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405 – How to Increase Customer Retention with Kerri McDonald
Episode 40514th January 2023 • Gift Biz Unwrapped • Sue Monhait
00:00:00 00:50:06

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Here's possibly the most important thing you can do to grow your business. Learn how to retain customers who have already purchased from you so they buy again Of course, some customers will drop off, month to month, or be one-time purchasers. But the strategy you'll hear about today can STOP that constant search for new customers every month!  Kerri dove head-first into e-commerce over four years ago, driving her first brand to eight-figure status as Director of Marketing in less than three years. Ready for a new challenge, Kerri co-founded The Greenhouse with her partner in 2020. Centered on e-commerce, email, and SMS marketing, The Greenhouse has quickly grown into an agency where clients take root and flourish, generating over $10 million in revenue for its brands in the first year. When not growing brands, Kerri inspires others by sharing her own multifaceted story. From major career changes, and rebounding from a business failure to co-found a thriving business, Kerri helps others craft a fulfilling, unique path in life that defies limits.

How To Increase Customer Retention

  • The mindset you need for marketing your business.
  • Why retaining as many customers as possible is so powerful.
  • How to understand your customers and the type of problems you help them solve.
  • Specific steps you can take to get started from scratch - no matter how small your biz!
  • The best tools for customer retention.
  • And lots more!

Tune in now to hear how you can build sustainable growth in your business with simple customer retention techniques!

Resources Mentioned

Kerri's Contact Links

WebsiteInstagram | LinkedIn

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Become a Member of Gift Biz Breeze If you found value in this podcast, make sure to subscribe so you automatically get the next episode downloaded for your convenience. Click on your preferred platform below to get started. Also, if you'd like to do me a huge favor - please leave a review. It helps other creators like you find the show and build their businesses too. You can do so right here: Rate This Podcast Apple PodcastsGoogle PodcastsSpotify Thank you so much! Sue Know someone who needs to hear this episode? Click a button below to share it!

Transcripts

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Gift Biz Unwrapped guest,

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episode number 405.

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It's the way that you can get directly into your customer

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at the most specific time of when you think they're gonna

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buy or buy again.

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Attention, gifters,

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bakers, crafters and makers.

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Pursuing your dream can be fun.

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Whether you have an established business or looking to start one

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now you are in the right place.

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This is Gift Biz Unwrapped,

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helping you turn your skill into a flourishing business.

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Join us for an episode packed full of invaluable guidance,

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resources, and the support you need to grow your gift biz.

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Here is your host Gift Biz gal Sue Moon Heights.

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Hi there,

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it's Sue.

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I'm thrilled that you're here with me today and appreciate your

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loyalty and support of this podcast going into another year.

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Make sure to hit the subscribe button if you're new to

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the show so you automatically get all the goodness coming your

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way for this year.

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One of those things is the bashes there back.

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If you're not familiar with these,

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you can go back in the lineup and listen to one

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of the podcasts that says Bash in the beginning of the

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title. These shows provide you an opportunity to get your business

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seen by this whole listening audience.

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New visibility with no financial investment.

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How great is that?

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They're actually a recorded zoom get together that turns into a

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podcast several weeks later.

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You get to showcase your business and tell us about a

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promotion you have going on,

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or talk about your interest in wholesale placement or your idea

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about doing a joint product collaboration.

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Valentine's Day is right around the corner,

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and our next bash is scheduled this upcoming week,

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January 19th.

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Intentionally planned that way.

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Of course,

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as long as you're an established handmade product business owner,

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I invite you to book your spot.

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Go to gift fizz unwrap.com/bash

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to sign up.

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Spots are limited though because I wanna keep the resulting podcast

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to a reasonable time,

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but if there are openings,

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you can sign up for as many as you like.

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So scroll through future months too.

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If next week's get together doesn't fit your schedule.

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Today we're talking about the most important thing you can do

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to grow your business.

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That is retaining customers who have already purchased from you,

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so they'll buy again.

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Yes, some customers will drop off month to month or be

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only a one time purchaser,

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but if you put the strategy you'll hear about here in

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place, you won't be spinning your wheels all the time trying

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to find a fresh new set of customers each and every

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month. You'll get repeat orders that naturally build upon themselves over

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time. It's such a stress reliever when you get to the

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place where you can predict confidently that these orders will come

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in. That is what brings sustainable business growth.

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You know,

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that arrow that you want to continually see making its way

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upward in your sales reports.

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Listen in right now to hear how to make this work

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for you Today.

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I'd like to introduce you to Carrie McDonald.

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Carrie Dove headfirst into e-commerce over four years ago,

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driving her brand to eight figure status as director of marketing

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in less than three years.

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Ready for a new challenge.

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Carrie co-founded the Greenhouse with her partner in 2020,

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centered on e-commerce,

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email and SMS marketing.

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The greenhouse has quickly grown into an agency where clients take

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root and flourish,

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generating over 10 million in revenue for its brands in the

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first year.

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When not growing brands,

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Carrie inspires others by sharing her own multifaceted story.

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Ooh, we're gonna have to hear about that later.

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From major career challenges and rebounding from a business failure to

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co-found a thriving business,

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Carrie helps others craft a fulfilling,

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unique path in life that defies limits.

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Ooh, that's enticing and interesting too.

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Carrie, welcome to the Gift Biz Unwrapped podcast.

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Thank you so much Sue,

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and thank you for the amazing intro.

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We're gonna dive in in a minute.

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Yeah, absolutely.

