Maximizing eCommerce Sales

In this CLVboost tutorial, I’ll explain and model how to maximize eCommerce sales with a focus on automating ascension.

Timeless Principles

How can we serve our clients with the most logical product or service and simultaneously maximize profit per prospect and customer in automated fashion?  Solid automation architecture.  While business price-points and models differ, building a strong automation chain is a timeless principle that can be used across businesses.

If you’re watching this tutorial or reading this blog, chances are you’re a member of the eCommerce world.  You may offer lower-ticket and middle-ticket items, along with bigger ticket bundles and products.  The key to maximizing sales is exposing the right people to the right offer at the right time.  An automated chain of email marketing sequences can deliver appropriate products and services to prospects and customers and get you the sales results that you need.

The Automation Chain

The email chain in the tutorial uses a 3-tier product or service sequence to model this concept. The automation for the lower ticket item i.e. “Tier 1” in this particular example is a product in the range of $10 to $47.  A Tier 1 sequence in an initial series of email messaged that kicked off automatically after someone opts in for a coupon, newsletter, whitepaper, webinar, etc.

Hypothetically, any new leads are going to ride this same Tier 1 train, enter the same front gate and move along the channel.  If they buy from the channel after or before being driven through a series of automated emails – we’ll say a sequence of 7 emails – then this customer is taken directly to the beginning of tier 2, where they end up on a new sequence of 7 new emails.  This is the basis for the term ‘tiers of ascension’, and the foundation for the automation architecture marketing strategy.

In the example used above, a “Tier 2” might be a $47 membership – I like high-quality subscription models i.e. Netflix, Vimeo, etc., but this could just as easily be a middle-tier product of some sort.  Essentially, a Tier 2 sequence is any sequence of emails sent to a customer immediately after purchasing i.e. after they’ve bought what we’ve presented in Tier 1.

If a customer doesn’t convert in Tier 2, he or she goes back to a regular or bucket email list with the same prospects who are receiving your broadcast or newsletter messages on a weekly basis.  Keep in mind that Tier 2 customers thrown back into the bucket are not getting the same broadcast message as Tier 1 customers; these e-mails are segmented and focused on the next logical purchase for that particular customer.

Anyone that rides along the Tier 2 automation chain and converts is automatically bumped to the “Tier 3” level with a higher price point, in this hypothetical example $200, for a more advanced and robust product.  The subscriber now riding the Tier 3 automated string will have a certain percentage convert and buy the high-ticket item.

Again, if members don’t convert in Tier 3, they end up back in the bucket list i.e. regular broadcast messages.  Ideally, you want to segment customers and prospects to present a logical offer based on where the individual is in the process.  You want to expose Tier 2 subscribers to the $200-level product, not to the Tier 1 offer which has already been purchased by this customer.

The Bottom Line

Automatic ascension is a numbers game, and the objective is to eliminate manual work so that you can focus on higher-level vision for your company.

In a hypothetical world, we’ll say Tier 1 converts at 4% for the low-ticket item; Tier 2 converts at 8% membership; Tier 3 at 5% for the $200-product.  Doesn’t really matter what the numbers are, the point is that this automated sequence will drive a certain number of prospects in each tier to the next tier up, automatically ascending customer to higher and higher purchases with no additional manual work by the marketer.

Now that the automation architecture is built, not only can all new leads, via automation, purchase everything in your product suite and climb to the top of your tier structure, but anytime someone converts from Tier 1 or Tier 2, that customer automatically gets bumped to the next automation sequence level and receives targeted information.

And if you’re smart, unconverted prospects are placed in a regular ‘broadcast’ bucket that can be organized based on tier, allowing you to target with an appropriate offer – constantly encouraging customers through “newsletters” to purchase at the next level up.  You are always getting an additional multiple out of any future front-end sales by putting everyone through a more effective and automated front-end strategy from the start.

You don’t necessarily need 3 tiers for this to work.  This strategy could easily be applied with 2, 4 or 5 tiers, and products and prices might vary widely.  What matters is the principle of automation architecture that can be preemptively set up, to not only sort existing subscribers but to allow all future sales to instantly drive people to the next most relevant offer with an effective automated sequence.

 

About The Author

Daniel Faggella

I grow businesses with marketing automation, email marketing, and conversion-rate optimization. I've spoken on business and emerging technologies internationally and at some of America's finest schools (Yale, Stanford, Cornell, etc...). My marketing strategies have been featured in the Boston Business Journal, MarketingProfs, Direct Marketing News, and much more. CLVboost is where I share marketing strategies, TechEmergence.com is my major pursuit.