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The Checkout Lane: Science-based marketing advice for Shopify merchants

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Learn how to market your Shopify store better as we summarize learnings from the latest scientific research in a 5-minute episode every week.

Episodes

Episode #10: Should you put the price above or below a product to increase sales?

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hey Shopify merchants! It's your girl Carly back with another episode of the Checkout Lane, where we share science-backed strategies to grow your Shopify store! In each 5-minute episode, we'll cover the latest research and provide actionable insights that you can use. Whether you're an expert or a noob with your first store, join us as we explore the best ways to grow sales and build your brand. Today we discuss what the latest research says about where to display the price relative to your product. This works for both online and for retail in case you also have an offline presence. Before we dive in, this episode is sponsored by Popsmash, which creates AI product quizzes in 5 minutes to give your customers personalized product recommendations that are proven to increase conversions, grow average order value, and reduce returns. Try Popsmash for free at popsmash dot com or find it in the Shopify App Store. Alright folks, let's get started!. Imagine you're updating your product pages on your Shopify website or putting together ad creative for an upcoming sale. Where do you put the price? Above or below your products? Well, lucky for you, there's recent research to answer that question for you. So, if you've ever caught yourself staring at a price tag and thinking, "Why does this feel so expensive?" Well, it might just be because of where the price is placed, which should give you a hint on where to put your price! Here's the short answer: Put that price tag below your product to make it feel cheaper. This works regardless of whether it's on your website, an ad, or even on your store shelves. It's like magic—people will think the price is lower than it actually is. There's also related research that shows, in some cases, putting the price to the left of the product can also work. So, remember to test both placements to see what makes your cash register sing. But when in doubt, put the price below your product for the best results. So, why does this work? Well, in our brains, "down equals less" and "up equals more." So, when the price is lower, our brain is more likely to think, "Hey, that's a deal!" This trick works best for budget-friendly items. So, if you're selling diamond-encrusted cat collars, maybe not so much. Also, the research in this study focused on single prices, not "was $24, now $19" or similar scenarios. So, if you're running a sale, the effect might not be as strong. But you should test it to see what gives you the best results. Now let's talk about how to do it. This one is pretty simple. First, audit Your Price Tags and Check your website, ads, and in-store displays. Where's that price tag sitting? If it's above the product, then move It Down. Just place the price below the product. Simple as that. And here's One more thing you can try: Above, we mentioned also testing the price to the left of the product, but you can also test the corners, like the bottom-left. Some research says to avoid the bottom-right, but hey, test it if you're curious. So, if you are ready to make your prices as appealing as a double rainbow, give these tips a whirl and let the good times roll.

Nov 25, 2023 · 4:05

Episode #9: Do limited-time promotions work?

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hello my fellow Shopify merchants! It's your girl Carly back with another episode of the Checkout Lane, where we share science-backed strategies to grow your Shopify store! In each 5-minute episode, we'll cover the latest research and provide actionable insights that you can use. Whether you're an expert or a noob with your first store, join us as we explore the best ways to grow sales and build your brand. Today we discuss what the latest research says about time-limited promotions, how they work online vs. offline, example results, and how to make the most of them. We'll talk about when they work, how to implement this strategy, and what to watch out for if you decide to try this approach. Ok, but before we start, this episode is sponsored by Popsmash, which uses smart quizzes to give your customers personalized product recommendations that are proven to increase conversions, grow average order value, and reduce returns. Try Popsmash for free at popsmash.com or find it in the Shopify App Store. Alright folks, let's get started!. Have you ever wondered why limited-time promotions can be a hit in-store but a bit of a snooze online? Let's dive into the nitty-gritty, shall we? Here's the thing: Limited-time promos in an offline environment, like a retail store, work really well. But online? Not so much. Don't fret though, you can still make 'em work by doing two things: First, justify the rush: Tell people why now and why the clock is ticking. Is it your store's anniversary? Are you celebrating a holiday? Explain why. Then remember to keep it short and sweet: The quicker the promo, the better. Aim for 24 hours or less, but make sure it's long enough for folks to actually see it and buy. Those two tips should bring life to your limited-time promotions, even online. So...why does this even work? Offline in the real world, scarcity is like catnip—we just can't resist. But online, it can feel like you're trying to pull a fast one on us because the same laws of scarcity don't apply. And nobody likes to feel rushed into making bad decisions, right? Here are a few more insights the researchers found in this study to help you plan your next promotion: - First: In-store limited-time promos bump up willingness to pay by 10%. What about online? The effect was negligible. - Second: A Facebook ad with a justification (like "Spring Sale") had 93% higher engagement when less than a day remained. - Third: Emails with a time-sensitive promo and a reason (like "Mother's Day is coming!") were 23% more likely to be opened. That sounds compelling right? I thought so too! But there were a few limitations worth calling out. The data in this research study was all about attention and engagement, not actual sales. Also, if you limit by quantity like "Only 5 left!" instead of by time, you might annoy people, so be careful. The researchers also found that the bigger the brand, the more they can get away with doing it any way they want. For example, the Amazon's and Best Buy's of the world can bend the rules to their will! But us little guys have to be more careful! So, here's how you can put this into practice: - Step 1: Keep it short. Aim for a 1-day promo. - Step 2: Justify it. Tie it to an event, like "National Donut Day" if you're selling donuts. - Step 3: Get creative. If there aren't existing special days or events related to your product, make up your own! Everyone loves celebrating, so give us a reason to. Limited-time promotions are the marketing equivalent of speed dating: fast, intense, and you better make a move before time runs out. So, are you ready to make your online promos as irresistible as grandma's cookies? Go get 'em, tiger!

