Viralmint

How Measuring your CLV can drive profitability for your e-commerce brand.

audit — Tue, 26 Sep 2023 09:32:55 +0000

Acquiring a low cost marketing is the ultimate goal for most brands in the D2C market, But How?

Even after spending a high amount and deeply invested efforts, if profitability is still a far fetched avenue, you may need to wonder how you are utilizing the acquired customer data.

When planning your digital marketing strategy, it’s natural to focus on acquiring new customers daily. However, research shows that repeat customers tend to spend a whopping 67% more than new ones. This insight underscores the need to shift your attention towards scalability and increasing the Average Order Value (AOV) of repeat customers.

Now, what exactly is CLV? Customer Lifetime Value represents the total revenue you can expect to earn from a customer throughout their engagement with your brand. It not only sheds light on your customer acquisition costs but also helps you identify your most valuable customers and their demographics. For sustainable growth, your CLV should be at least three times greater than your Customer Acquisition Cost (CAC).

How studying your CLV can drive profitability for your ecommerce brand?

Calculating CLV is instrumental in optimizing your marketing efforts. It allows you to evaluate your costs and profit margins accurately. If acquiring a customer costs as much or more than their CLV, it’s a red flag. Additionally, monitoring customer retention rates and churn rate is crucial, as they are closely tied to CLV.

Here are some key points to consider:

Customer lifetime value (CLV) is the estimated amount of profit a customer will generate for your business over their lifetime.
To calculate CLV, you need to consider your own costs and profit margins, including the average order value and purchase frequency rate.
If the cost of acquiring a customer is equal to or greater than their lifetime value, it is not ideal, and you may want to reconsider offering discounts.
Customer retention rates and churn rate are closely related to CLV, and it is important to measure them to understand the health of your customer relationships.
Churn rate is the percentage of customers that cancel their subscription during a given period, while retention rate is the percentage of customers that remain subscribed during a given period.
Average customer lifetime (ACL) is the average amount of time a customer stays subscribed to your service or product.
To improve unit margins, businesses can consider revising profitability ratios and lifetime value/customer

Drive Profitability in two easy steps to begin with -

Customer Segmentation

Identify the customers' cohorts into high spenders and low spenders. Invest and drive increased efforts to retain, remarket, and engage these high spending customers.

Engage high value customers

Engage with your brand loyalists who have a high-spend and a high CLV for scalability. Invest in retention marketing efforts to maintain these high-value customers to reduce marketing cost and increase efficiency of your digital marketing efforts.

How to build a high CLV and drive profit from it?

Invest in Customer Experience

New customers discovering your brand for the first time are an opportunity to build a loyal customer who will stay and keep buying for a longer time period. How do you achieve that? Well, by investing in customer support and user experience of your website/landing page, listening to customer feedback, and also, with a good onboarding and engagement process. Offer a better customer experience that’ll help your buyers stay longer and have a seamless and better view of your brand.

Focus on the relationships you want to form with your loyal, high-spending customers

Use creative communication strategies, be conversational and encourage your audience to interact with your brand. Make it easier for them to connect and converse with you. Share UGC content as much as you can. Leverage digital marketing services to establish an emotional connection with the customers

Your Website is place where you have control when it comes to conversions Any digital campaign you run is probably going to point back to your website. So, when potential customers land there, it’s important that you’ve done everything you can to encourage a conversion.

Create a Loyalty Program

Customer loyalty is crucial, but customer relationship is just one of the many ways you can improve it. By creating a loyalty program, you can drastically improve your retention rate, purchase frequency, and your average customer lifespan.

Consider Cross-selling

To improve purchase frequency and customer profitability, cross-selling and upselling are effective strategies that can be used to increase conversions and sales. We’ve often identified this as an underlying brand challenge and used cross-selling as a strategy to scale sales and increase conversions for brands. It is possible that the audience landing on your website needs more than one product or a different product or an upgrade. Behavior-based marketing automation allows businesses to map out a personalized experience for customers based on their needs, desires, and behaviors, which can help build a better, more engaging marketing strategy.

Fast fashion clothing brands & beauty and skincare category brands are a great example of this. Notice how brands like mCaffiene, FoxTale, Shein, H&M, even marketplaces like -Flipkart, Nykaa, Myntra, Ajio, etc, leverage push notifications and email marketing while the customer is in the stage of making the purchase decision?