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Lot of stories in there.

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Okay, before we do that,

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though, I shared with you a little bit earlier,

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I like because we're all handmade creators who are listening here

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to learn about you in a more creative way,

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and that is through a motivational candle.

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So if you were to close your eyes and just dream

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up a candle that totally speaks,

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Carrie, what would it look like?

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Yeah, definitely.

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So they have these really cool candle bars now in Miami

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where I live,

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called Candle Land where you can go like pick your vessel

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and you pick the filling and everything.

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So I've been actually thinking about this a lot lately because

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I didn't wanna go there,

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but I think me,

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in a candle,

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the vessel would either be like clear or it would be

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like a ndy pink color,

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and the candle wax itself would be like a nude pink

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color, like baby nude pink,

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neutral color with mica powder in it to make it glittery.

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And the quote on the outside would probably be something related

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to affirmations or law of attraction.

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I have always liked this quote,

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don't downgrade your dream to fit your reality,

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upgrade your conviction to match your destiny.

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And I've always used that from back from when I was

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teaching and it applies now to what I believe in.

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So I think that's me in a candle.

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I like it.

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And I'm all about law of attraction and manifesting here too.

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Actually, we had Bob Doyle on the show probably two years

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ago or so from The Secret.

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He came on and talked all about that.

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So people who have been listening for a while are totally

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in sync with us.

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Carrie. Yeah,

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it's very real.

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Just saying go back and listen to that episode if you

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haven't heard it.

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Absolutely. I mean,

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and your quote also,

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I really like because it doesn't limit you,

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it says to go after what you're looking for and not

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make sacrifices.

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You know,

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maybe you have a different route to get where you're going,

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but don't change your dream and make your dream less than

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what you really want.

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Which you know,

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especially as we're into brand new year here,

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it's a great outlook to have as we go forward.

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Yes, absolutely.

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Yes. So,

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and you used to have a Nazi shop,

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I understand.

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Yes, yes.

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Do tell.

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Yes. So I feel as though I've lived a few different

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lives, like so it feels like different places in the world,

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different places in my life and different career paths.

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So to me they feel like different paths really that are

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all cohesive of my life.

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But back when I was a teacher around like 2016,

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I had summers off,

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so I had a lot of time on my hands and

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I was also trying to like switch career paths.

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I didn't really know what I could do and instead of

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downgrading my dream to fit my current reality,

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what I did was learn new skills.

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I like learned new things.

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I started watching YouTube videos and all that and I got

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really into calligraphy.

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And when I had my summers off is when I really

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started my Etsy shop and just made invitations and signs and

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wooden signs and all of that hand lettered.

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So that's what I did.

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That was my Etsy shop.

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I did that for probably like three or four years maybe.

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And then when I changed careers I ended up shutting it

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down. But yeah,

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I am a maker.

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Yeah, I mean you have the experience and knowledge of what

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other people who are listening have done.

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So that's really helpful as we go with the conversation and

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we can all relate to you better now just because of

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that, cuz you've done it the same thing.

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So you were teaching then before you became the director of

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marketing? Yep.

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That's the sequence of events,

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right? Yeah,

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yeah. From teacher to Etsy shop to director of marketing,

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e-commerce, and now agency owner.

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Yeah, it's been quite a journey,

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but I think one thing that has stayed as a constant

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has been like creativity.

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I'm a creative person so it's really like I was a

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music teacher.

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My Etsy shop rooted in creativity,

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marketing is all about creativity and what I do now,

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still marketing,

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all rooted in creativity.

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So that's like the common thread I guess,

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between them all.

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Okay, got it.

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Wonderful. Okay,

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here comes an unexpected question.

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Are you ready?

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Yeah. So being a shop owner,

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obviously just being a consumer overall and then jumping into e-commerce

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director of marketing,

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what were some things that you didn't realize as you came

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and became more professional in that area?

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Like what did you find versus being a consumer and a

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a shop owner that you learned different when you went into

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corporate or director of marketing if you will?

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Yeah, so I mean my route to director of marketing was

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through a startup.

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It was startup at the time when I started and they

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ended up getting acquired by a larger company.

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So turned sort of corporate at the end.

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But I started,

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you know,

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as a graphic designer and my way up to director of

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marketing. I think one thing I didn't know,

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and I hope this answers your question,

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one thing I didn't know about marketing is that I'm a

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big time consumer.

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Like I am an unhealthy consumer.

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My mom and I like it's all we do is we

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shop, we love to shop and we're always going shopping and

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I'm always on like online stores.

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Like I'm always on Etsy looking for unique gifts.

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Like I'm just a consumer.

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And what I didn't realize about marketing when I first started

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in it and what I was learning is that it is

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so important to have the mind of a consumer as a

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marketer. Like if you are a big time consumer and you

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follow and you buy from a lot of brands,

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I think those are some of the best marketers because they

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understand what their customers like go through,

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right? And so you can put yourself in the mind of

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a consumer of like,

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when does it feel right to hear from you?

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Like what type of products might you be looking for?

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What type of like problems might you have that you can

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help solve?

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And so,

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you know,

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that was like one thing was like,

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I didn't realize at first,

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but as I started getting into it,

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I'm like,

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I'm really great for this job because I buy a lot

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of things so I know how to speak to people who

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buy a lot of things.

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And I think that is a really interesting perspective too,

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because when we switch over and we're the business owner and

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we're putting together our marketing strategies,

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we forget that we need to sit in the consumer chair

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and see how we would receive what we're putting out.