Oct 17, 2023 · 4:59

Episode #8: How to use 'Special Days' with promos to boost sales

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hey peeps! It's Carly back with another episode of the Checkout Lane, where we share science-backed strategies to market your Shopify store! In each 5-minute episode, we'll cover the latest research and provide actionable insights that you can use. Whether you're an expert or a noob with your first store, join us as we explore the best ways to grow sales and build your brand. Today we discuss what the latest research says about how special days can boost your promotions and drive more sales. We'll talk about why they work, how to implement this strategy, and what to watch out for if you decide to try this approach. Ok, but before we start, this episode is sponsored by Popsmash, which uses smart quizzes to give your customers personalized product recommendations that are proven to increase conversions. Try Popsmash for free at popsmash.com or find it in the Shopify App Store. Alright folks, let's get started!. Have you ever wondered if your promotions would be more exciting if they were tied to made-up special days like National Donut Day? Spoiler alert: They would be! So, let's dive in to understand how you can take advantage of it to boost sales. Here's something we can all agree on: "National Sock Puppet Theater Day" isn't real...but it should be. Am I right? So, why settle for a boring "Summer Sale" when you could be celebrating "World UFO Day" with discounts on all things, well, out of this world? Special days give your promos that extra oomph, so consider pairing your next promo with a special day. Does this really work? It turns out people are almost 2 times more likely to click on a promo linked to a special day. For example, a dog gear company saw clicks jump from 10 percent to 19.3 percent when they tied a sale to the anniversary of their mascot's rescue. So, why does this work? Research shows that people dig promotions tied to quirky special days. It's like throwing a themed party, everyone just has more fun! So use those special days to stand out and get on your customers' calendars. They're the peacocks of the marketing world because they're flashy and hard to ignore. Plus, they make customers feel good, and happy customers are buying customers! So, what should be your special days? Well, you have options, and it depends on what you think your customers will respond to. For example, you could use existing days like "Talk Like a Pirate Day," make up your own like "Amazon Prime Day," or personalize it like "Happy 1-Year Customer-versary!" My personal favorite is "International No Pants Day," which is also called "Work From Home Day." Might they be cringy? Yes, but the idea is to have fun and engage your customers to help boost your promos. So get creative! Now, if you decide to try this out, there are a few things to watch out for: - First, not all days are equal: Your "World Vegan Day" promo won't fly at a steakhouse. - And don't overdo it: If every day is special, then no day is special. If you overuse special days, the top slogan of the next presidential campaign might be "Make special days special again." See what I did there? So, how do you implement this tactic to use special days to boost your promos? First, start with a calendar check: Find upcoming special days that align with your brand to fill the gaps between existing holidays. Then get Creative: Create your own special days if nothing fits, but just don't use "Add to Cart, But Never Checkout Day" Remember, you can always personalize them by using customer details to celebrate individual milestones. Though "Happy 100th Login Day" or "We Know You Looked at This Item 3 Times, Just Buy It Already Day" could be a thing...but might be a little creepy. So, go ahead, make every day a special promo day (ok, not every day...). That's all for this week. And with that, I wish you a happy "If you like this podcast, share it with a friend Day." See what I did there?

