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Loyalty Programs: What is the Return on Investment (ROI)?

Here's how to calculate the return on investment of your loyalty program. Calculate the expected ROI of your loyalty program, or your past ROI.

Francesca Nicasio

Content Strategy Manager

Every business owner understands it’s easier to retain an existing customer than to acquire a new one. That’s why many merchants use loyalty programs to incentivize customers to come back and spend more with them. When done right, loyalty rewards, discounts, special early access, etc. can help to drive incremental revenue and maximize your customer lifetime value (CLV).

All that being said, it’s important to remember that loyalty or reward programs are long-term undertakings. Yes, they’re super beneficial to your company, but to reap those advantages, you need to periodically evaluate your loyalty program performance. Some consider loyalty programs to be money pits — and they can be if you don’t keep track of your loyalty program ROI.

So, let’s back up a bit: return on investment (ROI) is a financial metric that evaluates how profitable an investment is. To calculate the ROI, you need to divide the net profit by the cost of the investment, and express it as a percentage. The greater the ROI, the more profitable the investment.

To get a handle on your loyalty program’s success, you need to measure its ROI. The results will help you decide if your loyalty strategy is working or not. If it’s working, you can continue what you’re doing and double-down on your initiatives. On the flip side, you can rejuvenate poorly performing loyalty programs by optimizing offers, running referral programs, or getting customer feedback.

Listen to this post instead:

 


 

How do I calculate ROI for my loyalty program?

As with any business initiative, the success of a loyalty program can be measured by its ROI. The formula to calculate it is pretty straightforward.

Return on Investment = (Total Revenue - Total Cost of Running the Loyalty Program) / Total Cost

download free loyalty program roi calculator

Loyalty program ROI calculation: A real-life example


Here's an example from a merchant we have been working closely with. I'm not going to share their name, but I can share their anonymized results so you can see how we assess the impact of their loyalty program.

Real life example (1)

Challenges in measuring loyalty program ROI

The formula for calculating your loyalty program ROI is simple enough to understand. However, there are a few challenges that can make it more difficult to accurately measure your ROI.

Attributing revenue to the right sources

One of the biggest challenges lies in capturing key metrics and pulling the necessary data from various sources — such as your marketing, sales, finance, tech teams, etc. You need to make sure that you’re attributing your revenue gains to the right sources.

For example, your regular customers are your most valuable ones, with or without a rewards program. How can you be sure their value is attributed to your loyalty program?

It can also be tricky to figure out if a purchase was triggered by loyalty program benefits or if it’s just a customer’s normal buying behavior. You need to have the right tracking mechanisms in place to be able to accurately calculate a loyalty program’s ROI. 

Some of the ways to do this include using robust loyalty apps (like Marsello), discount codes, coupons, etc. to track customer behavior that can only be attributed to loyalty programs.

With Marsello, you can track the metrics like change in repeat purchase rate and increase in turnover from loyalty members, as we've done above. This will get you a much more accurate picture of your return.

It takes time to see results

Not only will you need considerable time to gather the data required to calculate the ROI, but it may also take time for your points programs to show results. Customers must first be aware of such programs, engage with them, and rack up enough points on their loyalty cards. It may take months (or more) for your loyalty program to start paying off, so you won’t know your true ROI right away. 

💡 Pro tip: Rather than committing to a 3 month trial across all your sites, commit to one site for at least 1 year (expanding to other sites if you see results earlier). Starting with fewer sites but allowing for a longer time period will give you a much better indication of the impact of the program for your business.

Metrics to consider when measuring the impact of your loyalty programs

Beyond the ROI calculation above, there are many ways you can measure the impact of loyalty programs. You can look at how they affect your revenue, customer base growth, and engagement, among other things.  

You could choose to measure success purely based on financial returns or through KPIs such as engagement rate, brand awareness, etc. Here are some of the data points you may need to track.

  • Transaction volume
  • Average order value
  • Total revenue
  • Cost of loyalty program memberships
  • Marketing cost
  • Purchase frequency of members and non-members

The key is to track these over time. Remember, it takes time to build loyalty, so running a successful rewards program is a marathon, not a sprint. 

And before you calculate the ROI of your loyalty program, make sure you’re clear about your business objectives. What are your specific goals? Do you want to increase revenue by a certain percentage? Reduce your marketing expenditure while boosting sales? Grow your repeat customer base?

This will be essential for setting targets for your loyalty program and understanding its impact on your bottom line.

download free loyalty program roi calculator

Direct ROI of loyalty programs

Direct loyalty program ROI can come in several forms, including:

Increased sales and revenue from repeat purchases

A loyalty program can significantly contribute to a business' goal of increasing revenue and profit. According to a 2023 report by Gitnux, the likelihood of selling to a new customer is less than 20%. Conversely, this probability rises to nearly 70% for an existing customer.

By enhancing customer satisfaction, fostering brand loyalty, attracting new customers, and gathering important customer data, your loyalty program can lead to tangible financial gains. You can also make informed decisions about product development and marketing strategies, further amplifying revenue.

Ultimately, loyalty programs serve as strategic tools for driving sales, revenue growth, and long-term profitability in any business endeavor.

Just ask Scotty’s Makeup & Beauty, which was looking for an email marketing solutions provider when it came across Marsello. Very quickly, the business realized the full potential of Marsello’s tools and decided to also set up loyalty programs. This resulted in Scotty’s Makeup & Beauty unlocking new audiences, increasing its customer engagement, and doubling its revenue.

scottys-makeup-and-beauty-discount

Reduced marketing costs through targeted promotions

Acquiring new customers through marketing efforts and sales outreach can be resource-intensive, consuming both time and funds. Customer acquisition costs pile up especially when leads opt for competitors.

Since loyalty programs help drive sales from existing customers, they enable your brand to mitigate the expenses linked with customer acquisition.You spend less to drive sales, which leads to a higher bottom line.

Indirect ROI of loyalty programs

Now that we’ve covered the direct ways to measure ROI, here’s a look at the indirect metrics that you may want to track.

Improved customer retention

When customers feel valued and content, they are more inclined to remain loyal and make repeat purchases. Implementing a loyalty program can significantly contribute to this effect.

For instance, imagine being a long-term participant in a supermarket’s loyalty program, accumulating rewards for discounts or free items. Such incentives foster loyalty, encouraging folks to continue supporting your brand despite alternative options.

Enhanced brand loyalty and customer satisfaction

Loyalty programs enhance customer appreciation by rewarding purchases with discounts or complimentary items, fostering a sense of value. Tailoring rewards based on individual preferences demonstrates care and enhances the shopping experience.

This helps to elevate customer satisfaction levels. Satisfied customers are more likely to return, which just goes to show the role of customer loyalty programs in enhancing overall satisfaction and fostering repeat business.

Positive word-of-mouth and referrals

Referral marketing, aka word-of-mouth marketing is a highly effective and sought-after strategy for customer acquisition. Recommendations from friends and family, along with good reviews on social media carry more weight than brand messages.

This is one of the most significant gains from loyalty programs — devoted customers become brand advocates, sharing their positive experiences and benefits received from your business. Through their advocacy, your company can gain new customers organically, without incurring any additional costs.

Data collection and insights for better business decisions

Understanding customers is crucial for business success. Rewards programs offer valuable insights into loyal customers, including their personal details and preferences. This enables businesses to enhance customer experiences and satisfaction by tailoring their services to meet individual preferences.

Bonus points if your loyalty program works across multiple channels. Going omnichannel with your loyalty efforts means you can collect data from all customer touchpoints, while providing a seamless experience no matter where or how they’re shopping.

Fashion label ALPHA60 was looking to improve its customer-first marketing efforts by providing all its customers with the same great experience. ALPHA60 brought in in-store and online sales data into Klaviyo, allowing the brand to display points balances, segment customers, and send personalized emails, no matter how customers shop.

Alpha60 earn options

By using Marsello for loyalty and marketing, ALPHA60 was able to attain a repeat purchase rate of 70%, wildly surpassing what is considered to be a good repeat purchase rate in the industry (between 20% and 40%).

Tools to track your metrics

Loyalty program solutions like Marsello give you a whole host of tools required to track metrics related to loyalty programs. 

The platform's built in marketing analytics capabilities can shed light on which channels and strategies yield the best results. Plus, you can track your loyalty program performance overtime, so you can improve both in the short- and long-term. 

Final words

Loyalty programs can offer substantial returns on investment for your business. The right program can enhance customer satisfaction, drive repeat purchases, and boost retention rates. It also provides valuable data and insights for informed decision-making and optimized marketing strategies. 

That’s why it’s so important to invest in the right solution AND track your return on that investment. Measuring your loyalty program ROI helps you improve, so you can continue to delight customers and keep them coming back.

Need help doing just that? Check out our ROI Calculator to see how your loyalty programs are performing or talk to an expert to discuss opportunities for revenue growth.

Frame 6 (4)download free loyalty program roi calculator


 

Get advice from a loyalty expert and start driving repeat sales.