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Always, always.

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I mean that's like,

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it's one of the best things that you can do and

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it's something that I've been wanting to post about lately is

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just like before you send anything or put out any communication

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or develop any kind of campaign or anything,

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like sit and think about what state of mind might your

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consumer be in right now.

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Right now it's all about gifting.

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So the only content that should be going out is around

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gifting last minute gifts.

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Did you forget here's a gift card,

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like get what size to buy,

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like what color to pick.

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Like that's just the mindset that everybody's in or they're frazzled,

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you know?

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Right. They're just frazzled all over the place.

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So it's always good to like try to take stock of

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like where your customers,

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where they're at mind fully at this time of day,

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year, week,

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whatever. Yeah.

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And that's for posting emails,

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any interaction that you have with them?

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I'm thinking,

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Yes. Yeah.

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Yeah. Okay.

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And so then what was your thought pattern or what was

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your decision point to jump to your own business?

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How did that happen?

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It's funny because I was telling the story the other day.

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I've, I've always had I guess a entrepreneurial bug or more

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so I will just call it that I've always wanted to

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pave my own path and so that can be seen when

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I started my Etsy shop I was teaching and I just

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didn't feel like it was really fulfilling for me and where

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I was at and where I,

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I wanted to go in life and I thought,

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you know,

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starting something on my own would be a lot more fulfilling

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for me.

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So I've always had that in me.

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And then when I moved to the e-commerce company that I

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worked for for three years,

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became the director of marketing again,

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I realized,

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you know,

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I'm really meant to like be doing my own thing.

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And at that point I had a lot of skills and

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a lot of knowledge to be able to go more successfully

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into my own business.

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And then aside from that,

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like for me having a support system,

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so I started now my agency with my boyfriend who is

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my business and life partner and just having an accountability partner,

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someone to help you build the business really helped like scale

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it and catapult it in a way that I was never

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able to do before.

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So I felt like,

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you know,

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I had someone keeping me accountable to really focus on this

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business and grow it and get where I need to be

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and I had all the skills and the knowledge and if

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not now then went and so we quit our jobs and

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we went for it full force.

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Love it.

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So before we get into the topic in total today,

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what does the Greenhouse do?

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What is the single mission of the greenhouse?

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Yeah, the greenhouse exists to provide really high quality email and

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SMS campaigns to customers all while helping our e-commerce businesses generate

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higher customer lifetime value.

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So it's all about retaining customers and getting them to buy

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multiple times,

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building a community around the brand and the business.

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But from a consumer side of point,

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we're trying to just put out the best looking,

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the best sounding,

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the best email and s m s campaigns that you can

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get. Got it.

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Cuz you can do both of those types of campaigns and

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not have them hit.

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You could take the action,

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write the email,

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yeah, do the SMS campaigns and see nothing as a result

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of It.

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Yeah, that happens a lot.

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That's why people come to us.

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I know.

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And then they say,

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oh well email doesn't work,

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but it might just be that you know,

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these, both of those are great tools,

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you might just need to do it differently.

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Right. So people will come to you for that.

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Correct. Yeah.

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Anyone who says that email doesn't work,

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I would like to have a chat with them.

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Okay, good.

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Well It always works And I think email is going to

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be part of the topic that we're talking about,

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but I love the concept of this topic and what we're

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gonna be talking about and why am I leaving everyone in

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suspense customer retention,

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you know,

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so often we're going after the new customer,

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the new customer,

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the new customer,

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and we forget that we have this wealth of gold in

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people who have already bought our product and we often ignore

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them, right?

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Yes. So this is what I wanted to bring Carrie on

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and talk about is how do you take that and really

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use it to your best advantage?

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And again,

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top of the year you can do things differently if you're

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one who thought email marketing didn't work or s m s,

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and maybe we're gonna get into both of those,

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I don't know how we're gonna gonna go,

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but the whole thought is you've got value in your existing

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customer base.

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Are you using that to your best advantage?

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So Carrie,

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why don't you underline or what would be your comment on

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all of that,

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just top line first.

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Absolutely. I mean retention is necessary for any business.

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Like customer retention is a hundred percent necessary because I think

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it's something like three to five times more expensive to acquire

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a new customer than it is to retain a current customer.

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That's number one.

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And think about like if you're always having to go out

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and search for or find the new customers,

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it's very unsustainable business model then to say I have 40%

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or 60% returning customer rate,

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then you know at least 40 to 60% of my customers

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are going to be coming back on a regular basis and

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then I need to fill the gap with the new customers.

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And then if you can even increase that repeat purchase rate

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over time,

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then you have to do less work on the acquisition side,

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it's very valuable to pump up your retention and customer lifetime

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value as much as possible.

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Very, very valuable for any business.

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Yeah. And really that's the only way your business is gonna

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grow because just think like if you had to go,

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you wiped out all your customers and every single month you

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had to go find and have people transition into buying your

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product every single month and then at the end of the

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month you started again with a zero,

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you're spinning your wheels and you're never gonna get anywhere.

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Absolutely. And the cycle is vicious.

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It's like,

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you know in the beginning there's so much education and discovery

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that happens to get a customer to buy a first time,

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right? And so once they're there and they already have that

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education and they already have that knowledge of the brand,

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of the product,

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of the whatever,

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then you have them already and you can get them to

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buy again.

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There's three buckets really that I see e-comm businesses in and

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that would be the first bucket being acquisition.

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How are you acquiring and bringing in and finding new customers?