One of our clients, “An Indian Saree brand acquired 40% increase in the AOV and 26% retention rate with Cross selling through Email Remarketing and Push notifications with ViralMint.” Another fragrance brand, leveraged Gpay offers and abandoned cart data to acquire 10% increase in NTB customers orders within 2 months.

Exactly, what we are trying to say!

Understanding and optimizing CLV is paramount for the success of your e-commerce brand. Performance marketing and advertising agencies possess the expertise to utilize your campaign budgets to maximize the CLV effectively. Collaborate with experts who have a decade worth of experience to harness the full potential of your hard earned CLV and implement strategies that drive sustainable profitability.

How to run effective campaigns that earn profits instead of high impressions or reach?

Drop us a comment, we’ll DM it to you!

The post How Measuring your CLV can drive profitability for your e-commerce brand. appeared first on Viralmint.

How are D2C brands reinventing the marketing landscape in India?

audit — Mon, 21 Aug 2023 11:58:12 +0000

D2C industry has leaped a quantum jump in the last few years owing to– first, the development of a robust digital infrastructure and fundamentals to support the boom in e-retail in India and secondly, when the traditional relationship between brand and retailer experienced a cold for 2 years with covid-19 lockdowns. D2C brands thanks to this seismic shift disrupted the marketing landscape for India. Today, there are more than 800 D2C startups operating in the country.

D2C sales, including established brands and digital natives, are estimated to reach $182.6 billion in 2023 and are estimated to reach $350 billion dollars by 2030.

The D2C marketing has also led to a growth of services like performance marketing, growth marketing, retention marketing, affiliate marketing, influencer marketing, native ads, ad networks, marketplaces marketing, and more services related to build, establish, and market brands directly to the consumers, digitally.

D2C Brands are replacing the traditional commerce experience for customers with an omnichannel presence assisted by- either expansion into offline presence or developing a strong alternate revenue channel with ecommerce marketplaces.

D2C brands have successfully eliminated intermediaries from the traditional retail formula in India, which typically involved manufacturers, wholesalers, distributors, retailers, and consumers. This disruption has allowed D2C companies to capture and combine customer data, creating a holistic customer experience that is often not replicated by B2C or B2B brands.

D2C companies capture and combine customer data to create a holistic customer experience, otherwise not replicated by B2C or B2B brands. Expansion of internet shopping to tier 2 & tier 3 cities has also opened ways for meeting the underserved markets.

Here’s how D2C brands are reinventing the marketing landscape:

Tapping into the Growing Internet Shopper Base:

D2C brands are capitalizing on the increasing number of internet users in India and tapping into the growing online shopper base. D2C brands are leveraging digital marketing channels to reach their target audience and promote their products directly to consumers.

Shifting Away from Traditional Distribution Networks:

D2C brands are breaking away from the traditional retail distribution networks and popular eCommerce platforms. Brands are establishing a sound and user centric online presence and selling directly to consumers, eliminating the need for intermediaries.

Shopify is home to 50% of all DTC brands. Much of its popularity is thanks to its powerful eCommerce functionalities like payments and native subscriptions.

Harnessing the Power of Social Media and Influencer Marketing:

D2C brands are leveraging social networks for advertising and influencer marketing to create brand awareness and engage with their target audience. They are using these channels to receive immediate validation, tap into a larger customer base, and build strong customer relationships.

Emphasizing Customer Experience:

D2C brands are increasingly prioritizing customer experience by offering seamless shopping experiences, personalized recommendations, and responsive customer support. They focus on building direct relationships with customers and understanding their preferences to deliver a tailored experience.

In 2022 the leading global brands’ repurchase rate from the first to second order was 45%. After the third order, the chances that the customer will make a follow-up order increases to over 60%

Utilizing Data and Analytics:

D2C brands have access to a gold mine worth of customer data available due to ad networks, allowing them to identify market gaps, consumer trends, and demands. They leverage data and analytics to make informed marketing and advertising decisions, innovate their products, and stay ahead of the competition. D2C brands, especially partnered with data backed advertising agencies in India, interact with the end consumer daily, paying special attention to their unique customer journeys and tapping into relevant data points to deploy a systematic stagewise marketing plan for the brand.

Utilizing Data and Analytics:

Emphasizing Customer Experience:

D2C brands are known for their unique and innovative product offerings. They identify specific trends or demands in the market and use them to fulfill the custom needs of the consumers. By curating products that cater to the evolving needs and preferences of consumers, they differentiate themselves from traditional retailers.

Lowering Barriers to Entry:

The D2C model has lowered barriers to entry for aspiring entrepreneurs and small businesses. It has provided them with an opportunity to establish their brands and reach a wider audience without the need for extensive physical infrastructure.