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Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

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    13 Shopify Apps to Take Your Retail Store to the Next Level

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    Shopify has a growing marketplace of apps and solutions that can boost your business' revenue and reach. Read about our top picks for 2020 and beyond.

    Shopify is one of the most popular eCommerce platforms, allowing merchants to create an online store in just a few steps. In addition to giving eCommerce and brick-and-mortar store owners all the tools they need to build, launch and grow their business, Shopify also has a growing marketplace of apps and solutions that can extend the capabilities of the platform. With the developments of Coronavirus (COVID-19), now is the perfect time to be analyzing which apps will help you to master the management of an omnichannel store.

     

    To date, the Shopify’s app store offers upward of 2,400 apps to its users, and on average, 33,000 are downloaded each month. 

     

    But not all apps are created equally, and with 2,000+ to browse, it can be challenging to find which app is going to get the best results for your business. 

     

    So, we've saved you the hassle of browsing thousands of solutions and identified the 13 best Shopify apps to get you through marketing, analytics, accounting, staffing, merchandising, and much more. 

     

    When it comes to loyalty marketing and automation for your Shopify store, look no further than Marsello

     

    Our app equips you with powerful tools that can help you run delightful marketing campaigns across physical and digital channels. Want to set up a loyalty program that seamlessly works online and offline? We got you covered. Need to send targeted messages via email and SMS? You can do that too! 

     

    Marsello also puts the power of AI at your fingertips. The platform uses customer segmentation to organise and track customers based on their shopping behavior (i.e., purchase history, recent interactions, etc.), helping you to run the right campaigns at the right time.

     

     

    eCommerce support is critical to keeping customers on your site, engaged with your brand, and moving through to purchase. Kiri assists with just this through the use of artificial intelligence.  

     

    Kiri allows store owners with an eCommerce site to increase their profits and customer satisfaction with automatic replies, intelligent sorting, and assessing the customer value and risk, so support staff know which conversations to prioritize. 

     

     

    Wishlists enable customers to identify and store items they like. Smart Wishlist helps merchants to make this process as smooth as possible, even before customers have registered or logged into your site. 

     

    Smart Wishlist is a simple tool that gives customers the ability to add to their wishlist in just one click, no sign-in needed, and no coding required from merchants.

     

     

    Tagalys logo

    4. Tagalys

    The Tagalys Personalized Recommendations app for Shopify allows you to tailor the product categories and recommendations shown on your website, based on the interest of the user as well as what’s trending. 

     

    Tagalys lets you create data-driven product listings and recommendations, so your website displays products that shoppers are most likely to buy. Product recommendations on your online store, in turn, keeps customers on your site and helps to increase conversions and revenue.

     

     

    Easyship logo 5. Easyship

    Shipping is a crucial piece of the eCommerce business puzzle, and finding the right shipping solution can help businesses to save drastically – both their time and money. 

     

    The Easyship app for Shopify gives merchants access to low shipping costs all over the world. With more economical shipping costs offered to customers, the barrier of freight is removed, paving the way to increased conversions and more repeat purchases, not to mention cost savings for both sides.  

     

    SEO Booster logo
     

    6. SEO Booster

    Being seen online is the primary battle in building a customer base. To be seen, your eCommerce site needs to be search engine optimized and to be optimized, you either need an in-house team, or you need systems working to support you. 

     

    SEO Booster by Secomapp helps eCommerce sites to boost their SEO with no prior SEO skills required. With a number of automatic functions, tools, and insight features, the SEO Booster app helps your site to set up SEO like a pro. 

     

     

    Setup Optizen logo

    7. SEO App ‑ Setup Optizen

    We've said it already: SEO is critical to getting seen online. But, thankfully, there are many ways that eCommerce businesses can improve their SEO, and SEO App - Setup Optizen is one handy app to help you do just that. 

     

    SEO App ‑ Setup Optizen by EcomXSEO allows merchants to add content below product grids on collection pages, which boosts the relevance of the page, making it more SEO friendly and thus better ranking. With the SEO App ‑ Setup Optizen app for Shopify, you can include more internal links and heading tags, bringing validity to improve product page rankings. 

     

     

    Bulk Products logo

    10. Bulk Products Editor

    Editing product information in bulk can be a nightmare, no matter whether it's tens of items or thousands. To counter this, SpurIT developed Bulk Products Editor for Shopify users to streamline the process and make it possible to edit in bulk from one page. 

     

    Through the app, merchants can edit product and variant details in bulk, with just a couple clicks, all from the same page. This could be bulk tags, vendor details, product titles and descriptions, SEO information, or bulk price changes. 

     

     

    Staffy logo 9. Staffy

    With smoother staff management, retail store owners and managers can focus less on admin and focus more on important work – such as growing your online and offline sales, keeping your customers happy, and strategizing where to take your business. 

     

    To that end, Staffy is a Shopify app that helps you stay on top of employee management, scheduling, and payroll. With quick and easy shift scheduling, salary calculation systems, payment integrations, and team communication tools, Staffy is an all-rounder system for sites managing staff. 

     

    Staffy is a platform that is made to ensure teamwork productivity and payroll in Shopify. It's designed for merchants that rely on remote teams, physical employees, and/or POS store retail employees. Staffy's time tracking capabilities ensure that employees are working during business hours, no matter if they're at home, or at your fulfillment center.  Staffy also comes with in-depth integrations to provide key features and insights such as custom made reports, one-click payroll, project management tools and more - all while being fully integrated with your Shopify system. 

    - Harel Ishay, CEO at Staffy

     

     

    Matcha logo10. Matcha

     

    They say content is king, but unfortunately, it can also be tough to measure, and many eCommerce businesses have historically struggled to learn what content is converting. 

     

    With Matcha for Shopify, merchants can see exactly what content their customers respond to and what impact this content has on their revenue. With these insights, Matcha also assists merchants in creating content strategies with conversion, not just engagement, in mind.  

     

     

    PriceWhiz logo

    11. PriceWhiz

    Applying changes to products can have a significant impact on how they sell, and this can be particularly difficult to track. PriceWhiz gives Shopify merchants an app to easily measure these changes by setting goals that measure how long it takes to sell an item against how long you want it to take to sell.

     

    With better measurement, eCommerce owners can make smarter decisions through experimentation, rather than guesswork, with a full report on the number of orders from each product line within the goal time. 

     

     

     

     

    Analytics tools are what makes the Internet go round and allows eCommerce businesses to get ahead of their competitors. For Shopify sites, Conversific ‑ Store Analytics is the analytics tool of choice, bringing up actionable analytics and reports so that merchants can make sense of and harness their data.

    With no need to develop technical skills, merchants can optimize for traffic and conversion, access benchmarking and insights tools, and master Google Analytics to boost their online sales.

     

    Simprosys Product Questions and Answers Logo

    13. Product Questions and Answers 

    The modern consumer is a research savvy, internet literate individual with a penchant for seeking answers to hunt down the best deal. Answering questions all day, however, is time-consuming for merchants or customer service teams; hence Product Questions and Answers become so valuable. 

    With this free app on Shopify, eCommerce site owners can create product-specific FAQ sections on various product pages. Not only does this answer consumer questions, but it also helps with SEO and product questions and answers.

     

    The biggest benefit [of Product Questions and Answers ] is it helps merchants maintain the FAQ page for each product on their respective product pages. Plus, questions and answers are rendered via In Page HTML and via JS rendering. This helps Search Engines read the content of the pages more efficiently.

    - Amit P Jivani, CEO at Simprosys InfoMedia 

     

    Bringing it all together

    Retail success requires you have a strong presence on both physical and digital channels. If you’re a brick-and-mortar store looking to go online, then installing some of these apps from the get-go will help you kick off on the right foot. Already have an online store? These apps will optimize it further so you can take it to new heights! 

    Communicating about Coronavirus (COVID-19)

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    Explore examples of retailers communicating with their customers, then discover the tools you need to communicate pandemic-related changes with customers.

    Communicating about Coronavirus (COVID-19)

    Coronavirus (COVID-19) is now a global pandemic, and with the effect this is having on retail, communication with your customers is essential! Lightspeed notes that you, as the retailer, is to adjust how you’re trading (we’ll get into this a little more down the line). But how do you let your customers know you’re making these adjustments? How do you keep your customers up-to-date while still helping them to feel comfortable and confident to shop with you safely?

     

    In this blog, we draw on examples from three retailers to help you craft your own COVID-19 communication strategy. 

     

    Be specific:

    AllBirds communicate about Covid-19 on Instagram

    Now is the time to give your customers as much information as you possibly can. AllBirds do a great job of this through their social media channels. In the following example, pulled from their Instagram account, AllBirds share their empathy, understanding, and, most importantly, critical details about their operations. 

     

    Take note of the second paragraph in which they state, “Our corporate staff are now working from home, and our stores in the US and Europe will be closed from March 15th through the 27th”. They then go the extra mile to support their staff and reassure their customers that by continuing to shop with AllBirds, they support an ethical and socially conscious brand: “All employees will get full pay and benefits during this time.

