With an open rate of 95%, SMS is emerging as an effective marketing channel. Amidst pushy ads on every YouTube click, interrupting video ads on Instagram, and lengthy emails, customers are now more receptive to quick SMS communications. 

As the latest data suggests, 50% of consumers purchase a product because of a brand message they received via text or WhatsApp. SMS as a channel has a direct impact on revenue when utilized correctly. 

But how do you implement SMS marketing that brings maximum results? In this post, we will explore detailed steps, tips, strategies, and best practices. 

What is SMS Marketing for eCommerce? 

Before diving into the strategies, let's first understand what SMS marketing is for eCommerce businesses. 

SMS marketing for eCommerce is using text messages to communicate with customers, promote products, and build long-term brand loyalty. 

These messages could include promotions, order updates, complaint status, feedback, etc. It can cover the entire customer journey, from sign-up, promotions, purchases, repeat orders, and trying to win back a lost customer.  

5 Reasons to Use SMS as a Marketing Tool for eCommerce

The top five reasons to invest in SMS marketing are as follows:

1. Preferred channel of consumers

A new study reveals that 75% of U.S. consumers make purchases due to SMS messages from companies, and 60% expect to receive texts from brands at least weekly, highlighting the growing importance of SMS marketing.

In fact, consumers aged 25 to 54 prefer to communicate with brands via SMS over email. Based on evolving consumer preferences, investing in SMS marketing is definitely a wise choice. 

2. Fast communication

56% of people check email less than three times a day. On the other hand, people check their phones as much as 144 times a day. This behavior makes SMS a much faster and more intimate way to reach consumers.

3. Easy personalization

You can easily personalize SMS campaigns. It's also easy to segment users and run campaigns based on their demographics and order history. 

For instance, you can offer first-time coupons to new users, launch deals based on regional festivals, and give exclusive discounts to customers who have not ordered for a long time. 

4. Effective for mobile commerce

Consumers check phones frequently, so SMS campaigns are perfect for flash deals and limited-time offers for mobile commerce. You can easily use SMS for all the major functions of mobile commerce, such as: 

• Order updates
• Promotions
• Feedback collection
• Loyalty programs

5. Suitable for customer service

SMS is more than just a marketing channel. Considering its quintessential nature of short and real-time communication, it is highly effective for customer service. 

You can build SMS workflows to keep consumers updated on orders, refunds, returns, complaints, etc. SMS also allows two-way communication, so consumers can reply to messages for any follow-up action or feedback if required. 
How to Start Using SMS Marketing for eCommerce

If you want to start implementing SMS marketing for your eCommerce business, here are five steps to begin: 

1. Define your goals and budget

Before starting with SMS marketing, assess your requirements. A few parameters to check are:

• Number of users you expect to reach out to (Current and how much it can grow)
• In which geography your customers are based out, and you will be sending messages in that region
• Number of messages you estimate to send per month
• Budget for SMS marketing

It's not possible to set these parameters in stone in the beginning. Still, having some general idea or ballpark estimates will help you choose the right SMS marketing platform.  

2. Choose an SMS marketing platform

The next step is to choose an SMS marketing platform. 

SMS marketing software is a technology platform used to run automated SMS campaigns. Common features of SMS marketing platforms are:

• Maintaining SMS list
• Sending campaigns
• Conducting automated analysis of campaigns or tracking KPIs related to SMS
• Enabling two-way messaging to get replies

Key factors to check in an SMS marketing software are:

1. Does the pricing fit your budget, considering the number of consumers, expected size of campaigns, and target geography? 
2.  Is the software easy to use and has detailed documentation for initial implementation?
3. Does the software divide consumers into meaningful segments to run personalized campaigns? 
4. Can the software be integrated with your current tech stack?
5. Does the software company have an easily accessible customer support team?
6. Does the software have any dashboards to track all the critical KPIs?

You can check these factors to finalize an SMS marketing software. You'll also get a list of top SMS marketing software towards the end of this post. 

3. Grow your SMS list

After finalizing the SMS marketing software, you can now get your SMS list ready. For this, you can either persuade existing customers to join your SMS list or attract new users. A few strategies to grow the SMS list are:

• Offer discounts or coupons to incentivize users to join the SMS list
• Convert your existing email subscribers by sending out a campaign. You can also offer a discount in return for getting added to SMS lists
• Promote your SMS marketing list on social media (Youtube, Insta) in return for offers/exclusive deals/early access to products
• Add a sign-up form for the SMS list to your website
• Hold contests or giveaways that require participants to opt-in to your SMS list as part of the entry process

4. Design your first campaign

Once you have a full-blown SMS list, it's time to design your first campaign. It could be a welcome message, promotion, flash deal, etc. 

Tip: SMS marketing platforms provide ample templates. You can make use of any existing templates to design your first campaign. 

5. Assess and refine your campaigns

Success in SMS marketing (or any type of marketing) is all about continuously evolving. After rolling out campaigns, keep assessing how it's performing.

SMS marketing platforms provide dashboards that capture meaningful KPIs like SMS deliverability, click-through rate, etc. You can assess current campaigns and optimize future ones by tracking these KPIs.

7 SMS Marketing Strategies for eCommerce (With Examples)

1. Flash sales or limited-time offers

Flash sales are offers on products, usually lasting a few hours or days. It creates a sense of urgency in consumers, resulting in impulse buying. Also, it could be a good source of revenue generation in a short span of time. 

Example: Beyond the big end-of-season sales or festive offers, Amazon launches flash deals like summer offers, lasting only four hours. 

Ferns N Petals, a top gifting brand, ran Mother's Day deals for its customers. 

2. Cart abandonment reminders

Customers often leave products added to their carts, either because they have second thoughts or think that they will check them later. You can send a cart abandonment reminder to win back these lost customers. It could be a simple nudge or offers (like free shipping or discounts) to encourage customers to complete the purchase.  

Example: FirstCry, an online retailer, sends a cart abandonment reminder with a coupon code for a 10% discount for completing the order.

3. Order-fulfillment flow

What customers actually want to hear is their order status. 

Is it shipped?

Is it delayed?

Proactive communication on order status leaves a good impression on consumers. It shows that they trust their money with the right brand. To win this trust, you can design an SMS campaign for the entire order fulfillment flow.

You can design automated SMS workflows for all the below major stages of order fulfillment:

• Order confirmation
• Order shipping
• Order delivery updates
• Order feedback post-delivery

Example: Ajio, a fashion and lifestyle brand, keeps its customers posted on entire order progress via SMS.

4. Cross-sell and upsell

After a successful order, you can use SMS to upsell related to customers. It's important to understand the right time to send these messages. 

When the product just got delivered, and the customer hasn't even used it yet, your upsell message may sound pushy to get more money out of pocket. Design upsell or cross-sell campaigns to send out SMS, possibly a few days after consumers make a purchase. 

Example: PharmEasy, an online pharmacy brand, offers discounts on medical tests to customers who buy medicines via them. It's a relevant service for consumers and they can avail the offer for any follow-up tests. 

5. Holiday deals

You can use SMS to launch promotions around holidays like Christmas, New Year, Thanksgiving, Summer, etc. These are themed promotions around holidays offering products relevant to holidays. Holidays are good opportunities to reach consumers as they are generally in a mood to indulge and purchase around that time. 

Example: Pantaloons, a fashion retailer brand, ran summer holiday promotions. They promoted summer wear, perfect for a beach vacation, at a steal deal.  

6. Personalized offers

SMS marketing also facilitates easy personalization. You can segment customers based on location, order history, etc. And then give them personalized offers based on these details. 

Example: Myntra, a fashion eCommerce brand, gives exclusive offers to customers who haven't shopped in a while. 

7. Loyalty programs

Loyalty programs are a great way to retain existing customers and encourage repeat purchases. Usually, loyalty programs offer perks like:

• Priority access to products
• Perks/coupons for select products
• Free shipping
• Redeemable points on every purchase

How do you keep the customer posted on loyalty programs? SMS. You can send SMS to customers on their points, new launches, offers, etc.

Example: Myntra also offers loyalty programs to its customers. Loyal consumers receive SMS notifications about new launches and offers. 

7 Best Practices for Effective SMS Marketing for eCommerce Businesses

1. Keep up with the character limit

Keep your message crisp, considering the 160-character limit and the nature of the SMS. Consumers want to take a quick look at it. So, a short and crisp message garners more attention.

2. Use simple language

Keep the text as simple as possible so the reader doesn't have to re-read it (which they won't). Maintain a conversational tone to avoid losing the reader. 

3. Send messages at the right time

You don't want to be blocked by sending an SMS at 2 AM in the night. Identify the right time to send a message based on the receiver's time zone. 

The Telephone Consumer Protection Act allows marketers to send marketing messages in the US only between 8:00 AM and 9:00 PM local time. You can also check around which time you have a maximum click-through rate. 

Tip: Plivo CX offers intuitive AI support to help you identify the right time to send messages.

4. Keep a clear call-to-action

Add a simple and clear call-to-action stating what action you expect from a consumer. For example, ‘Buy now’ and ‘Check here’ etc. 

5. Add an opt-out option

Include an opt-out option at the end of every message to avoid being reported as spam.

96% of consumers have felt annoyed at least occasionally by SMS marketing messages at some point in time. Also, 56% of respondents have reduced or stopped purchasing from a brand if they found their SMS annoying.

Sending SMS to consumers who don't want to receive them can directly hamper your business. 

6. Ensure compliance

Check for data, consumer, and privacy laws specific to your target country. Follow all the laws to avoid getting in hot waters with authority. 

DoorDash, a San Francisco-based company, got in trouble with Australian authorities. They were hit by a $2 million fine for large-scale bulk messaging and crossing the spam limit as per local laws.  

7. Maintain consistent brand messaging

When you add a new channel to your marketing ecosystem, it represents your brand. SMS does have limitations due to its character limit, but the messages should still reflect your brand image. 

Maintain a consistent brand voice across channels, including the newly launched SMS channel.

4 Best Tools to Automate SMS Marketing for eCommerce

Here are the four top SMS marketing platforms for eCommerce businesses: 

1. Plivo CX Engage

Plivo CX Engage is an omnichannel customer engagement platform that combines marketing and customer support. It allows you to run SMS, MMS, Email, and WhatsApp campaigns. The platform also offers OpenAI-powered chat.

• Launch targeted SMS campaigns: Craft personalized messages and reach the right audience segments for maximum impact
• Effortless WhatsApp marketing: Expand your reach with outbound WhatsApp campaigns, engaging customers on their preferred platform
• Unified CX platform: Seamlessly transition from marketing to customer service, providing a holistic experience for your customers
• Unrivaled reliability: Leverage Plivo's owned messaging network for guaranteed message delivery and exceptional reliability
• Global reach: Expand your brand's presence worldwide with Plivo's extensive global coverage

Moreover, Plivo CX Engage facilitates customer engagement with features like scheduled sending, a visual message composer, and OpenAI-powered copywriting assistance. You can also easily segment audiences using tags, ensure compliance with opt-out management and launch targeted campaigns to maximize ROI. Thus, you can confidently deliver personalized experiences while maintaining data security and privacy.

Features:

✅SMS campaigns

✅API support

✅Pre-defined templates

✅AI support

✅Integrations

✅Reporting

✅GDPR compliant

✅CCPA compliant

Pricing:

With Plivo CX (Engage), you get all the features you need for effective SMS marketing at a price that fits your business.

