– Gift cards have a high redemption rate but account for a small percentage of overall ecommerce sales.
– Using gift cards as a lead magnet in popups resulted in a significant increase in sign up rates.
– The strategy also led to higher average order value, more data collected, and promoted repeat purchases or gifting.Implement gift cards as a lead magnet in popups to increase sign up rates, collect more data, and promote repeat purchases or gifting.What’s in this post changed my entire opinion on ecommerce customer acquisition strategy. It was months in the making, and it’s a strategy that should work for every company in ecommerce. Gift cards have an 80% redemption rate in 12 months, yet they only account for less than 3% of overall ecommerce sales. The purchaser will either use it or give it to someone. For most small DTC brands, a gift card purchase doesn’t make sense. It’s underutilized. For our smaller test store, only one was sold in the last 3 years. So, we decided to make them our lead magnet in our popups. The results of a month-long split test? A 14%+ sign-up rate for the form that showed up on a 5-second delay, an 18%+ sign-up rate for the form that showed up on 90% scroll, and a 26%+ redemption rate so far (that took two actions, mind you, a first-time checkout and a second purchase). The sign-up rate with a discount over the same period was 6.6% on cold traffic to our landing page. It only showed once per session and only on specific landing page URLs from top-of-funnel traffic from Facebook. We hid the product and only allowed it to be added to the cart through the popup. There are a few really cool things about using this format:
1. It requires the person to check out during that session to claim it, and only a portion did this.
2. The customer can’t use two coupon codes, so the AOV on the first order becomes higher than if they used a coupon code.
3. It’s real value that you’re willing to provide, and with the 2-3x increase in sign-up rate to cold traffic, we’ve captured more people in our system and more data (because we only do sign-ups with data collection).
4. We were able to ask another question for a 20% increase in data capture, which resulted in a killer insight.
5. The only way to access this offer was via the UTM link, so it was a controlled experiment. The odds of copying the link were next to 0%, and it allowed the campaign to be stopped if abuse happens.
6. We were able to tag those users from our forms so they wouldn’t receive an abandoned cart email when it was added to prevent abuse (thinking about this one though a bit though might make for an interesting A/B test)
7. We were able to prevent people that had already ordered before from using it as it’s a separate product that had to be fulfilled so abuse was capped by default (it was available for new customers only by terms)
8. This doesn’t stop us from sending people a unique coupon code behind the scenes that gets inserted into their welcome series in case they didn’t check out (we we’re mean)Let me summarize this for you.
Increased sign up rates, zero impact on first order AOV, more data collected than before, and a system that promotes repeat purchase or gifting to someone to make a purchase. At Formtoro, we don’t just do popups, we build data driven systems to give you an unfair advantage.If this would benefit you, and you know it would, what are you waiting for?#ecommerce #marketing #strategyhttps://www.linkedin.com/in/jivanco