D2C brands should be aware that acquiring new customers can be costly and risky without a plan to establish a profitable relationship
Multi-million-dollar brands realise that the secret sauce behind scaling is developing profitable customer relationships
They design and optimise processes that generate more sales, uncover hidden profits, and facilitate massive organisational growth
I want to tell you about one of the most satisfying projects I’ve worked on as an Email + WhatsApp marketer.
A few months ago, I got a LinkedIn DM from an ecommerce store owner who was at the end of his rope. His store was barely making any sales, he was burning through his marketing budget with little to show for it, and he was about to close his doors for good.
As a fellow entrepreneur, I felt for the guy. So I decided to take on the challenge and see what I could do to help him turn things around.
The first thing I did was take a deep dive into his customer data. I wanted to understand who his customers were, what they were buying, and why they were buying from him (or not).
What I found was a goldmine of untapped potential. The store had a decent number of customers, but they were only buying once and then disappearing. There was no repeat business, no loyalty, and no referrals.
It was clear that the store owner had been focusing all his energy and resources on acquiring new customers, but he had neglected the most valuable asset any business has- its existing customers.
The Key To Scaling: Develop Profitable Customer Relationships
As a D2C founder/marketer, you should know that the Email plus WhatsApp game is different for high-revenue brands. The secret to scaling is being able to pay more than your competitors to acquire new customers. However, spending money to attract new customers can be expensive, and it’s downright dangerous if you don’t have a plan to develop a profitable relationship with them.
So, what’s the solution? Multi-million-dollar brands think differently about their customer relationships. They design and optimise processes that generate more sales, uncover hidden profits, and facilitate massive organisational growth. They reframed the picture from one-time transactions to ongoing interactions.
One of the ways they leverage their customer relationships is by maximising each customer’s CLTV (Customer Lifetime Value). This means that instead of looking at the initial sale as the end goal, they view it as the beginning of a potentially long and profitable customer relationship.
To make the relationship more profitable, they sell more products on an individual-buyer basis, treat customers well so they’ll stick around longer, and do everything in their power to get more money from the same people. One of the best ways to get that done is by using the power of Email + WhatsApp marketing.
Through the use of flows and campaigns, you can make more money out of your current clients at no extra cost. For example, you can use a win-back flow that offers an irresistible offer to customers who haven’t purchased in a while, ultimately increasing CLTV. You can also send campaigns offering complimentary products to purchasers in the last 90 days.
I’ve seen this work firsthand with one of my clients who is making $30K/month on autopilot through Email + WhatsApp marketing efforts. Having more money in their pockets makes them able to pay higher CAC to acquire more new customers which will ultimately make them CASH on the back end.
Harnessing The Power Of Automated Email & WhatsApp Sequences
Returning to our guy, employing the aforementioned principle, I set to work designing an Email plus WhatsApp marketing strategy that would turn this situation around. I created a series of automated Email + WhatsApp flows and campaigns that would engage customers at the right time with the right message, and encourage them to come back and buy more. And the results were staggering.
Within just a few weeks, the store’s revenue had tripled. Yes, you read that right: tripled.
What’s more, the store owner was now able to spend more on acquiring new customers, because he had a proven system in place for maximising the lifetime value of each customer.
This project was a real eye-opener for me, and it taught me a valuable lesson: Email + WhatsApp marketing is not just a nice-to-have, it’s an essential part of any ecommerce business that wants to thrive.
Tool Of The Week: Smile
Smile, a Shopify app, is an effective tool for building customer loyalty programs. The app provides features like pop-ups and customised rewards for incentivising customers to grab offers and earn points. Smile is one of the most popular software for Shopify-based websites, according to Built With reports. Loyal customer incentives are a proven strategy to increase conversions, average order value, and customer retention.