• Free plan: Get started with 300 SMS messages per month, perfect for testing and smaller campaigns
• Paid plans from $19/month: Scale your marketing efforts with plans offering 1500+ SMS messages per month
• Full-featured across all plans: Access all powerful Plivo CX Engage features, regardless of your chosen plan
• Flexible pricing: Choose the plan that aligns with your SMS volume needs and budget

Pros:

• Supports both marketing and customer functions
• Brings entire customer data into one platform
• Affordable pricing
• High deliverability rate as Plivo has its messaging network

Cons:

• Currently works for Shopify eCommerce brands only

2. Omnisend

Omnisend is an omnichannel marketing automation platform for eCommerce businesses. It is a marketing automation solution supporting SMS, WhatsApp, push notifications, segmentation, and dynamic Facebook and Google ad integrations.

Features:

✅SMS campaigns

✅Email campaigns

✅Push notifications

✅Facebook ads

✅Google ads

✅API support

✅Pre-defined templates

✅AI support

✅Integrations

✅Reporting

✅TCPA compliant

✅GDPR compliant

✅CCPA compliant

Pricing:

• Free: $0/month - Perfect for trying out the platform.
• Standard: Starts at $16/month - Ideal for growing businesses focused on email
• Pro: Starts at $59/month - Best for high-volume senders using email and SMS

Pros:

• Excellent customer support
• Fully integrated with all major eCommerce platforms. No third-party connectors required
• Easy to use

Cons:

• Omnisend's reliance on a third-party SMS provider means they have no control over message delivery, geographic reach, or deliverability optimization, leaving customers with no accountability for ensuring successful text message campaigns
• Limited pre-defined templates
• Slight learning curve

3. Klaviyo

Klaviyo is a popular marketing automation platform working with leading eCommerce businesses. It stands out for its advanced features, such as smart segmentation, omnichannel support, 250+ integrations, and more.

Features

✅SMS campaigns

✅Email campaigns

✅Push notifications

✅API support

✅Pre-defined templates

✅AI support

✅Integrations

✅Reporting

✅GDPR compliant

✅CCPA compliant

Pricing:

• Free: $0/month - For trying out the platform with up to 500 contacts and 500 email sends per month.
• Email: Starts at $45/month - For businesses focused on email marketing, with tiered pricing based on the number of active profiles and email sends.
• Email & SMS: Starts at $60/month - For businesses using both email and SMS, with tiered pricing based on the number of active profiles and email sends, plus additional costs for SMS/MMS credits.

Pros:

• Extensive features and integrations 

Cons:

• Implementing these advanced features requires the expertise of an agency
• Expensive for small and mid-size companies
• Users often complain of slowness in the platform

4. Sendlane

Sendlane is a unified marketing platform supporting email, SMS, reviews, and forms. It offers advanced features such as automation workflows, behavioral tracking, real-time analytics, and deep-data integration. 

Features

✅SMS campaigns

✅Email campaigns

✅Reviews

✅Forms

✅API support

✅Pre-defined templates

✅AI support

✅Integrations

✅Reporting

✅Real-time analytics

✅GDPR compliant

✅CCPA compliant

Pricing:

• Pricing: Starts at $0.00615 per SMS credit (includes estimated carrier fees of $0.00285)
• Minimum Purchase: 2,500 SMS credits (recommended for up to 1,250 contacts)

Add-Ons:

• Additional SMS Credits: Available in various packages (250 credits for $6.25, 500 credits for $11, etc.)
• Monthly Activation Fee: $10 for phone number and module activation

Pros:

• Excellent customer support
• Good email deliverability

Cons:

• Expensive for small and mid-size companies

Kick-start Your SMS Journey With Plivo CX Engage

With API support, AI features, ample integrations, reporting, and pre-defined templates, Plivo CX Engage has all the must-have features to kick-start your SMS journey. The best part is that it is also an affordable solution. You can send a text message in the US for as little as $0.0095. 

Beyond marketing, you can also use Plivo for customer support. Get in touch with our team to design the most cost-effective SMS campaigns.

Schedule a demo today!

A recent Twilio report highlights how 81% of businesses believe they understand their customers, but only 46% of customers agree that businesses truly grasp their needs. The reasons for this gap are:

• Poor data analysis: Businesses are unable to draw actionable insights from customer data flowing in from various sources. Thus, they operate on assumptions about customer needs.
• Multiple channels: Customers interact with brands via channels like social media, email, contact forms on websites, live chats, etc. Businesses fail to maintain a consistent and personalized experience across these touchpoints.
• Lack of personalization: Brands focus on tracking metrics like open rates and click-through rates, but forget about true customer engagement. Generic messages sent at random intervals fail to resonate with customers.
  

Customer engagement automation software can solve these problems and enable brands to drive greater sales by engaging existing customers consistently. 

In this blog post, we’ll explore how to automate customer engagement using such software.

What is Customer Engagement Automation?

Customer engagement automation is the strategic use of technology to streamline repetitive tasks and personalize interactions throughout the customer journey. 

By automating targeted messages and interactions at key touchpoints, businesses can deliver exceptional customer experiences that nurture loyalty and drive growth.

Why is Customer Engagement Automation Important?

It is no longer enough to manually update customer information and send communications. Customer engagement automation is required because of the following reasons:

• Customer journeys are not linear: Customers interact with brands through multiple channels—website to social media to email—seeking information and support. Omnichannel engagement enables brands to anticipate all possible routes and set up interactions based on behavior.
  

• Conversations require context: Automation allows brands to tailor messages based on customer behavior, purchase history, and preferences, making interactions more relevant and impactful.
  

11 Ways to Automate Customer Engagement 

Try out these 11 practical strategies to automate customer engagement:

1. Greet new users with automated welcome screens
   If users are greeted with a blank screen upon logging in for the first time, it adds friction to the process of them engaging with its features. Automated welcome screens introduce your product's core features and functionalities, guide users through the initial setup process, and offer helpful resources for a smooth onboarding experience.
   

2. Use predefined onboarding checklists
   Build a personalized onboarding checklist using customer data pulled from a welcome survey. Based on the user’s job to be done, such checklists can nudge them to activate their accounts, set up preferences, or explore key features. This ensures that users experience the value of the product as quickly as possible.
   

3. Offer contextual tooltips
   Users may only engage with a few features, even if they’re paying for more.  Integrate contextual tooltips and hints within the app to introduce other key features at relevant points so that users adopt them.
   

4. Use interactive walkthroughs
   Interactive walkthroughs are an engaging way to guide users through specific workflows or highlight key product functionalities depending on their specific needs. They provide step-by-step guidance and minimize the learning curve.
   

5. Introduce new features and encourage customers to adopt them
   Users can easily miss new features unless you find a way to point them toward it. Utilize automated email campaigns to announce new features, highlighting their benefits and offering in-app prompts or video tutorials for further exploration.
   

6. Use AI-generated video tutorials
   Consider creating AI-powered video tutorials to walk users through specific tasks or product functionalities, providing an engaging and personalized learning experience.
   

7. Reward loyal users
   Automate loyalty programs that reward customers for continued engagement. This could involve offering exclusive discounts, early access to new features, or personalized recommendations based on their usage patterns.
   

8. Offer on-demand self-service support
   Empower your customers to find answers by setting up a comprehensive resource center with automated search functionality. Integrate knowledge base articles, FAQs, and troubleshooting guides within the app. Thus, users do not have to leave the app, scroll to find the support button, or hunt through help docs to get the answers they need.
   

9. Launch automated surveys at customer touchpoints
   Set up automated surveys within the app to appear at key points in the customer journey, such as after onboarding completion or product usage milestones. This allows you to understand how users interact with your product and what causes churn.
   
10.  Send emails to reactivate disengaged users
    Consider re-engaging dormant users by sending personalized emails based on user inactivity. These emails could offer helpful tips, showcase new features, or even incentivize re-engagement with limited-time offers.
    
11. Offer contextual upsells
    Free trials are a great way to introduce your product, but converting them into paying customers requires a strategic approach. Implement automated in-app messages or email sequences that trigger near the end of the trial period. 

These messages should highlight the value proposition of your paid plans, address potential concerns, and offer clear calls-to-action for conversion.

Best Practices for Customer Engagement Automation 

Let's explore some best practices to automate customer engagement for higher ROI:

• Personalization: Use customer data to personalize your communication. Address customers by name, recommend products based on their purchase history, and tailor content to their specific needs and interests. It enables you to build customer loyalty and trust.

• Segmentation: Segment your audience based on demographics, interests, behavior, or purchase history. This allows you to create targeted campaigns that speak directly to specific customer segments, increasing engagement and conversion rates.

• Iterations: Experiment with different approaches, A/B test subject lines, email copy, and calls-to-action. Track your results and refine your campaigns based on data to ensure you're delivering the most impactful interactions.

• Measure and Analyze: Track key metrics associated with your automated campaigns, such as open rates, click-through rates, conversion rates, and customer satisfaction scores. Use these insights to measure effectiveness and ROI. 
  

How Plivo CX Enables Customer Engagement Automation

Plivo CX stands helps you automate customer engagement with the following features:

• Omnichannel communication: Plivo CX allows you to reach your customers through emails, SMS, in-app messaging, and social media, ensuring a complete and consistent customer experience.
  
• Create A Personized Marketing List: Our platform allows you to import real-time contact sync from Shopify store, Bigcommerce, Magneto and other eCommerce stores.

In just 1 click, capture data from Landing Pages, Opt-in forms and Event triggers on storefront via Plivo CX Engage API.

• Drag-and-Drop Workflow Builder: Businesses can use Plivo CX Engage to create complex automation workflows visually, with ease. This user-friendly interface allows you to design targeted campaigns by segmenting audiences and tailoring interactions based on specific customer behaviors or triggers.
  

• Powerful Analytics and Reporting: Measure the impact of your automation efforts with comprehensive reporting and analytics. Track key metrics like open rates, click-through rates, and conversion rates to identify successful strategies and optimize your campaigns for continuous improvement.
  

• Seamless Integration with Existing Tools: Plivo CX integrates seamlessly with your existing CRM, marketing automation platform, and other essential business tools, streamlining workflows and centralizing customer data for a unified view.
  

Schedule a FREE demo today to personally experience the new age of customer engagement automation within a few clicks!

With more and more eCommerce players coming into the market, it's easy to get lost in the crowd if you don't invest in brand promotion. 

The number of eCommerce sites in the US alone increased by 47.2% in 2023. There are close to 14 million eCommerce sites in the US (and this number is only growing). 

The question is, how do you keep your brand relevant? Let us go over five effective ways to promote your eCommerce online store.

1. SMS Marketing

SMS messages have an average open rate of 98%, which is significantly higher than email open rates (17%). You can promote your products or services through SMS. These messages can be promotions, exclusive offers, shipping notifications, and cart abandonment reminders. 

For instance, you can integrate an omnichannel marketing automation platform like Plivo CX into your Shopify store and automate the entire SMS workflow based on order status/customer action.

Why choose SMS marketing to promote ecommerce stores?

The benefit of using SMS as a promotional medium is its easy accessibility. People check their smartphones 144 times daily and are open to quick SMS. In fact, SMS is the second most preferred communication channel for consumers after email. 

