Profits are at the core of every e-commerce business. Being the real game in e-commerce, profitability defines and reflects how healthy a business is and its growth path.
You might say that it is not so difficult to increase revenue and sales: Your marketing team can launch a new ad campaign that brings in new customers; you can launch a new product or increase prices overall.
However, the true winners are able to build a solid and steady bottom line. After all, business growth is not about sales and revenue, but about net profit!
How to build your bottom line and get more profits
With Clerk's Audience Segmentation tools, you can quickly identify customers who have bought high margin products in the past or are interested in buying them in the future. Then, this data allows you to conduct an in-depth analysis that can help you further understand why and when high margin products are bought and, in particular, whom you should target to sell more of these products.
Synchronize Product Margins in Clerk
Clerk’s plugins allow you to add custom attributes that can be sent to Clerk directly from your e-commerce website’s backend.
You can either synchronize your margin as it is or as an attribute for each product called "margin_pct". The "margin_pct" contains a number between 0-100, indicating the % margin the store has on the given product. Suppose you don't have margins on each product. In that case, a simple trick is to estimate the average margin for each supplier and then use this value for all products from that supplier.
Clerk.’s attribute: Margin_pct
If you prefer not to share this business-sensitive information with Clerk, it is also possible. For example, you can build a scale from 1 to 5, where 1 represents your lowest margin products and 5 for your highest margin ones.
Identify customers who have bought high margin products
With a simple click, you can use Clerk's Audience to segment the customers who have bought products above the margin threshold you chose. In addition, if you want to refine your customer segment further, you can also select a timeframe regarding when a customer has completed the purchase.
Clerk’s Audience: Customers that bought high margin products
Find customers interested in buying high margin products
Our Interested In parameter is the most advanced and unique feature in our Audience tool that will allow you to find potential buyers for your products.
Clerk tracks every action of your customers, from click paths and page views while they browse, to search history and order history. Then, Clerk’s Audience Segmentation combines all this information into a data model that can identify what your customers will most likely be interested in buying, even if they have not bought anything like it yet.
Clerk’s Audience: Customers interested in high margin products
The audience segments above can be split into more defined groups by creating different margin thresholds, such as high, medium, and low margin products. The margin threshold can, of course, be customized according to the business industry.
Determine which product to advertise with Clerk’s Customer Analytics
After you have created the audience segments, the next question is: Which products should you advertise to these customers?
Clerk has got you covered! With Clerk's Customer Analytics, you will be able to immediately visualize which products are the most popular among these customer segments. Then, you can focus on cross-selling the popular high margin products via advertising on Google and Facebook or email marketing campaigns. Doing so will ensure you achieve better ROAS (return on advertising spend).
Clerk’s Customer Analytics: Most popular products for a specific customer segment
Pro tip: You can create a specific customer segment based on their specific product interests.
Because when you segment customers merely based on product margins, you are most likely to select a group of customers that have many different product interests. To utilize your customer data more effectively and promote your product to this customer group more accurately, you can combine the margin criteria with the product interests parameter.
As the example below displays, you can create a segment of customers that are interested in high margin shoes:
Create Lookalike Audiences
You will see a unique double AI magic after using Clerk Audience in combination with paid advertising platforms.
With Audience, you can first create segments of targeted customers that have already been shopped on your webshop. And then, by sending the data of these customer segments to Facebook or Google, you will be able to use the information to find similar users that have not necessarily been on your webshop yet. This means creating a bigger group of targeted audiences interested in your products. Doing so will definitely ensure an outstanding ROAS (return on advertising spend).
Facebook x Clerk: Create a Lookalike Audience feature
Wonder how Clerk can help your e-commerce business build bottom line and improve profitability? Get a free consultation from one of our e-commerce experts today!