Increasing profits as an e-commerce store can be a very exhausting job. If you’re interested in getting into the action and reaching the profit your business deserves to make, you might not know where to begin. If that sounds like you – take a breath and relax. In this post, we’re going to examine the steps you need to go through to set up a profitable Shopify e-commerce store.
We’ll go through how you can actually set up an e-commerce store, but also the strategies you can use to generate sales. Let’s begin!
Focus on Customer-Driven Marketing
Acquiring a new customer can cost five times more than retaining an existing customer. In order to be profitable Shopify e-commerce, your business needs a successful customer-driven marketing strategy to reap the potential benefits of targeting customers. It shifts your focus from product to customer.
A successful customer-driven marketing strategy enables you to understand your customers’ journey. You can achieve this by collecting customer data from all channels. Then, by unifying this data, you’ll have a single view of customers. These steps are done by Customer Data Platforms.
A Customer Data Platform (CDP) provides you insights and the next actions you should take to retain your customers and grow faster. Therefore, you can build a better customer experience and help your customers succeed.
Optimize Your Store for Long-Term
In the long term, you’ll want to remain a profitable Shopify e-commerce. Therefore you should take some steps to ensure that your store is going to increase its sales and remain active for a long time.
You can use retargeting, upselling, and cross-selling to ensure your sales will continue to grow.
Retargeting will let you market to people who have visited your e-commerce website but don’t buy anything. For example, if someone views a product, but doesn’t add it to their basket, you can show them ads of the same product while they’re browsing Facebook or other sites on the internet. This method encourages your audiences to buy from you.
A cross-sell is when you recommend your customer to buy a product that compelments their existing purchase but is from a different category (or vendor). For example, you might have seen Apple recommends you to buy AirPods when you’re purchasing an iPhone. Because well, you don’t have too many options here and the best options of course is to use Apple’s products.
Upselling is when the seller encourages the customer to spend more by recommending a higher priced alternative of the current consideration. For instance, a housekeeping service might upsell a customer buying a weekly cleaning package by offering a package with more rooms.
Upselling and cross-selling can help increase your profitability because you’re offering products that are complementary to what the buyer is already buying.
Automate Your Processes
It’s almost impossible to be able to do all the above strategies without automation, unless you hire enough people, which of course is very inefficient and costly. To optimize your processes, start by using tools that help you automate them.
Start with a Customer Data Platform. A CDP helps you understand your customers and automate your processes. Using a CDP like Formaloo you’ll know what products to upsell or cross-sell. Also, Formaloo will let you know when is the right time to contact which of your customers with what messages. As a result, you will build a strong automated marketing strategy that will last and will bring you more profit.
Let’s Get Started!
Being a profitable Shopify e-commerce is achieved by persistence and continuous improvements. Following the above 3 strategies and keeping on improving your processes, you can meet this goal. You can use Formaloo Customer Data Platform to
- Build a successful customer-driven strategy
- Optimize your store
- Automate your processes
- And as a result, become a profitable Shopify e-commerce.