     

    Following their operation updates, AllBirds also add that as the details surrounding Coronavirus develop, so may their plans. They acknowledge the importance of communication and promise to stay connected through their ‘digital channels’.

     

    AllBirds are careful to keep their customers informed by sharing essential updates while also strengthening their customers’ confidence in AllBird’s company ethics and genuine care for the situation surrounding COVID-19. They do this by updating all of their digital channels, which includes using email marketing. Although tools like social media are a powerful way to reach your customers, it’s also easy for your update to be lost amongst the rest. Make sure you’re sharing your information across all channels, starting with email marketing campaigns

     

    Showcase your brand:

    Iko Iko emails customers about in-store changes during Corona Virus

    Lightspeed retailer, Iko Iko, is known for their eclectic and colorful branding, and they don’t let the chaos of a worldwide pandemic get in the way of their charismatic communications. Take note of the way that they reiterate that they will be taking extra measures to sanitize their brick-and-mortar store’s high-touch zones: “We are taking a few extra hygiene precautions as recommended by the Ministry of Health. The staff are regularly cleaning high contact surfaces including our eftpos machines [point-of-sale card machines] and countertops …”. By assuring their customers that hygiene is at the forefront of their business practice, Iko Iko helps their customers to feel secure in their decision to continue to shop with the store, particularly because the majority of Iko Iko’s sales are generated in-store.

     

    Iko Iko also let their customers know that the coming weeks may be difficult for them as a business, and they reiterate that customer loyalty is the key to their ongoing success. Finally, they end the email with customized links to their social media accounts, clearly giving customers access to more information from Iko Iko as it’s released.

     

    Iko Iko have done a beautiful job of informing their customers while also showcasing their store’s branding. This not only helps their customers to recognize who the email has come from, but also further entices their customers to shop. The additional graphic design is on-brand with colorful patterns and block colors, but still tasteful and respectful. 

     

    Get on top of your COVID-19 communications with campaigns that are easy to create and schedule.

     

    Think outside the box:

    Warby Parker created a landing page and floating banner to communicate about Coronavirus (Covid-19)

    Warby Parker is a household name; known for their standing as a socially conscious eCommerce and physical retailer for prescription glasses, and they’re acutely aware that the products they offer help people each and every day. They want all of their customers, new and loyal, to feel connected and considered. For this reason (among many others), they created an additional landing page on their website dedicated to COVID-19 updates.

     

    They cut right to the chase and let their customers know that they “have decided to temporarily close all of [their] stores through March 27 for the safety of [their] customers, [their] employees, and the general public.

     

    Special mention: notice that they’ve included a floating banner at the top of their website that lets all online customers know that Warby Parker’s brick-and-mortar stores will be closed from March 15 - March 27. Now that’s one way to keep your customers informed! 

     

    Nevertheless, Warby Parker are careful to highlight that they are still open for business with their online stores, accentuating this with bolded text. They offer several stand-out services, including a ‘Home Try-On Program’, which is still in operation. They also list the ways that customers can get in contact with them, should shoppers have any questions, helping customers to feel cared for and catered to. 

     

    Replicating these examples:

    So how can you take the above examples and use the key information for your own COVID-19 communications? 

     

    We’ve whipped up and broken down a quick example that you can build on. Make sure when communicating with customers that you’re careful to include all relevant details affecting your own business and be specific. For example, if your store is solely online, then you don’t need to add a paragraph about increasing the hygiene standards of your store.


    Example introduction:

    Here at [Store Name], We’re committed to the safety of our team and our community – you. 

     

    With the rapidly changing developments of Coronavirus (COVID-19), we believe it’s important that you’re kept up to date, and you feel confident that your health and safety is a priority. As we learn how to contain and manage the spread of COVID-19, we are doing everything in our power to ensure the safety of our customers, employees and extended community. 

     

    You should only include key information that is relevant to your customers. Have you increased your hygiene practices for your brick-and-mortar stores? Are your online stores up and running, but seeing delays in shipping? Whatever you have decided is best for your business, make sure you describe this clearly without going into too much detail. And make sure that any information you add to your communications is accurate. Some examples could include the following.

     

    If your eCommerce store is seeing delays in shipping, you could include something like the following paragraph :

     

    Our online store is operating as usual, although we are expecting delays in shipping. We are working to guarantee the safety of our employees while also fulling your orders as quickly as we can. If you have any questions, please don’t hesitate to contact us here: 

     

    Hygiene practice adjustments for brick-and-mortar stores (ensure these practices are in place before you notify customers):

     

    We understand the need for extra precautions and have additional sanitization practices in place, with a particular focus on high-touch zones like door handles and card machines. We will ensure that can maintain the highest possible standard of hygiene by keeping hand hygiene stations stocked throughout our store(s).

     

    Finally, let your customers know that any of this information could change at any time as the conditions surrounding the COVID-19 pandemic develop. This could include a paragraph similar to the following:

     

    As the situation surrounding COVID-19 continues to develop and change, our strategies and practices may too. 

     

    This is an opportunity to add your social media icons and direct customers to follow you if you plan on also updating customers there. And make sure to let your customers know how they can stay up-to-date with your store practices. 

     

    Finally, sign off in a way that includes your store name and add some reassurance – a little positivity can go a long way too! Don’t be afraid to follow Iko iko’s suit and fit your brand into the messaging.

    We appreciate your ongoing support and understanding in these uncertain times. 

     

    Stay safe and healthy,

    [Store Name]. Or [Your name], from [Store Name].

    Adjust how you’re trading

    We touched on this a little in the intro so let's break it down. With many people practicing social-distancing or even self-quarantining, some brick-and-mortar stores may find a reduction in foot-traffic – some countries are even requiring stores to close. Look at this as an opportunity to develop your business and cater to more online customers. If you’re in-store only and you have to shut up shop for a while, now is the perfect time to work on getting an omnichannel operation set up and starting an online store, or giving a little more love to your online store if it already exists. Set up automated email campaigns while you’re at it, and actively retain online customers without any additional manual work.

     

    It’s reported that eCommerce could account for 40% of all retail purchases in the UK as a direct result of COVID-19. Just think about how huge that is on a world-wide scale and get excited to embark on a new frontier of online shopping. Omnichannel stores are not only a strong retention marketing channel, they’re a fantastic way to keep the local economy going without having to be physically present in-store – even some supermarkets offer online shopping! If it’s within your margins, why not offer customers free shipping, even if it’s just locally? This will encourage customers to shop with you. Adding incentives for customers to share your store with their friends (think: discount codes for proven referrals) will help you to acquire new customers. 

     

    Adaptability and resilience is the key; many retailers are revamping their in-store hygiene practices, implementing social-distancing strategies to protect their employees and customers, and putting countless other changes in place to protect their customers and their businesses. Just don’t forget, transparency is your friend. If you’re expecting delays in shipping, add this to your email campaigns and digital channels. If it’s taking a little longer than usual for your new stock to arrive, using tools that allow customers to ‘wishlist’ or save items could be a nice touch too.  

     

    Final words:

    Now is the time to take note of Warby Parker’s example again – do you want to compile this information on a landing page? Perhaps you could instead direct customers to follow you on social media if an additional landing page isn’t quite your speed; or, perhaps now is a great time to try adding SMS campaigns to your toolkit

     

    However you chose to do it, the bottom line is that communicating clearly with your customers is essential. Whether it’s affecting your shipping times, forcing the temporary closure of your brick-and-mortar stores, or just creating added stress, it doesn’t hurt to let your customers know how you’ve been affected and remind them that they are what keeps you trading.

     

    If you’re looking to email your customers to communicate about COVID-19, you can get started with Marsello’s campaigns feature for free. Email marketing is the perfect way to communicate with your customers and set expectations, so when you’re back to trading at full-capacity again, don’t forget to shout it from the rooftops throughout all your communication channels, starting with a one-off email campaign. 

    Mailchimp for Shopify: Getting through the eCommerce break-up of 2019

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    If you’re a Shopify retailer who previously used Mailchimp, you’re probably trying to find an email marketing solution. Learn about your options here.

    You’ve likely heard about the statement released by Shopify. On May 12, 2019, it was announced that Mailchimp would no longer have native integration with Shopify due to poor merchant experience as a direct result of Mailchimp’s refusal to respect Shopify’s Partner Program Agreement.

    If you’re a Shopify eCommerce marketer who uses Mailchimp, you’re probably thinking about what to do now. There are two options: look for an alternative, or use a third party to sync Shopify to Mailchimp. Let’s explore them both:

     

    Looking for a Mailchimp Alternative

    If you had been using Mailchimp to automate emails triggered by customers’ shopping behavior in your Shopify store, the good news is – there are alternatives. When it comes to email automation, some Email Service Providers (ESP) are more powerful than others, some are easier to set up than others, and some have better reporting than others. Here’s a helpful comparison of the leading alternatives.

