can include:
Customer information: You can generate this from a landing page, newsletter list, website traffic, or a survey filled by customers.
Visitors: People visiting your website are a great resource and offer tons of data that can be used to re-target them across Facebook. You will need to have a Facebook Pixel to compile this data.
Mobile app activity: With a mobile app for your business or e-commerce store, you can integrate it with active Facebook SDK event tracking. This collects data from people who have installed and used your app.
Engagement audience: This is an audience who has engaged with your brand or posts across Facebook or Instagram. Engagement, according to Facebook, entails actions such as likes, reactions, comments, or shares. It also includes filling forms, video views, and actions on your Facebook page or Instagram business account.
Offline events: If you have an offline or brick-and-mortar store, you can create a list of those who have visited your store. The information collected can include interactions such as in-store visits or calls.
Last quick tip
When you’re using Facebook Lookalike Audiences, include people who are more likely to buy from you or those who have already purchased your service or product.
“Many successful marketing campaigns are built on email lists containing individuals who have taken key actions already, such as adding an item to their cart or purchasing an item,” says Adage.com.
This helps narrow down audiences and gets your brand closer to people with a bigger chance of buying from you.
It’s common knowledge that Facebook ads are one of the most widely-used social media ads in the world. Businesses swear by them, especially when they get their Facebook Custom Audiences done right early on.
This shouldn’t come as a surprise, considering that the social media platform 2.6 billion active monthly users by the end of the first quarter of 2020, making it largest social network globally, according to Statista.
Facebook offers businesses and individuals alike a wide array of advertising options. Whether you’re targeting clicks, traffic, awareness, subscribers, or selling as an e-commerce store, there’s something that Facebook can help you with.
One of the top benefits to using Facebook advertising is its wide-ranging targeting options, which offer filters that help brands, companies, and e-commerce stores to reach relevant audiences with their products and messages.
Facebook ads allow advertisers to reach those customers who are more likely to respond to your ad. For example, if you want to get clicks to a blog post on your website, Facebook allows you to target people are more likely to click on links instead of those who don’t click.
But to advertise correctly, you need to be aware of the different audiences Facebook works with. This is exactly what we will be covering in this series of articles.
Facebook describes its custom audiences as “an ad targeting option that lets you find your existing audiences among people who are on Facebook.”
How? You upload resources like customer lists, website traffic, app traffic, or engagement on the social platform to create those audiences.
A Facebook Custom Audiences is an audience you’re already aware of and who are familiar with your business.
This custom audience is created from information you, as a business, have collected, which may include: e-mail addresses, phone numbers, addresses…etc.
Benefits of Facebook Custom Audiences
“Custom Audiences are one of the most highly-targeted forms of marketing, making them increasingly popular with ecommerce stores who want to keep their brand top-of-mind with interested consumers,” explains BigCommerce.com.
It adds that Facebook’s Custom Audiences allow stores to target “contextual advertisements directly at consumers” who recently visited those brands’ websites. This attracts people better as the products are “still fresh in their minds.”
When was the last time you visited an e-commerce store’s website only to find the products you’d been considering – or even added to your cart – showing up again on Facebook? That’s part of Facebook Custom Audiences and re-targeting.
Facebook Custom Audience Options
The social network allows you to create several types of Custom Audiences. These are:
Website Custom Audiences (based on traffic and data from your website)
Mobile app Custom Audiences (based on traffic, data, and actions from your mobile app)
Custom Audiences using a customer list
Engagement Custom Audiences
According to Facebook, each ad account can create up to 500 Custom Audiences.
Ideas for using Facebook Custom Audiences
Sometimes customers may go through an e-commerce store only to leave or forget about their shopping carts. But with Facebook Custom Audiences, you can target those audiences once more, reminding them of their searches but in a different environment.
This allows you to test different ad messages and see which converts better.
Sometimes users truly do forget what that they had a shopping cart somewhere. By creating a kind-of-reminder with a limited-time offer, you’ll be able to attract them to your store once more and to completing their purchase.
But that shouldn’t be your end target. It’s important to analyze the ads you create and see which gets the best response on Facebook.
In addition, using Facebook Custom Audiences, brands can even do micro-targeting. This allows them to target users who visited specific pages on their website.
Omnichannel marketing or having an omnichannel experience has become a common term among marketers and business-to-business (B2B) companies.
But what is this omnichannel thing and what does it mean for businesses?