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So all these three buckets are important,

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right? But some of them weigh heavily than more than others.

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So acquisition,

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conversion, how are you getting them to buy?

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So once you've acquired the interest,

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once you've acquired the potential customers,

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how are you getting them to buy?

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Is it easy for them to buy?

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Is conversion seamless?

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Like is there a welcome discount you can give them?

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Like something like that.

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And then retention is how are you then once they convert,

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how are you retaining them as a customer?

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The idea is that if one of those buckets falls down

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at any point in time,

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the other buckets are there to support,

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right? So like recently people who were advertising on Facebook had

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a hard time with advertising and so their acquisition went down

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a little bit.

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Or maybe social media is hard or TikTok is not showing

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your videos for a week,

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you know,

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whatever it may be.

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At least you have those other buckets like up and running

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successfully in order to support and still be driving your sales.

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Okay, wonderful.

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And retention is really where I wanna focus right now.

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How does someone figure out what their retention rate is?

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Because if certainly it varies by product,

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I would be looking at it as a customer base.

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So if I don't know how different platforms work,

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like I know for sure Shopify will tell you your repeat

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purchase rate.

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So you can easily track that month over month what your

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repeat purchase rate is.

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40 to 60% is a good number to shoot for.

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On the other platforms,

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I would assume,

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like if someone's selling on Etsy,

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and I don't remember,

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it's been a while since I've been on there,

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but I would assume that they would also have insights on

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what the repeat purchase rate is.

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But we also use platform called Clavio for our email marketing.

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And that platform will allow you to like export your customer

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data and you can actually get like customer lifetime value,

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so the lifetime value of one customer.

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And then from there you wanna find like the average,

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what is your average customer lifetime value?

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And I would use those two numbers,

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your repeat purchase rate and your lifetime value as kind of

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like the north star numbers to follow and aim for for

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retention. All right,

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so I think the best way to approach this to help

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everybody is,

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let's pretend someone hasn't even done this,

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they're just starting fresh,

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they have a business up and running probably,

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but they've never really considered retention before.

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They might be doing emails already,

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I mean they're working their business but never with the mind

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of really focusing on someone who's already purchased and making sure

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that they come back.

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So where do you go with someone like that?

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One of the very first things that I like to do,

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especially if you have a good existing customer base,

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let's say it's even like,

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you know,

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50 customers,

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right? Any number is a good number to start.

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I love to survey the existing customers,

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get a survey out after someone has purchased,

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ask them why did they end up purchasing this product or

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from you,

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right? What made them finalize their decision?

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Why did they like the product or do they like the

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product? Like are they happy with it,

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right? Why do they like it?

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What problems does it solve and what else would they like

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to see from you?

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Like right,

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try to collect information because you know,

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we can sit here and talk about strategies and you can

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guess, but the best way is to go to the people

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who are actually buying and ask them.

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So that would be like step number one is like start

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collecting information.

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What Do you think about phone calls instead of a survey?

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I think if you have the time,

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if you have the time and the resources to do that,

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I just feel like you get so much more information and

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better information now not everyone's gonna wanna talk with you.

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I get that.

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Exactly. There's a lot of scams happening over the phones lately,

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so I think people are a little iffy.

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But yeah,

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any way that you can get directly to your customer.

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So we wanna do a survey or somehow get feedback on

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what motivated them to purchase and then what they liked about

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the, the product and potentially additional things they'd like to see,

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right? That kind of thing.

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Correct. And you could even throw some demographic questions in there,

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like what do you do on your spare time?

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Like what are your hobbies?

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Like then that will help you kind of get to know

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the customers a little bit more.

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You can then put that into like a word cloud and

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see like let's say you ask about occupation and the word

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nurse is like the biggest one,

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right? Then you know,

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if you're making products or you're thinking about launching new things

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like well I should make products that are targeted toward this

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subset or this interest,

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right? Yeah.

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So I think like data and having feedback is like one

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of the most valuable things that you can start with for

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sure. Okay,

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so we've done that.

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We have some information and I liked what you said,

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you don't have to have a huge customer base 2050,

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look, we start where we are,

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right? So whatever the number is,

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if it's two,

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you know,

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whatever it is,

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it's gonna build from there,

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right? Yes,

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correct. And there's no limit.

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The data is valuable whenever you collect it,

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whether it's one person or 50 people,

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it's still valuable feedback to have and to use in your

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marketing and in your retention efforts.

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So okay then what?

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So now we have information.

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Absolutely. So then I would spend some time like,

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you know,

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understanding like buying cycle,

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it's, it really depends on the product,

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right? Because you need to think about first like why are

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people buying your product mostly,

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are they buying it to solve a problem in their life?

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And this is what the survey will help you understand as

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well. But are they buying the product to help you like

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solve a problem in their life or are they buying the

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product more as like gifting for people?

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Yeah, so someone who,

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let's see,

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let's think about this.

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So someone who sells jewelry bags for travel,

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you don't need one of those every single month.

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Well exactly.

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Someone who sells lotions,

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your buying cycle is going to be more frequent.

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So you've gotta look at your products and I'm gonna guess

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that most people,

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if they really put some thought to it already have a

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lot of those answers.

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They know,

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they know how many people need or,

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and I've been thinking about this a lot lately Carrie,

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so I'm just gonna spit it out cuz it kind of

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applies here is I think we need to provide the reasons

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for people to buy that they might not have thought of

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before. Like go back to that jewelry holder,

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right? It might be great for you for travel,

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but it also could be a great gift for a friend

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of yours who's going away,

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you know,

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a special vacation or a hostess gift for someone who's coming

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and staying with you for a while.