    If you’ve already gone through the process of setting all this up in Mailchimp, you’re probably dreading having to do it all over again. The good news is, using an app like Marsello, everything is ready to go and defaulted with best-practice email flow settings and triggers, and pre-designed templates. All you have to do is add your business’ logo and turn each email flow on, or you can customize the designs and settings to suit your brand. You can do everything you could do with Mailchimp Automation (and more with easier to set-up product recommendations, Shopify discounts, and segmentation):

    Encourage new customers to shop again. To make a great first impression and bring new customers back to your store again, say thanks with a First-Time Email.

     

     

    Look after your best customers. Automate an email flow that encourages your best customers to keep shopping. If product recommendations in the first email don’t motivate a purchase, automatically follow them up with an exclusive discount just for them.

     

     

    Build loyal relationships on customers’ birthdays. A cheerful ‘Happy Birthday’ message or offer designed to delight your customers will get them shopping again, and help move them to more desirable segments.

     

     

    Win back At Risk customers. Bring back at-risk customers with an automated email flow designed to win them back. If product recommendations in the first email doesn’t motivate a purchase, automatically follow up with a limited-time discount email.

     

     

    Recover abandoned carts. Automate great-looking abandoned cart emails to be sent when your customers don’t complete a purchase and leave items in their cart. Go the extra mile and pull through product images from their cart and a button to take them back to complete their order.

     

     

    Send one-off email campaigns. Update your customers with on-brand, creative, and easily built one-off email campaigns. Send and schedule newsletters, promotions, or new stock emails to your entire database or to a certain customer segment with just a few clicks.

     

    Marsello-one-off-email-campaigns.png

     

    So how do you make the switch? All you need to do is install Marsello on the Shopify App store with a 14-day free trial (no payment details required). Marsello has been built for Shopify, so all of your customers will automatically sync. Still have questions about migrating from Mailchimp? We’ve put together a helpful page of FAQs on making the switch.

    Still can’t decide what to do? Ask our marketing experts for help.

    SEO Series Part 3: Common Mistakes SEO Mistakes for Retailers to Know

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    Solve common SEO mistakes before ever even making them with Part 3 of our SEO mini-series.

    In this article, we’ll be talking about the common mistakes online retailers make when optimizing their websites for search. Many eCommerce retailers make errors during their quest to improve their SEO without realizing it. They end up sabotaging their own efforts in small ways; small errors can build up over time to become a major barrier to their top-of-page-one aspirations.

    How to improve your retail store SEO ranking

    Fortunately, fixing these isn’t as complex as you might think; a few quick adjustments will have you on the way to a higher ranking in no time.

    Read the points below and see if you’re making these mistakes on your website:

     

    Mistake 1: Not optimizing your product URLs

    URLs might seem like a minor consideration, but they are extremely relevant to eCommerce SEO; this is because they play a significant role in how Google indexes each page of your site.

    The URLs of your product pages should help search engines to work out how the different parts of your site relate to each other. This is especially important for your broader product categories (e.g. ‘dresses’). You want these categories to rank well because this is how your potential customers can access your catalog from the search engine results page (SERP).

    Even the biggest eCommerce sites still make persistent errors in this area. See below this link from the clothing giant H&M:

     

    H&M product page url

     

    Would you be able to tell what the item was by looking at this URL? No chance. It contains no keywords, so it’s only by clicking that you’d know the item is a V-neck dress. This is exactly the kind of link you want to avoid; it looks messy and chaotic, so no one is likely to click on it.

    A messy URL also makes your site more difficult to navigate. If your customers can’t retrace their steps back to other parts of your site by reading your URLs, there’s a good chance that Google will struggle as well.

    What to do instead: focus on website hierarchy

    Your links should be offering a solid road map of your site. An optimized link would follow this structure:

    https://example.com/category/sub-category/product

    The pet care retailer Bobbie Dogs has a great URL structure – their URLs have a logical flow from the broader elements of the website (e.g., homepage, category pages, etc.) to the more specific parts (e.g., the product in question).

    As such, both Google and shoppers alike will find it easier to understand what the page is all about. Check out their URL below and note the logical mapping of data within the URL; it’s easy to follow, understand and remember.

    Bobbie dogs url
     
     

    Mistake 2: Keyword stuffing your product titles and descriptions

    In SEO, keywords make the world go round, so it’s a smart idea to incorporate them into your web copy. And since product descriptions make up a sizeable chunk of your on-site content, it makes sense for you to optimize them with the right search terms.

    Product descriptions help Google determine the relevance of your pages in response to a search query, so it’s vital that they show up on the search engine’s radar.

    But trying to write for Google instead of your customer through keyword stuffing will make your copy look stilted and awkward. Plus, the practice can really hurt your rankings because the clunky sentences make it look like you aren’t trying to be informative.

    Here is a prime example from a listing on Etsy:

     

    Keyword stuffing in an Etsy store product listing

     

    This description is very wordy and dense, using the keyword ‘top’ multiple times. It also uses far more descriptors than necessary, making it more likely to confuse customers than inform them.

    What to do instead: Sprinkle in keywords and don’t overdo it

    Use your keywords moderately and only in places where it’s natural to do so. Try putting yourself in the position of your customer when you read your copy. Is it relevant, useful and compelling? If so, that’s what will make them want to stick around – and Google, in turn, will reward your website for it.

    Check out this example from Triangl, a highly successful Australian swimsuit brand. In the following product page, you’ll notice that Triangle lightly sprinkles relevant keywords (e.g., ‘bikini’) throughout the content without going overboard.

    Triangls product listings are concise, clear, and helps to sell their products

    Mistake 3: Not having an internal linking strategy for your product pages

    What often gets overlooked in discussions about algorithms is that site ranking really boils down to usability.

    Translation: your site architecture needs to be on-point, and this is judged in part by how easy your site is to navigate. The purpose of an eCommerce site is to have customers buy products, so you need to gear your link structure to this end. There’s no point in only having navigational links to your site’s ‘about us’ and ‘contact’ pages. This won’t take your customers anywhere near the shopping cart! If your customer is looking for something specific, the links they come across in their searching need to be relevant and useful.

    What to do instead: Improve your site’s usability with the right internal links

    Internal linking really boosts your site usability. If you link between ‘similar’ product pages, whether they be companion products or products with similar features, this massively improves the user experience of your site. Keeping your customers browsing between products for longer periods sends positive ranking signals to Google, which helps you in the SEO department.

    Take this example from women's fashion store, Osmose:

     

    Osmose's product recommendations listed below their product pages

    On this page, Osmose has included a plug-in that recommends similar products to customers as they browse This aids a customer’s shopping experience because they’re able to find relevant products much easier.

     

    Mistake 4: Not optimizing your site for mobile

    Having a site that isn’t mobile-optimized may not be killing your SEO rankings just yet, but in July 2019, Google will begin using a ‘mobile-first’ indexing system – this means that your site will get judged according to its mobile-friendliness. Google’s new system replaces a previous update in 2015, which used a mix of mobile and desktop signals to dictate search results.

    So even though it currently makes no difference if the majority of your traffic still comes from ‘desktop-based’ searching, Google has basically confirmed that mobile is king. Moral of the story? If your site isn’t mobile-optimized, your ranking could be taking a hit in a few months’ time.

     

    What to do instead: Implement responsive web design

    Rather than having your mobile customers struggle with a shrunken version of your desktop site, you should install a responsive layout. Responsive Web Design (RWD) is the approach recommended by Google because it doesn’t create separate URLs for desktop and mobile, which can get confused as duplicate content (a real SEO headache). RWD instead adjusts to the layout needed for each user, whether it be mobile, tablet, or desktop.

    Google’s free mobile-friendly test allows you to analyze each page of your website by entering the URL, providing feedback on any issues.

    And here’s the good news: some of the best eCommerce platforms, including Shopify and BigCommerce, now provide responsive themes. So, it’s worth checking if you need to update to the latest version, or else switch to a custom theme.

    Mistake 5: Publishing low-quality content


    It’s easy to fall into the trap of ‘content for content’s sake’ to improve your ranking, particularly when it comes to your blog.

    Many SEO experts agree that having a blog is an important part of SEO strategy because they’re a great tool for adding more indexed pages to your site. Google’s ‘crawlers’ treat pages as individual search results that show up if they match a query. The more indexed pages you have, the more queries that your brand will get associated with. So, it’s tempting to churn out tons of short, hastily-written content each week, simply to get your indexed page count higher.

    But Google is well-aware that this strategy is used to ‘trick’ its algorithm, and the search engine penalizes websites with a high number of pages ‘thin’ content.

    What to do instead: Choose quality over quantity

    Switch to a strategy that prioritizes high-value content that engages, informs, and entertains your readers.

    In terms of the content itself, your focus needs to be less about the semantics of SEO. Being perfectly optimized for keywords isn’t what makes a blog interesting! So, what does? Content that is well-researched and contains insights that people can use or learn from.

    Check out the skincare specialist, Sigi Skin. Many of their posts are highly actionable and contain pointers that their customers can do on their own.