Dominos: An SMS Marketing Case Study

Domino's initially focused more on TV and Facebook ads during its expansion. They ran 30- or 60-second video ads, but the ROI of this marketing strategy was poor. 

The brand switched to SMS, thinking that it would garner more attention. And they were right. They quickly saw an increase of 125 orders per ad. The fast nature of SMS helped the brand reach more consumers. 

2. Email Marketing

You can create email campaigns to engage with consumers. Common types of campaigns include:  

• Welcome email
• Newsletters
• Promotional emails
• Holiday offers
• Abandoned cart series
• Shipping notifications
• Upselling or cross-selling emails
• Birthday or anniversary emails
• Win-back campaigns

Why choose email marketing to promote ecommerce stores?

Email remains the most preferred channel by consumers. Emails reach a minimum of 84.8% of the people you send them to, which is an excellent deliverability rate. 

You can also easily personalize campaigns and draw insights based on consumer details/activity. 

Slyk Shades: An email marketing case study

Slyk Shades, a Massachusetts-based shades brand, started implementing email marketing to nurture its audience. They built seven automation workflows for different scenarios, and soon, 30% of monthly revenue was coming from email campaigns. Their Black Friday offer was such a big hit that it generated over $72,000 from a single campaign. 

3. WhatsApp Marketing

WhatsApp is another great medium for promoting your brands. You can send onboarding emails, promotions, shipping notifications, personalized campaigns, and customer support messages on WhatsApp. The platform supports rich media such as images, videos, and documents, making it easier to run diverse campaigns. 

Why choose WhatsApp marketing to promote ecommerce stores?

WhatsApp is the most popular mobile messenger app worldwide, with 2.79 billion unique users. And the platform also boasts of a 99% open rate. Its broad reach helps you reach out to your consumers on the platform where they are active. 

Benefit Cosmetics: A WhatsApp marketing case study

Benefits Cosmetics, a leading provider of brow/waxing services and a high-end cosmetics brand, uses WhatsApp to engage customers. It helps them provide fast service, making it easy for customers to change appointments and get appointment information. 

The brand also sends special messages and promotions directly to customers' message boxes. Using WhatsApp helped the brand provide fast service, and they observed a 200% growth in year-over-year sales, partly attributable to WhatsApp.

4. Influencer marketing

You can collaborate with social media creators with good reach to promote your brand. With the right strategy, you can identify the influencers who cater to your target audience and promote your brand through brand-embedded content.

Why choose influencer marketing to promote ecommerce stores?

64% of consumers claim that they will make a purchase based on an influencer’s recommendation or opinion at least some of the time. And 20% say they frequently or nearly always always buy convenience items, shopping goods, or specialty goods from an influencer’s recommendation. The reach influencers provide is massive. They can demonstrate products through their content and promote offers to the right audience. It increases brand awareness and credibility. 

H&M: An influencer marketing case study

H&M collaborated with four celebrity influencers to promote its holiday line. They gave the influencers full freedom to create content that matched their personalities and what their audience would love. With just four videos, the brand reached 12 million consumers. 

5. User-generated Content

User-generated content is content about your products/services created by users. It could be photos, videos, or product reviews. This type of content creates more social proof and builds brand awareness. 

While such content is often created voluntarily by users, you can also reward users for promoting your product.

Why choose user-generated content to promote ecommerce stores?

90% of consumers want to see brand content from real users. It assures them that the review is authentic and not sponsored. The strategy also brings long-term trust. 83% said they are more inclined to purchase from brands sharing real customer content. 

Parachute: A user-generated content case study

Parachute, a home decor and essentials brand, added user-generated content to its marketing mix. Instead of using branded content, they start running ads with user-generated content to show how their products look in actual users' homes. It got more attention. 

With the new ads, they saw a 35% higher click-through rate and a 60% lower cost-per-click.

6. Brand Collaborations

You can strategically collaborate with other brands to reach a wider audience. This works well with brands catering to similar target audiences. You can co-create campaigns, events, or even products. 

Why choose brand collaborations to promote ecommerce stores?

71% of consumers feel positive about co-branding partnerships, making partnership opportunities an excellent investment. Customers love variety, and brand collaboration gives you a chance to surprise them (in a good way). 

Marc Jacob X Uber: A brand collaboration case study

Marc Jacobs, a US fashion label, did an out-of-box campaign for its Daisy Daze perfume launch. It collaborated with Uber, a ride-hailing service, and decorated the cabs with daisies for a day. Users could book a decorated car using the Uber app by applying a promo code “MJDAISY.” They were then welcomed in a beautifully decorated cab and got a free bottle of Daisy Marc Jacobs fragrance. 

Uber saw 5,459 ride requests as part of the promotion, and the fashion label gained over 61 million social media impressions.

Boost Your eCommerce Business With Plivo CX 

You don't need any complicated tech setup to start promoting your eCommerce store. You can easily integrate Plivo CX with your Shopify store and run SMS, email (upcoming), and WhatsApp (upcoming) campaigns.

With Plivo CX, you can:

✅ Import your existing contacts

✅ Create forms to opt-in new users

✅ Run SMS, email (upcoming) and WhatsApp campaigns (upcoming)

✅ Segments users to personalize and accelerate campaigns

✅ Use AI to draft messages in a click

✅ Build reports to optimize campaigns

Book a demo to discover how Plivo CX can increase your brand visibility.

Establishing a Shopify business is often easier said than done. Bringing users to your platform, building trust so they make a purchase, and turning them into loyal customers. 

Each of these steps needs varying and fine-tuned strategies. On top of that, you've got the whole juggling act of managing your stock, figuring out shipping, and making sure your customers are happy campers. 

Oh, and let's not forget the wild world of online marketing and ads—it's like a never-ending puzzle!

In this post, we have covered detailed tips on how to get Shopify sales at every stage. 

So, whether you have just launched the Shopify store and want to give it a boost, or you own an already established business and want to increase your customers' lifetime value, there is something for everyone. 

How to drive more traffic to your Shopify store

1. Start a Facebook and Instagram store

Facebook and Instagram provide an option to create an online shop to display your products. 

The best part is you can easily integrate your Shopify store with these shops. This integration makes it easy to manage your inventory, orders, and customer data in one place. 

But why create a Facebook or Instagram store—you ask? 

Well, these platforms have billions of users, and creating a store in either gives you a wider reach. Moreover, you also get an option to run ads to boost reach. You can run targeted ad campaigns to reach more potential customers.

2. Participate in Reddit communities

Reddit is another powerful platform you can use to promote your Shopify store. But keep in mind that the nature of this platform is different. 

Users come here to find reviews or information on any products before making a purchase. Or they are looking for genuine product recommendations. They are not looking for ads here. 

So, instead of being directly promotional, you can engage in relevant communities and answer genuine queries. This strategy will give your store more visibility and build trust. 

For example, Purple Mattress has a subreddit with 3,900 members. This subreddit curates all customers' questions on the Purple Mattress. Customers can come here to see reviews before making the purchase. 

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3. Create a TikTok profile

Creating a TikTok profile is definitely one of the wisest decisions for your brand, considering its astounding numbers:

• Its engagement rate is 4x of Instagram.
• There are many fast-growing accounts, especially accounts between 10-50k followers, that are seeing the most follower growth.
• Many brands are already huge on TikTok, posting around two videos per week.

HelloFresh, America's most popular meal kits platform, is a good brand to take reference from. They post videos of recipes with their meal kits so users can see how it works in action and also get a glimpse of meal kits. They currently have a community of 57,000 followers. 

4. Collaborate with influencers

Other than social media ads, another great strategy where you can invest money is influencer marketing. 

You can collaborate with influencers who already have an engaged audience in your niche. 

Collaborating with influencers has two benefits: first, you get more reach. Secondly, influencers create content for your brand, which you can reuse later. 

For example, Gainful, a personalized protein powder supplements brand, collaborates with many nano influencers in the space to create more awareness of their products.

5. Invest in SEO

While growing on social media can give you some quick visibility, investing in search engine optimization (SEO) is for long-term growth. 

You will drive organic traffic regularly over the years by creating search engine optimized content. It's an investment that pays off in the long run.

Let's take Etsy, a global marketplace for unique and creative goods, as an example. The brand regularly produces helpful content and shopping guides. It created one such detailed shopping guide on office supplies. No wonder it ranks high on Google whenever a user searches for office supplies.

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6. Showcase your value proposition

Converting a first-time visitor into a loyal customer needs a clear value proposition. 

While the previously mentioned steps will help you gain more traffic, clearly communicating your unique value proposition will help you stand out from competitors and convert visitors into customers. 

Ensure you have a clear and compelling message on your Shopify store.

How are other brands doing it? Here is an example. 

Birchbox, a beauty subscription service, highlights its unique selling point as it curates personalized beauty product boxes. It's targeting busy individuals who don't have time to find every product and wish to get a customized beauty regime pack. The brand showcases this value proposition on its website and social media channels. 

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7. Optimize product pages

Often taken for granted by many, product page optimization is another crucial aspect that impacts user conversion rate. If your product page is slow or not user-friendly, users may bounce out soon.

Another important thing to take care of is message delivery. Is the page showcasing all the required information? 

Let's understand this with an example. Beauty Pie, a cosmetics brand, adds all the product details as well as a demo video to the product page so the user can get a clear idea.

8. Highlight product reviews

Users are skeptical when it comes to online shopping, and reviews reinforce their trust. For higher conversion, highlight the experiences of your happy customers. 

Amazon does this effectively. First, you can see product reviews before making the purchase. Another new helpful feature is an AI-generated review summary, which sums up all customer reviews. 

With this feature, users don't have to read hundreds of reviews one by one. So, it's definitely a cherry on the top when it comes to customer experience.

9. Add live chat 

Live chat is another great option for handling all your customer objections. Adding a live chat option allows you to address any customer queries that are hindering the purchase. It also elevates customer experience as they find the brand more easily approachable. 

Canyon, a bike brand, has a live chat option to answer any customer queries. Bike lovers are very specific about product features and have tons of queries before making a purchase. This brand can easily address all of them with live chat. 

10. Run abandoned cart campaigns

You have created the best product page that answers all customer queries. Still, a customer may add a product to a cart and not complete the purchase. Maybe they are rethinking if they need it or just got distracted and forgot about it. 

To regain such lost sales, you can run an automated cart campaign using a SMS marketing platform. These are nudges to complete the purchase. Sometimes, it comes with an incentive like free shipping, an extra 10%, etc. (whatever fits your business strategy).

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11. Provide multiple payment options

Even with the most optimized websites, users may drop out if there isn't a convenient payment option. Reduce cart abandonment by giving customers ample payment options. 

eBay, a global marketplace, is able to expand its customer base across demographics by providing a wide range of payment options, such as:

• PayPal
• PayPal Credit
• Credit card or debit card
• Apple Pay
• Google Pay
• Venmo
• Spendable funds
• Payment upon pickup
• Wire transfer facilitated by eBay (select categories only)
• eBay gift cards

Build a loyal customer base

12. Provide excellent customer service

Whether a customer chooses to repurchase from you depends on your customer experience.

Were you regular with previous shipping updates? 

Is your return or exchange process user-friendly?

Poor customer experience not only decreases existing customer lifetime value but also creates negative word of mouth. You can define workflow for shipping updates and returns using an eCommerce automation software. 