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Exactly. Or you need one for every room Or you need

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one for like,

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I don't know what it would be,

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but think beyond the obvious reason for your product and why

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your customer might want to purchase it again for them,

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not for them for a different purpose,

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you know,

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all that type of Thing.

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Exactly. So it depends on the buying cycle for the product

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and it depends on why people are mainly buying the product.

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But after that I would be setting up like post-purchase email

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automations or sequences after the first purchase because you wanna make

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them feel like they're a part of your business and they're

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a part of what you've got involved in in your business,

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right? So like thanking them for purchasing after a certain number

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of days after you know they've gotten your product again,

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however long it takes to make the product,

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but after they've gotten the product,

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like asking them how it was asking for a review and

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then eventually,

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let's call it 30 days,

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60 days,

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your cross-selling or upselling something else,

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right? Let's say you have an additional product in your set

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that will be a nice compliment to the one they just

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bought. Cross sell something else like,

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hey, if you like this product,

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you'll definitely love this one and here's why.

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Or if you don't have something to cross sell and you're

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only selling one type of product,

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then here's why you should buy more.

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Your mom will love it,

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your sister will love it,

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your whoever will love it,

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your babysitter will love it.

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Everybody is gonna love this product and here's why and it's

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the perfect gift.

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So next time you're thinking of gifts,

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that's what you need to buy.

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So it all lies in the emails and reminding them to

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buy again.

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Okay, so I know people are asking this question,

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does that mean I have to track and send out individual

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emails based on the different products that my customers buy?

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No, you don't have to individually track it.

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There are systems and softwares that will do it automatically based

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off of like a trigger system.

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So like they would call a purchase a trigger and then

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once that trigger happens,

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then the email will automatically fire.

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What if you have different products?

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So someone buying jewelry might be different than someone buying socks,

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Right? It all depends on the platform that you're using,

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which is why I recommend,

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you know,

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if you wanna do a strong retention program for your business,

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you do need a strong email marketing platform because retention like

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the two channels that fall most heavily under retention are email

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and sms,

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Which is why your agency focus on those.

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On those.

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Yeah. It's the way that you can get into directly into

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your customer at you know,

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the most specific time of when you think they're gonna buy

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or buy again,

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right? It's the most direct route you have to your customer

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is email and sms.

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So I recommend to do a retention program in the most

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robust way possible to use a platform like a Clavio or

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some sort of email marketing platform that is strong that you

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would be able to set up these automations and to your

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point, yet it is a setup.

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In the beginning you would have to say,

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you know,

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bot product is jewelry collection and is socks collection,

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right? And it's like a tree.

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You would make these automations,

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there's Setup,

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but once it's set up,

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then it's automated from there It will automatically fire.

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Correct. Got It.

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We'll carry on with this conversation right after a quick break.

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As a handmade product maker,

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you create the most beautiful,

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delicious, and life-enhancing products.

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I'm so impressed with your talent and you always put a

Speaker:

smile on my face when I see your newest creations.

Speaker:

I'm always watching and I'm also always listening.

Speaker:

Let me back up here for a second In our Facebook

Speaker:

group, gift to Biz Breeze,

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you know this and have seen this.

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If you're already there,

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I asked what you need help with the most right now.

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And you totally surprised me.

Speaker:

It wasn't email marketing,

Speaker:

it wasn't doing video or any other number of topics that

Speaker:

make up a solid growing business.

Speaker:

Nope. What you overwhelmingly are asking for is help with social

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media posting because I was so surprised at your response I

Speaker:

really needed to know more.

Speaker:

That's when you told me that you're putting in the time

Speaker:

you're posting frequently,

Speaker:

maybe even every day and you're discouraged because you aren't seeing

Speaker:

any of this.

Speaker:

Move the needle for your sales.

Speaker:

I hear your frustration.

Speaker:

Some of you have even told me you're at the point

Speaker:

of just throwing in the towel on social media altogether.

Speaker:

Wait, please don't do that.

Speaker:

Here's the thing,

Speaker:

some adjustments are needed.

Speaker:

That's all you see.

Speaker:

Putting in more time posting in the same way isn't going

Speaker:

to magically bring you the sales you need to change the

Speaker:

way you're posting and what you're posting.

Speaker:

You don't need to put in more work,

Speaker:

you need to put in the right work and that's when

Speaker:

things will change.

Speaker:

So based on all your comments and my follow up conversations,

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I've created your solution.

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It's called Content for Makers and is specially created for handmade

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social media activities aren't converting into sales.

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It'll also show you how to put in less time and

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start seeing activity that will lead to increased sales.

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Just imagine a day where you know exactly what to post

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But that's not all posts aren't going to work if the

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This is the way to attract the right people who are

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There's more to content for Makers too,

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Jump over to gift biz unwrapped.com/content

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Go ahead,

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pause this podcast for a second and come back right after

Speaker:

it's that worth it.

Speaker:

And so what do you think about bounce back coupons to

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initiate the second purchase?

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I wouldn't give it automatically right out of the gate because

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they've already bought once and especially if they already bought with

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a coupon,

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let's say the first time a lot of businesses will do

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a welcome coupon,

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right? Yes.

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A welcome offer.

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Even a popup on the website.

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Yeah. Some sort of a welcome offer.

