e-Commerce Analytics Blog
All the expert insights and recommendations you need to help you make data-driven decisions that accelerate growth.
ROI vs. ROAS: Differences and Which You Should Use
Many people make the mistake of assuming that they should use either ROI or ROAS to calculate the viability of their business. The bottom line is that together these e-commerce metrics unlock different insights into your business as a whole and will allow you to set benchmarks to boost your company's performance. They can tell you if you have effective or disruptive advertising that's optimizing your ROAS, if your marketing budget is experiencing a bleed, or when you reach your break-even point. To help you understand the difference between ROI and ROAS, this article explains what they are, how to calculate them, and which you should use for different situations. What Is ROI? Return on investment (ROI) measures the net profit you make on an investment, taking the original cost of the investment into account. Calculating ROI With an Example You can use the following formula to calculate ROI to see if your business is a good investment: ROI = (net profit / net spend) x 100 Let's look at an example: Marvelous Meats makes a net profit of $10,000 a month. Their net spend is $6,000. Therefore: ROI = (10,000 / 6,000) x 100 =166.66666 ~ 167% Let's look at another example: Ben's Bakery makes a net profit of $10,000 a month, but their net spend is $9,000. Therefore: ROI = (10,000 / 9,000) x 100 =111.1111 ~ 110% These examples tell us that Marvelous Meats is more profitable and a better business opportunity for a prospective small business buyer. What Is ROAS? Return on ad spend (ROAS) measures how effective your online advertising campaigns are. In other words, ROAS will tell you how much your business earns for each dollar you spend on advertising. Calculating ROAS With an Example The formula for calculating ROAS is: ROAS = (revenue generated from adverts / advertising spend) x 100 Let's look at the same examples: Marvelous Meats generates $7,000 from their online adverts. Their online campaigns cost $2,000: ROAS = (7,000 / 2,000) x 100 = 350% Ben's Bakery generates $4,000 from its online adverts. Their online campaigns cost $3,000: ROAS = (4,000 / 3,000) x 100 = 133% These examples tell us again that Marvelous Meats has a more effective advertising campaign when compared to Ben's Bakery. ROI vs. ROAS: What Are the Differences? Here are six of the most important differences between ROI and ROAS: Purpose: ROI speaks to your company's profit and ROAS to its revenue. Profit: ROI will tell you if your company's advertising is profitable, while ROAS only considers direct spend and doesn't take other online campaign costs into account. In other words, ROAS can tell you if your adverts are generating clicks and impressions, and ultimately revenue. The type of investment: ROI will analyze the success of any investment while ROAS calculates the success of marketing and advertising campaigns.Spend: ROI looks at organizational spend, while ROAS looks at ad spend.Results: ROI tells you if your marketing and advertising campaign is profitable while ROAS will tell you if it's effective.Finances: ROI and ROAS represent a business's finances differently. ROI uses your investments to increase your profits steadily over time, while ROAS is seen by many as a necessary cost of doing business. Now that you have a good understanding of the main differences between ROI and ROAS, let's take a look at a more practical example. Example of ROI vs. ROAS Your company makes $50,000 in revenue and spends $12,000 on advertising. The cost of your equipment and employees adds up to about $40,000. ROI = (-$2 000 / $52 000) x 100 = -3.85% ROAS = ($50 000 / $12 000) x 100 = 417% The ROAS calculation may look good at first glance, but the ROI tells you a different story. These figures tell you that your business is not making money—in fact, it's running at a loss. This is why it's so important to calculate and keep up with both your ROI and your ROAS at the same time. On the other hand, these calculations could also tell you that your company is spending a lot of money on an online advertising campaign that's not effective and not optimizing ROAS. You can use ROI and ROAS to keep your finger on the pulse of your business, and as a result, see it succeed! ROI and ROAS: What Are the Similarities? ROI and ROAS are both useful metrics that business owners can use to find out if the company's money is spent optimally. Both of these metrics can also tell you how effective your marketing and advertising campaigns are or, in other words, how your marketing affects your company’s revenue. ROI vs. ROAS: Which Should You Use? If you're serious about monitoring the success of your business you should regularly calculate both your ROI and ROAS. Once calculated, the results can be included in profit reports and performance reports to provide you with an overall view of your business and allow you to make appropriate changes to your business strategy. Calculate the Break-Even Point Using ROI and ROAS You reach your break-even point in your business when you're not making money, you're also not losing money, but all your costs are covered. It calculates the minimum sales you'll need to cover all your costs. In simpler terms, you reach break-even at the point where your total costs (TC) equal your total revenues (TR): TC = TR. Calculating your break-even point is especially important in the beginning stages of building your business. Analyzing your ROI, ROAS, and break-even point will give you powerful insights into the state of your business. By making data-driven decisions, you will build a solid business from the ground up, a business that will stand the test of time.