Defining the Omnichannel Experience
An omnichannel experience can be easily defined as combining all of your channels to create a single experience for your customers. This can include both traditional and digital options, like mixing point-of-sale (POS) with online and in-store experience.
Bring marketing into the mix and you have an omnichannel marketing experience. This is where you take your marketing message and broadcast it across several digital and/or traditional marketing platforms to your customers.
The purpose here isn’t to merely market but to deliver your message “in a way that creates an integrated and cohesive customer experience no matter how or where the customer reaches out,” HubSpot explains.
Moreover, omnichannel marketing can be further described as a “multi-channel” approach to sales that results in the integrated customer experience. That said, there are some differences between omnichannel and multi-channel.
Difference between omni-channel and multi-channel
The main difference between these two terms is the level or rather the depth of the integration, according to HubSpot.
Let us explain. Both omnichannel marketing and multi-channel marketing involve marketing across several platforms. However, multi-channel means you use several platforms without giving your customer a seamless experience.
Imagine if your brand has a website, blog, and social media accounts and conducts engaging campaigns, but these platforms do not work together and the customer doesn’t get the same message across all platforms. This means you have a multi-channel experience.
On the other hand, if you have the same platforms (social media, website, blog, campaigns) but with a consistent message and experience, then you are doing omnichannel marketing.
The same applies if you are doing online and offline marketing. As long as the message and experience are consistent then you are conducting omnichannel marketing.
Another main difference is that multi-channel marketing focuses on the brand and its transmission of the message across several platforms. On the other hand, an omnichannel strategy focuses primarily on the customer. “The message changes and adapts to how the customer has interacted with other channels,” according to Omnisend.
How does omnichannel marketing work?
The omnichannel marketing approach “uses the customers’ perspectives and interests to optimize the consistency of the company’s marketing messages. By uniting the strengths of each communication channel, marketing teams can use omni-channel marketing to deliver a more consistent and effective brand message,” says HubSpot.
There are five main pillars to creating an omnichannel marketing campaign. These are:
The success of your campaign relies not only on these five pillars but also on integrating your company’s or business’s various departments while creating your strategy.
Examples of successful omnichannel marketing
While many companies are running multi-channel marketing, there are those who are able to conduct their marketing in an omnichannel fashion and who do it successfully. Let’s take a look at a few examples of omnichannel marketing done right.
One of the top global names providing an omnichannel experience right is Disney. You can see it across their desktop, mobile-responsive site, and even their website for planning trips, which offers you a tool where you can plan an entire trip from your mobile, including getting your Fast Pass.
At Disney’s parks, you can use the Disney app to find rides and attractions.
Bank of America
Omni-channel marketing isn’t limited to entertainment, obviously. Bank of America is working on its omnichannel experience, and though they have some way to go, they are on the right track.
Already they allow customers to conduct a host of actions across their mobile and desktop apps. This includes depositing checks, scheduling appointments, paying monthly bills among others.
Bank of America still hasn’t allowed customers to carry out complex actions like apply for loans via its apps but its customer experience can certainly be defined as omni-channel.
Mega makeup brand Sephora is known for having an omnichannel experience both at its on-ground stores and its website. It links its shoppers’ online experiences and purchases with their visits to its various locations. It allows customers to use its in-store tablets to access their Beauty Bag accounts while they are shopping.
These Beauty Bag accounts use software that allows shoppers to virtually check out how Sephora’s items will look on them and add it to their wishlist. Once they are done, they can buy their entire wishlist using the app.
In this example, Sephora integrates its in-store experience with its app, creating a seamless omnichannel experience.
Supporting data for an omnichannel experience
While all this may sound great, is there data to support this apart from mega brands’ successes?
Yes, there is.
Omnisend analyzed more than 2 billion campaigns in 2018 and found that:
Customers responded better to companies that had omnichannel marketing experiences
Data showed that omnichannel campaigns received nearly 19% higher engagement versus 5.4% for single-channel campaigns
Although higher engagement doesn’t always translate to increased revenues, Omnisend found that companies using omnichannel marketing across three or more channels witnessed a “250% higher purchase rate.”
Every business, big or small, needs a customer segmentation strategy to better target their customers and increase revenues. Using this strategy, companies will then be able to better understand their customers and their needs.geo
To do that, let’s first define what customer segmentation is.
As its name suggests, customer segmentation means dividing your customers into segments or rather into groups. You define these groups based on factors relevant to your business and its audience.