     

    Sigi Skin Blog
     

    Mistake 6: Not optimizing your images for SEO

    There are a number of key errors that eCommerce merchants make when it comes to images. They include:

    • Using larger-than-necessary images - It's a known fact that page speed is a ranking factor for Google. Using large images increase a page's load time, which in turn hurts your rankings.

    • Not having the right image titles and tags - Search engines crawl image file names and alt text to figure out what image is about, so by failing to optimize these components, you're missing out on giving Google valuable information about your images.

    • Using images to replace text - Some merchants use images that contain words, to avoid dealing with text formatting issues. While this may seem like a smart shortcut, it does nothing for SEO. Again, this practice prevents you from fully communicating with search engines, thereby hurting your rankings in the process.

    What to do instead: Always consider SEO when using images

    Optimize your image file names and alt-tags by using descriptive words. Let's say you're posting an image of a red party dress. Instead of naming it "IMG_0321111.jpg" use the file name "red-scoop-neck-dress.jpg".

    The same thing goes for your alt text. According to BigCommerce, in addition to serving as "an alternative when websites can't render the image for some reason," alt text "describes the image to search engines so they can understand them."

    The best thing you can do to optimize your alt text is to sprinkle in keywords that clearly communicate what the image is. Just make sure not to overdo it by keyword stuffing.

    As for your image sizes, BigCommerce recommends keeping your images under 70KB. Also opt for JPEG instead of PNG or GIF, because it “allows higher quality with a smaller file size.”

    Finally, avoid using images as a replacement for text. Remember, search engines determine your rankings primarily by crawling the text on your website, so make sure you have enough word-based content on there to give Google a clear idea of what each page is about.

     

    Creating a webpage as an image

     

    Final words


    SEO can feel like a real minefield for both new and experienced eCommerce merchants. Ultimately, though, the most important thing to keep in mind is that both you and Google have the same goal; to give your customer the best user experience possible. Focus on that and you’ll be on your way to better SEO rankings.

    Have you seen the rest of the SEO Series? Check out Part One and Two in the links below.

     

    Take me to part 1Take me to part 2

    SEO Series Part 2: Making Search Engine Optimization More Affordable

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    Part 2 of our SEO series gives you actionable tips on getting started with eCommerce SEO while taking the DIY route!

    Marsello's SEO blog series Part 2

    Welcome to the second instalment of Marsello’s eCommerce SEO series. In our previous article, we talked about the basics of Search Engine Optimization and the initial steps you should take to kick off your efforts.

     

    This week, we’ll be discussing the costs of Search Engine Optimization and the things you can do to get more bang for your buck.

     

    A 2018 study by Ahrefs found that the most popular hourly rate for SEO professionals ranges from $101-150 per hour. For those that charge monthly retainer fees, the range of $500-$1,000 per month was the most popular pricing tier.

     

    And while those figures aren’t surprising, they’re far from being chump change, especially if you’re a small business.

     

    So what does an SMB to do?

     

    While your exact steps will depend on how much SEO work you need, we’ve put together some expert-backed pointers on how you can save money on search engine optimization costs.

    Let’s have a look.

     

    Educate yourself

    If you have some time on your hands and don’t have the budget to pay someone $100+ an hour for SEO services, then going the do-it-yourself (aka DIY) route could be a good way to go. Just remember, though, that your results from your DIY efforts will only be as good as your SEO knowledge.

     

    That’s why if you’re not well-versed in Search Engine Optimization, the first thing you should do is educate yourself.

     

    “There are so many resources available online now to do your own SEO, even for online merchants,” says Ben Hanzel, chief editor at BestCompany.com

     

    He adds that eCommerce-centric SEO is different from the average website, which is why he recommends consuming SEO resources specifically for eCommerce merchants.

     

    Alex Ratynski of Make Bank Blogging echoes this advice. “In my years of experience as a professional SEO, I have worked with a number of brands and businesses big and small. For those smaller businesses in eCommerce, I think a lot can be done by just simply educating themselves beforehand. This will help whether they work with a consultant or not.”

     

    To start with, Alex suggests the comprehensive eCommerce SEO guides from Ahrefs, Backlinko, and Neil Patel. Guides such as these give a good grounding for the information eCommerce retailers need when getting started with SEO and it’s a great idea to get this base-understanding as early as possible.

     

    Hire a consultant who can offer advice

    If you have funds to spare, Hanzel recommends using it on a consultant. But rather than paying an SEO specialist to work on your site for 20+ hours a month for a year, you can choose to spend a fraction of the cost by consulting with an expert who can tell you what to do.

     

    “It may be worth getting an hour consultation, to know where to start,” he says. “Some SEO companies even offer this for free, as long as you're willing to sit through a sales pitch at the end of it.”

     

    Another option is to hire someone as an ’overseer’ rather than a full-fledged service provider. According to Ratynski, one thing you could do is bring in someone "for a few hours every few months to do full audits, give clear actionable improvements, reasons for those, and then give you the option to do it yourself.”

     

    With that said, if you decide to hire a consultant or advisor, make it a point to take action on their recommendations. “SEO does take time, so make sure you're putting in the effort and time to fully dedicate yourself to it, and you'll reap the benefits for years,” says Hanzel.

     

    To reiterate Hanzel’s point, SEO can take months even to seem to make a difference, and even then it’s not static. You will need to update your store, information, and content frequently to be sure that it’s relevant. The basic idea is that Google and other search engines see your site, process that information as valuable to the search requests of your potential customers, and prioritizes your site in the search results. The higher your store appears in that list; the more likely a customer is to click on it and convert to purchasing with you. SEO is a long game, but it’s undeniably important.

     

    Marketing professional uses diary and computer to make SEO plan.

    Go the DIY route

    Once you have the SEO info you need (either by reading up on Search Engine Optimization or consulting with an expert), it’s time to take action on what you’ve learned. The specifics will vary, depending on your site, but generally speaking, the success of your SEO efforts will hinge on how well you do the following:

    • Keyword research

    • Content creation

    • Link building

    Let’s look at each of these components in more detail.

     

    Keyword research

    As we mentioned in our previous post, keyword research is the cornerstone of any Search Engine Optimization strategy. Before getting to the ‘optimization’ part of SEO, you first need to identify the keywords that your customers are searching for.

    As we mentioned previously, the best keywords are the ones with a high search volume (because it means many people are searching for it) but with a competition level low enough for you to compete with.

    But there's another key component that makes a search term worth targeting, and that's intent. When doing your research, you need to discern whether or not a keyword is backed by a consumer's intent to buy.

    For example, a person searching for keywords like ‘where to buy a coffee mug’ or ‘travel porcelain mugs’ likely has a stronger buying intent than someone who's looking for information on just ‘coffee’ or  ‘how to clean a coffee mug.’

    When identifying keywords to use in your copy, ask yourself: "does this search term reflect an intent to buy?". If the answer is no, then it's not a good keyword to target.

     

    How to find keyword ideas

    There’s no shortage of SEO tools dedicated to keyword research. Some of the industry’s favorites include Ahrefs, SEMRush, and Mangools, though we should note that these come with a subscription fee.

     

    And since this guide is for merchants looking to save on SEO costs, we’ll be focusing on the free tools you can use to find keywords.

     

    Google Keyword Planner

    Google’s Keyword Planner is a great starting point for search term ideas. Simply enter keywords related to your product, and the tool will make numerous suggestions based on what others are searching for. Google will also display a search volume and competition level for each keyword.

    For instance, when you enter the word ‘mug’ into Google’s Keyword Planner, it’ll serve up nearly a thousand relevant ‘mug’ related keywords you can sift through.

     

    Google Ads keyword planner

     

    Ubersuggest

     

    Online marketing guru Neil Patel created a nifty tool called ‘Ubersuggest’, which can be an excellent source for ideas. Much like Google Keyword Planner, Ubersuggest displays search volume estimates and competition info. Even better, Ubersuggest offers keyword difficulty insights that can estimate your chances of ranking in the top 20 search results.

     

    Ubersuggest keyword search volume

     

    Amazon

     

    Another easy way to surface the right keywords is to use Amazon. Just start typing your keyword into the search box and take note of what the autocomplete feature will display.

    What’s great about this method is that since Amazon is already a shopping site, most (if not all of the keywords) it suggests would be high-intent search terms.

     

    Amazon search suggestions

     

    Google

     

    Google (the search engine) also has a great autocomplete feature that you can mine for keyword ideas. Again, just type in a search term and see what the tool suggests.

     

    Google search suggestions

     

    Do note that that with the last two suggestions (i.e., Amazon and Google) you won’t get any data on search volume and competition. That’s why if you’re using these sites for keyword ideas, you’ll need to take note of the keywords you want to target and enter them into a tool (like Google Keyword Planner) that shows you how many people are searching for the term and what the competition looks like.  

     

    Content creation

    Once you've figured out the best keywords to target, start incorporating them in your copy. There are a number of key places to do this, including your title tags, meta descriptions, headers and subheads, and product and category descriptions.