AnalyticsHow to Use Shopify Automated Reports to Boost Efficiency Shopify Reports provide users with a variety of automated reports to analyze conversion rate, average order value, revenue per customer, and other e-commerce metrics to boost sales. You may feel overwhelmed by the amount of information e-commerce reporting and analytics provide. Therefore, this post discusses essential Shopify automated reports and their uses to help you boost your store's efficiency. 7 Essential Shopify Automated Reports for Efficiency-Related Insights The importance of e-commerce performance reporting is vital to analyzing the success of your shop and marketing activities. Shopify Customer Report Customer reports provide insight into your customers' behavior and preferences that can help you make better decisions about your products and services, identify trends within your customer base, and analyze the effectiveness of your marketing campaigns. You can generate the following types of customer reports: Customers over timeFirst-time vs returning customer salesCustomers by location Shopify Inventory Report One of the most important aspects of running a successful business is maintaining accurate inventory records. You need to keep tabs on inventory levels, turnover rates, and best-sellers to maximize profits. To save money on stock, run more successful promotions and discounts, and keep better books, establish a routine to regularly check the following inventory reports: Sell-through rate by productABC analysis by productPercent of inventory soldDays of inventory remainingMonth-end inventory snapshotMonth-end inventory value Shopify KPI Report For many small businesses, tracking key performance indicators (KPIs) is a crucial part of running a successful online shop. With the help of Shopify KPI reports, you can easily access detailed information about your most important metrics, such as conversion rates, average order value, and store traffic, equipping you to make data-driven decisions. Shopify Order Report Shopify Order Reports help you to analyze your sales performance, including shipment data, fulfillment information, and customer feedback. You can see how many times each item was shipped, what items customers returned, and much more. This report gives you insights into your order volume, shipments, fulfillment, shipping, deliveries, and returns. Shopify Sales Report If you want to know if your retail outlets are profitable, the easiest method to find out is to keep a close watch on sales. Do you need to make adjustments to ensure you reach your monthly sales goals, or are they functioning as expected? Examine the following sales data to gain an accurate picture of how your business(es) and employees are doing: Sales by channelAverage order value over timeSales by billing locationRetail sales by staff at register Shopify Retail Sales Report Apart from general sales, keeping track of each product's and store's sales is also important for retailers. This allows you to determine which items sell well and where you can make improvements. The retail reports provide insight into how much inventory you're ordering versus what you're selling when combined with your inventory data. Your overall sales volume can even help you determine what products are bestsellers. Get data on: Retail sales by point-of-sale locationRetail sales by product typeRetail sales by product variant SKU number Shopify Shipping Report With the shipping report, you'll be able to see what percentage of items shipped via each method, calculate the cost of delivery per item, and export your shipments as .csv files. This allows you to easily identify trends over time and compare different options. How to Analyze Shopify Automated Reports When conducting your analysis, make sure you know what information you want from your data. It can become overwhelming just to absorb volumes of data without adding meaning to it. You won't be able to implement the results of your analysis because there isn't a purpose to it. Analyzing reports also isn't just a once-off exercise. It's a continuous process that will enable you to keep on improving your store. Whether customer behavior and trends change, technology updates, or products and services diversify, data from analyzing reports can help you adjust. Conclusion Shopify sellers use e-commerce analytics to boost sales and to guide their e-commerce dashboards so essential information is available at a glance. Shopify automated reports especially can help you identify shortcomings in your business and enable you to implement effective measures that will drive efficiency.
