The idea of what a product is has changed—and so must direct-to-consumer (DTC) marketing strategies.
Today, every product is part of an ecosystem that includes payment and shipping options, promotions, and your brand. Once shoppers have filled their carts, they shift their decision-making focus to how they’ll pay, when they’ll receive their items (and at what cost), and what deals they can apply to their order. Each of these elements can make the difference between abandoned carts and placed orders.
Afterpay’s Ben Pressley, EVP of Strategy and Growth, joined leaders from JustUno and MuteSix to talk about the shift in DTC strategies, and what it means for retailers in today’s environment. Pairing solutions like Afterpay with dynamic messaging, pop-ups, social ads, and other on- and off-site real estate can lower cost-per-acquisition (CPA) and boost conversion rate. Read on for the team’s insights and best practices.
1. Deeply understand today’s consumers
We all want deals, and being careful with money is even more important in the COVID-19 era. Millennials and Gen Z are increasingly opting for debit cards over credit cards, as they seek more control over their budgets and avoid debt. Beyond promotions and sales, offering this generation of shoppers methods to spend responsibly—and on their terms—is important. They want the opportunity to buy now and pay later without handing over their SSN or other sensitive data, and without interest or high late fees. That’s why more retailers are not just partnering with Afterpay, but actively promoting this payment option as part of their DTC strategy.
2. Build a dynamic funnel
Did you know the average Facebook user scrolls through roughly 300 feet of newsfeed per day—around the height of the Statue of Liberty? That’s a daunting statistic for marketers trying to get their ads not just spotted, but watched and read. Building a dynamic top, middle, and bottom funnel strategy for social ads is crucial to move potential customers from awareness to sales. MuteSix recommends leveraging energetic, UGC-based videos for top-of-funnel (or first touch) ads; product demos, testimonials and media, or unboxing for mid-funnel ads; and simple image / text overlay visuals with promos for bottom-of-funnel ads. The latter ads are a good opportunity to feature first-time customer discount codes or highlight features like free shipping, quality guarantees, or Afterpay at checkout.
3. Mirror your off- and on-site messaging
Trust is paramount to today’s shoppers, and they notice when things seem different on a retailer’s website than they appeared on social media. Using the same messaging, promos, and CTAs in social ads and on your website (after click-through) has proven more successful than a “see what sticks” strategy. A recent “mirrored messaging” campaign run jointly by MuteSix and JustUno for an Afterpay retailer resulted in a 25% lower CPA and 20% reduction in cart abandonment, while netting more than 2,000 emails in just one month.
4. Use the right on-site tools
Let’s talk pop-ups and banners. Most savvy retailers today have an intro offer pop-up for first time customers, which serves double-duty to collect email addresses (thus unlocking the discount code) and drive sales. But fewer use exit pop-ups, which catch users before they click off your site with an ungated (no email required) discount code. Recent JustUno exit offer campaigns converted 22% of users, driving a significant amount of sales for such an easy-to-implement tool. While pop-ups drive 5-10x the engagement of header or footer banners, the latter are still important tools to use. Banners are ideal for highlighting ongoing promos (such as free shipping or $X off $X purchases) or conveying important information. We’ve seen a spike in banner use as retailers communicate COVID-19 related messaging, from shipping delays to reminders that they’re still open for business.
5. Incorporate Afterpay messaging
…but don’t just take our word for it. Merchants that offer Afterpay as a payment option see an average 20% - 30% increase in AOV. When Spongelle used Afterpay messaging in recent email campaigns, the retailer saw a $30 increase in email revenue and average order value increase if $13. When is the right time to tell customers? Many of our partners have had success sending e-blasts when first implementing Afterpay, implementing pop-ups for customers with high-priced items in their carts (or high cart totals), and reminding abandoned cart shoppers of the option via either pop-ups or emails. As far as what those messages are, it’s best to keep it simple (like “buy now, pay later”) and personalized. Both engender trust with consumers—and trust is more important than ever these days. Said Spongelle CEO Elaine Binder, “Afterpay reduced payment friction for our shoppers, which is especially important during times like these with lots of uncertainty.”
6. Adjust your strategy for COVID-19
A dynamic, optimized DTC strategy can save your team time and money—but it’s important not to forget the human factor, especially during COVID-19. Beyond taking on an empathetic tone in your messaging, focus on the most useful or relevant factors of your products in your DTC strategy. MuteSix suggests pushing self-care benefits or at-home applications and finding new uses for your products. Retailers with non-essential products might instead turn to promos that meet consumer needs during this time. Above all, take things day-by-day to learn, adjust, and better tailor your strategy to both the products and features consumers need most now. For some, that’s the ability to get what they need now, without having to worry about cost.
For information on how Afterpay can help your growing business, contact us.
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