     

    A great example of a website that does all of the above is Zazzle. Their website is one of the top search results for ‘funny mugs’ and for good reason. As you’ll see below, all the key areas of Zazzle’s category and product pages are optimized for search.

     

    Title tags – In addition to telling search engines what the title of a page is, the title tag is also text that shows up on search results, so it's also one of the first pieces of information that potential visitors see. In eCommerce, the best places on which to optimize your title tags are your category pages and product pages.

     

    Meta description – As we mentioned in our previous post, meta descriptions don’t directly affect your rankings. However, they still show up in search results, so they can influence a searcher’s decision to click through your site. For this reason, it’s important that your meta description still contains relevant keywords

     

    Zazzle meta description

     
    Headers and subheaders – Headers and subheaders can have a lot of SEO value, as Google factors them in when determining if a page is relevant to a particular search term. From user's perspective, headers can act as signposts that help visitors easily skim your content or jump to the section that's relevant to them. In the world of ecommerce, your headers usually come in the form of your product titles and subtitles, so make sure they're optimized for search.
     
    Creating webpage headers and subheaders

     

    Product or category descriptions – Your product and category descriptions essentially tell customers and search engines what your merchandise is all about. In addition to peppering in relevant keywords, you want to make sure your descriptions are unique. Google doesn’t like duplicate content, so using the product descriptions of your manufacturers – or worse – copying another website’s description, will lead to poor rankings.

     

    Creating SEO-optimized product titles

     

    Link building

    After you’ve optimized your content for SEO, the next step is to build links for your site. While no one knows for sure how Google's algorithm works, pretty much everyone agrees that links are a critical ranking factor.

     

    According to Search Engine Journal, “Backlinks remain an important Google ranking factor, but over the years, Google has learned to weed out the bad links from the good. More links will still result in a higher score, but only if they’re from a number of diverse and authoritative domains.”

    In short, the more high-quality links pointing to your site, the better your chances of ranking.

    So, how do you build those precious backlinks? Consider the following ideas:

     

    Get featured on relevant blogs

    Build relationships with bloggers in your niche and see if they can feature you on their site. An effective tactic here is to send them a free sample in exchange for an honest review. You could even assign a promo code or affiliate link that allows bloggers to earn a commission when someone buys your product through their site.

     

    For instance, when Tarashaun Hausner reviewed Daily Harvest on her blog Blender Babes, she included a special promo code that gives readers 3 free cups when they sign up. Her post also contains affiliate links, so she can earn revenue for each signup.

     

    Daily Harvest used influencer marketing for SEO

     

    Do press outreach

    Connecting with members of the press is another great way to obtain backlinks. Find journalists who are writing a story relevant to your industry and volunteer yourself as a source for their article.

     

    You can easily do this using a tool called HARO. Short for “Help a Reporter Out,” HARO is a service that lets journalists submit queries asking for expert input for their articles. When you subscribe to their service, HARO sends you daily queries from journalists, which you can then respond to. If the journalist likes your input, they’ll include it in their article and will often link back to your website.

     

    Here’s an example of what query looks like. The journalist sends in a description of an article that they’re writing along with a request for sources. Members subscribers receive the query in their inbox and can choose to respond if they’re a good fit for the article.

     

    Marketers can use Haro to submit and create research requests

     

    Create share-worthy content

     

    Another way to gain backlinks? Produce link-worthy content. Create a piece of content (e.g., guide, video, blog etc) that’s so engaging that people would naturally want to link to it.

     

    Dollar Shave Club is a master at this strategy. The company regularly creates useful and entertaining content for its website; in addition to helping DSC engage their followers and subscribers, all that content is also helping them gain backlinks.

     

    For example, DSC’s ‘Original Content’ homepage currently has 285 backlinks, many of which are from high-quality sites.

     

    Dollar Shave Club's backlinks

     

    DSC is also doing well with video. The company has produced several hilarious videos about their product, which earned them backlinks from the likes of The Wall Street Journal, Vox, Entrepreneur, and more.

     

    One of their top videos currently has more than 25 million views and over 53,000 backlinks.

    As you can see, effectively gaining backlinks doesn’t just happen. Getting others to link to your site requires active outreach and content creation, so it’s critical to incorporate these tasks into your SEO strategy.

     

    Take advantage of free or affordable tools

    Depending on the SEO tasks that you’re doing, you can save a lot of money by choosing your tools wisely. We’ve already mentioned several free tools above, but here are additional SEO solutions you can use to optimize your website:

     

    Yoast – Yoast is a plugin made for WordPress. The free version enables you to optimize your blog posts through tools like keyword optimization and Google preview. Yoast can also check your content for readability and make on-page recommendations on how to improve.

     

    Keywords Everywhere – This is a free browser plugin for Chrome and Firefox that displays search volume, CPC, and competition data for the keywords that you search on sites like Google, Amazon, YouTube, Answer the Public, and more.

     

    LinkMiner – Another Chrome extension, LinkMiner helps surface broken on any website. Broken links can be harmful for SEO, so this tool makes it easy to find those pesky links so you can fix them.

     

    Can I Rank? – Can I Rank is an AI-powered tool that analyzes your website and gives you insights on what you can do improve? It provides insights like which pages are ranking well (and why) and you'll get suggestions for content ideas, link opportunities, and more.

     

    SERP Preview Tool – Curious about how your website will appear in search results? Portent's SERP Preview Tool can help. Just enter your title tag, meta description, and URL and the tool will generate Google search result preview for you.

     

    The tools mentioned in this guide are just the tip of the iceberg, though. If you’re looking to dive deeper into various SEO tools, we recommend the following resources:

    If you must outsource, know which tasks to do yourself and which to leave to a pro

    If you have a full plate and don’t have the capacity to fully shoulder all things SEO, consider adopting a hybrid approach where you do some tasks yourself while outsourcing others.

     

    How do you determine the right balance? Start by making a list of the SEO tasks that need to be addressed (e.g., link building, creating content, creating a site map, etc.). From there, figure out your strengths and focus your efforts on the things that you’re good at.

     

    As Catherine Giese, SEO associate at Fundera puts it, “SEO encompasses a lot of time-consuming techniques such as keyword research, site structuring, and link building. That's why it's often at least one person's job, if not that of an entire team,” she says.

     

    Giese continues, “take stock of your strengths to determine how to prioritize. For example, if you're an engineer, you may be able to do site structure, but may not be comfortable with doing outreach for link building purposes.”

     

    Follow her advice when you’re mapping out your strategy. Before diving into various SEO tasks, iron out the specific jobs that need to get done, figure out what you can do yourself, and then outsource the rest.

     

    Visual business chart with an agent showing how to interpret marketing metrics.

     

    Be smart about working with agencies and freelancers

    If you decide to outsource your SEO, do your research and make sure you select a reputable agency or freelancer who can optimize your site using ethical and white hat tactics. One of the best ways to go is to ask for referrals from merchants you know that are ranking well on Google. Then once you have a handful of prospects, request for case studies and references so you can see the results they’ve achieved with other businesses.

     

    In terms of working arrangements, we recommend avoiding long-term contracts, as the last thing you want is to be tied down to an agency or freelancer who isn’t a good fit.

     

    As Matt Antonino, Head of Operations at the marketing agency Digital Eagles points out, “many agencies have 12-month contracts but if they don't perform you are stuck with a long-term relationship that costs and has little value.”

     

    Antonino adds that “long contracts don't create an incentive for the agency to continuously help improve your business... thee and six-month deals may make more sense.”

     

    Once you know who you want to work with, be smart about the tasks you assign to the agency or freelancer. You want to make sure you get the most value out of their efforts, so figure out the best use of their time and resources.

     

    “The trick to keeping costs down is to ask yourself if what you want that expert to do is their highest and best use,” says BJ Enoch, VP of Enterprise Accounts for SocialSEO. “If you're looking for someone to do alt image tags across 1,000 products or fix internal broken links, is that something you really need to pay an expert, or could you be doing it yourself?”

     

    Enoch adds that you can lower your costs even more by taking care of content yourself.

     

    “Content is one of the most labor intensive and expensive parts of an SEO strategy (and one of the most important). There are some content elements that should have some expert insight, but making sure you've got unique product descriptions and resolving duplicate content on your own can save a surprising amount of money with a consultant or expert.”

     

    SEO doesn't have to be expensive

    While search engine optimization requires an investment (in both time and money), you can lower your costs significantly by being smart about the tasks you take on and the SEO experts that you hire.

     

    With the right SEO education, some patience, and competent experts on your side, it’s totally possible to take your SEO game to the next level.


    Have you seen the rest of the SEO Series? Check out Part One and Part Three in the links below

     

     

    Take me to part 1Take me to part 3

    5 Ways to Measure Retail Customer Lifetime Value

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    How much are each of your customers worth to you and how much should you invest in each of them? Learn how to calculate your customers' lifetime value.