Oct 14, 2023 · 5:02

Episode #7: Should discounts use $ off or % off?

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hello my sexy Shopify merchants, it's your girl Car-lee. Welcome to the Checkout Lane, where we dive into science-backed strategies to effectively market your Shopify store! In each bite-sized episode, we'll unpack the latest research and provide actionable insights that you can implement right away. Whether you're a seasoned Shopify merchant or just starting your first store, join us as we explore the best ways to grow sales and build your brand. In today's episode, we'll discuss what the latest research says about whether to use a fixed dollar amount off or a percentage off with discounts. We'll talk about how to decide which one to use in which situations and why it works. Ok, but before we start, this episode is sponsored by Popsmash, which uses smart quizzes to give your customers personalized product recommendations that are proven to increase conversions. Try Popsmash for free at popsmash.com or find it in the Shopify App Store. Alright folks, let's get started!. If you want to make your discounts not just look good, but irresistible, here's a question for you: Should you give a fixed dollar amount off or the equivalent percentage off? For example, for a 200 dollar item, should you offer "40 dollars off" or "20 percent off"? The research tells us that it depends on the price of your product. If the product is over 100 dollars, go with the dollar amount. Under 100 dollars? Use the percentage for more impact. So, why does this work? This works because people love discounts, but they love 'em even more when they feel like they're getting a steal. It turns out the feels are in the steals, for reals! Yeah, we're all a bit lazy when it comes to math. Seeing "20 dollars off" on a 200 dollar item feels like a bigger win than doing the mental gymnastics to figure out what 10 percent off means. Now let's summarize the rule to use for your discounts with a couple of examples: With high-priced Items over 100 dollars, like for a 500 dollar product, a dollar amount off like 100 dollars off feels like a better deal than just saying 20 percent off. But with low-priced Items, like for items under 100 dollars, percentages are king. 50 percent off on a 20 dollar item feels bigger than just 10 dollars off. How you frame it is all about how it feels to the buyer - remember, you gotta hit 'em right in the feels. If you want to see more, there's a table with other examples of discounts across various products in an article on the Popsmash blog. But the gist is to match the type of discount with the product's price to maximize the perceived value of the discount. This should help you get more bang for your promotional buck. Now, this isn't a silver bullet, so there are some things to be careful of. For example: Currency matters. This research above was tested in dollars and pesos, but it should also work for euros, pounds, or Bitcoin. Just kidding, not Bitcoin! There's also a caveat on statistical significance: For low-priced items, the percentage off effect wasn't statistically significant. So, if you're lazy, and who isn't, sticking to dollar amounts won't kill your sales. Keeping these caveats in mind should help keep you on the right track. Ok, enough talk, let's get into how to do it. First, look at your product prices. Over 100 dollars? Use dollar discounts. Under 100 dollars? Use percentages. Second is consistency: If switching between dollars and percentages is a logistical nightmare, just stick with dollar amounts. You won't lose too much. Here's a quote to wrap us up. As Al Reese said: "In marketing, perception is reality." So, go ahead, and make your discounts feel like the deal of the century. Until next week, keep those sales rolling!