These segments or groups can be created based on demographics, that is age, country, region or city, gender, level of education, or based on language, or even on interests and personal preferences.
What is a customer segmentation strategy?
This is where you use customer segmentation to form a plan that your business will use and rely on to define your target audience and customers and to generate better results and revenues.
We will take the geographical location option as an example to formulate your customer segmentation strategy.
Broadly speaking, there are 4 main ways to group your customers into segments.
Part of your customer segmentation strategy is to determine which of the following four options you want to use. You can, of course, mix them up to narrow down your target customers. But we will get into that later.
The main types of customer segmentation rely on:
By using a customer segmentation strategy, you are able to define your audience and consequently direct your marketing efforts in the right places. You are also able to understand your customers and their needs, and achieve your business objectives by fulfilling those needs.
Customer segmentation strategy 101
As mentioned, there are four main branches of customer segmentation. Why do you need them? Because when you are creating a strategy, even if your product can be bought by everyone, you cannot target everyone all at once.
So, let’s delve deeper into each of the abovementioned customer segmentation options.
Demographics is a large field but it covers a wide range of options that you can use to divide your target customers. Demographics entail information about customers’ age, gender, race, ethnicity, income, education, marital status, and employment.
According to Instapage.com, by using demographic segmentation, companies “reduce the risk of running campaigns to uninterested consumers, which quickly increases return on investment (ROI).”
Moreover, a Harvard Business study indicates that around 85% of 30,000 new product launches in the United States fail because of poor segmentation.
You may find that one or more of the items on this list is not be feasible for your business and strategy, and that’s ok. You pick the aspects that are in line with your business and use them.
HubSpot best describes psychographics as a kind of demographics. “Psychographic information might be your buyer’s habits, hobbies, spending habits and values. Demographics explain “who” your buyer is, while psychographics explain “why” they buy.”
Like demographics, psychographics involve a list of options and categories, namely: lifestyle, social class, attitude, beliefs, personality traits, activities, and interests.
“Psychographics gives marketers greater leverage in influencing conversions. For example, demographic information might tell you something about a person’s age, but psychographic information will tell you that the person is just starting a family and is in the market for baby products,” explains HubSpot.
Another aspect of your customer segmentation strategy should be geographical location. Here, you can divide your customers based on regions, countries, or narrow it down to cities or even towns depending on what your business does and its target audience.
By understanding where your target customers are, you can zero in on them, address their pain points and offer your solution. With geographical segmentation, you can understand and address your customers’ varying needs based on location, country, or city.
For example, if you want to sell a product to people living in hot countries, you can look at countries in the Gulf region where temperature exceed 40 Celsius in summer.
Another term for geographical segmentation is geomarketing or georargeting
While demographics show who your customers are, psychographics show how they buy, and geography indicates where they are, behavior is about what they do regularly.
How do your customers act? What do they do? How do they take their decisions when buying a product or service?
All of these questions and more are part of your behavioral segmentation strategy. Compile a list of interests and behaviors to decide which target audience or which target buyer persona is the best fit for your product or service.
For example, if you are selling men’s perfumes, you can target the behavior of men who regularly buy perfumes or the women who buy perfumes for their partners or husbands on days like Valentine’s Day.
A bonus to your Customer segmentation strategy
We said there are 4 main branches to segmenting your customers. But what if there’s a fifth?
This fifth option is basically combining the above 4 points. In other words, segmenting your customers based on demographics, psychographics, geography, and behavior all at the same time.
This narrows down your target customers to a great extent. It literally segments them into much smaller groups that you can easily navigate and work with.
Let’s say you have a product that is used by millions of people, these people are not all located in the same place in the same age range, or with the same interests and behaviors. By combining the 4 segmentation branches, you are able to target customers much better and in a more detailed fashion.
Customer segmentation strategy in action
Let’s say your business operates in luxury retail and you want to expand to a new market in the Middle East and North Africa (MENA) region. There are general notes that you have heard and compiled, like the need to target markets in the Gulf region.
But you have also heard that a country like Egypt has 100 million people. So, what do you do?
This is where your customer segmentation strategy comes in, clears the confusion, delivers the data, and helps you implement your expansion plans.
If you are an online business, you can target people who own a BMW or, depending on how luxurious your products are, you might prefer to target people who own a Maserati.