Athletic Green, a supplemented brand, sends tracking link to the customer when the product is shipped | Source: Really Good Emails

13. Offer cross-sells and upsells

You can further increase customer loyalty by offering personalized recommendations. It shows you are interested in the customer experience. 

By creating impactful upsell or cross-sell programs, you can provide additional value to customers by suggesting products that better meet their needs. 

For example, after a user makes a purchase, Dollar Shave Club recommends products to customers that can be added to their current shipment. These recommendations can improve the users' shaving regime, so there is a high chance that they will add these products to the cart.

14. Plan win-back campaigns

You can retarget customers who haven't purchased in a while. The market is competitive, and everyone wants customers' attention. 

Win-back campaigns give customers a nudge to return and purchase again. You can send recommendations or any exclusive offer. 

For example, Outdoor Voices, an activewear brand, sends a 20$ coupon to users to motivate them to place an order.

15. Run a customer loyalty program

Lastly, you can run loyalty programs to turn customers into brand advocates.

As part of the loyalty programs, you can offer perks such as:

• exclusive discounts
• early access to deals
• free shipping
• redeemable points.

You can send SMS or emails about it. For example, restaurant chain Zoës Kitchen ran a campaign with exclusive offers for its Rewards members. 

Boost your Shopify store sales with Plivo CX

Through direct integrations with platforms such as Shopify and BigCommerce, Plivo CX empowers businesses to manage the entire customer experience lifecycle—from attracting new customers, fostering engagement, and delivering exceptional service—via its omnichannel marketing and customer service solution. 

You can run all your SMS, email, or WhatsApp marketing campaigns to boost sales or build a loyal customer base on Plivo CX. 

The tool’s Audiences feature helps you assess your customers—their online behavior, engagement levels, and purchase history. Leverage this rich data to create targeted segments with a code-free segment builder to deliver maximum impact. 

Apart from that, you can also set event-based triggers to send out specific messages that drive engagement. 

You can also quickly launch campaigns with pre-built templates while having a granular look into how the campaigns are performing in real time. 

The tool also offers an AI-powered copywriter, so that you can deliver exceptional content at scale, anytime you want!

That’s not all, the platform comes with a dedicated module to ensure your support teams deliver exceptional service and automate the handling of repetitive queries by OpenAI-driven chatbots and more. 

 Sign up for a free trial today!

With the fourth Industrial Revolution underway, most knowledge workers expect flexible work environments. According to a survey by Owl Labs, 70% of respondents stated they’d prefer to work in a hybrid or remote setting.

This means businesses must move their operations to the cloud to stay relevant. For customer service and support, this includes a cloud-based call center—something that’s flexible, scalable, and location-independent. 

And this is where virtual call center software comes into play. But how do you make sure the solution is as effective as it appears? 

In this blog post, we will discuss the top-notch virtual contact center solutions you can use to help you select the best option.

What is Virtual Call Center Software?

Simply put, virtual call center software is a cloud-based platform that enables organizations to set up an effective contact center to handle customer interactions remotely. 

It comes with features like call routing, recording, and callback options, enabling agents to provide prompt and quality support from anywhere with a good internet connection.

As it is not heavily dependent on hardware, it can be set up easily, allowing customer service agents to work from anywhere. Plus, organizations can hire global talent and ensure round-the-clock support, ensuring happy customers. 

Key Features to Look for in Virtual Call Center Software

Virtual call center software directly impacts the quality of customer conversations and the productivity of your customer agents. Here are some must-have features to look out for in your next virtual call center platform:

Voice bots   

Voice bots use voice recognition and natural language processing (NLP) to provide instant, round-the-clock, and multilingual customer support. They can resolve common queries, offer self-service options, and direct complex, more nuanced queries to human agents. Voice bots allow businesses to provide personalized customer support while reducing costs related to hiring and training additional resources.

Metrics and reporting

Metrics and reports optimize your virtual call center's efficiency. By analyzing key performance indicators like call resolution rates, average handle time, and agent performance, you can identify bottlenecks in your contact processes and workflows. 

This data-driven approach empowers you to make informed decisions that enhance your overall operation.

Some specific features to look for include customer satisfaction score (CSAT), call recordings, real-time and historical reports, and so on.

Omnichannel support for agents

Nothing frustrates a customer more than repeating their issues to different agents and via different channels. With omnichannel support, you can ensure that your customers can not only reach agents through their preferred means—email, phone, WhatsApp, and more—but also sync all customer conversations into one place so all your customer service agents have access to previous conversations.

Call routing to qualified agents

Another feature to look for in your virtual call center platform is call routing. By routing calls to agents with the relevant expertise—whether that’s a feature, customer segment, or language—you can resolve issues at first contact without asking customers to hold or transfer them to others. 

Call routing also helps streamline your operations—for example, you can route calls to different customer service agents based on their shift timings, availability, and more.

Call recording

Traditional call centers have always practiced recording customer calls, and with good reason. It helps you evaluate an agent’s performance, fosters transparency between your business and the customer, and allows marketing teams to understand trends in customer behavior.  

So, taking this practice into your virtual call center with a call recording feature should be non-negotiable.

Live coaching

Real-time coaching creates a proactive learning environment where agents get immediate feedback on current interactions, increasing the efficiency and quality of customer service. Automated coaching tools ensure quality and compliance across all interactions on all channels.

When live coaching is made an integral part of daily operations, new agents can be trained directly on live interactions, minimizing onboarding costs and time. Call barging is another feature that facilitates quicker issue resolution and on-the-spot coaching.

Self-service chatbot

Another feature that can benefit your customer service team is a self-service chatbot. For common questions or requests, chatbots can provide immediate answers or send customers to the right help resources. 

AI-powered chatbots can even hold human-like conversations and respond to questions with contextual awareness. This ensures that customers have round-the-clock access to support and allows your human agents to focus on the more tricky customer requests.

Virtual Call Center Solutions at a Glance

Here’s a quick comparison of the top virtual call center tools:

Top 6 Virtual Call Center Software for 2024

Let’s dive into the finer details now—the features, limitations, and what customers say—so you can compare all aspects of these virtual call center tools and make informed decisions. 

1. Plivo CX 

Cloud-based Plivo CX is a web-based omnichannel virtual call center platform with features to streamline communications and elevate satisfaction. A perfect fit for retail and e-commerce stores, the platform enables customer service teams to provide top-notch support from anywhere. 

Also, it leverages Plivo’s award-winning global communication network, which delivers latency-free calls, reliable messaging and high scalability. 

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Moreover, it integrates with homegrown systems, existing CRM and helpdesk applications, allowing for a consolidated view of customer data and conversation history.

Plivo CX key features

• Omnichannel support: Set up various communication touchpoints, including AI-powered live chat, voice, SMS, email, and WhatsApp in a single Unified Agent Desktop. Customers can choose their preferred method of contact, while agents don’t have to switch between channels—a win-win for both
• Intuitive chatbots: Reduce your response time and offer customers 24/7 support with OpenAI-powered chatbots that can provide quick resolutions. You can also develop custom knowledge bases
• Live monitoring and coaching: Provide immediate assistance to agents and resolution to customer queries with real-time monitoring, coaching and barge-in features
• Interactive Voice Response (IVR): Automate basic inquiries and route customers to the appropriate resource (or agent) with pre-recorded messages and keypad options
• No-code workflow builder: This can simplify the creation of customer journey workflows, eliminating the need for complex coding. With easy-to-configure components and remote triggering capabilities, businesses can automate processes, streamline issue escalation, and ensure efficient skill-based routing
• Real-time reporting: You can also leverage Metrics & Reporting to gain valuable insights into your virtual contact center's performance. With additional coaching tools like call recording, barge, whisper, and CSAT collection, businesses can enhance agent training, monitor customer satisfaction, and drive continuous improvement

Plivo CX limitations

• Lacks tools to ensure consistent quality and manage agent productivity
• Excludes mobile access for agents who need to work remotely
• May not be perfect to handle a high volume of ticket-based support requests efficiently

Plivo CX pricing

Omnichannel (annual plans):

• Growth: $29 per user per month
• Business: $69 per user per month
• Enterprise: Available on request

Voice-Only annual plans

• Growth: $25 per user per month
• Business: $40 per user per month
• Enterprise: Available on request

Chat-Only annual plans

• Growth: $15 per user per month
• Business: $30 per user per month
• Enterprise: Available on request

Plivo CX reviews

• G2: 4.5/5 (700+ reviews)
• Capterra: 4.3/5 (80+ reviews) 

2. Zendesk

While not a virtual call center per se, Zendesk has a variety of features closely connected to the virtual call center function, like omnichannel messaging channels and agent workspaces. It also provides other service-related features like a help guide builder, community forum, ticket management, and more.

Zendesk key features

• Unify all customer conversation data by bringing calls, chats, and emails to one platform
• Make the most of your voice calls—by embedding the call option in apps, downloading call transcripts, and more
• Route customer tickets to the right agents based on language, request type, and more 
• Respond quickly with AI chatbots and other automation capabilities

Zendesk limitations

• As Zendesk focuses on ticketed conversations over non-ticketed, impromptu ones, keeping track of conversation history can be difficult (G2)
• Lacks holistic collaboration tools that can make internal communication between agents challenging (G2)
• Does not facilitate conversational support for businesses
  

Zendesk pricing

• Suite Team: $69 per agent/month
• Suite Growth: $115 per agent/month
• Suite Professional: $149 per agent/month
• Suite Enterprise: Custom pricing

Zendesk reviews

• G2: 4.3/5 (5845 reviews)
• Capterra: 4.4/5 (3874 reviews)

3. Five9

Five9 is a Call and Contact Service (CCAS) provider that empowers businesses to provide seamless and convenient support experience. Features like omnichannel support, intelligent call routing, and genAI capabilities make it easy for customer service agents to provide top-notch support without depending on restrictive infrastructure.

Five9 key features

• Help agents work smarter with call recordings, real-time coaching, and agent performance data
• Allow agents to handle customer tickets through multiple channels—chat, email, social media, and even SMS
• Use call routing features like Automatic Call Distributor (ACD) and skills-based routing to send calls to the right agents

Five9 limitations

• Five9 possesses an outdated backend system—APIs and codebase—that might feel non-intuitive for some users (G2)
• It operates as a closed platform, preventing potential users from testing its features through product trials
• This platform shares similar drawbacks with Talkdesk, further limiting its appeal.

Five9 pricing

• Digital: $175 per user per month
• Core: $175 per user per month
• Premium: $235 per user per month
• Optimum: $290 per user per month
• Ultimate: $325 per user per month

Five9 reviews

• G2: 4.0/5 (388 reviews)
• Capterra: 4.3/5 (462 reviews)

4. Aircall

Aircall is a customer communication platform that provides sales and service teams with business phone features like toll-free numbers, conference calls, call routing, and business text messages. However, as Aircall doesn’t support AI chatbots or other communication channels, you’ll have to pick other tools to perform those functions.  

Aircall key features

• Host conference calls with up to five people with Aircall’s VoIP feature
• Set custom schedules for each agent so they receive calls only during their working hours
• Get an overview of what the entire team is doing—who’s on a call and who’s free—with a team dashboard
• Integrate Aircall with CRM software and allow agents to access customer data and past interactions

Aircall limitations

• The platform provides limited customer support (Capterra)
• Aircall focuses solely on voice-based support, lacking the multi-channel capabilities of platforms like Intercom
• Its workflow designer is limited and lacks the flexibility needed for custom journeys

Aircall pricing

• Essentials: $40 per license per month
• Professional: $70 per license per month
• Custom: Custom pricing

Aircall reviews

• G2: 4.3/5 (1040 reviews)
• Capterra: 4.3/5 (420 reviews)

5. Talkdesk

Talkdesk is a Cloud Contact Center Service (CCAS) tool specially designed for large-scale businesses, typically retail and hospitals. Its features, such as omnichannel support, IVR, and voice calling, can be great for any customer service team. 