    The saying “You have to spend to make money,” is quite true in the world of retail. As a store owner, you often have to invest in marketing and advertising to acquire new customers and generate revenue. The question is, exactly how much should you spend on customer acquisition to ensure that your efforts are worth it?

    To answer that, you need to calculate your Customer Lifetime Value (CLV).

    Sometimes referred to as Lifetime Value (LTV), this metric is the amount of revenue or profit that your business stands to generate from each customer during their lifetime. So, if your CLV is $50, then that tells you that it shouldn't cost more than $50 to acquire each new customer.

    There are a number of formulas for computing CLV, and the right method will depend on your business model, customer behavior, and available data, among other things.

    To help you figure out the right CLV calculation method for your business, we’ve put together some of the most common CLV methods used by eCommerce merchants. Check them out and see which one is the best fit for your business.

     

    Download the free CLV Calculator
    Use Marsello's free calculator to quickly estimate your average CLV.

     

     

    1. Use the simple CLV formula.


    The no-frills way to compute your CLV is to subtract the cost to acquire and serve customers from the revenue that you’ve earned from them. To do this, use the formula:

     

    LTV = Lifetime Customer Revenue – Lifetime Customer Costs

     

    So, if you earned $200 from a customer over their lifetime and you spent $140 acquiring and serving that customer, then their lifetime value is $60.

    Since CLV is often defined as the profit you’ve earned from your customers, then it technically makes sense to subtract your customer costs from your revenue. That said, this takes a very simplistic view of CLV, and it becomes problematic when you’re calculating the CLV of entire customer groups or segments.

    That’s because this formula doesn’t take into account the fact that not all your customers spend the same amount at your store. Not to mention, shoppers don’t all stay active within the same time period i.e., certain customers are active for 2+ years, while others just purchase once and then become dormant.

    For this reason, it’s a good idea to use more complex CLV calculations to ensure that you’re able to factor in different customer variables.

    And that brings us to our next formula...

     

     

    2. Determine CLV based on customer revenue distribution


    Another way to calculate your customer lifetime value is to look at how revenue is distributed across your customer base. You can do this by benchmarking customer spending in your business and then grouping your customers based on those spending thresholds.

    Let’s say that spending in your company typically falls into the following buckets:

    • Customers who spend $25

    • Customers who spend $50

    • Customers who spend $75

    • Customers who spend $100

    The next thing you need to do is to figure out how many customers fall into each bucket. So you might list them as follows:

     

    No. of customers Revenue
    98 $25
    80 $50
    102 $75
    68 $100

    You’ll want to sum up the lifetime value of all your customers using the formula

     

    (# of customers 1 x revenue) + (# of customers 2 x revenue) + (# of customers 3 x revenue) & so on

     

     

    So the example above would be:

    (98 x 25) + (80 x 50) + (102 x 75) + (68 x 100) = 20,900

    You can divide that amount by your total number of customers to get the CLV

    = 20,900 / 348 = $60.05

     

    This is a good calculation to use especially if your basket sizes vary from one customer to the next. As The Balance explains, this CLV formula accounts for the fact that “some customers may be one-time or occasional buyers, versus the regular purchasers on the other end of the scale who have a higher LTV and generate the most profits.”

     

     

    3. Multiply customer value by average customer lifespan


    This CLV calculation is the one recommend by Shopify. What’s great about it is that it factors in a number of variables, including average order values, purchase frequency, and customer lifespan.

    This method uses the formula:

     

    Customer Value x Average Customer Lifespan = Customer Lifetime Value

     

    Let’s break down what each of these components means.

    To determine Customer Value, multiply your Average Order Value (AOV) by Purchase Frequency. You can find your AOV by dividing your Total Sales by the Number of Orders.

    Meanwhile, to determine Purchase Frequency, divide the Number of Orders you have gotten over a certain time period (say 1 year) by the Number of Customers you have within that same time period.

    Once you know your AOV and Purchase Frequency, multiply those figures and you’ll get your Customer Value.

    Next, let’s talk about the Average Customer Lifespan. This figure pertains to the length of time that a customer is active. You may need to examine your purchase history to figure this out, though some experts say that 1-3 years is a good estimate.

    Once you’ve determined your Average Customer Lifespan, you can go back to the formula above, Customer Value x Average Customer Lifespan to find your CLV.

     

    Total sales + No. of orders = Average Order Value

    No. of orders (1 year) + No. of customers (1 year) = Purchase Frequency

    Average order value x Purchase frequency = Customer Value

     
     

    4. Multiply lifetime value by profit margin


    Another way to approach CLV is by multiplying Lifetime Value by Profit Margin. According to Clever Tap, this method takes your expenses into consideration so you're able to figure out the net value that you get from each customer.

     

    Lifetime value x Profit margin = Customer Lifetime Value

     

    The formula for this method is: Lifetime Value x Profit Margin, wherein Lifetime Value is Average Order Value multiplied by the Number of Transactions, which is then multiplied by Average Customer Lifespan.

     

    Average order value x Number of transactions x
    Average customer lifespan = Lifetime Value 


    Lifetime value x Profit margin = Customer Lifetime Value

     

    Once you have that, then simply multiply the Lifetime Value by your Profit Margin  – i.e., Lifetime Value × Profit Margin to find your CLV.

     

    Download the free CLV Calculator
    Use Marsello's free calculator to quickly estimate your average CLV.

     

     

    5. Let your marketing software do it for you

    Calculating customer lifetime value can be a complex task, which is why it’s often better to use software when figuring your business’ CLV.

    A growing number of marketing platforms (including Marsello) can now use artificial intelligence to accurately calculate your CLV. These solutions do this by analyzing your customers’ purchase behavior in your business (as well as in stores similar to yours) to determine their lifespan and the amount of value that you can gain from them.

    Even better, AI marketing solutions even let you compare your CLV with your industry’s average. For example, since Marsello can analyze shopping trends across multiple industries, we can figure out the average lifespan values of stores in specific verticals, and then surface those insights for you. That, in turn, can give you valuable knowledge of how your business measures up and helps you improve your marketing and advertising efforts.

     

    Knowing your CLV is a must!


    Regardless of how you decide to calculate your customer lifetime value, it’s essential that you do it regularly. CLV can help you make important decisions including, how much to spend on customer acquisition, which channels to invest in, and how to provide even more value to shoppers.

    That’s why if you haven’t done so yet, now is the time to figure out your CLV ASAP. And if you need help doing that, feel free to get in touch.

    FAQs


    What are the common challenges or pitfalls in gathering accurate data for CLV calculations, and how can they be overcome?

    Overcoming challenges in gathering accurate data for CLV calculations entails employing advanced analytics, maintaining high-quality customer data, and integrating various data sources for a comprehensive view.

    Can CLV be effectively used to predict future business growth, and if so, how?

    Effectively using CLV to predict future business growth involves analyzing trends in CLV over time, segmenting customers based on their value, and applying predictive modeling techniques to forecast changes in customer behavior and business outcomes. These approaches require a blend of statistical analysis, customer insight, and strategic planning to enhance accuracy and usefulness.

    Measure your CLV with Marsello

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    5 Ways to Capitalize on Your Holiday Marketing Strategies

    ClockIcon  READ
    How do you get your store noticed in a sea of marketing during the holiday season? Discover 5 actionable tips for holiday email marketing to maximize ROI.

    Black Friday featured in bold on a laptop screen.

     

    Holiday Marketing is Worth The Effort

    Cyber Week, the holidays stretching from Thanksgiving to the following Monday, is the golden goose of retail revenue, and it lands right in the middle of the holiday season stretching from Halloween, right the way into the new year. CNBC reported that Cyber Monday (the Monday that follows Thanksgiving) is the single biggest day of the year for online shopping making it an essential focus for retailers.

    BigCommerce reported in their blog, Black Friday: An eCommerce Survival Guide that “the few short days from Thanksgiving through Cyber Monday draw about a fifth of holiday sales all season long”. This stat alone cements Black Friday and Cyber Week as unmissable marketing and revenue events for retailers, just as much as they are unmissable shopping events for customers. With approximately 58 million people shopping online and 51 million choosing to shop in-store, it’s easy to see the value in retailers tapping into that revenue through marketing campaigns.

    So there’s no doubt that tapping into Cyber Week is a key revenue agent for retailers. For these reasons and more, we're focusing this holiday marketing blog on the single biggest revenue weekend of the year, although the tools you take away from it can be applied for pretty much any event!

    So how do you get your store noticed in a sea of marketing during a busy holiday period, and how do you do it quickly?

    If you’re unsure where to start, sometimes it’s best to take your cues from the best trends of recent years. Consider 2017 the year of personalized, holiday-themed email flows and curated gift guides.

     

    Holiday marketing sales statistics

     

    But before you consider how you can approach the ideas from previous years, check out the following tips picked to help you prepare for the impending Cyber Week madness.

