Connect with us

Business

The Importance of Making Repeat Business in eCommerce

Published

on

When it comes to customer management, most guides focus on acquiring new customers, but this course of action may not be the most profitable one. In order to gain a customer, you need to invest heavily in various marketing strategies; but in order to make one return you only need to do two things- make a good first impression, and remind them of your existence. Furthermore, according to one particular statistic, in the world of ecommerce almost 40 percent of all revenue is made by only 8 percent of customers. How? The answer is simple- repeat business.

Return Business vs. Return Visitors

Have you ever heard of the term “lifecycle marketing”? If not, the concept is fairly simple. Not everyone who comes to your e-store is ready to buy something from you. Sometimes, they may just need a bit of time, and on occasion even a bit of encouragement. According to this particular technique, you should study what your visitors are browsing through while on your page, and then use email marketing services for ecommerce to bring them back. If there is something new to offer in one of the categories they have previously looked at, you need to let them know. Still, this couldn’t exactly count as a hard-sell strategy, since you are only informing them of something they may be interested in. Whether they buy it or not is up to them.

Not all Repeat Customers Are the Same

One of the problems with the repeat business is that it is quite hard to label it properly. In theory, anyone who has made at least two purchases in your e-store can classify as a repeat customer. However, it doesn’t seem fair to try and put in the same basket someone who has purchased from you twice and someone who has done so over a dozen times.

Luckily, there is a catch here; with every purchase, the chance of the next one occurring increases exponentially. Therefore, if someone buys from you once, there is a 27 percent chance they will make a second purchase. If they buy twice, there is a 45 percent chance a third one will occur. In other words, all you need to do is make them return once, and the numbers alone will start working in your favor.02

Developing a Habit

Why the repeat business works in this way is quite easy to explain. If someone makes a purchase on your ecommerce website several times, they will start turning it into a habit. This makes them much more likely to make a purchase they wouldn’t even consider making just few months back. To make things even better, a return customer won’t be afraid to spend much more than a first-time buyer.

Testimonials and Recommendations

Finally, not all benefits of repeat business are material ones. There are also many indirect ways in which return customers can help your marketing efforts. For example, they can give you a large amount of credibility in the eyes of their friends and acquaintances by word of mouth recommendation. Apart from this, you can always gather their testimonials and display them on your website or rely on them to give you a high mark on a review. All in all, the benefits are simply too numerous to be listed in their entirety.

Conclusion

Of course, not every industry has to worry about making a repeat business. A real estate agent that sells a $4 million mansion doesn’t have to worry whether he will sell anything to the same buyer again. Same goes for a yacht or an art salesman. Nevertheless, when it comes to the ecommerce, the return business is the backbone of the industry, which means it requires your full focus and your undivided attention.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Court battles, a trade war and no 5G phones: How 2019 could get even worse for Apple

Segun Balogun

Published

on

 

Apple chief executive Tim Cook has his work cut out in China this year: the iPhone maker faces the looming threat of a court-ordered sales ban, the uncertain outcome of trade war talks and the roll-out of a new 5G network, where it finds itself behind rivals like Huawei and Samsung.

The complex outlook raises a challenge for Apple as it looks to revive its China fortunes after weakness there sparked a rare drop in its global sales forecast, knocked $75 billion from its market valuation and roiled global markets.

Cook told investors that the main drag on the firm’s performance in China had been a sharper-than-expected slowdown in the country’s economy, exacerbated by the impact of trade tensions between Washington and Beijing.

“We did not foresee the magnitude of the economic deceleration, particularly in Greater China,” he said.

Chinese shoppers told Reuters another element had been key: the high price-tag on Apple’s flagship phones.

Analysts said the firm faced a brewing storm of challenges: an economic slowdown, stronger rivals like Huawei Technologies Co Ltd [HWT.UL] bringing out a comparable tech at lower prices and bubbling patriotic sentiment amid the trade war.

A Chinese court has also issued a preliminary injunction banning some Apple phones, part of a legal battle with chip maker Qualcomm Inc. This ban, potentially hitting iPhone models from the 6S through the X, has yet to be enforced.

On Thursday a local industry body, the China Anti-Infringement, and Anti-Counterfeit Innovation Strategic Alliance, called on Apple to heed the court order and not “trample the Chinese law by leveraging its super economic power and clout.”

Apple shares plunged over 9 percent earlier this week as Wall Street was rattled by the Silicon Valley giant’s shock revenue warning. The firm said it now anticipates lower revenues of $84 billion

Apple declined to comment on the group’s statement but has previously said it believes its current phones comply with the Chinese court’s order.

“These are tough times for Apple in China,” said Neil Shah, research director at Counterpoint, adding the iPhone could see its market share slip to 7 percent this year in the face of stronger local rivals and worry about the sales ban.

Apple’s market share in the third-quarter of 2018 was around 9 percent, and has dipped from above 14 percent in 2015, overtaken by local rivals like Huawei, Oppo and Vivo.

A woman in Beijing uses her iPhone today where sales are falling behind rivals Huawei and market leader Samsung

5G STRATEGY

Another question mark for Apple is its 5G strategy in China, where the U.S. firm is not expected to have a 5G-enabled phone until 2020, behind rivals like Huawei, Xiaomi Corp and Samsung Electronics.

China is looking to push ahead with its rollout of a faster 5G network, with a pre-commercial phase this year and a commercial network in 2020.

Some are looking to make an early bet on the technology. Huawei is planning a 5G phone mid-year, while Xiaomi is aiming for the third quarter. Samsung is expected to unveil a 5G phone in the first half of the year.

