Your Payment Vendor Can Be Your Best Marketing Partner
In addition to affiliate and search related services (see
Basic Promotion, Search & Affiliate Marketing, eCommerce vendors offer a plethora of ancillary promotional and service related programs. Here are some examples:
Free Trials
Many subscription-based, recurring payment programs begin with free trials. There are two types of free trial programs, active and passive. Passive programs are generally called “free-trial/negative option programs.” In this case the free trial automatically converts into an active subscription unless the customer cancels within a prescribed period – let’s say 30 days. With an active free trial, the customer must authorize the merchant to activate the subscription; otherwise the trial ends with no new customer. Negative option programs have higher conversion rates, but leave the merchant susceptible to higher chargeback rates, and are therefore more closely watched by the card Associations.
eCommerce solutions and IPSPs generally have a number of tools to help merchants manage the offer, conversion and billing processes. These might include programmatic controls where the merchant can adjust the trial period and offers. These vendors may also provide additional features that allow the merchant to give out discounts and other incentives based on the consumer’s behavior during and after the trial.
E-Mail Marketing
E-mail plays a very important role in eCommerce from both a promotional and service perspective. If properly managed e-mail marketing can be an effective way to drive traffic to your site. In addition to optimizing campaigns for effectiveness, merchants must contend with Federal regulations like CAN-SPAM. So, this is an area not to be taken lightly.
E-mail is also a very useful tool in communicating with customers, both during and after the sale. E-mail is used extensively to provide confirmation and tracking information, manage free trial programs, and to execute follow-on promotional campaigns. Most eCommerce providers offer e-mail management as an integral part of their promotional suites. If suitable, the merchant should use the vendor’s e-mail services because they are generally well integrated with other eCommerce functions.
Up-sell/Cross-Sell Management
Up-selling and cross-selling at the point of purchase has proven to be an effective way to drive up average sales values. Up-selling is a technique whereby the merchant promotes more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale. Cross selling involves the promotion of complementary products sold by the merchant as well as products sold by other merchants. Cross selling can be a particularly powerful tool when provided by eCommerce vendors hosting a multitude of other merchants. Bundling is the practice of including several related products into a single package. Most merchants bundle their own products, however, with some eCommerce platforms, it is possible to create bundles with products from other merchants.
Volume Discounts and Sales
Virtually all eCommerce providers offer features that provide for volume discounts and markdowns. Of course, not all platforms are created equally, so merchants should review all of the features and options offered by prospective vendors.
Reproduction Services
merchants selling digital goods should consider eCommerce providers that offer reproduction services. In particular, providers of software and games might wish to have the option of offering their customers CDs or DVDs in addition to simple downloads. A Digital River company called CustomCD offers both duplication and on demand CDs and DVDs. Not only does this service provide the customer with a physical back-up, it is an opportunity for the merchant to earn additional profits.