AnalyticsThe 5 Different Types of Business Reports ExplainedRegardless of the size of your business, the insights gained from business reports are invaluable as they provide an understanding of what's working in your business and what needs improvement. Business reports provide metrics that can be used to plan future marketing campaigns, analyze profit, guide budgeting, and help forecast future developments. Statutory vs. Non-Statutory Reports Statutory reports are mandatory reports containing both financial and non-financial information that a company must submit to a government or concerned agency. Some examples include annual returns, auditors' reports, and the directors’ reports to the annual general meeting. On the other hand, non-statutory reports are not required by law and are usually created to assist the directors and executives of a business in their future decision-making. Some examples include directors' reports to shareholders and reports of individual offices in a business. Different Kinds of Business Reports There are various types of business reports that can provide insight into your company. The following are 5 reports you don't want to skip. 1. Informational Report Informational reports are created to provide data, facts, and feedback in an organized manner without analysis or recommendations. Informational reports can be used to produce decision-making reports, policy reports, and compliance reports. 2. Analytical Report Analytical reports, similar to informational reports, provide data, facts, and feedback. However, analytical reports also include analysis, interpretation, and recommendations related to the represented data. For example, a CMO could use an analytical report to identify specific issues caused by current global factors. 3. Research Report Research reports are one of the most comprehensive. These reports are created by a team of specialists when a business sets out on a new endeavor, such as expanding into new territories or launching new products. The reports contain important statistics and details obtained from other specific reports as well as a detailed analysis of the findings. 4. Explanatory Report An explanatory report is used to explain and elaborate on a topic or situation in an easy-to-digest way. An explanatory report is an opportunity to explain your results, give a reason for your research, provide your methodology, and provide samples of your findings. 5. Routine Report A routine report is created at regular intervals, usually weekly, fortnightly, monthly, quarterly, and yearly. These reports can be informational with great detail, or in a brief form. Some examples include weekly production reports and monthly sales reports. If You’re an E-commerce Shop Owner E-commerce performance reporting is essential to expanding and maintaining a successful online store. An advanced report builder can help you create customized informational, analytical, and research reports. By analyzing these reports, you'll be able to better forecast the future of your company. Your online store also offers a guide to e-commerce dashboards, which allows you to view your business's metrics at a glance and highlights where action is required.
Cro4 Irresistible Customer Winback Emails (Templates + Examples)Your customers are worth fighting for! When a relationship with a customer is broken, it requires extra attention to mend. By personalizing your approach to each customer, you will achieve optimal results. In this post, we look at 4 win-back email examples that form an essential part of newsletter email marketing for beginners and pros alike. 1. "Hello?" Winback Email A "Hello?" Winback email can be just the refresher your customers need to re-engage with your brand. Customers are reminded why they chose your brand in the first place, so focus on highlighting key benefits, providing value, and thanking them for being part of your brand journey. This is also a good opportunity to make customers aware of your unique selling propositions by showcasing certain products or features that you're proud of. Example: Subject line: A lot has happened since we last saw you… Body: We just wanted to say that we miss you. And that lots have been happening at [insert brand name] lately. Here are a few things you might have missed. [showcase the latest deals, updated features, etc. and include imagery if possible] Email CTA: Take me there! [Links to website/specific shopping page] 2. Incentivized Winback Email A winback email is a great opportunity to offer an incentive, like free shipping, upgrades, or prizes. Incentives don't always have to be discounts. A product incentive can also be effective because it offers something tangible the customer can anticipate. Regardless of the type of incentive, remember to create a sense of urgency that will compel the customer to act fast. Example: Subject Line: [X]% off, exclusively for you! Body: Please come back to our site and our lives—we miss you. So, we did something we don't usually do: we added a discount coupon to an already great deal. This one is especially for you! Make sure to get it before [X] days are up. Email CTA: I want in! [links to shopping page] 3. Winback Email Seeking Customer Feedback Customer reviews are important, because it allows you to better understand why you're losing customers and how to get them back. If you prioritize client satisfaction, a feedback email may be enough to win them back. The information you gain from surveys will improve the customer journey stages. You can also incentivize your customers to engage by offering a discount or gift to fill out a feedback form. Example: Subject Line: What made you go? We'd love to know! Body: Hi [Customer], It's not the same without you. It looks like you haven't been engaging with our emails lately, and we'd love to figure out why. What can we do for you? Email CTA: Let us know what's not working [Links to survey] 4. "Unsubscribe?" Winback Email Don't assume someone has unsubscribed from your mailers because they don't seem interested in receiving them again. If you send a follow-up email within 24 hours of receiving an unsubscribe request, you increase the chances of winning back those customers. Use your unsubscribe message to find out why they left, whether it was intentional (this happens!), and how you can improve their customer experience. Good practice is to include a CTA to re-subscribe or to provide options to customize the frequency of emails. Example: Subject Line: We hate goodbyes Body: Hi [Customer Name]! We noticed you no longer open our emails. We know that things come up in life, so if you want to move on, we won't stand in your way. But, if you don't want to miss out on [customer value proposition], let us know you still want to hear from us. Otherwise, this will be our last email. Email CTA: Keep them coming! Conclusion By utilizing a winback email strategy, you will start attracting repeat customers and re-engaging inactive ones. Other email templates to consider include "just checking in", "special occasion" such as introducing e-commerce customer loyalty programs or informing customers of flash sales, and "FOMO" templates.