82% of consumers look at brand values before buying

While the future for the D2C brands look promising, the changing marketing landscape requires a strengthened connection between brands and consumers/potential consumers, especially if you’re running a subscription-based business. With performance marketing, social networks, ad networks like Google and Meta, and more in the marketing funnel of the D2C brands, a seamless shopping experience building direct connections with the consumers is only an experienced ecommerce marketing agency away!

Just like with any other industry, it’s key that you stay up to speed with developments and trends. In fact, as you’ll be selling directly to the person who will use your product, it’s even more important that you make time to find out what the data is saying and utilize it to implement ecommerce marketing strategies with the right expertise! Leveraging Audience Pro by ViralMint helps you make this paradigm shift possible with customer intelligence and marketing, download your marketing intelligence gateway now!

D2C brands are reshaping the marketing landscape in India by leveraging digital platforms, shifting away from traditional distribution networks, harnessing the power of social media and influencer marketing, emphasizing customer experience, utilizing data and analytics, innovating with product offerings, and lowering barriers to entry. Their direct-to-consumer approach offers convenience, personalization, and unique experiences to consumers, challenging traditional retail models and fostering innovation in the Indian market.

The post How are D2C brands reinventing the marketing landscape in India? appeared first on Viralmint.

ViralMint is now a proud Amazon Insider with Amazon ADvisor!

audit — Mon, 19 Jun 2023 06:58:26 +0000

ViralMint is now a part of Amazon Marketing Service’s insider community with the Amazon Advisor status, a significant milestone in our journey towards becoming a leading Amazon influence. This recognition is a testament to our commitment to providing our clients with top-notch Amazon marketing services that help them grow their businesses.

Amazon is now the World’s leading e-commerce destination and has a significant market presence, also widely recognized as a leader that is shaping the e-commerce industry. Amazon Marketing Services are also one of the world’s most sophisticated e-commerce marketplace marketing services. Amazon lets you get in front of its premium audience that is all ready to purchase. Amazon is leading the industry in an inquisitive direction along with the industry’s rebellious leaders that are willing to disrupt. The Amazon Team reached out to honor our teammate, Rohit Nalamwar, Head of Marketplaces, with the Amazon ADvisors community invitation.

“You are now part of an exclusive group of marketing professionals who get to be the voice of Amazon Ads in the digital marketing space. We, with all excitement, are looking forward to connecting with you" - Amazon ADvisors Program Team

This cites as an opportunity to upscale our Amazon marketing experience with an exclusive group of stellar marketing professionals who get to be the voice of Amazon Ads. As an Amazon ADvisor, we have demonstrated our expertise in Amazon advertising, optimization, and displaying benchmark performances. We have met Amazon’s uncompromising requirements for performance, account health, and customer service, meaning that our clients can trust us to help them achieve their business goals on Amazon.

Our partnership with Amazon offers several benefits to our clients.

We have access to exclusive Amazon tools and resources that enable us to optimize our clients’ Amazon listings, ads, and campaigns with ingenious insights that are beyond the regular optimizations available to the general sellers. This translates into increased visibility, traffic, and sales for our client’s products and early access to beta projects and tools

With this laurel Amazon ADvisors, we have attained another level up of our Amazon marketing strategies. We are even more confident that the services we provide surpass way beyond our client’s expectations! Viralmint is an Amazon partner even Amazon is thrilled about! A proud Indian agency that has been a part of this inception and contributed to the journey of marketplace marketing for D2C brands in India.

We are proud to have earned the Amazon ADvisor status and are committed to providing our clients with exceptional Amazon marketing services that drive results. Our partnership with Amazon enables us to offer an insider-like Amazon marketing experience to our clients with exclusive tools, dedicated expertise, and transparent reporting that help them grow their businesses on Amazon.

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Will the ONDC-move ultimately lead to a more competitive and fair e-commerce landscape in India?

audit — Mon, 19 Jun 2023 05:37:17 +0000

The Indian e-commerce landscape is currently undergoing a significant transformation through the introduction of the Open Network for Digital Commerce (ONDC). This groundbreaking initiative, launched by the Indian government, aims to level the playing field for small businesses and brick-and-mortar retailers in the e-commerce industry.

The ONDC heralds a new chapter in brand distribution strategies, where personalized shopping experiences become the cornerstone of success.