Sep 19, 2023 · 4:49

Episode #6: How to increase sales by making discounts seem bigger

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hello my sexy Shopify merchants, it's your girl Car-lee. Welcome to the Checkout Lane, where we dive into science-backed strategies to effectively market your Shopify store! In each bite-sized episode, we'll unpack the latest research and provide actionable insights that you can implement right away. Whether you're a seasoned Shopify merchant or just starting your first store, join us as we explore the best ways to grow sales and build your brand. In today's episode, we'll discuss what the latest research says about how framing discounts based on the discounted price makes it look bigger, which drives more sales. Interested? I sure am. We'll talk about how to do it and why it works. Ok, but before we start, this episode is sponsored by Popsmash, which uses smart quizzes to give your customers personalized product recommendations that are proven to increase conversions. Try Popsmash for free at popsmash.com or find it in the Shopify App Store. Alright folks, let's get started!. We know discounts sell, but they also eat into our margins. So how do we get the best of both worlds? Some way to make your discounts feel more like a Black Friday frenzy without actually slashing prices. Here's how to do it: Stop saying "37% off" when you can say "was 59% higher." It's the same discount but with a different framing. It's like calling a used car "pre-owned." It sounds way better, right? Or for people like us, why call yourself "unemployed" when you can call yourself an "entrepreneur." So, why does this work? Research shows that framing the discount based on the discounted price makes it look bigger. And bigger discounts are like catnip for customers -- they sell way better. We're all a bit lazy when it comes to mental math. So, we see a big percentage, and our System 1 brain kicks in, it urges us to snag the deal before someone else does. Thank Daniel Kahneman for that insight. Does this always work? Not always, but it does work pretty consistently if you use it right, so let's talk about that. Here are some examples: If you're giving small discounts, like just knocking off a buck, the effect is negligible. Bigger discounts perform better. This little trick also doesn't work if your customers are math savvy, like with accountants. But it works well with most people. Another interesting thing the research found is that this also works for features. For example, don't say your new laptop is 30% lighter, say the old one was 42% heavier! This trick is proven for physical products, but it has not been well-tested for services or software. You should also make sure that you don't make your customers feel duped. Your goal is to just show your offers in the best light, so remember to always keep things honest and just reframe, but don't stretch the truth. We'll see how much this catches on, so if more merchants start doing it, it could lose its mojo. But those caveats aside, this is still an effective tactic for now. So, now let's talk about how to put it to work. There are 3 magic steps to putting this into practice: First, reframe your discounts: Switch from "now X% lower" to "was Y% higher." Then also apply it to features where possible: Like if you have a faster setup process, say the competitor is 60% slower. Last, remember to always test to make sure this resonates with your audience and is having the intended effect. So, there you have it: a new way to make your discounts feel more like winning the lottery. And for some parting wisdom here's a quote that no famous marketer said, but they should have: "Framing in marketing is like Instagram filters for your product—it makes everything look better, but don't overdo it."

Sep 17, 2023 · 4:50

Episode #5: How to get more customer referrals & grow word of mouth

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hello my sexy Shopify merchants, it's your girl Car-lee. Welcome to the Checkout Lane, where we dive into science-backed strategies to effectively market your Shopify store! In each bite-sized episode, we'll unpack the latest research and provide actionable insights that you can implement right away. Whether you're a seasoned Shopify merchant or just starting your first store, join us as we explore the best ways to grow sales and build your brand. In today's episode, we'll discuss what the latest research says about how to tweak how you ask customers for referrals and how this one little change can grow your referrals by over 80%! We'll talk about how to do it and why it works. Ok, but before we start, this episode is sponsored by Popsmash, which uses AI to help you sell more with personalized marketing. Try Popsmash for free at popsmash.com Alright folks, let's get started!. If you want more word of mouth referrals, start using altruistic referrals where both parties benefit. That's right, you need to flip the script and make it about them. Show how sending you referrals benefits your customers and their friends. These are called two-sided referrals, and they work because they give both people a benefit. You're probably wondering how well it works. So did I. Get this: Research shows that an altruistic spin like "Give your friend a 70% discount!" boosts the odds of a referral by 60% and total referrals by 86%. Crazy, right? It's like social currency but without the awkwardness of asking for a favor. So help your customers hook a brother up and see those referrals soar. It turns out that referrals are the original gangsters of social media. You know, social before social was cool. Why? Because we all naturally want to share cool stuff with our friends. But just having a selfish incentive muddies the water and makes it lame. So, if you make it about helping a friend, you've got a winning combo. So, when should you do it, and who should you target for the best results? Timing is everything. Ask for that referral right after they've made a purchase. The glow of a new buy makes people more likely to spread the love. You must also know your audience. If you can, target this to your repeat customers and those with high net promoter scores. They are 73% more likely to send you customer referrals. Follow those two guidelines for the best chance of success. Here are a few examples from popular brands: Dollar Shave Club gives existing customers 5 dollars off their next purchase and new customers $5 off their first purchase. Warby Parker does the same thing. Glossier gives existing customers 10 dollars in store credit and new customers 10% off their first purchase. HelloFresh gives existing customers 20 dollars off their next box order and new customers 40 dollars off their first order. Casper gives existing customers a 75 dollar Amazon gift card, and new customers get 10% off their first mattress. So, are you ready to try this out? Here's what to do. First, tweak your call to action. You should change your referral call to action to focus on the friend's benefit. "Your friend gets a percent off, and so do you." Help them show that it helps and their friends. Next need to segment to target the right people. Aim this campaign at your most loyal customers and those who are super satisfied with your products and services. They're your low-hanging fruit, so go for these customers first. Last, you need to test the waters to see what works. You can try offering the discount only to the friend first and see how that works. It could save you some cash and still get you that sweet, sweet referral. That's just an example, but you'll need to continually test, learn and iterate here to optimize your referrals. So, try it out and be the matchmaker by helping your best customers play hero and refer their friends with discounts!

