Find out what are 3 simple ways to maintain the effectiveness indicator of promotional activities at a profitable level.
The costs of promotional activities are getting higher but the profit is not visible? CPC goes up and the sale is still the same? Let's think about where it results from.
The price for one click goes up, so you pay more for the same move. Additionally, while the number of competitors is constantly growing, there is no more advertising space to be developed. This results in a significant increase in the costs of advertising campaigns that do not contribute to the increase in turnover. So, if the advertising costs more, and the sale remains unchanged, it means one thing: the profitability ratio decreases. We will tell you what to do to ensure that your tactics are not only impressive, but also effective.
Learn 3 simple ways to maintain the effectiveness indicator of promotional activities at a profitable level.
What is ROI and what to do to make its result satisfactory?
Let's take a closer look at the current situation in the e-commerce industry. The value of the entire online store market is over PLN 36 billion and can already be compared to the value of the pharmaceutical market. Gemius specialists predict that this value will grow from year to year by around 20%. There are more and more online stores – it is not surprising. This method has a definite advantage over traditional purchases. The wider range of products in one place and the ease of making a transaction are the examples of many benefits offered to customers. The market is growing at a very fast pace, and modern technology provides access for everyone.
What are the consequences? Competition is still increasing, and prices for advertising campaigns are growing. According to Hochman Consultans, the price for one click has almost doubled in the last 3 years! If the cost of promotional activities has not returned again, it means that the return on investment index (ROI) of your company's campaign is clearly disappointing. We know the solution.
Your task is not only collecting data, but also their efficient analysis and correct use.
In addition to numerous benefits for the buyer, e-commerce offers the whole range to the seller. You have almost succeeded: you have already brought a potential customer to your site.
What else should you do? Encourage the customer to:
- buy more
- pay more
In order to make the campaign profitable for you, the customer who finds himself in your store should leave as much money as possible in it. How to do it? Above all, think about your store as an advertising space, because it's the best you have! Then make the most of it. Remember that the zero-search page or an empty basket can also convert. We have created a special series of articles to show you, step by step, how to optimise the space of your website.
First of all: present the offer ideally suited to the potential customer. Importantly, display it in the key places of the site that would remain unused, i.e. the cart page, order status, Thank You Page, etc. As a result, you will achieve a higher profit by paying the same ad charges. And all this without having to fight for a new client. Because the most important one is the one that has already visited your site, right?
Show exactly what the customer wants to see
The recipient has reacted to your advertisement, clicked on the banner and landed on the product page. What's next? After a while, the visitor states that the product is not good for them, is too expensive, the delivery time is too long or the product is no longer available. You have only 3 seconds to react, use them wisely.
One of the solutions comes from QuarticOn – the personalised product recommendations. Imagine that you enter the store, and the dream sweater is located just near the front door. A similar solution can be applied to the virtual space of an online store.
Instead of allowing a time-consuming process of searching for interesting products, give them to your client. Or rather recommend them where customer’s eyes automatically fall: just below or to the right of the currently displayed product. The client may not have been convinced about buying a new sweater, but since it is deceptively similar to the expensive counterpart, the price is much lower and in addition it is just one click. The customer instead of leaving the site with empty basket, will generate the profit for you. And probably not once, because why not return to the store, which is so functional, and the assortment suits their needs.
Offer more, sell more, earn more
Your clients are fully aware of their needs and know what they should buy to satisfy this need. However, they are not sure what the product should exactly look like. Remember that everyone likes to have the right to choose, as well as in the store and online shop. The only difference is that in the latter, instead of a polite saleswoman, the recommendation system will help them make the choice.
The choice is a recipe for completing the order and finalising the transaction.
Imagine that your client is just on the product page of a wool sweater, which looks impeccable, but slightly exceeds their budget. Instead of letting them go to the competition in search of a cheaper counterpart, offer a similar but cheaper product, which will significantly increase the chance of finalising the transaction. In addition, the client needs it for the next Saturday, and the delivery of the recommended product is only two days! What's happening? The sweater lands in the basket, the user presses the Buy now button and selects the payment option. Your client is a self-aware and confident customer. It is the customer you should care about the most. You can already be sure that they like your product and that the functional website meets their expectations.
It is worth to demonstrate yourself once again and use cross-selling strategies at this stage. Introduce complementary products that perfectly complement the image. Who would not choose the red scarf, if they already see that it contrasts well with the purchased grey sweater and only slightly increases the total cost of the order. Your customer is now completely satisfied with the purchase and you have sold two instead of one product. All thanks to one product recommendation placed on the confirmation page of the basket. So, in a place that would have been empty.
Increase profit by selling more expensive and better-tailored products
Let us return briefly to the aforementioned example of a confident and resolute customer – so a customer who has liked your product so much that they are inclined to buy. They know that they will buy and they know exactly what. They also have a general picture of how this product should look. And at this point you have a great opportunity to make further marketing maneuvers.
QuarticOn offers a solution that displays a product very similar, but a bit more expensive than the currently viewed goods. The price will be higher, but the parameters will also be higher – which many customers value. If the customer likes the product, a bigger expense will not make a difference for them, but for you definitely yes – when you look at the overall balance of profits. The scheme is simple: a satisfied customer is a customer who buys more, pays more and converts better. Now you can talk openly about the success of your advertising campaign, which, with the help of the recommendation engine, generated more sales for your store.