Under the ONDC, major e-commerce marketplaces like Amazon and Flipkart are no longer permitted to exert control over their sellers’ inventory. Additionally, they are prohibited from offering deep discounts or exclusive deals to specific sellers. These regulatory changes are poised to have far-reaching implications for brand distribution strategies and the entire e-commerce industry in India.

To navigate this new terrain successfully, brands must re-evaluate their distribution strategies and prioritize building stronger relationships with their offline retail partners.

With e-commerce marketplaces relinquishing control over inventory, brands must ensure their products are readily available in brick-and-mortar stores.

Brands should invest in developing their own e-commerce websites and selling directly to consumers.

These strategic moves will allow brands to exert greater control over their distribution and pricing strategies while offering customers a more personalized shopping experience.

For brands and advertising agencies, the ONDC presents both challenges and opportunities.

Adapting to the new regulations necessitates rethinking distribution and pricing strategies. However, it also provides a chance for brands to differentiate themselves from competitors by delivering unique and personalized shopping experiences to customers.

To seize this opportunity, brands and agencies must focus on establishing a robust online presence through their own e-commerce websites and social media channels. Additionally, they should invest in innovative marketing strategies that engage their target audience and set their brand apart from the competition.

The introduction of the ONDC marks a significant milestone for the Indian e-commerce industry and its impact on brand distribution strategies cannot be overstated. While marketplace advertising will not face the blow, our ad experts have predicted this as opportunity to encourage innovative and creative marketing a strategies. Brands will be mannered to adapt to the new regulations and cultivate stronger relationships with offline retail partners, while also embracing the advantages of direct online sales. By capitalizing on this transformative initiative, brands and agencies can position themselves for long-term success in the dynamic Indian e-commerce landscape.

The Open Network for Digital Commerce (ONDC) serves as a catalyst for a more competitive and fair e-commerce landscape in India through several key mechanisms:

1. Level Playing Field: The ONDC eliminates the advantage previously enjoyed by large e-commerce marketplaces by prohibiting them from controlling sellers’ inventory and offering exclusive deals or deep discounts to certain sellers. This levels the playing field, allowing small businesses and brick-and-mortar retailers to compete on an equal footing.

2. Enhanced Seller Independence: Under the ONDC, sellers gain greater autonomy and freedom to manage their own inventory and pricing strategies. This reduces dependency on dominant e-commerce platforms and fosters a more diverse and vibrant marketplace with a wider range of sellers offering competitive products.

3. Strengthened Offline Retail Partnerships: The ONDC encourages brands to build stronger relationships with offline retail partners. By ensuring their products are readily available in physical stores, brands can leverage the existing retail infrastructure and expand their reach. This benefits both brands and retailers, fostering collaboration and driving local economic growth.

4. Empowered Consumer Choice: With the ONDC in place, consumers benefit from increased choice and transparency. The restrictions on exclusive deals and deep discounts prevent certain sellers from gaining an unfair advantage, allowing consumers to make more informed purchasing decisions based on product quality, value, and personalized experiences.

5. Promoting Innovation and Differentiation: The ONDC incentivizes brands to invest in their own e-commerce websites and direct-to-consumer channels. This fosters innovation, as brands seek to differentiate themselves through unique offerings, personalized experiences, and innovative marketing strategies. Ultimately, this leads to a more dynamic and competitive e-commerce landscape.

6. Regulatory Oversight: The ONDC establishes a framework for regulating e-commerce operations, ensuring compliance with fair trade practices and consumer protection regulations. This helps curb anti-competitive behavior and promotes fair business practices, fostering trust and confidence among both sellers and consumers.

By instigating these the ONDC transforms the Indian e-commerce landscape into a more competitive and fair ecosystem, benefitting businesses, consumers, and the overall economy.

What should brands do Right Now to embrace this while they continue advertising on huge marketplaces?

1. Diversify your distribution channels: With the new ONDC rules, it’s important for D2C brands to diversify their distribution channels beyond just e-commerce marketplaces. This means investing in your own e-commerce website and building relationships with offline retail partners. By diversifying your distribution channels, you can reduce your reliance on e-commerce marketplaces and ensure that your products are readily available to customers.

2. Stay up-to-date with the latest developments: The e-commerce landscape in India is constantly evolving, and it’s important for D2C brands to stay up-to-date with the latest developments. This includes keeping an eye on any new regulations or policies that may impact your advertising strategies, albeit, even disallow or disapprove campaigns for incompliance.

By staying informed or simply hiring informed partners, you can adapt your strategies accordingly and remain ahead of the competition.

D2C brands can position themselves for success in the changing e-commerce landscape in India with these action points for now.