     

     

    A Holiday Marketing Plan to Showcase Your Brand

    A 2015 study by the National Retail Federation suggested that effective marketing of your brand before and during Cyber Week can increase sales by up to a shocking 30%, this even increases to 40% in some industries (such as jewelry). Use this knowledge to your advantage! Even if you’re behind on your email marketing, you could try to find a moment to create a series of email flows that offer exclusive discounts and deals for your store during the Cyber Week chaos.

    This is a great time to mention that Marsello's email templates library is a great place to find ready-made templates that will allow you to easily design and send emails even in a time-crunch. 

    Just to be thorough, here’s an example of a manually created email flow which could be the the push you need to see holiday success and marketing ROI.

    Let’s break these down:

    Email 1:

      • Campaign Launch! Announce your enticing Cyber-focused deal/sale and give a clear call to action to your customers to shop with you – an idea for a first email is a gift-guide or staff-picks announcement.

      • Include some branded, appropriate and fun graphics to make your email instantly recognizable as a Cyber Week related email which is also linked to your brand.

      • Add another call to action at the bottom which suggests the customer checks out more products or visits you in-store at a list of your brick-and-mortar locations.

    Extra note: you could segment this email flow so that those who are making a first-time purchase are offered a similar email immediately after their purchase, but their email includes a coupon code valid only for cyber-week, incentivizing them to shop again with you in the near future.

     

    Email 2:

      • Your call to action needs to remind your customers that your sale or deal is ending soon and convince them to shop before it ends. A simple ‘Our sale is ending soon/ on [date/day of the week]. ORDER NOW!’ is a tried and true CTA.

      • Your cyber-week visuals for this should be fresh and attention-grabbing, reminding your customers that you’re creative and current.

      • Include your shipping costs or terms so that your customers are reassured about their shopping experience with you.

      Email 3:

      • Your sale ends today, tomorrow, or in [X] hours. With an imminent end, remind your customers that this is the last day to shop and they shouldn’t miss out.

      • Graphics and images could be changed to include themed gift-guide ideas or suggestions from popular purchases throughout the week.

      • Marsello offers an email flow option which shows the customer similar items to those that they’ve previously purchased. Including smart AI that personalizes the email will help your customers to feel as though your items meet their needs.

    • Email 4:

      • Thank those of your customers that made a purchase during Cyber week for shopping with you. Or you could send everyone a reminder of the next holiday in your calendar or that it’s simply coming up to the festive season and now is the perfect time for them to get on top of their shopping.

      • You can always add themed graphics which say thank you but why not show off some of the top-sellers from the week if you haven’t used this already.

      • If there are any delays in shipping or updates, make sure to let your customers know why this is the case.

    Get Creative & Be Consistent

    We’ve compiled a shortlist of these 5 ways that you can make the most out of your marketing and see results from just a few quick changes:

     

    1: Add themes and graphics to your website and social media marketing.

    Whether this is just updating your website’s banner with a cute graphic that includes some of your products, or a fully adapted homepage/landing page, the end-game is to narrow your customers’ focus onto the products you’re hoping they will buy. Some stores even use a product countdown or time-until-sale-ends timer so that customers feel the pressure to shop and avoid missing your store’s deals.

    Australian pet-product store, Peticular, is a seasoned pro at seasonal and festive marketing. Check out the way they’ve used social media to advertise their Halloween-specific items by including this adorable photo of a bandana-wearing pooch. They are also quick to update their store and email marketing with similar graphics which show off their brand but also their products.

     

    Peticular's halloween-themed Facebook post

     

    We love that they’ve cleverly included the item’s price, clearly displayed with the additions of a ‘products shown’ button below the image. Peticular have also gone the extra mile and included a link in the description to even more bandana designs. They do a great job of using their marketing to show off their in-season and cutest items. We recommend keeping an eye on them for inspiration.

    One key part of your holiday marketing to remember is making sure that your images are optimized and meet the needs of your customers. Think of all those stores with beautifully branded festive images and how much more inclined you are to buy from them. 

     

    2: What deals can you offer in terms of shipping?

    Maybe free shipping isn’t an option, but what if customers are spending over $100? In a survey conducted by BigCommerce, 80% of Americans cited shipping costs and speed of shipping as a major factor in determining where they shop, with 66% deciding not to buy entirely because of shipping costs. Even a small token to show that you understand this could be the difference between a sale or not.

    While you may not be able to offer free shipping, no matter the amount of a customer's purchase, perhaps you could offer it to local buyers and specific locations, or perhaps you simply offer fast-tracked shipping with a tracking code. What about free returns? Giving your customers a sense of security over their online purchases will make them feel even more justified in their choice to shop with you.

     

    Bobbie Dog's shipping information email

     

    Consider creating a seamless shipment and tracking system so that your customers feel your support, even at the busiest times of the year. One example of this as a store ad-on is Aftership. Basically, you’re giving the power back to your customer to follow where their item is at, and when to expect it. Cut yourself out at a middleman and forget the days of chasing couriers.

     

    Jevo Home Living using AfterShip to help customers track their orders

     

    3: Be clear about what your deal or sale terms are.

    Your customers are less likely to buy from your competitors if they feel the sense of urgency that the impending end of a sale brings, particularly if they’ve shopped with you before and trust you to look after them at such a busy time of year.

    While we’re talking sale ends, don’t be afraid of extending that sale as well. Sometimes giving people an extra dale to check your deals out is the extra push they need to make a purchase. There’s a lot of demand in the days that follow on from holidays – give your customers a little push and remind them why your products are worth the extra purchase.

    Giving a clear explanation of your timeline shows that you’re only doing this deal for a limited time, even if it’s a little beyond that of other store’s sales, says to your customers perhaps this is the best time for your customers to hunt down that item they’ve wanted for so long or to tick another item off their gift-list.

    It’s worth a quick mention that a flash sale or one-day deal isn’t outdated. With the rise of websites that offer a deal for just one day, there’s room to compete, just remember to keep it on theme. Cyber week means that it’s cyber exclusive so this is a great time to out some select items on sale and advertise them through your emails and social media with that theme present. BigCommerce agrees – it’s the prime time “to capture the target market’s attention and up-sell your other products.”

     

    4: Speaking of gift lists, why not spice up your blog as a form of gift guide?

    Gift guides were the go-to marketing form of 2017 and for good reason – they work! They’re a simple way to show off your most appealing, beautiful or theme-appropriate products and to funnel your customers to your site. They also boost customer confidence, which leads the way for customer loyalty.

    A shopping guide says to your customers, “I understand what you need, why you’re here and how I can make your life easiest for you.” It’s a low-key ‘look no-more’ that your customers will find easy to navigate, so the more inviting you make your gift guide, the more successful it’s likely to be. Besides, this is one of those cases where everyone is doing it, and you should too but because of that, you need to stand out.

    Check out this example from Anthropologie who have a whole landing page dedicated to ‘gifts’ that sits in their navigation. Their products are all beautifully displayed in a similar style with clean lighting, pastel backgrounds, and essential details.

     

    Anthropologie's Gift Guide

     

    Gift guides don’t need to be restricted to just your website, they make an effective email flow with a clear call to action that says ‘Shop now and score great deals on these products, and more!’. Great Lakes Northern Outfitters, a Minneapolis-based men's apparel store, did a great job of this last year. The following email shows a careful selection of their favorite items. They followed these up with links directly to the items which corresponded to the numbered item from the photo.

     

    The Horse's Christmas gift guide

     

    5: Create and promote a loyalty points system.

    Offering your frequent shoppers and brand-lovers an incentive to shop in the form of holiday season loyalty points is a simple way of winning customers back and developing customer loyalty. If you’re running a loyalty program (if not, check out Marsello’s easy-to-use loyalty program), you’ve already got access to a golden egg in the form of loyalty. If you haven’t tapped into this yet, make it a priority. As BigCommerce point out, customer loyalty is a multi-faceted focus point with long-game benefits.

    Customers love to feel special, so let them feel appreciated and looked after in the form of exclusive deals but look beyond the short few months of the holiday season. Use this busy time to direct your customers to your loyalty program, incentivize them to join with exclusive deals or a limited time points bonus for first-time buyers who sign up.

    It can be tricky to know what deals or offers will best benefit your store in particular. Marsello has you covered here too! Marsello includes smart suggestions to recommend the optimal reward settings for your particular store, offering your customers the ideal rewards.

    Our top tip? Make sure that you can keep up with that marketing from now until the end of your promotional period.

    Automation is the best way to do this – take some of the pressure off yourself by scheduling as much of your marketing as you can. Clearly branded email campaigns with simple, enticing call-to-actions, scheduled SMS campaigns, boosted campaigns, loyalty points promotions are all ways that you can ramp up your marketing... and, let's be real here, a little planning before the madness begins can go a long way to easing the stress of a busy holiday period.

    Just remember the key is to show off your brand in a stand-out, flattering and appealing way. Offer deals where possible, and give your customers incentive to remain loyal throughout the rest of the holiday season.

    And if you haven’t gotten a head-start on your holiday marketing yet, get started with a deep-dive into campaigns and the templates library.

     

    Learn more about campaigns

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