Industry insiders, however, said Apple would likely hold off until the fall of 2020 to have its own 5G-enabled phone, a strategy that would bypass the untested early period of the technology, but which could mean Chinese shoppers delay iPhone purchases or buy another brand that switched to 5G earlier.

“I’ll definitely be paying attention to 5G functionality when I buy my next phone,” said Wu Chengjun, a graduate student in Beijing who currently uses an iPhone X.

With the exception of Huawei, which makes it own 5G chips, Qualcomm is providing the technology to many of the major phone makers releasing 5G handsets this year.

“If you’re a [phone maker] looking for a ‘super cycle’ [of sales], if you don’t have 5G, your situation won’t get any better,” Cristiano Amon, Qualcomm’s president, told Reuters in an interview. “The carrier channel is going to be incentivized to start selling 5G phones in the second half” of 2019, he said.

But there are risks integrating 5G too early into high-end smart phones because the technology requires deeply re-designing the devices with multiple new antennas. Given spotty coverage in 2019, gambling on a new design before networks are mature could be more risk than reward, said Darryn Lowe, a Bain & Co partner who works with the wireless industry.

“When you think about 5G, it’s a heck of a lot more complicated than an aluminum strip running around the phone,” he said.

And other shoppers and analysts said Apple’s more cautious approach to 5G made sense and that the firm would not likely lose out too much to rivals by delaying its launch.

Apple’s decision to wait to adopt 4G until after other makers didn’t hurt it. But that was when consumers commonly purchased a phone every two years, a cycle that has elongated and might prompt buyers to want a more “future proof” device, said Glenn Lurie, CEO of Synchronoss Technologies and the former head of AT&T’s wireless unit.

“If you’re going to walk in to make a 30-month decision, the concept that I’ve already got 5G built in, it feels pretty good,” Lurie said.

But buyers such as Li Hongzhuo, 22, a student in Beijing, said he was interested in 5G, but it wouldn’t be the deciding factor and he preferred to wait until the technology was tried and tested.

“Typically my needs for my phone are high speeds for downloading videos or transferring files from chat apps. This will get faster (with 5G), but 4G already satisfies my needs,” said Li.

“I won’t really consider switching my phone until 5G has been operating stably on the market for some time without any bugs – or unless they stop offering 4G.”

Continue Reading

Business

Apple’s App Store record $1.22B over the holidays plus a record $322M on New Year’s Day

Segun Balogun

Published

on

Apple’s App Store pulled in $1.22B over the holidays plus a record $322M on New Year’s day

Apple’s app store had a record-breaking holiday week and New Year’s Day,  according to a report by Apple. The company says its holiday week was our biggest week ever, as customers spent $1.22 billion during the 2018 holiday season and $322 million on New Year’s Day 2019, which set a new record for single-day spend.

Apple also used the opportunity to thank talented developers and customers around the world, as the App Store finished off an outstanding 2018 and kicked off 2019 with a bang.

Apple’s App Store pulled in $1.22B over the holidays plus a record $322M on New Year’s day

Customers spent over $322 million in the App Store on New Year’s Day 2019 alone, setting a new single-day record.

Gaming and self-care were the most popular categories of app downloads and subscriptions during the holidays. Globally, multiplayer games including Fortnite and PUBG were among the top downloaded games over the holidays, along with Brawl Stars, Asphalt 9 and Monster Strike. Productivity, Health & Fitness and Education apps are already capturing the attention of customers in the first few days of the year with 1Password, Sweat and Lumosity charting in their respective categories, according to the statement released by Apple.

Last year, Apple also announced a record-breaking holiday season, with $890 million spent during the week of Christmas Eve and $300 million on New Year’s Day 2018.

Apple CEO Tim Cook, in his letter yesterday, signaled that the App Store remains one of the bright spots in the company’s “Services” category, even as he delivered the crushing news of a slowdown in iPhone sales.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.

Continue Reading

Business

Global food and beverage giant, Nestlé launches Workplace by Facebook

Techcribng

Published

on

Workplace by Facebook, the social network’s enterprise solution is now the official global internal communication tool at Nestlé which major aim is to connect its workforce, help the organization to create its own internal social networks and better serve consumers.

Nestlé said in a statement to the media that some 210,000 of its employees worldwide are now using the platform, adding that among those who were part of the initial deployment, engagement per post was 25 times higher than it had been on other platforms.

Nestle began implementing Workplace by Facebook nine months ago, with the first wave including employees in Mexico, Brazil, the Middle East, and South Africa.

Most features on Workplace is quite similar to the general Facebook features such as News Feed, Groups, Chat, events and live streams, as well as seamless mobile integration. Because Workplace is easy to use, it can connect everyone and reach employees where they are.

This move by the global food and beverage giant is parts of its commitment to empower people and sustain a high-performance culture. The company is moving more and more to offer open office configurations and more flexible working environments.

Meanwhile, the Chief Information Officer at Nestlé, Filippo Catalano while commenting on this great development said: “Today, using Workplace by Facebook we are able to give our employees across the
globe a platform to build connections, enabling faster and more engaging sharing of information.” Also, Julien Codorniou, vice president of Workplace by Facebook said, “As the global work landscape continues to change and
the demand for better collaboration, best-of-breed IT and mobile-first work increases, we are honored to partner with a company like Nestlé to help employees work together to allow for limitless innovation.”

Continue Reading

Trending

    %d bloggers like this: