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Three eCommerce Growth Hacks that Will Boost Your Sales and Revenues
Most articles you’ll find across the web are focused on growing SaaS (Service as a Service) businesses. That means you won’t find many ecommerce growth hacks to grow your ecommerce store. It’s not because you can’t use growth hacks in an ecommerce store. It’s just because most people work for SaaS businesses, nothing else.
In this post, I’m going to give you 3 e-commerce growth hacks that you can start using today to boost your ecommerce store sales and revenue.
1. Build a Simple Referral System
There’s a famous marketing quote that says “it’s easier to sell to an existing customer than to acquire a new one.”
That’s a great quote, but what about your customer’s friends? They trust them, theylike them, they listen to them. If you gave your current customers a way to take advantage of that, they will most certainly tell their friends about your company (considering that your company provides real value to your customer’s problems).
Still, most businesses don’t build a referral system because they think it can be a quite complicated and tedious thing to do.
However, I don’t want you to have any excuses, so let me show you how you can build a referral system for your ecommerce store in a few simple steps.
How to Build a Referral System
First Step: Define the Incentive
Think of the one thing your customers love and need about your product. It can be anything: free space (think Dropbox), a longer trial or better features – whatever you think it’s important to your customer.
To discover this, you have a few options:
Talk to your customers, either by phone, chat, or through a survey
Use the data your analytics tools give you
See what your competitor’s offer
In any case, the incentive needs to be essential for the user, something they couldn’t resist.
Second Step: Sign Up to a Referral Service Company
Did you think you had to develop all the referral system by yourself? Think again.
Nowadays there are a few companies that offer simple systems to develop referral programs. No hussle needed.
Choose between any of these services, and sign up:
Any of those companies will easily let you develop, manage and track your referral programs.
Step Three: Communicate Your Offer
Finally, develop your referral system’s page, where you’ll explain what you offer to your customers.Remember to focus on the value your referral program provides.Think what your users (and their friends) will gain with it, and then explain in in the clearest, simplest way possible.Think on using an image to explain the idea of your referral program, or maybe a video, and if possible, try to add some testimonials.
Dropbox is known for its referral program, in which they offer their users an extra 500MB of free space for every new user they invite. The good news is that a user can invite up to 32 friends, which means they’ll get an extra 16GB of free space.
Even if 32 friends seems to be a lot, think the benefits that both the user and their respective friends get: one gets free space (possibly the most important feature Dropbox has), whereas their friends get the opportunity to learn about a new service that provides real value to their lives.
There are dozens of companies that have developed a referral system. In every case, the referral system is a win-win for both the user and their friends.
2. Upsell Your Customers
Keeping the idea of the previous growth hack, instead of trying to sell products to new customers, why don’t you try to sell more to your current customers?
That’s where the idea of upsell comes from. Upselling is a sales technique where you offer your customers the chance to purchase upgrades (better features, better specifications, more volume) or to get the more expensive version of what they’re buying so you can maximize the value of their purchase (higher price).
The key point here is that you offer items that can add value or improve the user experience of your client. The question now is how do you upsell your customers? Fortunately, there are a couple of useful tools that will help you do this.
How to Upsell Your Customers
First Step: Make a List of All Your Products
Grab an Excel sheet, and write all your products. Include their names, prices, categories, and any other thing you may be useful for categorizing later. Seriously,do it now. Don’t overthink this. If you have hundreds of products, then write the ones, or the ones. If you have hundreds of products, then write the ones, or the ones. If you have hundreds of products, then write the best selling ones, or themost profitable ones.
Second Step: Define Related Products
With that list, you’ll now try to connect them with other similar and related products. Create a column next to each product from the previous step, and define related products. But make sure they’re relevant.
Do you sell shoes? Sell jeans that go with them. Do you sell tablets? Sell cases.
Remember: the goal of each upsell should be to add value to the customer. That doesn’t necessarily mean that the upsells should be more expensive.
Third Step: Publish the Upsell
Once you know what products to upsell, it’s time to publish them to your customers.
There are two places where you should add your upsells:
In your product page
In your checkout page
The first case is what Amazon does with their famous “Customers Who Bought This Item Also Bought” section, where they should similar but relevant products. The second case is commonly used by traveling companies, especially the airline companies, which offer class upgrades to their customers.
Unfortunately, there aren’t many tools that allow you to upsell your customers. One free tool that allows you to do that is Receiptful, an API that allows you to add upsells to your email receipts. (Disclaimer: I work for Receiptful.)
Most companies simply add automatic systems based on shopping algorithms to do this, so I’d suggest you talk to your company’s dev (or your favorite dev if you don’t have an in-house dev) and ask how you can add an upselling system to your website.
3. Talk to Your Customers
So far we’ve been talking about acquiring more users through your current ones (referrals), and selling more to them based on what you think they’ll like (upselling).
This last point is important. As an ecommerce store owner, you may tend to sell products based on what you think your customers will like.
You may use different Google Analytics reports to see what are the best selling products (which is great), or what your competition sell (not so good, but OK), but still, neither methods tell you which products you currently don’t sell your customers would like to buy.
What if I told you that you could ask your customers what you should be selling?
I’m not joking. Ask your customers what they want, and they’ll tell you what you’ll sell.
Some people will question that, and will use the famous but wrongly attributedquote of Henry Ford “If I had asked people what they wanted, they would have said faster horses.”
Sure, in a way, if you ask your customers what’d they like, they’d tell you all sort of things that ultimately won’t lead to you selling more.
However, the key is not to ask directly to them, but rather let them guide you.
How to Ask Your Customers What They Want
There are a couple of ways you can talk to your customers to discover what they want. The best one, in my opinion, is through qualitative research. Qualitative what?, you may be saying. Qualitative basically refers to analyzing the behavior and data that each customer gives you.