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And so if then that person buys and if they use

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that welcome offer,

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that welcome coupon,

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you target them again the second time to buy again with

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another coupon,

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you are training them to only wait for discounts and sales

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And you're reducing your margin,

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You're reducing your margins and you're also instilling in them that

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your product isn't worth the full price value.

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Oh, Very good point.

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Yeah. So you'll almost never be able to sell at your

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full price value if you're only incentivizing with coupons.

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Do they work for quick hit sales?

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Absolutely they do.

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But if you're looking to build a brand,

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a long-term business,

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good healthy margins where you don't always have to discount,

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you need to give people the opportunity to buy without a

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discount first.

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So to your point,

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would I hit them immediately with a discount right after they

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purchased to buy again?

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No, I'd remind them two or three times and then at

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the point,

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let's say it's like six months or nine months and they

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haven't purchased again,

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then I might try to target them with a win back

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or bounce back coupon.

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Yeah, I'm just asking.

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You know with the holidays that just passed,

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I did place a lot of orders and this may be

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specific to Etsy.

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Yeah. Black Friday,

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No, but I'm thinking of the Etsy products that I got

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as holiday gifts.

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We just got a new puppy,

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so we're really big into dog bandanas these days and I

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have a family full of dogs.

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Yeah. But many people,

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Etsy sellers,

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this will be good to talk about the difference between what

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you can do on Etsy versus like a website that you

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own. But many of them will give me when the product

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is delivered a discount on my next purchase.

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Like right away.

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Yeah. And you're suggesting maybe not the best idea cuz you're

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conditioning them.

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Yeah, it's not a good idea from a brand standpoint because

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I mean,

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being the director of marketing for a 25 million brand,

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what I saw was that brand was using coupons and discounts

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to get sales.

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Eventually they couldn't sell their products at full price anymore because

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people were only buying when they were incentivized to buy,

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they Were waiting.

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Yeah. So when you're small and you're a small business and

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those quick hit sales and those,

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you know,

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the daily sales,

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they always matter.

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But Right.

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But it really,

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it's very impactful and a smaller scale.

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It is a good way to get a quick hit sale.

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But what you are training the customer is just that my

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products are only worth it if you buy a discount,

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let them come back and pay full price.

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You know,

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and don't reduce your margins every time unless you have enough

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margins baked in that you can afford a discount.

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Everything. I'm kind of thinking of a couple of brands right

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now. Apple Bean one,

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Brighton Jewelry is another.

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They never discount what Brighton does from time to time at

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the store level.

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But most of the time,

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no. And so,

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you know,

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if you want either of those products and I know there's

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more, you might even be able to add to my list

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Carrie, but yeah,

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you are conditioned that don't wait around because you're not gonna

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get a,

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you know,

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if you want this product,

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you're gonna pay full price and it's worth it period.

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Yeah, and I'm not saying to never use discounts,

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I'm just saying strategically like don't give it all away all

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the time.

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Right, right.

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Like they just bought,

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they became a customer.

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Give them time to like absorb and love the product and

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give them more reasons to love the product.

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Remind them to buy again.

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Because mostly people are thinking I have to give a discount

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in order for someone to buy again.

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When in reality all they might need is a reminder or

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an inspiration.

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Like, hey Valentine's Day is coming up,

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did you get a gift?

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Like if you love your ex product,

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you'll probably love to gift it to somebody else.

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Yeah. So when all they need is a reminder and you've

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just, you know,

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saved yourself however many dollars in margins by not discounting.

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Right. Okay.

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So we talked to was referencing just briefly and having an

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Etsy shop versus having your own e-commerce site.

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Do you wanna speak to that just so that we're all

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together on the differences there?

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Yeah, absolutely.

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I mean it's pretty simple.

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Very similar to like if you're selling on Amazon,

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if you're selling on Etsy,

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Etsy and Amazon own those customers and they are their customers

Speaker:

very similar.

Speaker:

If you have a Facebook page or an Instagram page,

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Facebook and Instagram own your followers.

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If they go down,

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your followers,

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your customers go with them.

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You don't actually own that customer base when you start a

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Shopify store,

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you are actually starting your own owned like website that you

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are in control of and you're building your own customer base.

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Then those are people that have opted into your emails or

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they have bought your products.

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That's your customer list that you own and can market to

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forever despite what happens with any of the other platforms.

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Right, Right.

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For me,

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the biggest difference and for me why having an owned channel

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is really important.

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Yeah. And for anyone who's listening who's like freaking out right

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now cuz they have a neti shop and you haven't listened

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to some of the other shows,

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there is nothing wrong with having a Neti shop and then

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also a Shopify store because those are different audiences.

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Etsy works and transitions totally different than you would with your

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own. So you can also have the best of both worlds

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if you will.

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But what we're focusing on where you can really control Carrie

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and what you work with is when you own the list

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so that you can either send emails or SMS messages.

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Right? That's correct.

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Yeah. And that would be the gold standard.

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That's the best.

Speaker:

I mean you are in control then and you own it.

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It's an asset of your business,

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your customer list.

Speaker:

Exactly. Yeah.

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And like let's say Etsy and Amazon,

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they both have very good benefits to them being on their

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platforms. You get a method of acquiring new customers that you

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don't necessarily have to like pay for,

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right? You don't have to advertise if I'm,

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it's a search engine.

Speaker:

So if I search for something,

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your product might come up and you would acquire new customer

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easily then you would if you were just trying to acquire

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new customers on your own Shopify store.