Talkdesk key features

• Sync the physical and digital history of retail customers with unified dashboards
• Make customer engagement seamless with multichannel support
• Automate customer service, operationalize AI and build no-code generative AI models using Talkdesk AI 

Talkdesk limitations

• Requires additional support software to manage and capture all customer interactions
• Relies on a third-party service for voice communication
• Lacks native omnichannel support capabilities

Talkdesk pricing

• CX Cloud Digital Essentials: $85 per user per month
• CX Cloud Essentials: $85 per user per month
• CX Cloud Elevate: $115 per user per month
• CX Cloud Elite: $145 per user per month

Talkdesk reviews

• G2: 4.4/5 (2200 reviews)
• Capterra: 4.6/5 (723 reviews)

6. Ameyo

Ameyo’s virtual call center software is widely used by agents who prefer the work-from-home (WFH) and work-from-office ( WFO) models. Supervisors can track and compare efficiency based on the number of calls handled, network failure, and call connectivity ratio for both these work models and make business decisions accordingly. This is a standout capability of Ameyo’s remote call center software. 

Ameyo key features

• Protect customer privacy with number masking
• Centralize data with a unified agent dashboard
• Follow up easily with callback management

Ameyo limitations

• Relies on unreliable third-party services
• Lacks transparent pricing tiers
• No trial available
• Offers only pre-configured integrations

Ameyo pricing

• Custom pricing

Ameyo reviews

• G2: 4.3/5 (232 reviews)
• Capterra: 4.1/5 (96 reviews)

Manage Your Remote Teams With Plivo CX’s Virtual Call Center Platform

Virtual call centers can benefit small and large businesses alike, increasing agent productivity and customer satisfaction.

If you’re looking for a comprehensive, omnichannel virtual call center solution that comes with foolproof security, try Plivo CX. It is loaded with all the cutting-edge features you need to take your call center to the cloud, including a single-window pane to manage omnichannel service operations, OpenAI-developed self-service chatbots, a no-code workflow builder and real-time reporting. 

Request a demo and explore how Plivo CX can help you set up a robust, round-the-clock virtual call center. 

Did you know that the number of ecommerce sites tripled between 2019 and 2023 to 26.5 million, and half of these sites are from the US?

As the industry is becoming more competitive each day and the market is growing so rapidly, you have to grow with the market itself. As Forbes puts it, “Grow or Die is the new reality of ecommerce.”

However, with the ever-ballooning costs of ads, you have to come up with creative ecommerce marketing strategies to attract sales and engagement. To help you get started, in this blog post, we’ve curated some impactful marketing strategies that can put you ahead of the competition. 

Top ecommerce marketing strategies

1. Leverage omnichannel marketing 

The customer journey has several touchpoints. Your website, shopping store, and mobile apps are some of them. Omnichannel marketing ensures that customers experience consistent brand messaging across all these channels without any hassles of switching between platforms.

Integrating SMS, emails, and WhatsApp into your marketing strategy can significantly enhance engagement and conversion rates. 

For example, you can create a marketing flow across three platforms 

• Email campaign: Announce a new product launch with detailed information and high-quality images.
• SMS reminder: Send a follow-up SMS to remind customers about the product launch and direct them to your website.
• WhatsApp message: Provide an exclusive discount code via WhatsApp to encourage immediate purchases.

This multi-channel approach keeps your brand top of mind and provides multiple touchpoints to engage customers effectively.

How to create an omnichannel marketing strategy?

Since there are multiple channels involved, you need a robust ecommerce marketing software tool to execute this strategy. 

As an all-in-one, web-based platform for managing the entire customer experience journey end to end, Plivo CX supports your marketing efforts across diverse channels such as SMS, email and WhatsApp and on marketplaces such as Shopify and BigCommerce. 

For example, it tracks customer behavior across your storefronts to identify their unique needs, behavior patterns, and segments customers based on specific attributes.

Once you’ve got specific segments, you can create personalized SMS, email and Whatsapp right within the platform with the help of an AI-driven copywriter and schedule them so that they can send trigger event-based messaging to the right customer segment at the right time. 

Not only that, but you can also develop and deploy highly impactful and completely tailored campaigns in just four steps and monitor the key metrics to help you measure ROI. 

2. Launch a subscription service 

A subscription service can provide a steady revenue stream and foster customer loyalty. 

For instance, Dollar Shave Club disrupted the shaving industry with its subscription model, offering customers high-quality razors and grooming products delivered to their doorstep. 

Similarly, Birchbox has revolutionized the beauty industry by providing personalized beauty product samples on a monthly basis.

While subscription services are commonly associated with industries like beauty and grooming, various other sectors can also benefit from this model. Brands that offer consumable products, such as food and beverages, health supplements, and pet supplies, can also offer subscription services. 

Additionally, niche markets with a loyal customer base, such as specialty coffee, artisanal goods, and hobby supplies, can also thrive with a subscription model.

3. Leverage user generated content 

86% of consumers say that they are more likely to trust a brand that shares UGC. Through user generated content, you can leverage the authentic voices of your customers to build credibility in the market.

UGC opens up conversations between a brand and its customers. This interaction helps you build an engaged and loyal community. 

How can you encourage UGC?

• Product giveaways: By offering a free product in exchange for a review or a social media post, you can generate a wealth of authentic content.
• Influencer collaborations: Influencers can create engaging content around your brand’s products. This content reaches a broader audience and encourages their followers to share their experiences.
• PR packages: You can send PR packages to bloggers, influencers, and loyal customers to attract unboxing videos, reviews, and social media posts. 

A prime example of a brand benefiting from UGC is Glossier. The beauty company heavily relies on its community of users to share their experiences. Glossier encourages customers to post their product reviews and makeup looks on social media. 

This strategy has significantly boosted Glossier’s visibility and credibility, resulting in a loyal customer base and impressive sales growth.

4. Host live or virtual events

According to Freeman’s latest report, 80% of attendees say that events are the most trusted way to discover new products and services. In events, you can direct customer engagement, media coverage, social media shares and customer feedback.

These events include product launches, webinars, virtual shopping experiences and live Q&A sessions. For small businesses, virtual events have become cost-effective alternatives to traditional in-person events. They set up on way lesser investment as compared to live events, thus increasing the ROI.

How can brands promote their products at events?

• Interactive demonstrations: Live demonstrations allow customers to see products in action. You can answer customer queries in real time and also take feedback.
• Exclusive discounts and offers: Proposing exclusive discounts or early access to new products during events builds a sense of urgency and encourages immediate purchases.
• Engaging content: Incorporating engaging content such as behind-the-scenes looks, customer testimonials, and live chats can make events more interactive and memorable.

Here’s an example of an event from Sephora. The retail brand is hosting events across the US to promote the launch of the new holiday collection by Rare Beauty. 

5. Create comparison guides 

Comparison guides—blogs and videos—offer side-by-side comparisons of various products to simplify your customers' research process. These are especially valuable for customers at the bottom of the funnel (BOFU) who are close to making a purchase.

They provide detailed insights into the features, benefits, and drawbacks of similar products so consumers can choose the best option for their needs. 

How to create BOFU guides?

Creating effective BOFU guides involves several key steps:

• Identify key comparison points: Determine the most critical factors that customers consider when chosing between similar products (e.g., price, features, quality, user reviews).

• Gather accurate data: Ensure you have accurate and up-to-date information about each product. This may involve conducting research, collecting user reviews, and consulting expert opinions.

• Use visual aids: Incorporate comparison tables, charts, and videos to make the information easily digestible and visually appealing.

• Provide balanced views: Offer unbiased comparisons by highlighting both the strengths and weaknesses of each product. Avoid overly promotional language.‍
• Include testimonials and case studies: Share real-life experiences and testimonials from customers who have used the products. This adds credibility and relatability to your guide.
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• Optimize for SEO: Use relevant keywords and phrases to ensure your comparison guides rank well in search engines, making them easily discoverable by potential customers.

6. Retarget past customers 

Retargeting past customers is a powerful strategy to bring back visitors who have shown interest in your products but haven't completed a purchase. This can be done through various channels, including your website and social media.

6. Retargeting on website 

Website retargeting involves displaying ads to people who have previously visited your site but left without making a purchase. By keeping your brand and products in front of these potential customers, you can increase the chances of converting them into buyers.

Strategies for website retargeting:

• Personalized ads: Show personalized ads based on the products they viewed or added to their cart.
• Exclusive offers: Offer special discounts or promotions to entice them to return and complete their purchase.
• Dynamic retargeting: Use dynamic ads that automatically show the exact products the visitors were interested in.

Retargeting on social media 

Social media platforms offer robust retargeting options that allow you to reach past visitors and engage them with targeted ads. Platforms like Facebook, Instagram, and LinkedIn have advanced retargeting features that can help you reconnect with potential customers.

Strategies for social media retargeting:

• Custom audiences: Create custom audiences based on website visitors, email lists, or app users. This allows you to tailor your ads specifically to people who have already shown interest in your brand.
• Engaging content: Use engaging and visually appealing content, such as carousel ads, video ads, and interactive posts, to capture their attention.
• Retargeting campaigns: To drive conversions, run retargeting campaigns with a clear call to action, such as "Complete Your Purchase" or "Check Out Our New Arrivals."

7. Send automated SMS or email campaigns 

45% of customers prefer sales and promotional messages from brands. Also, in 2023, marketers witnessed a doubling of their ROI with email marketing. These stats prove that SMS and email are the top channels for increasing customer engagement.

But timing is crucial in marketing. Studies show that automated emails can generate 320% more revenue than non-automated emails.

That’s why you need ecommerce marketing software to create, manage and monitor your email and SMS campaigns.

How to use ecommerce marketing software to send automated emails and SMS?

Plivo CX provides end-to-end automation to share personalized messages and engage customers. Here are some features of Plivo CX that make it a great platform to send automated emails and SMS:

• Global reach & reliable delivery: Unlike many communication platforms, Plivo takes complete control by owning and operating the entire delivery platform and network. This translates to direct carrier connections with multiple fallback options and automatic failover. The result is unmatched reliability—your messages get securely delivered on time without failure.
• AI writing assistance: Create personalized messages with an AI-powered copywriter.
• Built-in channels: Engage customers via SMS/MMS, WhatsApp, and email

• Segmentation & lists: Target the right audience with segmentation tools and managed opt-in/opt-out lists.
• Automatic URL shortening: Keep messages concise and clear.

8. Create customer segments for hyper personalization 

Customer segmentation helps you identify different groups within your customer base. These segments can be based on various criteria, such as demographics, purchase history, browsing behavior, and more. 

By segmenting customers, you can deliver more personalized content and offers to different customer groups.

How can you use segments to create personalized experiences?

