If you’re an ecommerce site or a site that offers multiple products or services, you may want to start thinking about the long-game and how you get customer to re-convert. Janne has some ideas for you.
“Companies spend a lot of time looking at cost per action (CPA) and making this as low as possible. But, in my view, this is a short-sighted way to manage a sales business.
Companies should spend more time thinking about the customer lifetime value – what can be marketed and sold to the customer which not only meets their needs, but also gets them back and converting again?
Gatekeeper products are a great way to do this. Spend some time looking at what products people first buy and what they then comeback and buy again at a later date – especially where the latter products are of a higher value. This can help you in deciding how to market and price products you deem as gatekeeper products and how to entice more potential future converters in.
I’ve even seen some companies sell their initial gatekeeper products at a negative ROI. They do this as they have done their research and know that an approximate number of those customers will then come back and make further, larger value purchases. That then, as a minimum, covers the original loss on the smaller ROI, produces a positive for this item and enhances customer loyalty.”