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You’re losing money marketing to unprofitable customers. But which customers? That why it’s so important to track #ltv (lifetime value) by marketing channel. Littledata tracks lifetime revenue in GA4, Meta and more - including returns. #shopify

BUY QUALITY AND ASK FOR QUALITY SERVICE High return rates are a major challenge for e-commerce clothing stores, with figures ranging from around 30% on average, recent data (2024) for female clothing are going up to 80%. Here's the breakdown and some new trends to manage it: Why high return rates? 👗 Inability to try before you buy: Customers can't physically see, touch, and try on clothes before purchasing online, leading to size or fit issues. Inaccurate sizing: Inconsistency in sizing across brands can confuse customers. 👚 👘 Misrepresentation of products: Product photos and descriptions might not accurately reflect the actual item. New trends to manage returns: 👔 AI-powered sizing recommendations: These use customer data to suggest the best fit, reducing size-related returns. 💻 3D virtual try-on technology: This allows customers to see a virtual image of themselves in the clothing, improving fit expectations. ✔ ❌ ⁉ Pre-Sales: Orders are collected online and then processed. On 1,000 orders, for a specific item, only 200 are sent in few days and the subsequent 800 are sent after unwanted items are returned from the first 200, this will bring delays on receiving the goods, but effectively saving costs to the seller. 👍 👍 👍 The best solution will be to “get it right” from the start with items sent with correct sizes and colors. 😎 Buy from trusted Social commerce vendors, buy from quality marketplaces!!! #skynetasiapacific #skynetworldwideexpress #skynet #quality #return #presalestactics #respectbuyers

🌍 Globally e-commerce accounts for almost 21% of total sales. 🌍 Across EMEA & USA that accounts for close to 30% of fashion retail sales 💻 But are shoppers becoming "tired of the standard grid-like online shopping experience" ? Read more from The Business of Fashion - How to Get Customers to Shop Online https://lnkd.in/eN4C3aRv

What are the typical recommendation errors in Shopify checkout? Recently, we've observed that most of our customers are taking advantage of the opportunity to implement recommendations that follow consumers throughout the entire customer journey—from the first interaction to checkout and even the thank-you page. This has been made possible by excellent tools in the ecosystem, such as Obviyo, Klevu and Rebuy Engine. However, these choices must be carefully considered. Below, I’ve outlined a few common pitfalls we've noticed when helping our customers improve their cross-selling efforts and KPIs like average order value and average basket size. 1. Lack of a Clear Strategy for Checkout Recommendations: Checkout is a crucial and sensitive part of the customer journey, so it’s important to treat it as such. This is not the ideal time to introduce completely new products. Instead, it’s better suited for offering add-on items or presenting the same products in different colors or patterns. 2. Cross-Selling Items with Multiple Sizing and Fit Options: This is particularly challenging in the fashion industry, where items like shoes, jeans, or lingerie have various size and fit options. Instead, consider recommending one-size items, such as accessories or clothing care products. 3. Recommending Expensive Items: While this can be case-specific (I’ve seen items worth over $15K added to the cart during checkout in a luxury store), for most businesses, it’s effective to recommend items that are priced below the average order value. This strategy often resonates better with customers and increases conversion rates. While these examples are specific to certain cases and verticals, they underscore the importance of tailoring algorithms to suit individual business needs. This approach also opens up new opportunities for A/B testing. What are your thoughts? #shopify #woolman #shopifyplus #recommendations #checkout #aov #ecommerce #digitalcommerce #shopifytips

Z, in the last of our A-Z of ecommerce series, stands for ZigZag Global – a global returns solution provider that makes returns smarter for retailers, customers, and the planet.  According to Shopify’s 2023 trend report customers who shop online return 20-30 per cent of purchases compared to 8-10 per cent of in-store purchases. Worse still, the average return rate for luxury items is 50 per cent. High return rates can pillage profit margins, cripple conversion rates and ultimately destroy a business. But it’s not all doom and gloom – by looking at the problems causing high return rates and seeking to solve them, we can reduce and even maximise on returns. In this article we explore why ecommerce return rates are so high and give advice on how to reduce their impact on your business. Visit the link in comments. 👇 #shopify #shopifyplus #ecommerce #retail #fashion #homeware #cosmetics #jewellery