Ecommerce brands can leverage customer segments to create hyper-personalized experiences across multiple channels:

• Email: Segment your email list based on criteria like purchase history, location, or browsing behavior. Send personalized emails with product recommendations, exclusive offers, and relevant content.
• SMS: Use segmentation to send targeted SMS campaigns. For example, send reminders to cart abandoners, notify VIP customers about special sales, or share personalized discount codes.
• Social media: Create targeted social media ads for different customer segments. Promote new products to customers who have shown interest in similar items or retarget customers who have previously visited your site.

When it comes to personalization, you can easily create customer segments with Plivo CX with as many rules as you like. Then, it captures specific actions and events in the storefront and uses them as triggers for ‘journeys.’ 

For example, you can share back-in-store alerts for products they like or share flash sale offers on items related to a keyword they are engaged in. 

9. Display “similar products” on checkout pages 

Displaying similar products on checkout pages can help you upsell customers. It encourages customers to add more items to their cart. Suggest products that complement the items in the customer’s cart (e.g., a phone case for a phone).

You can also display popular or highly rated products that are similar to the items that your customer is buying. Then, share special offers to motivate customers to make the purchase.

10. Emerging technologies

Emerging technologies such as artificial intelligence (AI), machine learning, augmented reality (AR), and virtual reality (VR) are providing innovative ways to enhance customer experiences and drive sales.

Artificial Intelligence (AI) and Machine Learning 

AI and machine learning enable personalized shopping experiences, improve customer service, and optimize your ecommerce marketing strategies.

Applications of AI and Machine Learning:

• Personalized recommendations: AI algorithms analyze customer data to suggest products that match their preferences and past behaviors.
• Chatbots and virtual assistants: These tools provide instant customer support and answer queries.
• Predictive analytics: Machine learning models predict future trends and customer behaviors so you can make informed decisions.
  

For example, Amazon uses AI and machine learning to suggest products based on customers' browsing and purchase history. 

Augmented Reality (AR) and Virtual Reality (VR) 

AR and VR technologies allow customers to interact with products in immersive ways before making a purchase.

Applications of AR and VR:

• Virtual Try-Ons: Let customers try on clothing, accessories, or makeup virtually to provide a realistic preview of how products will look.
• 3D Product Views: VR can be used to offer a 360-degree view of products, such as furniture, to see how they fit into their space. 
• Virtual Showrooms: Use VR showrooms where your customers can explore and interact with products as if they were in a physical store.
  

For example, IKEA’s AR app, IKEA Place, allows customers to visualize how furniture will look and fit in their homes. It superimposes 3D models of products into their living spaces using a smartphone camera.

11. Add quizzes on your websites 

Integrating quizzes into your e-commerce website is an engaging way to interact with customers, gather insights, and guide them toward the right products.

Several brands effectively use quizzes to enhance the shopping experience and drive sales. 

For instance, Sephora’s “Find Your Foundation” quiz helps customers identify the best foundation shade and type for their skin. Also, Warby Parker’s “Home Try-On” quiz helps customers select eyewear styles that suit their preferences and face shape.

12. Set up a referral campaign

Referral campaigns are an effective way to leverage your existing customer base and attract new customers. These campaigns encourage satisfied customers to refer friends and family in exchange for rewards.

You can host product giveaways so that customers feel tempted to engage with your brand, receive free products and refer them to their followers on social media. 

• Social media contests: Encourage followers to like, share, and comment on your posts for a chance to win a product.
• Email campaigns: Offer exclusive giveaways to subscribers who refer friends or engage with your emails.
• Website pop-ups: Use pop-ups to announce giveaways and collect entries from website visitors.

How to set up referral campaigns?

Setting up a successful referral campaign involves several steps:

• Choose a platform: Use referral marketing software such as ReferralCandy, Yotpo, or Friendbuy to manage your campaign.
• Define rewards: Decide on the incentives for both the referrer and the referred customer, such as discounts, free products, or loyalty points.
• Create a landing page: Design a dedicated landing page explaining the referral program, how it works, and the rewards on offer.
• Promote the program: Use email marketing, social media, and website banners to promote your referral program and encourage participation.
• Track and optimize: Monitor the performance of your campaign, track referrals, and optimize the program based on feedback and results.

Get maximum ROI on your ecommerce marketing strategies with Plivo CX

To get maximum sales and engagement, you need a robust tool to support your ecommerce marketing tactics. As an omnichannel customer engagement platform, Plivo CX is just the option for you. 

Relying on its premium carrier network, this intuitive tool lets you maximize the impact of your marketing strategies on diverse channels, such as email, SMS and WhatsApp. 

You just have to select your audience segment, pick their preferred channel and schedule your messages. The Journey feature does the rest, as it identifies key events to trigger specific time-sensitive messages that meet customers where they are on the journey. You don’t have to write these messages yourself. The AI copywriting assistance does it for you. Not to mention, you can consistently keep track of the campaign's impact.  

Book a demo today for Plivo CX today to get started. 

As customer acquisition costs have increased by 60% in the last five years, it has emerged as a top barrier for many ecommerce businesses. 

In the backdrop of breakneck competition, without properly developed strategies, you may risk falling into a classic pitfall: overspending on marketing rather than focusing on the value of the acquired customers.

This invariably leads to unsustainable growth in the long term, massive financial strain and low customer retention. 

In this blog post, we’ve compiled the top ecommerce customer acquisition strategies to help you attract more relevant customers, reduce costs, and increase your ROI.

What is ecommerce customer acquisition?

Ecommerce customer acquisition involves attracting and converting new leads into customers. It involves various strategies and tactics, such as engaging them with compelling offers or content and encouraging them to make a purchase. 

Effective customer acquisition strategies are critical for your business growth. According to a study, 81% of marketers reported revenue growth in the last two years, attributing this success to effective customer acquisition. This shows getting new customers is key to better financial results.

As Paul Graham, the founder of Y Combinator, puts it, 

“You can’t wait for customers to come to you. You have to figure out where they are, go there, and drag them back to your store.”

While that’s said, there’s no one-size-fits-all customer acquisition strategy. There are several options in the market, and you have to choose one that fits your business, budget, and target audience while providing maximum ROI.

How to measure the ROI of your customer acquisition strategies with the right metrics?

To measure the success of your customer acquisition strategies, keep an eye on these metrics:

1. Gross margin

Your gross margin indicates how efficiently your company produces and sells its goods. It's the difference between your revenue and the cost of goods sold (COGS) divided by revenue.

Gross margin = {(Revenue - COGS)/ Revenue} * 100

For example, if your company generates $200,000 in revenue and the cost of goods sold is $150,000, the gross margin would be 40% - the revenue retained after covering the cost.

2. Landed cost margin

Landed cost margin is your total costs in getting a product from the supplier to the final destination, including shipping, handling, duties, and taxes. Subtract this cost from the revenue to find the final landed cost margin.

Landed Gross Margin = {(Revenue - Landed costs)/ Revenue} * 100

For example, if your company has $200,000 in revenue and the total landed costs (including shipping, handling, duties, and taxes) amount to $150,000, the landed cost margin would be 25% - after covering all these costs.​

3. Blended Cost Per Acquisition (CPA)

Blended CPA is the average cost of acquiring a customer from all marketing channels combined. It helps you understand the overall cost-effectiveness of your customer acquisition efforts.

Blended CPA = Total marketing spend/ Total new customers acquired

For example, if your company spends $50,000 on marketing and acquires 1,000 new customers, the blended cost per acquisition would be $50 - the average amount spent to acquire one new customer.

4. Marketing Efficiency Ratio (MER)

The Marketing Efficiency Ratio (MER) is the total revenue ratio to total marketing spending. It measures the efficiency of marketing spending in generating revenue. 

MER = Total revenue/ Total marketing spend

For example, if your company's total revenue is $200,000 and you spend $50,000 on marketing, the marketing efficiency ratio would be 4:1, meaning you earned $4 for every $1 spent on marketing—a pretty sweet deal, actually.

Top ecommerce customer acquisition strategies for your business

The total ecommerce sales will reach $5 trillion this year. As competition rises and advertising costs soar, you need top ecommerce customer acquisition strategies for your business. 

To ease your job a bit, we compiled seven strategies that have a direct, measurable impact on your CAC. Here are the top ecommerce customer acquisition strategies for your business:

Create unique experiences for your best customers

McKinsey estimates that personalized experiences reduce customer acquisition costs by as much as 50 percent, lift revenues by 5 to 15 percent, and increase marketing ROI by 10 to 30 percent. 

Satisfied customers are more likely to purchase from you again and spend 67% more, reducing the need for expensive acquisition campaigns.

The question is, how do you shape such experiences?

Begin by segmenting your customers by demographics, purchase history, or engagement levels. Segmenting customers helps you personalize messages and provide unique experiences. For example, you can send welcome messages to first-time buyers and offers to buyers who purchase regularly. 

You can easily do this with the all-in-one customer engagement platform Plivo CX’s Audiences feature. It lets you segment all your contacts from your online stores in real time. You can create several rules to segment your customers based on contact properties and events.

Couple this with Plivo CX Journeys to deliver customers the right message at the right time. With this feature, you can identify key events to trigger messaging that meets the customers where they are in their journeys.  

Choose the right channels to reach customers

The best way to acquire and retain more customers is to meet and engage with them where they are. This means selecting the appropriate channels for each customer. 

Here are some ecommerce customer acquisition channels:

• Email marketing: Through emails, you can nurture leads and drive repeat sales. With automated email flows like welcome series, abandoned cart reminders, and post-purchase follow-ups, brands can build relationships without manual effort.
  
  
• SMS marketing: 52% of customers purchased a product after being influenced by brand text messages. Write short, clear, and useful messages to engage your customers and get maximum ROI from your SMS marketing efforts. 
  
  Plivo CX leverages Plivo’s award-winning premium career network spanning over 200 countries. We leverage direct carrier connections with multiple failover options, ensuring reliable message delivery even in case of network disruptions.
  
  
• WhatsApp marketing: With an almost 3 billion user base, WhatsApp can be one of the best ecommerce customer acquisition channels. With Plivo CX’s Channels, you can send targeted product recommendations on WhatsApp, including exclusive offers and content based on individual preferences.
  
  
• SEO: Optimize your website and content for search engines to rank higher in search engine results pages (SERPs). It improves your visibility in search engines like Google, and you attract organic traffic to your ecommerce site. SEO is particularly valuable because it targets users who are actively searching for products.
  
  
• Social media: Facebook, Instagram, Twitter, and TikTok are powerful channels for ecommerce customer acquisition. You can engage with potential customers on these platforms, build brand awareness, and drive traffic to their websites through both organic and paid strategies.
  
  
• Paid: You can run paid ads on platforms like Google and Facebook Ads to promote your products and drive traffic to your ecommerce site. Paid ads can generate immediate visibility from your potential customers as they help you reach specific audiences quickly.

Retarget abandonment carts

On average, 70.19% of carts are abandoned. It roughly means that 7 out of 10 shoppers leave your website without making a purchase. The top reasons for cart abandonment include:

• Extra shipping costs
• Request to create an account 
• Lack of trust in payment 
• Slow delivery 
• Too long or complicated checkout process 

Fixing these issues will help you retrieve your lost customers and secure revenue. Here’s how you can reduce cart abandonment and improve conversion rates:

• Provide discounts or support offers through exit intent popups when users try leaving your site.
• Making your checkout process simpler by reducing form fields, providing guest checkout, and displaying progress indicators can help reduce friction and establish trust.
• Send automated abandoned cart emails and text messages to remind customers about their incomplete purchase and motivate them to proceed with the purchase.
  
