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[MUSIC PLAYING] I'm sure you've all heard the term lifetime value, or LTV. All of us would, of course, love to increase the total dollar value we get out of each customer. Shopify Plus merchants, here is a great opportunity to utilize the Shopify scripts and customer tags. They allow for so many opportunities to reward loyal customers. Free shipping is one of the biggest drivers in a conversion decision.
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Depending on your industry, it may be too expensive to give everyone who lands on your site free shipping. But why not offer it up to return customers who are on their second order? You can use customer groups to dynamically tag a customer's account as they make their first purchase. Then utilizing Shopify scripts, you can trigger free shipping for any customer marked with that tag. You can reinforce the promotion in all the automated email touch points that immediately follow purchase, like your order and shipping confirmation emails.
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If you want to put a clock on that promotion, you can write a quick script to have that initial purchase customer tag expire after 3, 6, or however many months you think would best resonate with your customers the goal here being to limit your exposure to additional costs while also creating a sense of urgency for their next purchase. Going the customer tag and Shopify script route will not only create a cleaner user experience by automatically including the discount on a cart level, but it will also afford you additional analysis capabilities and customer segmentation.
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To take building customer loyalty one step further and increase your chances of upping your per customer lifetime value, you can segment out your top percentile of customers by LTV on the back end. Once you have that group determined, you can mark them with a specialized customer tag that will allow you to start utilizing Shopify scripts to build a top-tier VIPs incentive program of sorts.
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Think an Amazon Prime-type approach with club-like perks. The specific incentives you offer here will obviously be dependent on your margins. But I encourage you to look at this versus the typical dollar value of a new customer cost per acquisition. Scale that back a healthy degree, and turn the remaining value into something you can pass along to your most loyal customers. Not only will you encourage repurchase, but you will be dramatically increasing your chance that that customer recommends your product to a friend.
2:30
That word of mouth could get you your next customer at full price with a zero dollar acquisition cost. There are a couple different routes you can take this promotion-- one, for exclusive VIPs where you speak directly to those customers via marketing emails. In this case, I encourage you to include a specialized referral program for the VIPs to give codes to their friends. Again, you can offer things like free shipping on all orders or a percentage-based discount on anything they add to the cart.
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In order to properly market this type of program, you'll most likely have to set a barrier for entry, such as a $250 spend limit in a given year to access the special program. But I also recommend that you give the option to buy in for a set dollar amount. You aren't Amazon, so chances are people won't take you up on that if it's high. But it will assign a dollar value to the cost of entry and encourage people to try to reach it with spend.
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You can reinforce and draw attention to the promotion in those post-purchase touchpoint emails, as well as during your welcome series emails. Thank you for watching my course. My name is John Murphy of Wolfpoint Agency. If you want to learn more about how you can build your postpurchase funnel, head to my website at wolfpointagency.com. [MUSIC PLAYING]