👚 How to discount for your #fashion brand to maximize profits and minimize risks Most brands I work with initially offer sitewide discounts when it comes to sales. But what if there was a better method that allowed you to: - Maximize profit by offering tiered discounts based on purchasing signals; - Clear unsold stock to raise capital; - Avoid offering discounts to those who would have bought anyway, thus preserving profit. Enter RFM Segmentation, a powerful method that helps you tailor discount strategies by analyzing three key customer behaviors: - Recency (R): How recently a customer made a purchase. Recent buyers are more likely to respond to promotions. - Frequency (F): How often a customer makes a purchase. Frequent buyers are more engaged and loyal. - Monetary (M): How much a customer spends. High spenders are valuable and may need special attention. Here's a common scenario that backfires: offering a 30% discount to a top customer who already spends a lot and frequently. This customer doesn't need a big discount to buy again, so you just lost 30% in profit. By scoring customers on these three dimensions, you can segment them into specific groups and target each with the right discount offers. Here’s how it works: - Top Performers: High Recency, High Frequency, High Monetary. Offer exclusive perks or early access to new collections to maintain loyalty without cutting margins. - Loyal Customers: High Frequency, Moderate Recency, Moderate Monetary. Use moderate discounts or loyalty rewards to keep them engaged. - Big Spenders: High Monetary, Moderate Frequency, Moderate Recency. Offer special incentives or personalized experiences rather than large discounts. - Promising Customers: Moderate Recency, Moderate Frequency, High Monetary. Use small, targeted promotions to encourage more frequent purchases. - At-Risk Customers: Low Recency, High Frequency, High Monetary. Use compelling, well-timed offers to re-engage them. - Need Attention: Low Recency, Low Frequency, Low Monetary. Use deeper discounts strategically to try to convert them into regular buyers. ___ In the coming days, I’ll write an article on how to implement this, with real-life examples using Klaviyo and Shopify for a fashion brand I’m working on at Grapefox. Don’t forget to hit the follow button so you won’t miss it.

🚀 Improving conversion rates by just 1% is something every e-commerce business dreams of. For fashion e-commerce, especially shoes, buying online can be risky. If the size is wrong, returns can be a hassle. But with a size recommendation feature, the risk goes down and purchase chances go up. At Perfitt, we analyzed cart conversion rates for users who used our size recommendation service and those who didn’t. Most of our partners saw a big increase in cart conversions with size recommendations. One partner even had a monthly cart conversion rate over 60%! 📈 More users are starting to use our size recommendation service, and the results are amazing. Want to boost your conversion rates? We’re here to help! 💬 https://lnkd.in/girTGHcN #ecommerce #conversionrateoptimization #fashiontech #onlineshopping #customerexperience #Perfitt

Direct to consumer (DTC) fashion e-commerce is all about transforming standard transactions into an all-encompassing customer experience, as it pivots on one fundamental concept - treating every loyal customer like the king or queen they are. Loyalty programmes are not merely promotional gimmicks, they are pivotal tools for building relationships with your top-tier customers, extending far beyond the basics of discounts or points. Imagine the impact of a streamlined programme: 💡 Handpicked product recommendations tailored to the customer's preferences 🌟 Priority access to new arrivals and fresh products before anyone else gets a glimpse 🎁 Special treats and indulgences on special occasions like birthdays 💬 Regular catch-ups and updates via email or social media - keeping the conversation going even when they are not actively shopping This is how we craft distinguished, personalised experiences that foster a deep sense of loyalty and a unique bond between the brand and the customer. However, while loyalty is a prize that is hard to earn, it is dishearteningly simple to lose. A single misstep can potentially dismantle the rapport that took years to build. Therefore, we must continually reassess and refine our strategies to ensure we're not only meeting but exceeding customer expectations. So, how exactly are you communicating to your customers that they are not just another transaction but valuable contributors to your brand's journey? Have you discovered any innovative techniques to bolster customer relationship management and foster retention? Let's initiate a discussion and share thoughts, because remember, in the realm of DTC fashion e-commerce, the customer isn't just king – they're everything. #customerloyalty #ecommerce #dtcfashion #customerexperience