Almost there with your customer segmentation strategy
Now that you know how to segment your customers, there are a few steps that you need to perform as part of your customer segmentation strategy. These are:
Analyze and understand your customers
Create buyer personas
Identify market opportunities
Research other segments and opportunities
First: You need to analyze your target customers and understand them. If you are a brick-and-mortar business, don’t fret, Converted-In’s tools will help you understand your audience and what they like and dislike.
Second: You need to create buyer persona for your business’s ideal customer(s). With analysis ready, the buyer persona will already be clear in your mind. This step will help you decide who you want to attract to your business.
Third: At this stage, you want to look for opportunities based on your customers and segmentation so you can show these customers how your brand or business solves their problems. Ask questions like: ‘What are the ideal customer’s problems?’ ‘How does my brand solve them?’ And once you have your answers, go back to your persona and ask more questions like ‘Which customer segments aren’t getting enough (products)?’ ‘What other segments can I target?’
Fourth: This section is for when you discover new segments in your target market, based on your analysis and opportunities. Is the competition in this potentially new segment? What are they doing? What are they missing?
Fifth: A/B testing. You need to test the data you have uncovered and see how the target audience responds to your marketing, whether online or offline.
Have you filled all the above blanks based on your business data? Now you have a customer segmentation strategy. But it is hard work. That’s why using Converted-In’s consumer analytics tools like in-store metrics and GEO and demographics tools can bring your marketing efforts and customer segmentation strategy together.
So far, 2019 has been an incredibly exciting yet challenging year for the brick and mortar retail industry. Especially in the MENA region.
Exciting due to the boom of digital transformation with more and more offline retailers adopting digital-first technologies to grow their businesses.
Challenging because now the competition is not only offline, but online as well. In fact, in the MENA region alone, eCommerce sales have been growing year over year with 2017 closing at $8.3bn, 2019 already hitting $17bn and 2022 estimated to grow till $28.5bn.
eCommerce Revenue from 2017 to 2019 in MENA.Data Source.
Here’s the thing: it’s become super important for brick and mortar retailers to stay up to date with digital technologies. Technologies that make it 10X easier to compete with their online counterparts and boost in-store footfall and sales.
In this article, we’ll walk through 5 such digitally transformative ways to not only measure and increase store revenue from new customers but also keep existing customers coming back.
Hey, before you dive right in– There is a simple form to request a demo or request more info at the end of the article. Please feel free to contact us if you have any questions.
1. Track and collect accurate in-store data to plan accordingly
Needless to say, if you’re tracking in-store metrics, not only will you know exactly where your store stands in terms of footfall and sales but also be able to plan campaigns and set realistic goals.
At the bare minimum, you need to track your daily footfall, sales, retention and churn rates, and the average time spent by visitors.
For physical retailers, historically there has been a lack of easy-to-use tools that track these offline metrics.
Here at Converted.in, we’ve taken a holistic approach to help you easily collect and track this valuable data on an hourly, weekly and monthly basis- your visits, transactions, retention rates, churn rates, slow and peak times and much more.
Converted.in’s dashboard; makes it easy to view all useful store metrics at a glance
Whether you’re looking to double down efforts during seasonal peak times or want to attract footfall on slow months- you can do it on Converted.In.
2. Gain demographic and behavioral insights on the people who visit and purchase from you
Combining your store data with customer demographics and purchasing data is becoming more and more common among big and small brands in the retail space.
Why? Well, this data comes in very handy in creating highly targeted ads or promotional campaigns.
Here, useful customer data would include things like:
– where your customers live- their location
– the age group they belong to
– their interests
– what brands they like
– the frequency and days at which customers regularly visit a store
– where they are most likely to visit
and much more.
Converted.in’s advanced demographic and behavioral analytics, for instance, collects this data and uses it to automatically segment your customers into unique groups. Thus, identifying exactly who your most profitable target audience is and where they are.
With this valuable information, you could then maximize your ROI on ad budgets by targeting specific campaigns to specific groups of people. How? Store analytics and customer intelligence data can both be leveraged to:
– create personalized purchasing experiences
– customize promotions and offers based on customer segments and preferences
– get valuable feedback that can be used to improve your products and store services
3. Run data powered online ad campaigns to attract new customers to your store
ROI focussed ads on platforms like google, facebook, twitter or Instagram has gained a lot of momentum this year.
Why? These platforms make it super easy for you to reach and attract larger audiences who are almost certain to buy from you.
To run a cost effective facebook ad campaign for example, you could be targeting particular age groups. Then you could add zip codes to target a specific area around your store or where your maximum shoppers come from.