Sep 15, 2023 · 5:01

Episode #4: How to boost sales by asking for customer feedback

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hello my sexy Shopify merchants, it's your girl Car-lee. Welcome to the Checkout Lane, where we dive into science-backed strategies to effectively market your Shopify store! In each bite-sized episode, we'll unpack the latest research and provide actionable insights that you can implement right away. Whether you're a seasoned Shopify merchant or just starting your first store, join us as we explore the best ways to grow sales and build your brand. In today's episode, we'll discuss what the latest research says about how, perhaps counterintuitively, asking customers for feedback can actually boost your sales! We'll talk about how to do it and why it works. Ok, but before we start, this episode is sponsored by Popsmash, which uses AI to help you sell more with personalized marketing. Try Popsmash for free and get started in minutes at popsmash.com Alright folks, let's get started!. So, here's something you probably didn't know: Asking customers for feedback actually increases sales AND helps drive repurchases. Counter-intuitive right? We're usually hesitant to ask customers what they think so that we don't bug them. But it can work if you do it right. You need to start with an open-ended question about what they liked about your product or service, like: - What did you like most about X? - What did we do well? - What did you enjoy during X? - Was it good for you? ...ok maybe that last one was a little too personal, but you get the idea. After you prime them with the open-ended questions, you can dive into other questions like asking for feedback on what you can improve, customer satisfaction ratings, etc. But don't overdo it! Have you ever started taking a feedback survey, and a couple minutes in, as it goes on and on, you realize you just don't care enough to continue? Me too, not cool. Ok, back to the topic... So...why does this work? What sorcery is this, you ask?! When you ask customers what they love about your product or service, you're not just collecting data. You're making them dig deep into their memories and relive the good times. This refreshes their positive experience with your brand, making them more likely to spend more in the future. Next you might be wondering: Does this work for businesses that serve consumers as well as other businesses? And how well does it work? Here's what we found: In business to consumer, those who answered a survey spent 130.98% more than those who didn't. And in business to business asking this open-ended question bumped up spending by 32.88%. Pretty cool, right? So, how can you do it for your business? Here are the four steps: First, automate It. If you haven't already, set up an automated email or in-app survey to ask for feedback. Then, start positive. Kick-off with an open-ended question like, "What did you love about your experience?" Make it optional if you're worried about response rates. For follow-on questions remember to keep framing things positively. Like, instead of asking, "What did we mess up?", try asking, "How can we make your experience even better?" Lastly, acknowledge and amplify. Send a thank-you note for the feedback customers leave, and encourage them to share their positive experiences in a review. So there you have it: a counterintuitive way to get more reviews AND more sales. Let's close with the quote of the week: "Customer reviews are like a box of chocolates: you never know what you're gonna get, but you hope it's not the coconut one." Forrest Gump said that...right? Right?!

