Bounce-Back Email Offers Increase AOV by 25%

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Increase in average order value

The challenge of customer acquisition

Finding new customers is expensive. In the world of eCommerce, you’ve got to spend money on ads, money on your website, money on content to compete in organic search results, money on email marketing, on video content, a social media strategy, the list goes on and on.

Don’t even get us started on discounts.

It would be nice to think that all that investment will reap rewards overnight. But the reality is that most online businesses lose money on a sale to a new customer.

It works like this: Company X spends $1000 in digital marketing efforts and gets 10 new customers, each spending $80. $1000 spent, $800 made. That’s a loss of $200.

What’s up with that?

Check this out: In the case above, customer lifetime value (CLTV) at the point of first sale is 0.8 (80% of the customer acquisition cost (CAC)). Company X needs CLTV to hit 1 just to break even. Eventually, they’d like it to be 1.5, 2, or heck, 100). So how to pull off this magic trick?

You may not be Company X, but in all likelihood, you face a similar challenge.

That means that when you do get a new customer, you need to really make them count. You need to make back your customer acquisition investment ASAP, and get your new customers on track to bringing you serious profits.

Enter: The bounce-back email.

What is a bounce-back email?

Let’s start with a simpler question: What’s a bounce-back?

A bounce-back is an offer intended to turn a first time customer into a repeat customer, and fast.

The data shows that a first-time customer is most likely to turn into a repeat customer shortly after their first purchase. They learned about your company, finally pulled the trigger, and now they’re excited!

They’re primed to buy more from you! It’s all about the momentum.

On top of that, once you secure a repeat customer (what we call an F2, for Frequency=2), you’re in a good place, because the data also shows that new customers who become F2 customers quickly after their first purchase are more likely to make even more purchases in the future.

We see you, profitability. You can’t hide from us.

With a bounce-back, you tell a new customer, “Wow, thanks for the order you just made – we think you’d love this, too!” Throw in a discount code and you. are. golden.

So what’s a bounce-back email? It’s delivering your bounce-back offer to a customer via email. Pro tip: SMS can work for this too, by the way!

Typically, a bounce-back email lives inside of a post-purchase automated flow – this is where you send one or more messages to your customers right after they make a purchase, often with specific messaging related to what they just bought.

We make these types of emails and SMS automations for our clients’ day-in and day-out, and they work like a charm. And the best part? They’re automated. You can set-it-and-forget-it (well it’s kinda hard to forget all the money you’re making, but you get the idea).

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The results

One of our eCommerce clients has a first-time average order value (AOV) of $55. Our bounce-back automations converted 25% of those first-time customers into repeat customers. The average value of their second order? $13.40. All the sudden $55 becomes $68.40 — a 25% increase in revenue.

If this were Company X, they’d be in the black.

In the case of this client, at the end of the day, they actually make profit off their first purchase. For every dollar they spend in making their product and advertising it, they make $1.50. With the bounce back, that $1.50 turns into $1.88.

At their volume, that adds up to an additional $60,000 a year. That’s free money, people. 

Bounce-Back Potential Calculator

Want to know what a bounce-back email could do for you? Plug in your numbers below!

Additional Revenue = (Number of First Time Customers Per Year)x0.25x(Your First Time Order AOV)x0.25

Want this for your business? Contact us to set up a free needs analysis consultation > 

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