But, here’s the challenge: The number of tools and platforms that need to be mastered to run effective ad campaigns can be overwhelming, to say the least.
After all, no one wants to waste ad budgets.
This is where Converted.in comes in to make running an online targeting campaign easy and revenue-generating. You can run Google, Facebook or Twitter ads from under one roof- without burning a hole in your ad spends. Not to mention SMS and push campaigns, as well.
Converted.in’s ad engine, to run targeted customer campaigns
Plus, retailers can accurately measure the impact of their campaigns, i.e. exactlyhow many and who end up purchasing from their store after seeing an ad.
4. Leverage retargeting campaigns to drive repeat customers
When it comes to engaging and retargeting existing customers, most retailers make the mistake of sending too many SMSes, notifications, emails, and ads.
Truth is: it’s not that hard to go from annoying customers to generating repeat sales, over and over again.
i) Think about how long your products last.
For example, do you sell shower gels? What is the lifespan of your product? If it’s one month, consider re-engaging customers in 20 days to remind them to buy before they run out.
ii) Upselling is gold.
Based on your customer’s past purchase behavior, you could be targeting them with products that directly complement what they’ve already bought. So, those who bought the shower gel could be targeted with a moisturizing lotion or a powder.
iii) Exclusive early notifications for sales.
You know who is most interested in your end of season sales? The people who are already buying from you. Your existing customers.
With Converted.in, you are already tracking your store purchases and customers. So, it becomes that much easier to use that data for retargeting your customers. Be it through push, ad or SMS campaigns, all from one place.
5. Keep store customers hooked with a value-adding loyalty program
If there’s one thing that works in the retail space, it’s loyalty programs. Offering a loyalty program is a great way to make customers come back without giving away discounts.
Loyalty programs can come in any style, but the foundation idea stays the same.
You offer points to your customers, every time they make a purchase.
The more they spend, the more points they get.
These points are then redeemable against a future purchase.
^Creating and tracking the effectiveness of your cashback program on Converted.In
With converted.in’s loyalty features, you can run a smooth loyalty program from the same dashboard that calculates the return on every penny spent.
At the end of the day, a successful loyalty program is one that generates higher revenues. Not one that becomes a cash sink.
Ultimately, there are a lot of moving parts that can be leveraged to boost store visits and purchases. As a physical retailer, you have the liberty to drive as little or as much footfall as your inventory can fulfill.
Are you ready to make digital transformation work for you? Fill out the form below for a quick demo of Converted.in and learn how we can help you boost and measure your store traffic and sales.
Geomarketing for Physical Retailers: 5 Location-based Targeting Hacks to (Actually) Increase Your Footfall and In-Store Sales
Let’s face it, if you believe mobile-first geomarketing techniques can only increase online sales, while traditional billboards and flyers are meant to drive people into stores, then you’re missing out on a major revenue booster!
Are you wondering how you can boost your physical store traffic and sales? There’s a form to request a demo or more information at the end of the article, so please feel free to contact us if you have any questions or want exclusive access to our store analytics and re-targeting ads platform.
Geomarketing (often referred to as geotargeting or location based targeting) has come to be the weapon of choice for countless brick-and-mortars in the past few years. Especially retail stores, supermarkets, restaurants and local events.
Why? Because, geomarketing techniques add a level of smartness to any marketing or outreach strategy.
Geomarketing makes your online ads or any other promotional content 10x more personalised and contextually relevant. Not to mention, instantly setting them up for more conversations.
But wait, what exactly is Geomarketing?
Geomarketing is simply put, using your target customer’s location or geographical data to reach them with better, more contextually-relevant offers and ads.
Geotargeting: Geotargeting essentially hinges on targeting people in a broader general area by detecting their mobile device location. Other targeting factors like age, gender, interests etc can be combined with this geolocation to filter-in or even filter-out who you want to target.
Geofencing: Geofencing on the other hand, involves setting up a virtual radius or ‘fence’ around a location to target people who enter that particular area.
Beacon Technology: Beacons are basically small BLE devices (bluetooth enabled) that are triggered when someone is in close proximity of them. They themselves don’t send ads, but instead trigger a signal which then sends an sms, push or in-app message. The downside? Beacons only work when the bluetooth of your target user’s mobile is turned on.
In simple terms, geomarketing technologies basically boost your chances of identifying and reaching the right customers, in the right area.
Yet, very few brick-and-mortars are implementing geomarketing the right way.
