The Rocket Newsletter

April 2009

It seems that many of the Queens loyal subjects are disgruntled. The streets of London have seen an uprising against the financial institutions that put us into the crunch of recession. But it's ok because we're still eating big chocolate shaped Easter bunnies.

This month we take a look at the importance of loyal subjects on your bottom line and also offer up five top tips to influence the minds of your potential customers - with web copy. Enjoy the read. 

The Customer Journey - Customer Loyalty

Customer Loyalty is where your engagement strategy really starts to count

Do you remember your first time?  For me it happened in the long hot summer of 1998 in my dorm at a sales training academy in rural Dorset.  Spin Selling by Neil Rackham was on a recommended reading list, and I was given the address of a certain Amazon by the course tutor. I was told the book would be in stock, would cost no more than £15, would be with me within 3 days, and that she would accept Visa.  Ecommerce.......wow, this is all very futuristic.  Excited, I took the plunge.

My first time was wonderful and we're still together

I wasn't disappointed.  Amazon kept her promise, and hasn't let me down since.  Built on a foundation of trust our relationship has grown stronger over the years, and today 95% of all my online retail purchases have been from Amazon.  Despite the fact Amazon has millions of customers, I feel a sense of loyalty.  If it's in stock and the price is thereabouts, I am faithful.

Amazon is easy to use, has a wide range, in stock, offers reliable delivery and good value and if this ever changes I may be forced to buy elsewhere, but for now my heart and my credit card belong to Amazon. We human beings are loyal creatures by nature, so don't force us out of the relationship with radical site redesign, poor navigation, unhelpful out of stock messages, hidden contact details or a shaky returns policy.  We might find someone else and never come back.

Working out the ROI of customer loyalty

Your online business won't get very far if you don't build relationships with loyal customers, and here's why. Let's say you are selling CD's at £10 each and so is your competitor.  You pay £1 per click to Google Adwords, and your competitors pay £1.50.  Your website converts clicks to sales at 10%, while your competitor can only manage 15%.  So each customer costs you £10 to acquire, and your competitor £30.  You are winning!! 

But while you've been obsessing over Google and conversion rates, your competitor has been making sure that every customer is delighted to have chosen to buy their brand, and on average their customers buy at least 10 times, while yours buy twice if you're lucky. So £10 spent generates £20 revenue for you, but your competitor is generating £100 off the back of a £30 marketing spend.  Your competitor can therefore afford to increase their bid prices further and push you out of the market, unless you can do something about loyalty.

Don't panic, just as with building awareness and obtaining that first time purchase there is a science to achieving strong customer loyalty.  Talk to us if this is an area you'd like to explore.

Best regards,

Client Corner - What do mind bending tricks have to do with conversion rates?

The Propellernet blog is already going from strength to strength.

This month we have been exploring ways to influence the minds of your potential customers - with web copy.

Here are Annelies' top 5 tips:

1) Make your copy scan-able - influence what they read
2) Insert testimonials - build up trust
3) Ask questions - use their imagination
4) Hidden orders and assumptions - make your copy more persuasive
5) Inject emotion - engage the reader

For a more in-depth version of these top tips, please check out Annelies' Blog post:

'What do mind-bending tricks have to do with conversion rates?'.

Stuart Bowker

Staff Profile

Name: Stuart Bowker
Role: Search Consultant

Why Propellernet?
3 years ago I joined Propellernet in what seemed to be its infancy. Since then the company has grown from strength to strength and I'm proud to be a part it. They've given me the chance to develop my practical marketing skills, building on the knowledge I gained throughout my degree. The team here are all great to work and socialise with, despite a few having a screw lose or two!

Interesting Fact:
I was the University of Luton Table Tennis Team Captain. We were undefeated!

 

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