Sep 1, 2023 · 5:07

Episode #3: The magic number in marketing

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hello my fellow Shopify merchants, it's your girl Carly! Welcome to the Checkout Lane, where we dive into science-backed strategies to effectively market your Shopify store! In each bite-sized episode, we'll unpack the latest research and provide actionable insights that you can implement right away. Whether you're a seasoned Shopify merchant or just starting your first store, join us as we explore the best ways to grow sales and build your brand. In today's episode, we'll discuss what the latest research says about the perfect number of marketing claims to best persuade potential customers. But before we start, this episode is sponsored by Popsmash, the fastest way for Shopify stores to turn their Instagram followers into email subscribers and drive sales. Try Popsmash for free in the Shopify app store! Alright folks, let's get started!. I've got a number for you today: Three. Yep, you heard it right—just three. But why's this number so special? Well, it could be the key to effectively marketing your product. Curious? Let’s dive in! Imagine you've got this incredible product. It's as dazzling as fireworks on the Fourth of July. Now, the question is, how do you talk it up? How many awesome things should you highlight to make people as excited about it as you are? The magic number, my friends, is three. Why three? Research shows that trios are golden when it comes to persuasion. Think about it—some of the most iconic brands use three powerful claims to describe their essence. BMW touts being "Dynamic, Efficient, Luxurious." L'Oréal goes with "Innovation, Excellence, Expertise." And let's not forget my favorite Tinder profile: "Tall, Dark, Handsome." You get the point. But why not more or less than three? If you go below, you're underselling. You're like a guitarist without a band—you won't capture the full melody. And if you go overboard, if you list more than three, well, you might raise some eyebrows. It's like adding too many spices to the soup—after a while, it just gets confusing. Why does the number three work like a charm? It's all about patterns, baby! The human brain loves 'em. Three is the smallest number that allows our minds to perceive a beginning, middle, and end. It's satisfying, easy to remember, and oh-so compelling. Okay, so are there exceptions to the rule? Well, sure. Like, if you're advertising on a billboard, you might want to stick to one, punchy message. You've got mere seconds to capture attention, so make it count! And from personal experience, the 'rule of three' isn't necessarily a dating strategy...unless that's your thing, and hey, no judgment here. So how can you put this golden rule to use? 1. Identify your product's top three attributes. What makes it stand out? 2. Showcase those three gems everywhere—ads, packaging, social media—you name it. 3. If you've got more good stuff to share, use them as supporting actors, but let your top three features be the stars of the show. In summary, whether you're selling organic dog food or high-end electronics, three is your magic number for making a strong, memorable impression. Get out there and make those three claims shine! Alright, that's a wrap for today, folks! Until next time, may your marketing be as easy as 1-2-3. Happy selling!

Aug 26, 2023 · 4:15

Episode #2: Should your Shopify store sell products on marketplaces like Amazon and Etsy to get your first customers?

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hey peeps! It's Carly back with another episode of the Checkout Lane, where we share science-backed strategies to market your Shopify store! In each 5-minute episode, we'll cover the latest research and provide actionable insights that you can use. Whether you're an expert or a noob with your first store, join us as we explore the best ways to grow sales and build your brand. Today we discuss what the latest research says about how marketplaces like Amazon and Etsy can be a good place to find your first customers. However, they're not right for everyone, so we'll also talk about how to know if it's right for you and what the tradeoffs are. But before we dive in, this episode is sponsored by Popsmash, the fastest way for Shopify stores to turn their Instagram followers into email subscribers and drive sales. Try Popsmash for free in the Shopify app store! Alright folks, let's get started!. Today's topic is a real game-changer for anyone looking to get their feet wet selling online. Are you leveraging marketplaces like Amazon and Etsy to boost your early sales? If not, it's time to listen up! Imagine you're launching a new product. It's sleek, it's shiny, but nobody knows about it yet. That's where marketplaces come in. They're like a bustling bazaar, teeming with potential customers, just waiting to discover what you have to offer. So, how does it work? If you're dealing with low-priced products with a variety of options, then marketplaces could be your ticket to early sales success. Think of items like kitchen gadgets, fashion accessories, or fun decor pieces. Here's where you can offer a sample of your product line to lure in curious shoppers to give them a taste that gets them hooked on your brand and wanting more. But if you're selling high-end, high-priced items with limited options instead, then the marketplace might not be the right channel for you. Imagine trying to sell a luxury car at a flea market. It just doesn't quite fit. So, what makes marketplaces so effective? They offer exposure to new customers with lower customer acquisition costs compared to other channels. This is especially true for new brands that are just starting out. It's like having a storefront in a busy mall without the high rent...you know, back when malls were popular. So, how do you do it? Here's the strategy: First, set up shop on a marketplace like Amazon or Etsy. Then, only offer a limited selection of products to give customers a taste of what you offer. And lastly, once they bite, guide them to your own website with more options, better search experiences, and competitive pricing. The upside? Customer acquisition costs on marketplaces are generally lower, around 24% lower on average. Plus, every 70 or so marketplace sales should generate a new customer on your own website to build your brand. But, as with all things, there's a tradeoff. You might lose some control over customer data and direct customer relationships by using marketplaces. But when you're a new brand trying to get your first customers, those tradeoffs might just be worth it! So, what's next for your brand? If you're new to the market or have limited brand awareness, test the waters by selling your products in a marketplace like Amazon or Etsy. Showcase some of your products, but save the best for your own website. Offer exclusive items and better prices, making your site the go-to place for repeat purchases to build your brand. So, how do we know this works? Well, it turns out the 10 largest sellers on Amazon also use this strategy and operate their own online stores along with their presence on Amazon. And most of them offer less than half of their product portfolio on Amazon and sell the rest exclusively on their own website. But remember, this may not work for every brand or every product. So, test, learn, and iterate to find what works best for you.