At the end of the day, how you implement your geomarketing strategy can cause all the difference between wasting ad dollars(or annoying potential customers) and actually attracting and converting customers.
So without further ado, following are hacks that will turn your geo-local marketing strategy into a fine-tuned revenue generating machine.
5 Location-based Targeting Hacks that will Totally Transform Your GeoMarketing Strategy
Hack #1: There’s gold in your customer intelligence data, use it
(OR: Don’t just identify devices, identify real customers)
Irrespective of the geomarketing technology or campaign (Fb ads, SMS, push, etc) you use to attract people to your physical store, don’t just focus on reaching devices. Focus on your customer’s profile.
Use the information you have about your target audience. Actual data around who your real customers are, not just who you think they could be.Be it their age, gender, how often they shop for the products you sell or even where they hang out- can filter out your ideal customer from the crowd in your target area.
What you know about your current customers can actually help you attract tons of potential customers.
Here a good place to get this valuable information would be to look into your brick-and-mortar store analytics.
The only catch? Getting your hands on this rich, valuable data.
Traditional in-store analytics sadly just don’t make the cut. While, new more intelligent all-in-one geomarketing and retention platforms like Converted.In not only capture this data but also analyse it and present it to you in a way that can actually be used to filter, segment and target ideal customers.
Hack #2: Know how to choose between geo-fencing, geo-targeting or beacon proximity
(OR: Identify what your business needs)
As mentioned earlier, all geomarketing techniques will help you reach potential customers in a target area, but the type you choose can make or break your targeting campaigns.
Depending on your specific goal, you should evaluate the advantages and limitations of each technology.
More specifically, you should use geo-targeting, if:
You want to target a broad area like a country, city or even zip code. This is ideal for retail chains and supermarkets with many store locations.
You have access to a ton of customer data to be able to filter out your ideal customers from a big crowd.
Go with geofencing, if:
You want to target a smaller radius(typically 50-200m) near your store or a competitor’s store nearby
Your location is king and you already know that your ideal customers are in the area. Practically everyone in that small area could become a customer.
Last but not the least, beacon or ble tech is for you, if:
You want to target a campaign to people who pass an extremely specific point like say, as aisle in your store or a particular atm near your store.
You offer an app which users have granted location permissions to.
In essence, the kind of establishment you have and your customers characteristics should define the technology you use.
For instance, it makes sense for restaurants to create a 50m geofence around their outlet and send special offers to people who enter that “fence.”On the other hand, it’s suitable for a music concert to geo-target ticket ads to audiences who live in that city, like music and are in the age group of 18-30.
#Hack 3: Get Creative With the Places You Target
(OR: Think outside the box)
Most retailers currently start by targeting the immediate surroundings of their store and then expanding over time- and there’s no harm in that!
That said, the more creative you are about the places you target, the higher your rewards. Think about the specific spots or areas your ideal customers visit. Are there such places close to your store?
As a real world example, supermarket chain Whole Foods set up geofences around competing supermarkets near their store locations. By targeting special discount ads to mobile users, they managed to grab 3x more shoppers straight from their competitors.
You don’t always need to target your competitors, either.
Say, you’re a sportswear store, you could set up a geofence around a popular local gym. If you sell products for mothers, target nearby schools at drop-off and pick-up times. As an organic cafe, you could hit local vegan events and much more.
Hack #4: Use location and promotion ad extensions for your search and facebook ads
(OR: Make the most of the features at your disposal)
Facebook and Google ads (both search and display) are by no means new to the geomarketing game.
We’re talking about the location and promotion ad extensions features.
The location ad extension as the name suggests, lets you add your store address to your ad and increase conversions by at least 20%. The promotion extension on the other hand displays your store’s current offers within the ad.
When combined together, they make a store appear accessible and value-for-money and instantly bump up conversion rates.
Tip: Key in another layer of filters by targeting specific times of the day (open hours) and location of target user. You’ll end up saving your ad dollars while keeping your ROI high.
#Hack 5: Encourage potential customers to allow you to target them
(OR: Respect customer data and privacy, and they will love you for it)
Data privacy and consumer preference tracking has long been debated in most types of marketing. More so for those that involve location!
Fact is, consumers hate their privacies being breached, unless…they’re actually getting something useful in exchange!
As revealed by a Microsoft study, consumers are willing to share their data in exchange of either valuable discount offers, cash rewards or extremely exclusive benefits. In fact, it points out that:
65.2% customers would let you target them for loyalty points
89.3% for geo-local discounts
And a whooping 99.6% customers are willing to be targeted with cash rewards
But you need to ask them to grant permissions, first. This simple customer-centric hack can go a long way in building a good relationship with your customer and keeping bringing them to your store.
