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Post Purchase Optimization for Maximum Recurring Revenue

  • 2 May, 2022
  • Podify Admin

You built your store, you bought traffic, you may have engaged with the customer, and ultimately – the customer paid and you made profit.  How awesome is that?  And if you’re using Podify, there’s a good chance it may have been a big sale!

The admin team at Podify has been doing this exact process for over a decade on millions of dollars of orders annually and to be honest the feeling never gets old.  The last big sale is just as awesome as the first sale.  We sound a little bit like drug addicts, don’t we?   But it’s true!  And many of the top marketers in this space may say the same.

Anyways, on to the business boosting stuff.

We are dropship eCommerce store owners and we have a lot of advantages compared to our friends who run SaaS companies and do their own fulfillment and inventory.

But in our business we also have many disadvantages.

One of the biggest disadvantages of most eCommerce businesses is the lack of recurring revenue.  Sure, some businesses offer subscription models.  But not every product needs to be delivered like clockwork every month.

This very much changes the lifetime value of a customer.  If they buy only 1 time, the only profit made on them is the single sale.  But if they are a returning customer each additional purchase can be attributed to marketing from the original sale.

And as a business owner, this can be kind of tough, especially when starting out.  This month went well, but what about next month?  There are seasonality trends but how forecasting revenues and profits the upcoming months is more challenging relative to a SaaS based recurring subscription model.

The solution is to maximize the change a previous customer will order again.  And again.  And many times after that.  If the first order cost $100 in paid ads to make a purchase, and the difference between revenues and cost was $100, than there was no real profit on the order.  But if the customer was happy and made another order for the same amount, it’s $100 profit with no additional marketing cost.

Many businesses are OK with breaking even or even losing to acquire that one order in the hopes that same customer will order again and again.

There is the commonly cited study that it costs 7 times more to bring in a new customer than it does a new one, and it’s completely true.  And due to today’s skyrocketing user acquisition costs and hyper competitive landscape, it may be a lot more than 7 times!


Here are some tips you must use to maximize your customer value:


Post Purchase E-mail

This is an easy one, and if you’re not doing it you are leaving money on the table for something that takes less than an hour to do.

From what we’ve seen, many beginners don’t use e-mail marketing at all as a way to grow their business – big mistake!

There are many e-mail marketing channels out there but we recommend Klaviyo.


Here is how to set up your post purchase e-mail flow:

  • Immediately after Purchase send a flow explaining the process, timelines, and an easy channel for communication. Customers not just like to see this, they MUST see this.  They want to know they made the correct purchase with a reputable company and that they will receive their order accordingly and just like they imagined when ordering.
  • A few days after delivery. This is possible by using Aftership and Klaviyo integration.
  • 60 days after purchase. By now some time has passed, maybe they are ready to make another order for an event in the near future?
  • 180 days after purchase. Half a year has a passed since their order.  Let’s keep your brand name still somewhat fresh in their minds.
  • 365 days after purchase. Probably your last chance.  Go for it!


Post Purchase Phone Call:

If you want to make the money that the top 1% make you must be willing to do what the 99% will not.  One of those things is to simply get on the phone and call the customer after the purchase.  People don’t do this either because of lack of confidence, lack of experience, or just laziness.

A sample script can be:

“Hello, this is Mark from Wholesale Products Unlimited.  I just wanted to personally say hi and introduce myself as owner of the company.  We appreciate your order and you have my phone number for any questions or concerns.”

This little script can be the difference maker between creating a business relationship or not.  Don’t be shy.  You have nothing to lose, only to gain!


White Labeling the Products

Podify offers the option to white label most products with your own custom logos on the products.

There is an additional fee and minimum order involved but for large orders – this is a must!  A cost for a custom box or custom label can be about $0.30-$1.00 per unit depending on the complexity and volume of the order

But that $0.30-$1.00 is prime marketing material.

Think of this way.

Say you were able to sell 100 custom hats to a company.  The only people who know it was an order from your store may be the person that placed the order and possibly their finance or superior.  In other orders, few people that received this custom 100 hats order know it came from your store.

What if these 100 people want to buy similar hats?  Or just want to know where it came from.  Instead of tracking down the purchaser they can just look in the hat and see your URL and marketing material.

White labeling options can include custom boxes, custom labels, or marketing inserts inside the order.  Please contact Podify chat for more information.


The last point to make is a businesses TRUE value is their repeat customer rate, otherwise known as brand loyalty.  Truly anyone can make a business based on Podify’s technology, but the business is worth nothing if it doesn’t have any advantages.  A potential future buyer would valuate your business based on its expected future profits.  And if the business has a large list of big pocket, dedicated buyers then the business can command a lot of money.


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