Aug 18, 2023 · 5:05

Episode #1: Which marketing channels should you use for your Shopify store?

The Checkout Lane: Science-based marketing advice for Shopify merchants

Hello my sexy Shopify merchants, it's your girl Carly! Welcome to the Checkout Lane, where we dive into science-backed strategies to effectively market your Shopify store! In each bite-sized episode, we'll unpack the latest research and provide actionable insights that you can implement right away. Whether you're a seasoned Shopify merchant or just starting your first store, join us as we explore the best ways to grow sales and build your brand. In today's episode, we'll discuss what the latest research says on how to decide which online marketing channels you should focus on to market your Shopify store. Here's a hint: It depends on your product! But before we start, this episode is sponsored by Popsmash, the fastest way for Shopify stores to turn their Instagram followers into email subscribers and drive sales. Try Popsmash for free in the Shopify app store! Alright folks, let's get started!. So, here's a question for you my friend: Is your product where it needs to be? How do you even know where it should be? Well, today's study answers that question for us based on data from over 4,000 shoppers across 40 massive U.S. retailers to understand the best channels for your product. So...what channels should you try first? It's the answer everybody loves: it depends. But I won't leave you hanging. Here's how to know what to try first. It's not just about being everywhere, it's about being where it matters! Think of your product as either a juicy apple pie or a sturdy oven mitt. Ok, I know what you're thinking: Carly, what the heck are you talking about? Ok, well, is your product about pleasure, like nail polish? Or is it utilitarian, like a dehumidifier? That's the difference. For pleasurable products: Let's get...emotional! That's that Olivia Newton-John song? ...Right? No? Ok, I'm a millennial, so if it was a Backstreet Boys song, I would have nailed it! If you're selling something fun, like perfumes or fashion, then it's all about emotions, impulse, and, yes, love at first sight! Your customers are seeking that spark..a connection. So give it to them! Here's what you need to do: First, spruce Up Your Social Media:: Think Instagram glam and TikTok dance. Get those influencers rocking your product. Then, spice up your product pages with something they can't resist: Exclusive discount coupons? Glorious photos? Bring it on! But what if you're not selling fun, pleasurable products? What if you're selling something practical, like washing machines? Then channel your inner Spock, because it's time for logic. With practical products, customers seek value and comparison, so focus on review sites and search engines. With review sites, you have to benchmark like a pro! Show how your product stacks up against the competitors. Why should they choose you? You should also embrace search engine marketing, like Google Ads and SEO content: Your customers are looking for the problem you solve, so make sure they find you first! But what if it's both? Then you have to do a balancing act. Consider a sound system to bump that latest Barbara Streisand track. A sound system is both cool and practical! How do you market something that's both pleasurable and utilitarian? Well, you have to Simone Biles that shizz and become a marketing gymnast, balancing between fun and function. Ok, we covered the research, but WHY does this work?! Well, with pleasurable products, it's all about the heart. It's an emotional ride from an eye-catching social media post to an impulsive buy. But with practical products, it's all about the head. Your customers are out to find the best value. They compare features, hunt for deals, and make logical decisions (most of the time). So, whether you're selling apple pies or oven mitts, decorative candles, or insect-repellent ones, now you know where to set up shop. And don't forget, there's no one-size-fits-all. Embrace the uniqueness of your product and brand, understand your customer's journey, then test, learn, and iterate.

Aug 15, 2023 · 4:51