Speaker:

But, and the platforms wouldn't like you doing this,

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but I would be trying to,

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if you do sell on Etsy,

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at least like sending a QR code in your orders and

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try and get them to sign up for your email list

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on a separate platform at least then.

Speaker:

So you have those people who are signed up and you

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can market to and that's your own list.

Speaker:

Perfect. Okay.

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Alright, good.

Speaker:

Can we talk about email again?

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I think for the time that we have allotted,

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let's talk about email cuz that's most relevant to the most

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people who are listening.

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S m s a whole nother topic.

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We might have to have y again about talk about s

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m s,

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but as a small brand,

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you know when I go into my Gmail and I look

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in my promotion folder and I look at all of the

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people who land there cuz they're people that I follow and

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companies I like,

Speaker:

but the big brand pretty much always they're just selling me

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their product.

Speaker:

Is that the right type of of content for our emails

Speaker:

as a small business,

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For any size business,

Speaker:

I have like five content pillars for email that we follow.

Speaker:

And they would be the following,

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like you have a launch email.

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So if you're launching a new product,

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telling them that something new is occurring,

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new product,

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new collection,

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a promotional email where you're giving them a promotion,

Speaker:

a discount,

Speaker:

maybe it's a holiday sale,

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maybe it's a Black Friday sale,

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maybe it's you know,

Speaker:

specific collection is on sale,

Speaker:

free shipping this weekend only.

Speaker:

Those types of things.

Speaker:

Then there's educational emails which are educating the customer about the

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product, the business,

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anything. And then we have community based emails which are really

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pushing the community user generated content aspect of those emails.

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So you're highlighting other customers type thing or?

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Yep. Okay.

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And then you have product focus emails.

Speaker:

So where you're really like deep diving on each individual product,

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like all about it.

Speaker:

So those would be what I would consider like our five

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content pillars for email.

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Where I think we focus and where smaller businesses should focus

Speaker:

most on is educational for sure,

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educational emails,

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community, U G C and product focus.

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And here's why.

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Educational emails we love to do like us versus them or

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why you should buy,

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you know,

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from a small handmade business rather than a large company,

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right? That's a type of educational email.

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Educating them about what you use to make your products,

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how you make your products,

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right. If you think price is a deterring factor for people

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to buy,

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show them how you make the product and the love that

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goes into it and how high quality handmade it is and

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all these things,

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right? So educational about the product,

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the brand,

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the business community,

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and U G C because people love to see a social

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proof, right?

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So you always wanna try to be like having people tag

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you on Instagram or send you photos.

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When I did my Etsy shop,

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I always ask for people to send me photos of their

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items cuz my products were used a lot for weddings.

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So I was getting back like images of my cake toppers

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on wedding cakes and images of like my signs at the

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weddings. And then what I was able to do is like

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curate that into like wedding inspo from my shop.

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And so I would put together all these,

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it's the same thing as people going on Pinterest and seeing

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other people's photos or on Instagram,

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right? So same thing,

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also a good thing to put in community or U G

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C is reviews,

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customer reviews,

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what has someone said wonderful about your brand or your product?

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And then product focus,

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just like deep diving into the product,

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like why they need it,

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what problems does it solve?

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Like how many colors does it come in?

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Does it,

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is the size a factor?

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Like all these things.

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So those are where I would focus,

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you know,

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for a smaller business on email.

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Yeah, no,

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that makes sense.

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Versus just always selling,

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you know,

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I see a lot of product emails that come in that

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are only,

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here's the product,

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here's the price buy now.

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And what you've just outlined with these five different categories is

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giving your potential customer or existing customers,

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cuz you can collect emails from prospects also,

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right? But a much richer understanding of what your business is

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all about and why the product would be a good fit

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for them.

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And then reminders of why they should continue to buy from

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you versus just the selling.

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And I know big brands don't do that all the time,

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but they also have huge budgets to do the brand.

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They don't need to,

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that's the problem.

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Exactly. So it's very different for small businesses than larger brands

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by strategy.

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Right? Yeah.

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I mean to your point earlier,

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like Apple can literally just say the iPhone 14 is here,

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buy it,

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it's this price and it's in these colors.

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But Apple has such a big recognition and such a big,

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you know,

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they're a proven business that everybody wants to buy from and

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feels comfortable buying from.

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Right? So smaller businesses have to work harder for that sale

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and for that retention And in a different way,

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just like you described,

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much more personal actually.

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Yeah. Yeah.

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When someone comes to work with you,

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what would be a couple of the biggest mistakes that you're

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seeing that you need to correct for them?

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Hmm. I think mainly they're not sending enough emails or they

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don't have control of their campaign calendar on their own.

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So just a very brief aside about email marketing,

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there's like campaigns that you send on a one-off basis.

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Those are things like Black Friday sale,

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the educational campaigns that I was just describing,

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product focus campaigns,

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et cetera.

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One-off. And then there's automations that you set up based on

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actions that people are taking.

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So if someone joins your email list,

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if someone makes a purchase,

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if someone puts something in their cart but doesn't check out,

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right? Those are automations.

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So I'll say they don't have the campaign side of things

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down. For most businesses I recommend at least four campaigns a

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month. But for bigger brands or brands that have a lot

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of products and skews and customers,

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I recommend up to 14 email campaigns per month.

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And if you look at a brand like Fashion over a

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Nike or Sephora,

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they sending emails every day or like two to three emails

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a day,

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sometimes during the busy period.

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So for a small business,

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aim for like one a week,

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a campaign,

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one a week.

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So that's like the biggest thing.

