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CEO Booted Customers

A few years ago, Dish TV lost 23,000 subscribers in a single quarter. When someone asked the CEO Charlie Ergen what he thought about it, he responded that they don’t have time for unprofitable customers.

These customers were calling 30-50 times a month, requiring lots of support, asking for discounts. He did not elaborate whether these customers were calling about service problems.

So he got rid of ’em.

Funny thing is that e-commerce has a similar problem. Online stores spend tons of money on google adwords and promotions to acquire new customers. These new customers buy a discounted item and never come back for another purchase. And it’s not even because of bad product or service. Most of these lost customers are satisfied customers.

It doesn’t have to be this way.

Customers can and will stay for the long-term… if you have a repeat customer funnel.  A repeat customer funnel gets customers coming back for the 2nd, 3rd and 4th order.

RewardCamp implements a repeat customer funnel for you, automatically and in a way that your customers love. Sign up for a free trial of RewardCamp and get your own repeat customer funnel.

The $2.5 Billion Testimonial?

In March 1985, Nike launched the Air Jordan shoe at stores nationwide.

Within two months Nike had sold $70 million worth of Air Jordan shoes. By the end of the year, the Air Jordan franchise had produced revenues of $100 million. In 2012 alone, the Jordan brand sold $2.5 billion worth of shoes.

Phil Knight called the partnership between Nike and Jordan “the perfect combination of quality product, marketing and athlete endorsement.”

Athletic endorsements is a powerful marketing tactic that generates billions of dollars in sales for big corporations. A simpler version of this tactic can be used by e-commerce companies.

It involves getting customer testimonials and reviews. It’s a great way to increase conversion. But how do you get testimonials?

Here is a 5 step process to generate testimonials for your store.

Step 1: Identify your best customers – the ones who are buying frequently from you. You can use RewardCamp to identify these customers.

Step 2: Make it easy – Draft a sample testimonial that the customer can easily edit.

Step 3: Ask for the testimonials using the email template below:

Hi Customer,

Thank you for being a loyal customer. Would you be open to writing a testimonial for us?

An honest description of your experience with us, in your own words, would work great. Below is a sample to help you get started.

‘I love shopping at ___! It’s ___ (easy, quick, convenient) and I love their great ___ (deals, selection, service).’

Thanks for your help!

Step 4: Use the testimonials. Add it to the home page, to the product page and even your checkout page.

A great side effect of customers writing testimonials is that they also tend to order more often from you.

Once you have these testimonials and reviews in place, you will notice an increase in new customers. Then you can use RewardCamp to convert these new customers into repeat buyers.

Sign up for a free trial of RewardCamp and grow your sales.

The Force That Creates Sales Over And Over

“The force that creates sales, that powers our present economy, is desire. And the art of salesmanship, fundamentally and primarily is expanding this desire. Expanding it horizontally, among more and more people. Expanding it vertically by sharpening and magnifying it – by building it to such a pitch that it overcomes the obstacles of skepticism, lethargy and price, and results in the sale.”

These words were written by Gene Schwartz in his book Breakthrough Advertising. He goes on to explain that salesmanship is all about overcoming objections.

Objections about trust.
Objections about price.
Objections about quality.

This is no easy task. Throw in competitors and it’s made more difficult.  Now add the convenience of online shopping, and your sales job just became even more challenging. And yet, e-commerce retailers are accomplishing this tough feat every day.

Then a funny thing happens.

After spending all that energy to get each new customer, they forget about him. Their focus shifts entirely on getting the next new customer. But over fifty years of retailing data has shown that a customer who buys once is more likely to buy again. It takes just a bit more effort.

That effort consists of accomplishing three things:

  1. Delight the customer
  2. Help the customer remember you
  3. Give the customer a reason to return

RewardCamp does this work for you. And it does it very well. So well that most of our retailers see double and triple growth in their repeat orders. Sign up for a free trial of RewardCamp and grow your sales.

His Competitors Were Pissed Off

In 1987 Chris Zane, a small bike shop owner in Connecticut pissed off his competitors. Zane decided to offer his customers free lifetime service on all bike’s he sold.

“Free service for as long as you own the bike is ludicrous,” said John Budd, general manager of Action Sports. “But we’ve matched Zane tooth and nail.”