CroShopify Millionaires' Advice: 5 Hacks to Get Repeat PurchasesIncreasing your Shopify store revenue isn’t just about attracting as many new customers as possible. If you want to boost your income, you should be looking for ways to incentivize customers to continue making repeat purchases. Excellent customer service, fantastic offers, and personalized benefits can all strengthen your chances of loyal, long-term clients. Hack #1: Foster an Emotional Connection One of the top tricks to attract repeat customers is to build an emotional link with your audience. The majority of purchasing decisions made in today’s world are emotional, so having a strong connection is crucial. You can boost your chances of an emotional connection through storytelling strategies. Try telling your customers all about the benefits they can get from your products, and help them to visualize what it’s like to own your items. Hack #2: Implement Loyalty & Referral Programs With so many alternative options available to buyers today, most customers need the guarantee of something special to convince them to return to a store. One of the biggest benefits of e-commerce customer loyalty programs is your customers become invested in buying from you. When customers have an opportunity to earn something in return for their purchases, like discounts or free shipping, they’re likely to buy more. You can also use the same rewards to encourage customers to refer others to your website. Hack #3: Provide Exclusive Discounts Customers like to feel special. Providing different segments of your audience with exclusive discounts is a great way to achieve this. For instance, you could send special offers to your most loyal customers first, or give them early access to sales. You could also share exclusive discounts on certain channels. For instance, you might give your email subscribers extra discounts, or share sale details on social media. Hack #4: Cross-Sell & Upsell Upsell and cross-sell best practices are excellent ways to not only improve the loyalty of your customers but simultaneously increase your average order value. Offering your customers access to bundles or discounts on products regularly purchased together means they’ll be more likely to add extra pieces to their cart. Additionally, when your customers purchase more items from you, they have more opportunities to experience the benefits your company can offer for themselves. This leads to a greater level of trust and loyalty between buyers and e-commerce stores. Hack #5: Gather Customer Feedback Finally, the importance of customer reviews cannot be understated. Listening to your customers' feedback improves your chances of capturing new customers and retaining current customers. Asking for reviews from your target audience in exchange for a discount or free entry into a prize draw is a great way to incentivize them to leave testimonials. You’ll be able to learn from the messages your customers send, and use their insights to improve the customer journey. Plus, you’ll benefit from a source of social proof you can include in your future marketing campaigns. Optimize your Shopify Store These hacks really can transform your business into a more profitable one. For instance, one 17-year-old on Shopify managed to earn a six-figure income just by customizing their advertisements and sales strategies to appeal to buyer emotions.
