Manish Chowdhary, founder and CEO at GoECart, was a recent guest on the TechnologyAdvice Expert Interview Series to share his insights on digital commerce software. The series, which is hosted by TechnologyAdvice’s Clark Buckner, explores a variety of business and technology landscapes through conversations with industry leaders.
Here are a few highlights from our conversation:
TechnologyAdvice: What strategies would you suggest to B2C eCommerce brands and companies who are trying to nurture existing customers?
Manish Chowdhary: That’s a terrific question. Basically, it follows the 80/20 rule that we’ve come to learn in business: that 80 percent of your profits come from 20 percent of your customers. We all know how expensive it is to acquire a new customer. So it’s very important to retain that customer; I like to classify them into two categories, there’s the returning customer and then there’s the repeat customer.
Any customer that has made a purchase more than once, is a returning customer, and any customer that has made two or more purchases a year, is a repeat customer. And the stats show that about 30 to 40 percent of your profit actually comes from the repeat customers.
So it’s very important that we’re nurturing these repeat customers, even in a B2C setting, which is why at GoECart, we provide a lot of tools to our merchants, such as transactional email.
Because, now, most all the top email service providers like Google, and Yahoo!, and others, they actually automatically move the marketing email into a different folder, and it doesn’t automatically go into the inbox as it used to.
What they’ve done is that they’ve created tabs, because they don’t want customers to be bombarded with the sea of messages that everybody’s sending them. So what that means is these customers most likely may not even see the marketing emails we send out on a daily or weekly basis. This puts a lot more emphasis on your transactional email — the order confirmation email, the shipping notification email. This is cause for you to make the most of those emails to cleverly up-sell, cross-sell, and personalize, as the customers are looking for those emails. Everybody wants to know, “Did my order go through?”
They will click on that email, because they want to confirm that the merchant received that order; and while they’re looking at that, you can entice them to take the next action. And that’s a form of marketing automation in the business to consumer setting, and an ecommerce setting.
Likewise, when you get an email from Amazon, or from a merchant, “Your item is shipped and here’s the tracking number.” Most customers like to track their order, that’s another great opportunity for merchants to inject some meaningful, personalised, relevant content, because that’s timely and you can get a click-through from there back to your website, and then you can present them with additional offers and help them convert that way.
So that’s the new age of what I would call marketing automation on the B2C side, which merchants should be taking advantage of.
TA: Being able to nurture the customer through all this process is incredibly important. And by using technology such as marketing automation software, you’re able to build more meaningful connections. When you’re able to bring more traffic to your site, it’s going to be even more successful because you’re not only getting traffic, but you’re getting higher volume, higher quality traffic from existing users.
What else are you doing outside the inbox — like Etail Show USA, being involved with conference organizations, and other things —for your own platform?
Chowdhary: It was a very exciting conference because of the diversity of delegates. They include shows right next to each other. We had a unique opportunity to meet with audiences that we would not otherwise meet on a regular eCommerce-focused show.
So we find that the diversity might be helpful, and because what GoECart does is also a unique solution, we might be attractive to a lot of users who may not be familiar with the tools that exist today, to deal with omni-channel commerce. Those tools have always been limited to the Fortune 500 because they cost six figures and up.
So we were really excited about sharing with the audience that you can actually get a world class omni-channel experience at an SMB price.
You need to treat all the different channels as homogeneous, you cannot create silos. We want to present to the group that we have some great contributions available that they can take advantage of. They’re fairly affordable.
It was also exciting to meet with a lot of companies that we otherwise might not have met before. It was a great show.
Listen to the entire show above for our full conversation, or (download the show) to listen later. You can subscribe to the TA Expert Interview Series via Soundcloud, in order to get alerts about new episodes.