His shop now offers lifetime free service, as do most other bike retailers in Zane’s market. Many feel they have no choice, and they’re resentful that Zane forced their hands. Zane has since offered his customers many more perks, including free parts, in-store coffee bar, price guarantees, etc.

In 2011, Zanes Bikes had revenue of $20 million. Zane doesn’t worry about the cost of offering increasingly more perks to his customer because he has figured out the lifetime value of a customer.

He writes, “my average customer will spend $12,500 on my products and services over his or her lifetime, $5,000 of which is profit. Of course the only chance I have of ever seeing that kind of return on the relationship is if that customer keeps coming back and back again. Better yet I want customers to  come back with their kids, their relatives and five friends.”

When you start looking at the lifetime value of a customer, you start making decisions that piss off your customers and yet increase your profits. RewardCamp helps you to figure out the lifetime value of your customers. And it takes it one step further – it shows you the value of the customer, based on customer segments – the value of customers who buy twice, the value of customers who buy three times and so on.

Here is the avg. value of customers of one retailer:

Value of customers who order once – $68
Value of customers who order twice – $124
Value of customers who order thrice or more – $329

That’s just the start. RewardCamp then provides a ‘set it and forget it’ method for you to convert new customers into repeat buyers.

Sign up for a free trial of RewardCamp to learn and increase the lifetime value of your customers.

They Kept Losing Sales

Three brothers had started a solar lighting e-commerce store but they were hardly making any money. So they made some changes.

They moved the store to an e-commerce platform that allowed quick changes. They hired a developer to redesign the store. They added a chat box for visitors to ask questions. They started advertising.  Of all the changes, the chat box provided the most interesting results.

No one ever used the chatbox. But the chat box allowed the brothers to see in real time what the shoppers were doing.  Here’s what they noticed.

Shoppers would click on ad and land on their store. The shoppers would add a product to the shopping cart. But instead of finishing checkout, the shoppers would visit the ‘About Us’ page and then exit the site. It happened over and over again.

So the brothers made changes to their ‘About Us’ page.

  1. They posted pics of themselves.
  2. They talked about how it’s a family business.
  3. They listed their 5 point customer pledge.
  4. They added testimonials.

Here’s what happened next. Instead of abandoning the cart, shoppers were completing the order! Taking action and experimenting is the way to get new customers.

But once you have them, you need other tactics to keep those customers coming back. Like using RewardCamp to convert new shoppers into repeat customers.

Sign up for a free trial of RewardCamp.

How To Sell Your Customer On Future Orders

Last Saturday was a friend’s birthday. I took her and another friend out for dessert. We went to a New York City institution called Veneiro’s. They’ve been around for 123 years. Hopefully they’ll be around for another hundred years and won’t be driven out because the ‘rent is too damn high’ in this city.

We walked in at 11pm and the place is packed. A long line of people were waiting to be seated. Thankfully the line moved quickly and we were soon seated. We get a laminated menu showing pictures of 12 different desserts on each page.

My friend got a chocolate cake.  I had surprised myself. I’m a chocolate man (in every way you can think of 😉 but I ordered a four layer strawberry and banana cake. It’s because of the menu – the pictures makes it fun to browse, narrow down your options and even go with something outside your comfort zone.

The waiter arrived with our order. He had put a candle on my friend’s cake. We sang happy birthday and the rest of the restaurant joined in. It was a good celebration. We ended the night with decaf cappuccinos.

The point of this story?

Sell your customers not only on today’s order, but also on tomorrow’s order. Using their picture menu Veneiro’s not only sold me on the strawberry cake that night but also on their other desserts. I want to go back and try them.

But how do you sell your customers on future orders in e-commerce? You already have great pictures. What else can you do? Well, I have a little product called RewardCamp that can help you to sell your customers on their next order.

Sign up for a free trial of RewardCamp to learn how.

How He Found the Profit Sweet Spot

A young man with zeal decided to stop making excuses and get into business. He started a used shoe business because he liked shoes and that’s all he could afford.

He bought 20 pairs of shoes and set them up on a table in the town square. After weeks of trying, he couldn’t sell a single pair. Frustrated and demoralized, he spoke to one of the successful merchants. After listening to his predicament, the merchant told him:

“People are not buying from you for three reasons:

  1. They do not want what you are selling
  2. They cannot afford what you are selling
  3. They do not believe you

You have to figure out which one it is and fix it.”

“But how?” the young man asked.

“The market has all the answers you need.”