  You can use Plivo CX's Journeys to automate this process completely. Without requiring developers’ help, you can create automated personalized cart abandonment trigger events and send appropriate messaging across email and SMS to nudge customers toward conversion and salvage lost revenue.

Provide better customer service 

3 out of 4 customers are ready to spend more with brands that provide good customer service. Building better customer relationships has become super important to acquire and retain customers.

Customers also share their customer service experience with other people, which builds a brand perception that can affect future sales. No wonder 60% of consumers have purchased from a brand solely based on the customer service they expect to receive. 

To build better customer relationships, you can incorporate: 

• AI chatbots: Generative AI chatbots help your business provide human-like service to your customers. AI provides hyper-personalization using customer data - which they have agreed to share. Also, chatbots are now able to adopt a tone that falls in line with your brand guidelines. So they can find customer information faster and easily solve their queries. 

• Email communication with customers: Email flows remain one of the most effective ways of nurturing customer relationships. You can send customers targeted emails based on where they are in their journey. 

For instance, send customers welcome emails when they sign up, thank them with a post-purchase email, or share discount codes on their birthdays and anniversaries. These activities strengthen your relationship with your customers.  

You can use Plivo CX to run email campaigns. Select your audience, choose the email channel, and schedule an email. You also get access to ready-to-go templates and an AI assistant to craft personalized emails for customers. 

Improve the shopping experience on your website 

Your website is one of the chief entrances for your customers. It’s also a primary representation of your brand on the internet. Having a website that’s easy to navigate and loads quickly reduces friction and increases the likelihood of conversion. 

To improve your website's shopping experience, focus on key elements like clear navigation, detailed product descriptions, high-quality images, and a simplified checkout process with multiple payment options. 

Moreover, the shopping experience is not limited to desktops. In 2023, mobile accounted for 80% of all retail website visits worldwide. That’s why you must ensure that your ecommerce website is optimized for mobile. 

Here are some more ways you can improve the shopping experience for your customers:

• Include AR and VR technology: Augmented reality (AR) and virtual reality (VR) allow customers to visualize products like furniture, home decor, etc, in their real-world environment. It helps them make more informed purchasing decisions. 
• Incorporate voice search: Voice search technology simplifies the shopping process, as customers can search for products without typing. It makes the shopping experience faster and more user-friendly.
• Add product reviews: Authentic reviews from other customers offer real insights into the product’s quality and performance. They build trust and help customers make more informed decisions. 
• Simplify the checkout process: A streamlined, user-friendly checkout process minimizes friction points and reduces cart abandonment rates. By simplifying checkout steps, offering multiple payment options, and allowing guest checkouts, you can enhance the overall shopping experience.

Use referral programs

In referral programs, you incentivize existing customers to recommend your product to their friends, family, or colleagues. Customers receive rewards, such as discounts or free products, when their referrals make a purchase.

Referral programs are an excellent way to gain new customers at a much lower cost than traditional advertising methods. By encouraging your current customers to refer others in their networks to you, you can tap into personal networks and capitalize on the trust and confidence that comes with personal recommendations.

Steps to establish a successful referral program:

1. Offer attractive incentives: Provide valuable incentives such as discounts, credits, or exclusive deals for the referrer and the new customer. You can also implement a tiered reward system where incentives increase based on the number of successful referrals. It encourages customers to refer regularly.

2. Simplify the referral process: Create easily shareable referral links, social media templates, or unique codes for your customers. Ensure your referral system is optimized for sharing across various platforms, such as social media, email, and SMS. This maximizes the reach of the program.

3. Leverage existing communication channels: Integrate the referral program with email and SMS to regularly remind customers of the referral opportunity and its benefits.

4. Monitor and adjust: Track referral and conversion rates to monitor the program’s performance. You can gather participant feedback to understand their experience and identify areas for improvement.

Using affiliate or influencer marketing programs 

In affiliate programs, you involve third-party marketers (affiliates) who promote your products or services to a wider audience—often followers on social media. 

Affiliates (or influencers) earn a commission for every sale generated through their marketing efforts. They may also have a price to market your product, irrespective of the sales they attract. Still, 60% of marketers agree that influencer marketing has better ROI as compared to traditional marketing channels.

Steps to establish a successful influencer or affiliate program:

1. Identify the right affiliates: Choose affiliates with strong reputations and audiences that align with your target market. For example, you can select a young influencer for a 
2. Offer competitive commissions: Provide competitive commission rates to attract and retain top-performing affiliates. You can also offer additional incentives such as tiered commission rates or bonus payments to achieve specific targets.
3. Provide marketing resources: Share high-quality marketing materials, such as campaign briefs, product images, and promotional copy. It helps affiliates understand your vision and create compelling content and ads.
4. Support and communication: Regular communication helps affiliates stay engaged and aligned with their marketing goals. Offer training sessions and best practices to improve the quality of content and drive more sales.
5. Monitor and optimize: Use the right tools to analyze affiliate performance to optimize the campaign and maximize ROI. You can also encourage affiliates to provide feedback on the program and the product so you can make necessary adjustments and improve the overall experience.

Boost ecommerce customer acquisition with Plivo CX

All ecommerce customer acquisition strategies mentioned above will bring you results. But you need a platform to execute them. Plivo CX provides a single platform to execute almost all your customer acquisition strategies. 

It provides end-to-end SMS, WhatsApp, and email marketing automation to help you acquire customers. It also helps optimize customer acquisition strategies with customer segmentation, cart abandonment targeting, personalized content, and robust analytics. 

‍Book a demo today!

In the highly competitive insurance market, providers must often maintain parity between retaining and attracting customers. Unlike other sectors, insurance policies and processes are complex, and the industry is prone to fraud and identity theft, which makes customers cautious before choosing a provider.

According to Bain & Company research, 50% of customers sought alternatives after one negative experience with an insurance provider. 

Since acquiring new customers costs more than retaining or upselling existing customers, your top priority should be to keep your customers closer, engage with them proactively, and boost customer loyalty. Satisfied customers are 80% more likely to renew their policies than unsatisfied customers.

In this blog post, we will explore the most effective strategies for retaining insurance customers. But before we get to that, let’s get a quick overview of some of the common challenges to customer retention in the insurance industry. 

Challenges of Customer Retention in the Insurance Industry

Customers are constantly on the lookout for a personalized and transparent experience. Any negative experience is a huge deal-breaker for insurance customers. 

For insurance companies, this becomes especially tricky due to several factors that contribute to the difficulty of customer retention, including: 

1. High competition between players

As with any industry, multiple players are vying for customer attention, offering a range of similar products and services. With high-level competition comes an abundance of choices for the customer. 

Aside from traditional insurance companies, new-age insurance-tech companies are intensifying the competition with their own range of innovative insurance solutions.

2. Lack of customer engagement 

Insurance is a low-engagement product that customers invest in to protect their high-value purchases.

Most customer interactions are limited to policy claims and renewals, and it can be challenging to build meaningful connections within the limited time that customer support agents spend with their customers. 

3. Customer trust issues 

The insurance industry is known for cybersecurity threats, data breaches, and complex policy documents. Also, 69% of insurance consumers ran a search before scheduling an appointment, indicating high expectations for transparency.

So, past experiences and a perceived sense of lack of transparency prevent customers from building trust in your brand. 

4. Complex insurance solutions

Insurance products are undoubtedly complex, with terms and conditions that can be difficult for customers to understand, leading to frustration and preventing them from fully appreciating the benefits of the policies.

Top 11 Insurance Customer Retention Strategies 

To retain insurance customers, deploy targeted strategies where customer-facing teams forge connections and build a solid customer base. These include:

1. Build a seamless onboarding experience 

When your policyholders enjoy a smooth and convenient experience with your business, it is likely to lead to repeat purchases and higher customer lifetime value (LTV). 

You can try Plivo CX’s drag and drop workflow builder to create automated customer journey workflows. 

For instance, when a new policyholder connects for policy setup, an automated system can send personalized emails acknowledging inquiry receipt. Also, when the policyholder wants to get in touch with a human agent for complex queries, the system can quickly hand them over to your support reps. 

2. Rely on human-driven support

Customers feel more valued when they get a human agent to guide them through difficult queries. In an Accenture survey, 50% of customers trusted a human agent over live chat. 

When a customer reaches out after a stress-inducing event, such as a loss or accident, show empathy by hearing their concerns. Not only will you help solve your customer’s issue in the short run, but it will also help establish rapport and build a loyal customer base in the long run. 

3. Provide omnichannel service

For modern businesses, it is becoming imperative to meet customers on the platforms they use most. Omnichannel support creates a seamless experience for policyholders, as they can resolve their queries on their preferred channel at any time. 

With Plivo CX’s unified agent desktop, offer your customers the option to approach your support team through multiple channels—email, voice, SMS, WhatsApp, and live chat.

Customer support agents can quickly get complete context on every customer issue without needing to switch channels. This can save your customers from the hassle of re-explaining their issues the next time they reach out with their queries. 

4. Adopt the right customer support tech stack 

You want an advanced customer support tech stack that enables your agents to manage all customer interactions seamlessly. Simultaneously, your policyholders should enjoy a swift and effortless experience. 

For this, your agents should be operating at their most optimum levels to cater to win over your customers. The unified agent desktop can streamline agent workflow by integrating CRM conversations and call handling into one interface. Agents can seamlessly respond to messages, send reminders, and handle calls, ensuring no customer query is missed.

On top of it, Plivo CX can be quickly integrated with a wide range of existing tools, including homegrown systems, ERP, CRM, and helpdesk tools. 

6. Capture customer feedback consistently

Regularly collecting and analyzing feedback helps you understand your customers' preferences and pain points, gain valuable insights about how your products are faring, and determine whether your customer experience has been up to the mark. 

Plivo CX’s metrics and reporting feature comes with live metrics, historical reporting, and agent dashboards to see how your customer service team is performing. 

Use the platform’s CSAT collection solution to ensure timely feedback capture after key customer interactions. This should be an ongoing process for improvement that’ll help you meet customer expectations and win them over. 

In addition, call barge and call reporting features can help coach your agents and improve their performance. 

7. Move from reactive to proactive support

Instead of responding to customer issues when they arise, proactive support anticipates customer needs at the right time. 

This could be regular check-ins where customers review their policies and address their concerns. It could also take the form of educational content and access to a knowledge base that they can use to better understand their policies. 

To supplement these efforts, provide 24/7 AI support with Plivo CX’s OpenAI-powered self-service chatbot, which empowers your customers to get instant answers without relying on human assistance.

8. Look out for early signs of churn 

Watch out for any red flags that point towards potential churn, such as reduced engagement, increased complaints, and late payments. 

Spotting these early signs can help your team carve a plan of action that’ll best work for each customer. Knowing the right time to get into damage control mode can help you prevent unnecessary loss of customers. 

For instance, a decline in customer satisfaction rates can be a clear sign you need to step in and set up follow-up calls to prevent churn. Offering assistance at the right time can make a significant difference between retaining and losing a customer. 

9. Encourage upselling and cross-selling 

Tap into the power of your existing customer base by cross-selling and upselling services/products to them. 

Based on your understanding of customer needs, preferences, and their lifecycle, tailor product recommendations to offer bundled policies and products that complement each other. 