Make sure that you hit them with a hard-to-say-no-to offer, at the get go!
Needless to say, don’t misuse the data you track. Refrain from spamming them with persistent offers. Or telling them how you “noticed they visited a nearby store!”
Like most other growth hacks, geomarketing has seen its own share of misuse.
Yet, when done right, it can be highly beneficial for brick-and-mortars in all kinds of markets.
After all, it’s hard to ignore the success stories and dollars generated by smart and cost-effective geomarketing campaigns, by brands big and small.
Get in touch with us for a demo on how Pinoffer can help you leverage geomarketing to take your footfall and in-store revenue to the next level.
Recipe for In-Store Sales and Success: Bridging the Gap Between the Physical and Digital
It’s no secret that digital especially mobile-first technologies have not only changed the way customers shop, but also the way retailers boost in-store sales. From how we use our smartphones to discover stores and products to what we want our purchase experiences to be like.
Not to mention, eCommerce retailers who are armed with all the data around their customers’ visiting, browsing and buying behavior.
They use this very data to reach the right people, at the right time- with the right offer.
There is a form to request a demo or get more information at the end of the article. So please don’t hesitate to contact us if you have any questions or want access to our store analytics or re-targeting ads platform.
If you’re here, as a physical retailer you’re most likely evaluating where your store or chain stands. How can you boost in-store sales by tapping into digital technologies? How can you build a bridge between your physical brick-and-mortar and the chaotic digital world your customer love?
You Don’t Have To Distribute and Sell Online, But You Need To Attract and Market Online.
A platform that tracks and analyses all of your in-store customers, activities and sales.
Our dashboard specifically, tells you everything that happens in your store(s) or branch(es). Who your customers are, how much time they spend in your premises, what they like, what they buy, when they buy, how many leave without buying, how many come back and more.
To give your sales an even bigger boost, our platform uses this data to uncover shopping patterns and preferences.
That way, you can easily run interest and preference based campaigns and take your marketing and sales game to the next level (more on this later).
2. Digitally Target Ideal Buyers for In-Store Purchases
In essence, mobile can be a rewarding targeting and marketing channel. A channel to acquire your ideal customers and drive in-store traffic and purchase decisions.
A. Geo-fenced Proximity Targeting
Geo-fencing or Geo-targeting simply put, translates to targeting potential customers around a particular location. In this case, your physical brick-and-mortar store.
Although geo-localised technologies have been around for a while, too many retailers make the mistake of bombarding passersby with countless out-of-context offers. Be it through Google and Facebook ads or real-time notifications.
Here geo-targeting solutions like our platform, can help avoid those mistakes.
Essentially, you can direct relevant in-store offers and ads to ideal customers who are in the proximity of your store based on their mobile device location.
Remember: you can specify radius down to the last decimal. So, say you want to target people in the same mall as your store, you can!
And wait there’s more.
Combining location with other targeting factors like age, gender, etc can be a great way to reach and influence ideal buyers when it’s most convenient for them to stop by your store.Get in touch with us to learn more about how you can start leveraging geo-fencing and drive in-store sales.
3. Re-targeting Past Customers Online or On-Mobile
Today, physical retailers need to make sure that their stores remain relevant places where customers want to come back to. Again, digital can be the best hook.
A. Facebook and Google Remarketing
What better way to expose past customers to personalised offers than reappear on two of their favourite platforms. We’re talking about targeted Facebook and Google ads.
With Pinoffer for instance, you can target promotional offers to past buyers based on a bunch of other factors. Factors like shopping history, proximity to your store, their preferences etc.
Your ads could be offering discount coupons for in-store purchases exclusively to past customers who’ve gone cold. Or like Macy’s, you could be advertising specific products to frequent buyers.
As long as you avoid spamming the wrong offer at the wrong time, targeted ad campaigns can be huge stepping stone for in-store sales.
B. Personalised SMS Retargeting
With a read rate of 98%, , SMS campaigns can expand your physical stores’ boundaries into your customers’ mobile devices.
For your SMS campaign to work, you want to make it as relevant and non-spammy as possible.
Again, location can be a key targeting factor. Say, if you want to send ‘exciting discounts,’ it makes sense to SMS past customers when they’re near your store.