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You need to be sending campaigns on a regular basis.

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Yeah. One a week.

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And also with those other automated campaigns triggering when it's appropriate

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by customer.

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Right? Correct.

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Like I said earlier,

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I think a lot of people will say,

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yeah, I'm doing email and they send out one little email

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of a picture of a product and a price,

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maybe some other content in there,

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you know,

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come see me at certain show and that's it.

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So you're saying frequency and then also as you were talking

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about the different topics for emails,

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you know,

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vary it up and have a plan.

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You're saying people really aren't in control of their calendar,

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they're just saying,

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oh, I have to do an email and then just throwing

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something together and sending it out.

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Correct. Yeah,

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they'll go in their inbox and they'll see someone has sent

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them like,

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oh, order today for delivery by Christmas for an example.

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They're like,

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I have to do an email about that.

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Right? So that's an example.

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Just not planning ahead and thinking about,

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again, thinking about the mind of your customer,

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where they're at in life,

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what might they be thinking?

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So trying to plan for that and plan ahead.

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Having a strategy,

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it's so much calmer when you actually do have a plan,

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right? You know what you're gonna put out.

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You might have to still fill in the content,

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but you already know the topic.

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This brings up another question,

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how do you feel about being consistent with the day and

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the time that you send those emails?

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I don't think that's as important.

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You wanna test different times and days anyway to see,

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there's a lot of email gurus who will tell you to

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send in the morning to send your email campaigns in the

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morning, but actually we've tested multiple,

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multiple times in the best time to send an email for

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us and our clients is at seven,

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eight or 9:00 PM at night when they're sitting at home

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doing nothing,

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watching Netflix,

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like they're off work,

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they need to decompress,

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maybe they wanna relieve their stress by doing some shopping.

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And you look at your sales and most businesses will see

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that their sales spike in the evening and that they're not

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so high in the morning.

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So why would anyone think that sending an email in the

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morning is gonna make them buy,

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they're busy,

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they're going to work,

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they're getting their kids ready for school,

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you know,

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whatever. Hmm.

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So test days and times also like Friday at 7:00 PM

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they're probably at dinner.

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So like that's probably not the best day and time for

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an email.

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So testing days and times is very important.

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I wouldn't worry about the consistency,

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like you don't have to send an email every Monday at

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3:00 PM because you might have one loyal customer who's really

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waiting for your email at that time,

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but people forget they have lives and you're one of many

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businesses that they buy from.

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And it also,

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of course,

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depends on your customer base.

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A hundred percent.

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If you sell to corporations,

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then probably mornings during the workday does make sense.

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It all depends,

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but that's interesting that you say that about frequency.

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That's a really,

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really good point.

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Okay, wonderful.

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So tell us a little bit more about the Greenhouse,

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the types of services you offer.

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If anyone would be interested in reaching out and learning more

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and talking with you further,

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where would you send them?

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What's your direction there?

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Yeah, so the Greenhouse,

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you can find us@growwithgreenhouse.com.

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That's our website.

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And I'm mostly active on LinkedIn,

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Carrie McDonald,

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and the Greenhouse is all focused on,

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like I said,

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email and SMS strategies.

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Within 30 days of working with the Greenhouse,

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a brand would be able to have a campaign calendar built

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for them that is tailored to their audience.

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They would be have a plan in place for those flows

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and automation to help improve their customer lifetime value and their

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retention. They would have high quality copy and design campaigns generated

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for them,

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for their brand,

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and that's what we focus on.

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Just campaigns and automations that are designed to help increase customer

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lifetime value and high quality creatives that will represent the brand

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well. Oh,

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That's a whole nother topic,

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but we're not diving into that now.

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High quality,

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Creative. Yeah,

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I told you.

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Creative. That's the thread.

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So creatives is,

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yeah, a big thing that we focus on Is important for

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sure. Wonderful.

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Well, a final comment from you about retention overall and why

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it's so important.

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Yeah. Other than what I've already said,

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just repeat.

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Customers are very valuable.

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Once you can get someone to buy for a first time,

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you've already done most of the hard work.

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So if you can just get them to buy again,

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which is usually pretty easy if they love the product and

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if you're selling a good product,

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it's gonna be really valuable and pay off a lot better

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in the long run for your business.

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Carrie, thank you so much.

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I appreciate you coming on and sharing your wisdom with us

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today. Yes,

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thank you,

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Sue. Thanks for having me.

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Such good direction about how to increase your customer retention.

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Did you catch the five types of emails you should be

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sending? If not,

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rewind and listen to that part again.

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Now the Trick is to Actually implement this into your business

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hearing and knowing is great,

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but doing it brings you the results.

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This could be a great way to start off your 2023,

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taking a sales growth goal and putting in place a strategy

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to truly make it happen.

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I wanna make sure you're Familiar with my free Facebook group

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called Gift Biz Breeze.

Speaker:

It's a place where we all gather and are a community

Speaker:

to support each other.

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I got a really fun post in there that's my favorite

Speaker:

of the week,

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I have to say,

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where I invite all of you to share what you're doing

Speaker:

to show pictures of your product,

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to show what you're working on for the week,

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to get reaction from other people.

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And just for fun,

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because we all get to see the wonderful products that everybody

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in the community is making.

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My favorite post Every single week.

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Without doubt.

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Wait, what?

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Aren't you part of the group already?

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If not,

Speaker:

make sure to jump over to Facebook and search for the

Speaker:

group Gift Biz breeze.

Speaker:

Don't delay.

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