Our concept “Digital analytics for Repeat strategy”
Hi, my name is Haruyo. We are a web developing company which plans, develops, and runs online shopping websites for our clients.
There are 2 options to open online shopping sites in Japan. One is using the online shopping mall and the other one is developing websites on your own, it’s called “Original domain shop”. I prefer to develop businesses for original domain shops.
The advantage of doing online shop business in an original shop is that we are able to develop a unique business model. Sales power is important in shopping malls and on the other hand, a competitive business model is required in an original shop.
It’s not easy to develop a stable online shopping business in an original shop. However, it’s exciting because we can create an original business foundation to develop a long-lasting business.
So, what is the business foundation? I believe it’s a customer base. The more customer base we grow, the more profit we take.
Recently, I think that the states of a lot of online shopping businesses are jeopardy, in particular, small-medium sized original domain shops.
There are a number of reasons. Increasing competition, shifting needs from buying products to taking services, decreasing income of young people and so on. One more is our reality, we’ve not carried out repeat strategy seriously that develops repeat customers.
The current business situation is forcing original domain shops to create strong businesses with relationships with customers or to close it and focus on competing in shopping malls instead with only its sales power.
It’s time to see existing customers in order to retain and expand original domain shops’ businesses. So, we started this blog. Our theme that we’d like to develop is “Digital analytics for Repeat strategy”.
Why are many online shopping businesses not implementing Repeat strategy seriously?
I think there are two reasons.
- Segmenting existing customers is difficult.
- Measuring the results of developing repeat customers is difficult.
Segmenting existing customers is difficult.
The technology of segmenting prospective customers of the internet ads has been developing rapidly while few companies are trying to segment existing customers except for big companies.
The difficulty is caused by the following:
- We don’t have a clear policy to follow when considering segmenting existing customers.
- When we try to segment existing customers, it takes a lot of time.
Since we don’t have ways of segmenting and visualizing existing customers, we can’t imagine their characteristics when we consider repeat strategy.
Considering “Who are targets?” is the starting line for all marketing activities, so we can’t start repeat strategy without figuring out the ways on how to segment existing customers.
That’s why it will lead the situation like, we send the same e-mail magazine to all existing customers without segmenting.
Measuring the results of developing repeat customers is difficult.
When we are asked “Are you interested in implementing repeat strategy?”, we will say “We did”.
We know, we should send the e-mails to support customers at least 3 times within 21 days after they purchased the product. Or, it’s good to send the package along with a handwritten letter showing our appreciation. Sending e-mail magazines and postcards, or posting articles on Facebook, Twitter, and Instagram. Line@ is also very effective.
There are so many things to do for developing repeat customers but we don’t have ways to measure whether it was effective or not. Many companies only have the number of total sales to know it.
That’s why it will lead the situation like, we are tired implementing repeat strategy because the things we should do are increasing gradually. We don’t know which kinds of ways are more effective.
The difficulty is caused by the following:
- Since we don’t have ways of segmenting existing customers, this means we also don’t have ways of measuring the results for repeat strategy.
- Repeating methods basically include analog tools, this means it’s difficult to measure the results.
Why Digital Analytics?
We are trying to generate the methods for segmenting existing customers and measuring the result of repeat strategy with digital analytics.
What are the things we’d like to know when carrying out repeat strategy? That is whether the number of loyal customers is increasing and whether other existing customers are going through to loyal customers.
The processes to know are the following:
1. Segment existing customers.
2. Identify specific problems and carry out marketing activities to solve them.
3. Get feedback. We want to know whether the loyal customers increase and other ranked customers grow up.
The first thing that we should do is finding out the ways of doing no.1 easily. In addition, we’d like to suggest some perspective of segmenting existing customers.
Google Analytics is one of the famous tools for digital analytics and it has various newly updated functions. For example, when a person tries to access the web page using his PC and smartphone, Google Analytics can recognize it as 1 user instead of 2 sessions.
We will be able to measure the result with digital analytics even though there are a lot of marketing activities for repeat strategy which includes using analog tools. Also, digital analytics lets us visualize the result automatically.
Our goals are:
- Developing knowledge to segment and visualize existing customers using digital analytics.
- Developing knowledge to measure the results of repeat strategies using digital analytics.
- Providing the methods in a way that can be adapted easily for SMEs online shopping businesses.
Note : 2 types of repeat customers.
There are 2 types of “Repeat” in shops, “product repeat” and “shop repeat”. People will buy the same products from the same shop because they need it. It is called “product repeat”. For example, since I have cats, I buy their food from the same online shop repeatedly. The reason is that I just prefer the food even if I don’t remember the shop name. It’s due to the positive image of the food product.
The other repeat is that customers prefer to buy the products from the specific shop. Even if other shops sell similar products at a more affordable price, they will continue to use the shop where they feel like to buy from.
They prefer not only the products but also the whole services provided by the shop. It is called “shop repeat”.
Users on the internet will see the products first because of the system of the search engines and the ads. When they click the link on the search results or ads, they will access the product information page of the website. Regardless of whether they are satisfied with the product or not, they will not buy it again except for “product repeat”.
How should we make them “shop repeater”?
Our repeat strategy has its goal. That is to increase loyal customers to build up profit. Without having “shop repeater”, we will not achieve the goal. Shop repeaters are people who engage in your shop concept resulted from your business model.