Purchase history can be another targeting factor. You could be running campaign to announce new stock or first day of sale to your highest spenders. You could also be SMS-ing discount coupons to say customers who bought from you two months ago.
Needles to say, Pinoffer’s retention features let you do all of this, and then some.
In the long run repeat customers or the lack of them can make or break a business. You can make sure that you end up on the winning side.
At the end of the day, the more you connect your physical store to the digital world, the more in-store sales and revenue you’ll end up generating.
Get in touch with us and learn more about how you can take advantage of digital technologies and boost your physical retail sales.
If there’s one sector that’s most affected by ever-changing customer demands and customer buying behaviour; it’s the physical retail industry. Today, customers have the upper hand- they go online for convenience, easy access and personalised shopping experiences.
On one hand, eCommerce websites target, track and monitor their visitors, collecting invaluable data at each touchpoint. On the other hand, physical retail stores are barely managing to tap into the potential of the digital world.
In the MENA region alone, eCommerce sales have been growing YoY with 2017 closing at $23.3bn, 2018 at $28.6bn and 2019 estimated at $35bn.
So how can physical retailer take back their market share and continue to grow their bottom line?
The answer lies in Digital Transformation.
Hey, before you dive right in– There is a simple form to request a demo or request more info at the end of the article. Please feel free to contact us if you have any questions.
What does Digital Transformation Mean for the Retail Industry?
Simply put, digital transformation is nothing but reimagining how you drive revenue and stay competitive in a digital-first, customer-centric world.
However, digitally transforming your retail store does not necessarily mean that you need to shut down your brick-and-mortar. Set up an eCommerce revenue channels. Or start advertising to grow online.
On the contrary, you could digitally transform your store by making the most of something as simple yet sophisticated as geomargeting or proximity targeting to drive footfall.
How can Retail Stores in MENA get started with Digital Transformation?
Leveraging Pinoffer as a stepping stone
As the owner or manager of a retail brand, you’re most likely hesitant or overwhelmed by the countless digital channels out there.
Talking about the MENA region specifically. It’s become commonplace to hire 3rd party digital transformation consultants that burn a hole through marketing budgets. As a result, only big players in the retail space can actually afford to turn to them.
At Pinoffer, we’re breaking these barriers!
With Pinoffer, now you can drive in-store traffic and deliver smooth customer experiences- without burning a hole in your pocket or the knowledge and expertise of digital channels.
So without further ado, here’s why Pinoffer’s simple and efficient platform is a retailer’s ideal stepping stone into a digital first world:
1. Analytics Dashboard: Collecting valuable in-store data to understand customers and store performance
Once you sign up for a demo at Pinoffer, you get access to a unified dashboard that tracks, measures and presents every aspect of your physical store.
From monthly to hourly metrics like:
time spent in store
churn and retention rates
slow days, busy days
We bring all the analytics you need to track and optimise your store’s performance- all in one place.
Think about what you can do with this data, from sending offers on low key days to upping your store and customer experience on busy days- all of which our platform helps you do.
2. Powerful geo-targeting and retargeting options to drive footfall
In a nutshell, geo-targeting allows you to send location-based notifications to users. On the other hand, geo-fencing allows you to draw a virtual area in and around which you want to target users.
With a read rate of 98%, sms and push notifications can be one of the most effective ways to expose customers to promotions. Couple them with geo-targeting and geo-fencing and it’s possible to for you to send highly personalised offers to ideal customers at the right place, at the right time.
Retailers like yourself can use Pinoffer to target new customers and retarget the old ones in real-time. On top of that, by using other targeting criteria like age, gender, interest, etc it becomes all the more easier for to reach your ideal customer!
3. Attracting and retaining customers with targeted Google and Facebook Ads
On typical days, you most likely see a lot of visitors who look around but don’t buy or buy but never come back. If you’re not doing anything to get these people back to your store once they leave, then you’re missing out on potential sales. After all, it’s easier to sell to people who know you, than people who don’t!
So, what better way to reappear in front of them and attract them to come back than personalised Facebook and Google retargeted ads.
With Pinoffer specifically, you can target ads to your past visitors and customers. These ads could offer special discounts and engage them. To boost conversions, you could create FOMO by making the offer valid for a limited time. The possibilities are endless!
Tapping into the advantages of the digital world to improve in-store sales and customer experience doesn’t have to be as intimidating as it sounds.
Get in touch for a quick demo and discover how you can start attracting, tracking and retargeting your ideal customers, right away!