Interesting insights here from InternetRetailing on the trends observed by Next regarding consumer shopping habits and the role #CX has to play in both customer acquisition and retention. With the cost of living crisis shopping habits tend to shift from a little (or cheap) and often mentality, towards investment buying (ie: spending a little bit more than usual, on something that will last longer thanks to style and quality). This was the case for the past two crashes we've had in the past 20 years when I was working in #retail and it is still the case now, with one small but key difference added to the equation, where the premium style and quality is no longer limited to the product itself, but now extends to the experience and service parts of the purchasing exercise. Think about it: shopping something that is good quality will generally speaking last longer, but also shopping somewhere that offers good quality *service* means that if something goes wrong with your item, you are more likely to be met with customer centric policies, systems and teams who are designed and trained to help create happy loyal customers... sounds too obvious to bare writing about and sharing on LinkedIn? I don't know, maybe ask yourself next time you are really struggling to return a faulty item. Here is how Next is taking it to the next level (I know, I'll see myself out right after this!) 📔 Clear policies across online and bricks and mortar 🖐🏼 Channel and options integration (you can shop online, and return your item in-store. You don't even need to 🎛️ Leveraging #analytics to identify insights that will help each customer have a more personal experience with a catalogue of items curated just for them 📦 Offering options that suit different lifestyles: If you are in a hurry you can pay for faster delivery, and if you are a frequent shopper you can get an expedited shipping subscription 🛍️ The experience of buying itself continues to improve with hyper-personalisation and recommendations to suit your lifestyle Check out the full write up by Katie Searles below 👇 ______________________________________ Hi! I'm Ori, a Customer obsessed strategist on a mission to help my clients offer the #CustomerExperience of their dreams! As you can probably tell, I could talk about this stuff for hours, so if you'd like to learn more about the latest trends in the industry, follow me 👉🏼 Oriana Ascanio ⚡️💜 for regular content

One of the biggest issues for any fashion brand operating online is size exchange. Customers can't try the product to see how it fits on them. They go by the size they usually wear and if it doesn't fit them, they ask the brand to exchange/return which eats into the bottomline for brands because of shipping fees for return and reshipment. One thing brands and marketplaces do to reduce size issues is to provide detailed size chart with every product so that buyers can check the measurements and order accordingly. But still brands and marketplaces which have free no questions asked exchange policies get an average 15-20% returns (out of which 10-12% can be accounted to size and fit issues). This happens because even though customers are provided with detailed size charts, they tend to order the 'alphabetical size' they usually wear. For example: If I usually wear a 'Large', I will order a 'Large'. But measurements of 'Large' vary from brand to brand hence size issues happen. Often customers blame this on the correctness of size chart and claim that the product is not true to the dimensions provided. Throughout last 2.5 years we tried multiple ways to fix this - providing detailed dimensions, how to measure size guide etc. But this year when we started taking orders for customised tees/hoodies where we send them size chart via DM and ask them to select size from it, we realised the problem is simply customers not spending enough time to check the size chart or giving it a real thought. Here's what the numbers told us: 1. Orders with no size issues - 99.53% 2. Orders with genuine size issues - 0.41% 3. Orders with manufacturing defect in product - 0.06% And when you think about it - when customers are provided free no questions asked exchange even for a INR 200 product by marketplaces, why would they bother spending time checking the size chart! For our website orders we make sure to provide enough nudge to the customer so they are thorough in checking the size chart and for CoD orders even take size confirmation on call. Exchanges are still there, but significantly less compared to what we see on marketplaces. For online fashion to be truly sustainable and not just brands burning money to woo the customers, it has to be a 2-way street where customers become considerate enough to understand the losses brands face for excessive exchanges/returns. #ecommerce #founderjourney #entrepreneurialjourney #brandbuilding