AnalyticsHigh Facebook Ads Traffic With No Shopify Sales? Here's WhyHigh levels of Facebook Ad traffic should help to improve your Shopify sales. Unfortunately, there are various reasons why a strong increase in traffic didn't pay off the way you hoped. There’s a big difference between conversion rate vs ctr. Shopify store owners need to make sure they know how to identify the root cause of the problem if their Facebook ad traffic isn’t boosting revenue. Reasons For Disconnect Between Facebook Ads Traffic & Shopify Sales If you’re seeing great traffic from your Facebook ads, but you’re not benefitting from a good e-commerce conversion rate, something may have gone wrong with your ad strategy. 1. You're Targeting the Incorrect Audience Usually, high traffic from Facebook ads is a good sign that you are targeting the correct audience. However, there could be a slight difference between the people who might be interested in your products, and the people who are going to buy. It's crucial to dive into the details of your user personas to understand exactly who you need to reach. 2. Something On Your Store Is Turning Visitors Away If you’re reaching the right audience, but they’re not converting when they reach your Shopify store, something could be putting them off. For instance, you might be advertising a product at a specific price on your Facebook ads, but customers are turned off when they see there’s also a VAT cost and shipping fees to think about. On the other hand, your customers might notice something on your website which makes them feel uncomfortable, like a lack of social proof or security signals. You might even be losing out on customers because you don’t offer them enough payment options. 5 Best Practices to Convert Facebook Ads Traffic Into Shopify Sales Fortunately, even if your conversion rates aren’t as high as you’d like them to be, there are still steps you can take to improve the return on investment (ROI) from your Facebook ads. For instance: 1. Ensure You Have a Compelling Landing Page Drive conversions on your Shopify store's landing page by ensuring it's engaging and brimming with the right information. Include everything your customer needs to know about pricing, and a reminder of all the benefits they’re going to get from the product. 2. Use High-Quality Product Images High-quality images make a huge difference to conversion rates. When shopping online, people want a good idea of what they’re going to receive. Therefore, ensure you use pictures taken from different angles and that show someone using your product. 3. Include Information-Rich Product Descriptions A lack of information about your product can make customers less willing to purchase. Ensure your product descriptions include everything your audience needs to know about your item and its benefits. Consider using storytelling to make an emotional connection. 4. Review Customer Behavior on Your Store Analyzing the customer behavior on your Shopify store can help you understand where you’re missing out on conversions. By leveraging online behavior analysis to personalize store experience, you can see whether customers are losing interest in your product before they hit the checkout page, or whether they’re abandoning their cart at checkout. 5. Implement Abandoned Cart Emails or Push Notifications If you find your customers often abandon the checkout before making a purchase, use push notifications and emails to increase your chances of conversion. Sometimes a quick reminder or a nudge is all your audience needs to take the last step. Make the Most of Your Traffic Knowing why you’re not generating Shopify sales even when you have high levels of Facebook ad traffic is crucial. By getting to the bottom of the disconnect between your traffic numbers and conversion rates, you can implement customer engagement strategies to drive conversions and increase your revenue.
CroHow to Drive Conversions on Your Shopify Store's Landing PageFiguring out how to drive conversions on your Shopify store’s landing page can be complex. A landing page is one of the most important tools any business has for capturing leads, generating conversions, and calculating bounce rates. However, producing an effective page takes time and focus. To achieve a good e-commerce conversion rate, business leaders need to make sure they’re delighting and engaging their readers straight away. Here’s what you need to know to enhance your landing pages. Best Practice For Creating a Landing Page That Converts The best landing pages for your business will vary depending on the browsing styles of your customers. However, some best practices hold true for all companies. For instance: Include Essential Information Above the Fold When a visitor arrives on your Shopify landing page, you only have a few seconds to capture their attention and convince them to continue scrolling. This means the most important information your user needs to see should be placed “above the fold” before your visitor needs to scroll. Focus on highlighting the main benefits your customer can get from your offer here. You can also include a CTA button for users who are ready to convert. Include High-Quality Images of Your Product in Use Most customers need to see evidence of a product’s value before they’re willing to purchase. According to one report, 93% of customers consider the visual appearance of a product a key factor in their purchasing decisions. High-quality images showing your products in use will help to build your credibility and show consumers what they can expect from their purchase. Develop an Emotional Connection With Your Visitors Whether you’re connecting with a B2B or B2C audience, your focus should always be on building an effective emotional link. This could mean showing how your products will help your customer to overcome a crucial pain point, like losing time or money. It could also involve using storytelling strategies. Elements to Include on Your Landing Page to Boost Conversions Part of building an effective landing page is ensuring it includes all the required elements to engage and convert your audience. Follow these tips to enhance your landing pages: Expand your product descriptions Providing valuable insights into your products and their features will help customers to make more informed decisions. Better product descriptions help users to visualize what life will be like with your product. Emphasize product benefits Focus on showing your customer how your product can make their life better. Don’t just list features, show what users can accomplish with your product. For instance, they might be able to save time or overcome health issues. Include customer reviews and testimonials Use social proof in the form of reviews and testimonials from other customers to demonstrate the benefits of your items. Often, customer reviews are trusted more than business claims. Upsell and cross-sell products where possible Use your upsell and cross-sell best practices to highlight the benefits of purchasing other products alongside your featured item. This will increase your average order value. Follow up on abandoned carts If a customer leaves your landing page without making a purchase, expand on your newsletter email marketing for beginners with abandoned cart email messages. Boost Your Conversions If your conversion rate dashboard isn’t showing great landing page metrics, now is the time to make a change. Use the strategies above to convince your reader they’re on the right page, viewing a product that’s right for them.