10. Keep an eye on your customer service KPIs

Track customer service KPIs such as average response time, first contact resolution rate, net promoter score, and customer satisfaction score to gauge the effectiveness of your customer’s satisfaction and support team’s performance. 

A close eye on these metrics helps you stay ahead of the curve and course correct where necessary to foster loyalty among policyholders. 

11. Persuade renewals with rewards

Additionally, incentivizing policy renewals with value-added rewards is an effective insurance customer retention strategy. Showing customers appreciation for their loyalty makes them more likely to stay with their current solution than switch to other options. 

For instance, if you’re a vehicle insurance provider, you can offer loyalty points that can be redeemed for car maintenance services. Another way to demonstrate your appreciation is by offering discounts on renewal premiums. 

Provide additional coverage, bundle offers, and exclusive perks like free financial planning sessions. Integrating value-added rewards into the renewal process can effectively strengthen your connection with policyholders. 

Customer Retention in the Insurance Industry: A Strategic Approach to Customer Success

In the fiercely competitive insurance landscape, customer retention strategies can make or break a business. To achieve the best outcomes, these strategies must be well-developed, thorough, and tailored to the specific needs of the insurance industry.

Data-driven strategies powered by modern tools deliver results by understanding customer needs and preferences. With a suitable omnichannel customer service and retention platform like Plivo CX, you can: 

• Build a seamless onboarding experience
• Help agents gain a complete overview of customers’ issues
• Offer omnichannel support on all platforms that customers prefer
• Use cutting-edge OpenAI-powered chatbots to support customer queries 24/7
• Measure and improve the performance of your customer support team with live metrics and historical reporting 

To get started, sign up for your demo now!

👩: Hi there! I have a question about your product.

🤖: Sure thing! I'm here to help. What would you like to know?

👩: I'm curious how your product compares to competitors.

🤖: Absolutely! I'm here to give you the scoop on how we stack up against the competition. 

👩: That sounds promising! 

🤖: Our product isn't just about its features; it's designed to give you a smooth, standout customer experience.

👩: Yes, conversational AI is here to redefine the customer experience. 

By 2026, conversational AI for customer service will cut agent costs by $80 billion, automating interactions across voice and digital channels. One in 10 interactions will be automated. Thus, conversational AI is becoming table stakes to improve customer service and reduce customer support costs.

Can conversational AI eventually replace your customer service team? Let's find out. 

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What is Conversational AI?

In 1964, MIT's AI Lab unveiled "Eliza," a pioneering creation that engaged users with thoughtful statements and questions, merging AI with psychology in human communication. 

This marked the beginning of conversational AI—where machines understood and responded to human language, revolutionizing technology and communication.

Today, conversational AI encompasses technologies like chatbots and virtual agents, integral to modern customer service. These tools automate responses, resolve inquiries swiftly, and enhance service efficiency by maintaining context and delivering human-like, context-aware engagement.

‍

Are Conversational AI and Chatbots the Same?

While "chatbots" and "conversational AI" are often used interchangeably, they differ in sophistication. 

Chatbots are scripted assistants handling routine tasks like checking bank balances or answering FAQs, but they struggle with unexpected or complex requests.

Conversational AI, on the other hand, uses advanced technologies like machine learning and natural language processing (NLP) to understand and respond to needs in real-time, like Siri or Alexa.

‍

How Does Conversational AI Work?

Conversational AI combines NLP, speech recognition, dialog management, natural language generation (NLG), machine learning (ML), and context management to deliver intuitive and personalized interactions.

‍

Imagine you're searching for a new gaming laptop online. You land on a website with a friendly chatbot ready to help. 

Here's how conversational AI guides you through the process:

1. Input Generation: You type, "Hi, I'm looking for a laptop for gaming. Can you help?" This starts the interaction.

2.  Input Analysis: The chatbot analyzes your message using NLP to understand your intent—find a powerful gaming laptop.

3. Dialog Management: The chatbot asks, "Sure thing! Are you looking for a specific brand or any must-have features?" This keeps the conversation relevant and focused.

4. NLG: It responds, "We have several options with high-performance processors and advanced graphics cards ideal for gaming."

5. Reinforcement Learning: As you inquire about different models and specs, the AI learns from your responses, refining its recommendations. 

Example: 

User: "I like this model. Does it offer any other colors?" 

AI: "It's available in Sleek Black and Stylish Silver. Would you like more details on these colors?"

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What are the benefits of Conversational AI in Customer Service?

Traditional customer service is plagued by inefficiencies like long wait times, repetitive interactions, and unresolved issues, frustrating customers and pressuring businesses to improve support quickly and effectively.

On the other hand, conversational AI is rapidly transforming the market, projected to reach nearly $30 billion by 2028, with chatbots alone valued at $24.64 billion by 2030. 

This growth signifies a major shift in business strategy. 

Here are some benefits of implementing conversational AI for customer service:

👉 Instant Personalization

Customer interactions have evolved to demand sophisticated personalization. 53% of customers now expect companies to anticipate their needs, while 81% of service agents acknowledge the growing demand for personal touch. 

Conversational AI leads this evolution, delivering personalized support with quick, tailored responses and recommendations. This approach not only resolves immediate issues but also builds lasting customer loyalty, making conversational AI essential for modern customer service.

👉Round-the-clock support

Modern customers demand instant resolutions, with 64% expecting immediate responses. CSA Research highlights that 60% of non-Anglophone consumers avoid English-only websites, preferring support in their native language. 

Consider a customer in Tokyo or Berlin needing support at 2 a.m. Conversational AI not only meets these expectations but also bridges language and time zone barriers, providing personalized, accessible, and globally inclusive customer service.

👉Cost savings

Conversational AI can reduce business support costs by up to 30% by automating routine customer interactions. This efficiency frees up resources, enabling human agents to focus on complex and high-value inquiries.

👉Seamless omnichannel engagement

Conversational AI integrates seamlessly across multiple channels like social media, email, and messaging apps, providing a unified customer service experience. It also syncs with CRM systems for consistent and effective management of customer interactions.

👉Actionable customer insights

An MIT Technology Review study revealed that 80% of executives saw significant improvements in customer satisfaction after adopting conversational AI. By analyzing each interaction for valuable data on preferences and behavior, businesses can refine offerings and enhance satisfaction and loyalty.

👉Supercharge Operational Efficiency 

Implementing conversational AI automates routine queries, streamlines workflows, and optimizes resource allocation, addressing the challenge where 69% of live agents struggle to balance efficiency and service quality. 

This approach reduces support ticket volume and empowers teams to handle more complex challenges. Statista indicates an impressive 82% increase in customer satisfaction scores as organizations embrace AI for swift responses and personalized engagements in customer service.

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Practical Applications of Conversational AI in Customer Service 

Balancing customer convenience across preferred channels is important, but so is ensuring seamless interactions. This hinges on enabling effortless communication and promptly delivering personalized resolutions that satisfy customers swiftly.

Automated FAQs

Think about your customer’s questions answered instantly, day or night, thanks to automated FAQs. These self-service chatbots swiftly respond to queries, guide customers to information, and can even create support tickets. 

✅Powered by AI when integrated with a knowledge base, these bots instantly retrieve technical details and seamlessly escalate to support agents when necessary. 

✅Perfect for both repetitive issues and complex problems, self-service chatbots efficiently deliver accurate solutions using your product's expertise.

Smart call routing

High volumes of inbound calls often frustrate customers with long hold times, repeated transfers, and difficulty connecting with the right agent. This experience leaves customers feeling stranded and dissatisfied, while also straining operational resources.

Voicebots that leverage advanced conversational AI for customer support offer a transformative solution for contact centers. 

✅Through sophisticated skills-based routing, voicebots evaluate each call and seamlessly direct it to the most qualified agent based on expertise, experience, and past performance. 

✅This eliminates extended hold times and unnecessary transfers, ensuring swift connections to the best-suited agent, thereby enhancing customer satisfaction and optimizing operational efficiency.

Proactive customer engagement

Traditionally, businesses face challenges with reactive customer support, causing delays and frustration as issues linger until customers reach out. Proactive service changes this dynamic by anticipating and resolving issues before customers even contact support. 

✅When paired with conversational AI, this approach boosts customer satisfaction and operational efficiency. 

✅It reduces support ticket volumes, allowing human agents to focus on strategic tasks and complex customer needs. 

Omnichannel support

Businesses often struggle with fragmented customer support across multiple channels, leading to inconsistent experiences and missed engagement opportunities. Omnichannel engagement integrates AI-powered live chat, voice-bot, voice, SMS, and WhatsApp into a unified experience. 

✅This omnichannel support strategy with conversational AI can personalize outreach, deliver customized messaging, and facilitate seamless real-time interactions across all channels, enhancing customer satisfaction and operational efficiency.

Optimized customer experience

Average handling time (AHT) and average first response Time (FRT) are critical metrics in customer service. AHT reflects how efficiently agents resolve interactions, highlighting process inefficiencies or training gaps. FRT measures the delay from customer contact to agent response, directly impacting satisfaction.

✅AI-powered chatbots enhance FRT by providing quick responses and maintaining channel consistency. They also reduce AHT through optimized workflows, enhanced agent training, and automation. 

✅Analytics further refine operations by identifying bottlenecks and improving service quality, ensuring streamlined and efficient customer support.

Agent training and efficiency

Agent productivity declines when time is lost bridging knowledge gaps and manually processing requests, resulting in extended call resolution times and potential errors. This also impacts vital contact center KPIs like AHT and customer satisfaction (CSAT), affecting overall business performance.

To enhance efficiency and customer experience, contact centers adopt unified agent desktop and workflows with AI-driven features. 

✅This solution empowers agents to deliver exceptional customer service, driving overall contact center success.

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Can Conversational AI be Trusted?

A recent APAC study by Coleman Parkes revealed that nearly 1/2 of respondents were frustrated with chatbots and live chats due to flawed implementations. Misjudgments in task automation often lead to projects falling short of business expectations.

Strategic planning is crucial in implementing conversational AI in customer support. This involves selecting use cases carefully, gathering customer feedback, and refining AI based on real interactions. Transparency in data handling and robust security are essential for reliability and privacy.

Addressing these challenges requires continuous learning and adaptation. Improving AI accuracy, responsiveness, and alignment with customer needs is crucial for building trust and enhancing customer experiences.

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What to Look for in a Conversational AI Solution for Customer Service?

‍Successfully integrating conversational AI into your customer service strategy hinges on clear objectives and measurable KPIs. Key to this is selecting a robust conversational AI platform with intuitive interfaces, multilingual support, rigorous security, seamless integrations, automated self-service capabilities, and comprehensive omnichannel support.

Scalability is essential to adapt to evolving business needs, while continuous learning from customer interactions drives ongoing improvement. Prioritizing transparency, stringent security measures and compliance with regulations ensures data protection and upholds ethical AI standards, fostering trust and enhancing customer loyalty.

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Plivo CX: Are You Ready to Implement Conversational AI in Customer Support Strategy?

There is no better time than now to integrate conversational AI into your customer service strategy. Whether supporting new agents or streamlining customer interactions, a well-implemented conversational AI solution empowers your team, drives efficiencies, and enhances overall customer experience.

Take a moment to assess your current processes and envision the potential of AI. Explore seamless integration of AI features into existing systems or consider third-party solutions. 

Start a free trial to unlock new possibilities for your team and customers alike.