The next day, the young man setup his table of shoes and began walking around the square. He stopped a passerby and asked:

“Excuse me, I’m an entrepreneur. I started a business and I’d like to get your advice. You don’t have to buy anything.”

The man relaxed, became curious and they began talking. He spoke to a few other people that day. He learned that most of the people at the square really like Italian shoes. So he put up a sign the next day — “Italian Shoes”

Finally, he started getting some sales. But it wasn’t enough. He needed to sell 100 pairs a week but was selling only 2 pairs a week. He decided to try the old trick again. A lady stopped by his table and was about to leave. He asked her:

“Miss, you stopped to take a look but decided not to buy. Tell me what makes you hesitate?”

She replied:

“Your shoes look old. And the prices seem high.”

The next day he removed all the old looking shoes. He spent an extra 20 minutes dusting off the best ones and put a sticker next to one:

“Was $50, now $5”

He sold a lot of shoes that day. He was making enough money to start selling new shoes. Soon he discovered a problem with the shoe business – people don’t buy shoes often. He kept talking to his customers.

One of his frequent customers had suddenly stopped buying. He called the guy and find out what happened. It turns out that the customer is a school principle and was buying shoes for the poor kids from his paycheck. But the principle was hard up and couldn’t afford to buy any more shoes.

Touched, he offered free shoes for the poor kids for one year. The story about his goodwill was featured in the town newspaper. Soon parents were buying shoes from him. He had found a sweet spot – kids shoes. Turns out that kids buy a lot of shoes.

Our young entrepreneur was soon on his way.

Talking to customers is a sure way to get unstuck. But talking to your best customers can unlock new opportunities. RewardCamp not only gets you more repeat customers but also allows you to pinpoint exactly who to talk to.

Try RewardCamp with a free trial.

Hard Working Entrepreneur Cannot Grow Business

An entrepreneur ran a grocery store in a popular location.

He was very hard working; working from 4 in the morning till midnight.

But his business never grew because it was missing two of the three P’s:

  • People. He did not hire talented people to run his business
  • Process. He did not invest in processes that would grow his business and save him time running it
  • Product. His grocery store being in a good location is the only thing that was going for him.

Speaking of processes, RewardCamp allows you to setup a process that converts new customers into repeat customers.

Try RewardCamp with a free trial.

Four CEOs Grab a Drink…

The CEOs of four beer companies are meeting in a secret, undisclosed location, for a day of meetings. After several hours they take a break and head down to the executive bar.

The CEO of Budweiser orders a Bud Light. The CEO of Coors orders a Coors Light. The CEO of Miller orders a Miller Light.

The CEO of Guinness orders a Coke. One of the CEOs asks: “Why aren’t you ordering a Guinness?”

“Since none of you are having a beer, I’m not having one either.”

🙂

Get the Guinness of loyalty programs. Try RewardCamp!

$1 Million Bet

Back in 2006 Warren Buffet publicly challenged fund managers to a wager. He bet that over a ten year period the stock market would outperform any professionally managed investment fund.

Buffet wrote, “though there are thousands of professional investment managers who have amassed staggering fortunes by touting their stock-selecting prowess, only one man — Ted Seides — stepped up to my challenge,”

Buffet put up $500,000 and Ted Seides’s fund put up $500,000 resulting in a $1 million bet. Buffet picked a Vanguard index fund that tracked the S&P 500. Ted Seides’s picked a fund of funds that comprised of five hedge funds. The ten year period came to an end in 2016.

The result?

The Vanguard index fund handily beat the fund of funds. According to Buffet, “$1 million invested in those funds would have gained $220,000,” he said. “The index fund would meanwhile have gained $854,000.”

I was curious how Buffet’s own performance stacked up against the S&P 500.

It turns out that Buffet is one of the few people to have beaten the S&P 500 for over 35 years. $10,000 invested with Buffet in 1965 would have grown to $88 million dollar today. That same amount invested in the S&P 500 would have grown to $1.3 million.

And yet, every year billions of dollars go into funds managed by investment managers.

The point of this story?

People will ignore simple advice and go with shiny, complicated tactics. I see it in e-commerce. Heck, I fall into the same trap myself.

But the reality is that simplicity always wins. And it wins big in e-commerce loyalty. Online customers want a simple way to earn and use rewards.

RewardCamp does that extremely well! Try a 30 day free trial of RewardCamp.