Drop a comment if you have an opinion, we are keen to have discussions on this one!

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Breaking Barriers: How D2C Marketing Empowers Brands and Consumers?

audit — Mon, 19 Jun 2023 04:33:14 +0000

D2C marketing typically involves brands establishing their own online presence, either through their website or dedicated e-commerce platforms, allowing them to have complete control over the customer experience, branding, and data insights. It enables brands to create a more personalized and tailored shopping experience, gather customer feedback, and build direct relationships with their audience.

Breaking Barriers: How D2C Marketing Empowers Brands and Consumers?

In today’s dynamic business landscape, Direct-to-Consumer (D2C) marketing has emerged as a game-changer, empowering both brands and consumers alike. By eliminating traditional intermediaries, D2C marketing allows brands to connect directly with their target audience, creating a win-win scenario. Let’s explore the barriers it breaks and the benefits it brings!

Barriers overcome by D2C marketing:

Middlemen Dependency: D2C marketing bypasses the need for intermediaries, enabling brands to establish direct relationships with their customers.

Limited Control: By taking the reins of their marketing and sales channels, brands gain more control over the entire customer experience.

Communication Barriers: D2C marketing bridges the gap between brands and consumers, fostering transparent and personalized communication.

Benefits of D2C marketing for brands:

Enhanced Customer Insights: Direct interaction with customers provides valuable data and insights for brands to understand their audience better, leading to targeted marketing strategies.

Brand Authenticity: D2C marketing allows brands to convey their unique brand story and values directly to consumers, fostering authenticity and building trust.

Improved Customer Experience: By eliminating middlemen, brands can provide a seamless and personalized customer journey, from discovery to purchase and beyond.

Greater Profit Margins: Without intermediaries, brands can capture a higher share of revenue, resulting in improved profitability and potential for reinvestment.

Flexibility and Agility: D2C marketing offers brands the freedom to experiment, iterate, and respond quickly to changing market demands, enabling them to stay ahead of the competition.

In the era of D2C marketing, brands have the opportunity to break free from traditional barriers and establish stronger connections with their customers. By embracing this approach, brands can unlock a world of possibilities, from understanding customer needs to creating exceptional experiences that drive growth and loyalty.

Customers have increasingly embraced D2C marketing for brands, as it offers several benefits and unique experiences. However, since the pandemic has had a huge impact on the digital industry, it caused customers to change their behavior and expectations regarding their shopping experience moving forward.

Acceptance for D2C marketing has increased because:

1. Direct Engagement: Customers appreciate the direct engagement and personalized interactions that D2C marketing brings. They can directly communicate with brands, provide feedback, and feel a sense of connection and ownership.

2. Authenticity and Transparency: D2C marketing allows brands to showcase their authentic story, values, and mission directly to customers. This transparency fosters trust and loyalty, as customers appreciate the opportunity to engage with brands on a deeper level.

3. Customized Experiences: D2C marketing enables brands to deliver tailored experiences to customers. From personalized product recommendations to curated content, customers enjoy a more individualized journey that aligns with their preferences and needs.

4. Enhanced Product Insights: Customers benefit from the direct communication with brands in terms of gaining insights into products. They have access to detailed information, ingredient lists, sourcing practices, and other relevant details that aid in making informed purchasing decisions.

5. Competitive Pricing and Quality: By eliminating intermediaries, D2C marketing often allows brands to offer competitive pricing without compromising on product quality. Customers appreciate the value they receive directly from brands and are willing to support them.

6. Seamless Purchasing Journey: D2C marketing streamlines the purchasing process, providing a seamless journey from browsing to checkout. Customers enjoy the convenience, simplicity, and efficiency of buying products directly from brands.

7. Exclusive Access and Rewards: D2C marketing often offers customers exclusive access to limited-edition products, early releases, or special promotions. These perks create a sense of exclusivity and make customers feel valued and rewarded for their loyalty. This further encourages brand loyalty and word of mouth.

While customer acceptance of D2C marketing may vary depending on the brand, industry, and target audience, the overall trend indicates a growing appreciation for the direct-to-consumer approach. Customers value the unique experiences, authenticity, and personalized interactions that D2C marketing brings, leading to increased acceptance and adoption.

Build genuine advocacy with our #ViralMint D2C funnels and witness firsthand how this empowering strategy transforms the way brands and consumers engage!

#D2CMarketing #BrandEmpowerment #DirectToConsumer #CustomerExperience #BrandAuthenticity

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