#83 Daniel Budai from Budai Media: 3 More E-Commerce Trends to Look Out for in 2022
Last week, our CEO and podcast host Daniel Budai introduced us to 3 upcoming trends to look out for in 2022. And now he’s back with 3 more! Just when you thought you couldn’t get more prepared for next year.
Join Daniel’s second Master Show for more fantastic advice on:
✔️ 3 More E-Commerce Trends to Look Out for in 2022
✔️ Timeless Advertising with David Ogilvy
✔️ The Best SMS Marketing Tool
✔️ Advice from the Best in Business
3 More E-Commerce Trends to Look Out for in 2022Trend #1: Subscriptions
Subscriptions have taken off over the past couple of years, and Daniel predicts an acceleration in this trend next year.
Subscriptions are already huge in software, SaaS companies make the bulk of their revenue in subscriptions. As of 2021, subscriptions are not quite as prominent in the e-commerce industry, but they’re rapidly rising in popularity.Parsa Saljoughian, VP of strategic finance at WHOOP, states that subscription-based businesses can retain up to 65% of their customers within 12 months.
So, aside from high customer retention rates, what are the benefits of using a subscription-based model in your e-commerce?
1. You’ll get to know your customers
Subscriptions are a great way to collect zero-party data. Collecting zero-party data is the first step towards hyper-personalizing your marketing and product recommendations.
2. You can build better incentives
Since subscriptions allow you to really get to know your customers, you’ll collect enough information about their purchase behavior to build an effective VIP tier system, understand what incentives they respond to, and come up with some really solid offers and bundles
3. Subscriptions are sticky
In other words, they can be a hassle to cancel. When your subscriptions are low-cost, customers may often not feel the need to cancel their subscription if they take a break from your product or service for a few weeks or even months.
So what are your next steps?
If you want to build a subscription-based model for your business, Daniel recommends checking out Recharge if you have a Shopify store or adding the Woocommerce subscription extension if you’re with Woocommerce. Recharge can also be integrated with Zipify One Click Upsell for when you want to upsell a subscription.
Daniel advises that thorough data collection and analysis is integral to a subscription-based model. Metrilo is a great tool to hook up your subscription-based data with your Google Analytics account.
Otherwise, if you need any help with data analysis and building a subscription-based model, head over to thebudaimedia.com or email [email protected].
Trend #2: Personalization
As the iOS14 and 15 updates shook digital marketing to its core zero-party data and first-party data became incredibly important. And that trend isn’t going anywhere.
Zero-party data isn’t collected by pixels or third parties. They’re collected through questions: permission-based marketing. Customer information is retrieved through survey questions, quizzes, or popups.
Zero-party data revolutionizes the customer journey: direct questions collect customer information that third-party data would never be able to obtain. It allows e-commerce owners to hyper-personalize and customize every step of the customer journey.
Personalized marketing, Daniel advises, is particularly effective with omnichannel marketing. It’s important to ensure that every marketing channel, be it website optimization, email marketing, SMS marketing, ads, etc. is connected. Omnichannel marketing is particularly useful during sales and promos. During Black Friday, for example, your site will direct visitors to email and SMS marketing. In turn, SMS and email marketing are fantastic for promoting Black Friday and creating urgency.
Daniel highly recommends Octane AI for its Shop Quizzes, Conversational Popups, and seamless personalization and product recommendations across marketing channels.
Thank you emails are also highly effective in optimizing personalization and expressing appreciation to your customers. According to Klaviyo, a post-purchase thank you email has an open rate of over three times the average email. So make sure that your copy is good and you grasp any opportunity for upselling. Klaviyo personalizes the recommended product feed, so do take advantage of that in your email marketing.
Trend #3 Social Commerce
According to Statista, Social Commerce will have $46 billion in sales in 2022. That’s a 20% - 25% increase from last year.
So what is social commerce?
Social commerce is the process of selling products directly on social media. When people are scrolling through TikTok, Facebook, or Instagram, they usually don’t want to be taken to a website to buy a product: they want to buy within the platform.
Keep an eye on your social media and your customers. Use Facebook marketplace if it’s relevant to your audience, or engage with shoppable Instagram or TikTok feeds if you have a Gen Z audience. Daniel advises that Pinterest is one of the fastest-growing selling machines right now, so do check out Pinterest for Shopify.
Timeless Advertising with David Ogilvy
Whilst advertising changes all the time, there’s still a lot to learn from David Ogilvy’s 1959 Rolls-Royce advert. We’re sure you’ve seen this one:
“At 60 miles an hour the loudest noise in the new Rolls-Royce comes from the electric clock.”
This advert has withstood the test of time because Ogilvy did his research on Rolls-Royce customers. The fact that the electric clock is the loudest noise in the car is not relevant to anyone except the target customer. A customer who is highly interested in luxury cars.
Ogilvy wasn’t a big fan of one-word headlines, but he had to take his hat off to the Volkswagen’s 1959 ‘Lemon. Think Small’ ad. This went completely against the grain in the US car market at the time, therefore promoting a novel perspective that humorously emphasizes functionality and affordability.
Avis’s 1963 ad ‘Avis can’t afford dirty ashtrays’ is a great example of how you can position your brand next to your competitors. Avis points out that they’re “No. 2” in rent a cars. Unlike the No.1 in rent a cars, they cannot afford to treat their customers poorly. They will always provide a full gas tank, a smile, and a clean ashtray. That was their unique selling point, and it worked very well.
The Best SMS Marketing Tool - According to You Guys!
Daniel recently asked his followers on Facebook and Instagram a simple question: “What is your favorite SMS marketing software tool?”
On LinkedIn, Klaviyo came out on top, but Postscript and SMS Bump also won over a few votes.
On Facebook, people mentioned Postscript, Attentive, and Klaviyo.
At Budai Media, we’ve tried Postscript, Klaviyo, and Recart. Our favorite platform is SMSBump. It can be used in almost every country across the world, its segmentation and data analysis are very advanced, and it integrates seamlessly with Shopify, Klaviyo, Recart, and other fantastic e-commerce tools.
Advice from the Best in Business Here are a few of Daniel’s favorite quotes from leading figures in e-commerce and marketing.
Jeff Bezos
“There are two kinds of companies - those who work to raise the prices and those that work to lower them.”
Daniel recommends that smaller companies without investors should aim to raise their prices. Larger companies with investors, however, should scale by lowering their prices.
David Ogilvy
“On average, five times as many people read the headlines as read the body copy.”
Daniel recommends spending the same amount of time on your headline as you do on your body copy. Come up with at least 10 different variations of headlines and subject lines, A/B test as much as you can, and find out what works.
Thank you for joining Daniel’s Master show! If you’d like to learn more about CRO, retention marketing, and scaling your e-commerce, visit Budai Media today.
It won’t be long before Daniel releases his book packed full of actionable tips for scaling your e-commerce in 2022 - watch this space!
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