Order confirmation email

Telling the customer the order was received and when it will be shipped

Order shipment email

Alerting the customer that her order has been shipped and when to expect it to arrive

Order alert email

Alerting the customer about any problems with the order, such as a delay in shipping, payment problems, out-of-stock items, and so on

Item rating email

Asking the customer for feedback on the item she ordered

Transaction rating email

Asking the customer for feedback on the transaction

Order status emails (confirmation, shipment, and alert) are standard and self-explanatory. The item rating email provides excellent insight into the customer’s experience with the items she purchased from your store. Not every product bought by a customer will be used. An unused product or a product that fails to meet the customer’s quality expectation will negatively impact future purchases from the customer. Transaction rating emails are your chance to review any possible issues the customer had with your store’s performance. They also allow you to show customers your commitment to customer service. Mistakes in fulfilling orders will happen to the best of companies; it is how you react to the mistakes that will set you apart from your competition and bring customers to you for future business.

Figure 5-14 shows an email from OvernightPrints.com, apologizing for a mistake in shipping an order we had placed with the site. In this case, we asked for next-day delivery of the item. Due to a mistake on their side, the order was delayed and would arrive three days late. The email is a very good first step in the right direction. However, OvernightPrints.com only refunded the difference in shipping costs between next-day delivery and two-day delivery. That is not good enough for an upset customer. It would have been better if OvernightPrints.com had shipped the delayed order for free. When a mistake happens, you have to go above and beyond the absolute minimum.

Apology email from OvernightPrints.com
Figure 5-14. Apology email from OvernightPrints.com

How fast a potential customer moves through the buying funnel defines the length and complexity of your sales process. Some purchases take very little time or financial commitment, and the process is completed in a matter of minutes. It’s almost like stopping at a convenience store and grabbing a soda. However, in complex B2B sales or high-value consumer ticket items, the process may take months or sometimes years before it concludes. Most sales are in between these extremes.

Focusing on the buying funnel in conversion optimization is important, but it must be accompanied by an analysis of the complexity of your product and the investment (financial and time) your solution requires from customers. The higher the investment required by the customer, the more attention you have to give to the buying stages. There are three different problem levels that customers face, which vary based on the financial investment required. These are:

Minimal problem

Buying decisions for these types of products are made quickly and in a routine fashion. Most of these products require a minimum investment from the buyer. If your product falls into this group, you should focus your efforts on the purchase and post-purchase stages.

Limited problem

Buying decisions for these types of products will involve a more extensive search from the customer. These products also require a moderate investment from the buyer. You should focus on the information search and later stages of the buying funnel for these types of products.

Complex problem

Buying decisions for these types of products will involve a large investment in time and money. Buyers will go through all the different stages of the buying funnel for these types of products, so you need to make sure you address each buying stage.

Different Names, Same Buying Process

We used the term buying funnel in this chapter to describe the different stages a buyer goes through before making a purchase. Marketers, customer relationship management (CRM) experts, and sales specialists use a variety of names to describe the same process. As you read through literature on the topic, you will find the same process referred to as AIDA, customer life cycle, or sales cycle. Here is a brief description of each of these methodologies.

AIDA

In 1898, the advertising and sales pioneer, Elmo Lewis, developed the AIDA funnel model to explain the mechanisms of buying. The model outlined the hierarchical process that buyers follow when purchasing a new product or service. The stages of AIDA are:

  • Attention (need recognition stage)

  • Interest (information search stage)

  • Desire (evaluation of alternatives stage)

  • Action (purchase and post-purchase evaluation stage)

Customer Life Cycle

Marketing experts Jim Sterne and Matt Cutler developed the steps buyers go through to convert using the following stages:

  • Reach (need recognition stage)

  • Acquisition (information search and evaluation of alternatives stages)

  • Conversion (purchase stage)

  • Retention (post-purchase evaluation stage)

  • Loyalty

Customers go through these steps in a cyclical fashion, moving from one stage to the next until they reach the loyalty stage. Creating loyal customers is the goal of conversion optimization; it is about keeping customers happy, engaged, and coming back to your store.

Tip

DON’T FORGET!