Cro4-Step Checklist for Running Successful Flash Sales on ShopifyFlash sales are short-term promotions where you offer limited quantities of items at discounted prices. They can be a great way to generate sales, attract new customers, and win back inactive customers. It also presents an excellent opportunity to clear out old inventory, especially if you're selling seasonal items or deadstock. Here are four things you must consider before launching a flash sale: 1. Define Your Discount Strategy Flash sales rely on deep discounts. If you run an attractive sale, customers will make time to shop. Exactly how much you should cut the price depends on who you're trying to sell to. If you want to give a discount to first-time customers, it's smart to offer deep discounts on high-margin products that you either have too much or too few of. Alternatively, consider sending a discount code to your existing customers exclusively through flash sale emails, as they're more likely to make substantial purchases than first-time visitors. 2. Coordinate Logistics & Shipping Your shipping and fulfillment plan must be ready for the surge in orders that will occur during a flash sale. It's important to give your fulfillment partners plenty of notice about the sale so that they can prepare for a spike in orders. By using a dependable third-party logistics provider, you can ensure your customers receive their orders quickly and have a positive experience from start to finish, thereby attracting repeat customers. 3. Offer a Variety of Payment Options By offering multiple payment options during a flash sale (any sale, actually!), you'll dramatically improve your customers' checkout behavior. Convenience is a key factor in your flash sale's success, and Shopify suggests sellers accommodate customers by offering several payment methods (such as American Express, Google Pay, or Amazon Pay). During your flash sale, consider changing your settings so that payments are captured manually, instead of automatically. If you capture payments manually, you'll avoid credit card fees if you oversell or cancel an order, and you can review and verify that the order is legitimate before the payment is completed and the fulfillment process begins. 4. Advertise in Advance to Secure Sales The sooner you promote your flash sale, the more interest you'll retain and the better chance you'll have of selling out quickly. Most shoppers do research before buying something online, so it's good to let them know about your flash sale well ahead of time. Promoting your sale early also builds momentum for it. You can use different social channels to generate buzz around your event. You can also grow an email marketing list, then craft newsletters with countdown messages leading up to your flash sale. These messages can help motivate people to buy now before the deal ends. Conclusion Flash sales on Shopify are even easier when you use Shopify apps that are designed specifically for time-sensitive deals. They allow you to customize your storefront and showcase your flash sale. In spite of the fact that flash sales may be effective marketing strategies, you risk changing your customers' behavior if you run too many flash sales too often, because customers may now choose to simply wait for a sale instead of purchasing from your store.
Shopify entrepreneurs5 Foolproof Coupon Fraud Prevention Strategies for Shopify SellersWhen it comes to e-commerce marketing, coupon fraud is a serious problem many Shopify sellers face. While coupon codes help you connect with clients and encourage repeat business, if left uncontrolled, they can damage your profit margin. To avoid losing money due to fraudulent coupon use or promotional exploitation, implement these measures in the battle of protecting yourself from coupon fraud and abuse. 1. Take Control With a Transparent Coupon Tracking Process Without a transparent infrastructure that tracks redemption rates and generates reports on how well campaigns perform, providing coupons is unwise. If you want to see your actual return on investment, you must develop an internal system or use an existing solution. This way, you can easily access the information about the redemption rates in real-time, and limit the promotion to specific product categories. There are a number of Shopify apps that can streamline the coupon tracking process. 2. Generate Individualized Coupon Codes Promo coupons can get out of hand quickly if you don't put some sort of order into their distribution. To personalize a coupon, you'll need to generate a unique code for each buyer. Your tracking system will indicate the discount or code as it's used and will deactivate it once it's been used. Because of this, you can give discounts to your most loyal clients and attract repeat customers. However, consistently offering discounts below your margin to clients reduces the likelihood that they will ever become profitable. 3. Limit Promotional Duration & Number of Uses Per Coupon If you want to issue a generic coupon that anyone can use, you can keep costs down and stay on track by setting parameters like a limited number of redemptions per coupon and a time limit on the promotion. You can even choose the types of goods or services you want to market. However, it's important to regularly switch up your code pattern and ensure any previous iterations are completely deactivated. 4. Limit Promotions to Customer ID Parameters The main way people abuse coupons is by creating multiple accounts, using different email addresses, and even changing their IP addresses. This makes it easy for scammers to redeem vouchers without being detected. Technological organizations discovered and enhanced these techniques. Secure coupons can be created using device fingerprints or user agent data instead of account information. Additionally, businesses can also study fraudulent patterns in voucher redemption and then restrict them. 5. Never Fully Disclose Promo Code Limitations Abusers can also take advantage of your coupon's limitations. Let's say your promo code is to provide a discount to first-time customers only. A preventative measure would be to inform them that it's only valid for new sign-ups or transactions. Don't reveal additional specifics such as when you're merely tracking IP addresses, email addresses, and so on. Conclusion Strengthening your coupon strategy and equipping your business with strategies to detect coupon fraud will help mitigate the loss of a profit and protect your relationship with customers.
CroHow to Add a Discount for First-Time Customers to Your Shopify StoreIf you run a store on Shopify, the benefits of e-commerce customer loyalty programs cannot be understated. Just by offering a discount to new customers, you can incentivize their first purchase, and increase customer loyalty and acquisition. In addition to growing your customer base, you'll also see greater profits from repeat purchases and an uptick in Shopify store traffic. Why Shopify’s Default "New Customer" Segmentation Is Problematic Every Shopify merchant gets a predefined customer group called "New". This group filter contains all the customers who haven't bought anything from your shop yet. But it also includes customers who have visited your site before and even signed up for your newsletter. This group might be a little bit misleading for some merchants. They think that this group contains all new customers who register for the first time. There are, however, some customers who have already registered for mailers or left your store during checkout. Therefore, the group consists of customers who have never placed an order. How to Create a New Customer Segment for First-Time Customers in Shopify For a new customer marketing campaign, you might want to target people that have never registered any personal data into your store before, essentially people who are legitimately "new customers". Follow these steps to filter customers into segments that isolate only new customers: In the admin menu, go to "Customers."Under the Customer segment dropdown, select "All Customers"In the field, apply the rule "Number_of_orders" followed by "is equal to" then "and" then "customer_add_date". Here you will be prompted to choose from a list of date ranges. Select "On or after date" Select the date. The key here is to choose a date that excludes any clients that submitted data to your website before your campaign begins. Hit "Apply filter"Name the new segment. We suggest "New Customers" or "First-time customers" How to Add a First-Time Customer Discount for the New Segment The process of creating the discount code itself is easy once you have created your new customer segment. In the admin menu, go to "Discounts."Click the "Create discount" button.Choose "Discount code."Add or generate the discount code.Select the type of discount and other rules. Under the "Customer eligibility" area, make sure you pick "Specific customer segments" and your predefined segment. Select "Limit to one use per customer" under the "Usage limits" section if you want to limit the use of the discount code to one-time-only per new customer. Whenever offering any type of discount to customers, be aware of coupon fraud and abuse and how to protect your business from it. Conclusion Making use of Shopify apps can help with mapping the e-commerce customer journey and simplify the checkout and fulfillment process. To maximize the impact of first-time shopper offers, make sure that the customer's order is shipped promptly after the purchase has been completed. A good first impression is key to attracting repeat customers and can lead to good customer reviews, which may attract new customers as well.