Bruce Buchanan, Rokt’s CEO and Co-Founder, explores the role and benefits of an innovative post-purchase plan.
In today’s rapidly evolving digital landscape, increasingly sophisticated ecommerce customers expect a seamless, satisfying purchase experience. Toward that end, major brands often conduct exhaustive research to determine their respective target market’s wants and needs. Based on the results, these companies develop digital marketing campaigns to spur customers toward the purchase decision.
However, even leading brands don’t always have a well-thought post-purchase marketing strategy. Regardless of the reason, these companies are missing a golden opportunity to generate additional revenue. The brands are also missing a valuable chance to reinforce the customer relationship they worked hard to cultivate.
Rokt Chief Executive Officer and Co-Founder Bruce Buchanan explains how brands (and customers) can benefit from a well-crafted post-purchase game plan. Through effective post-purchase marketing, customers can enjoy an optimal experience while brands generate add-on revenue and enhance their competitive positions.
Snapshot of the “Post Purchase” Period
In its most literal sense, “post-purchase” pertains to the actions (and brand-customer interactions) that take place immediately following the consumer’s product purchase. The customer’s post-purchase behavior includes their satisfaction (or dissatisfaction) with the item.
Bruce Buchanan emphasizes that a satisfied customer is more likely to make a follow-up purchase and recommend the brand to others. In contrast, negative post-purchase behavior can lead to buyer’s remorse, negative product reviews, and disillusionment with the brand.
Brands that want to cultivate long-term customer relationships, and foster genuine loyalty, would do well to understand post-purchase behavior’s nuances. Assuming that they do, the brand can proactively promote a positive experience. Specifically, the brand can take steps to meet customer expectations and set the stage for repeat business.
Conversely, the customer’s negative experience may spur them to consider a product return. With a good understanding of post-purchase behavior, the brand can salvage the customer relationship and encourage future purchases. These outcomes assume the brand meets the customer’s needs.
The Transaction MomentTM Plays an Integral Role
Bruce Buchanan explains that each ecommerce transaction is a carefully orchestrated series of events. The sequence begins when a customer becomes intrigued by a product and adds it to their shopping cart. Perhaps they continue searching for other products, potentially adding them to the cart as well. Finally, they are ready to complete the shipping and payment portions of the sequence.
Although the customer doesn’t realize it, they’re engaged in the Transaction MomentTM. This short interval begins with the first cart addition and continues through the checkout process and order confirmation. Throughout this sequence, the customer favorably views the brand and its products. The customer is also highly engaged in the buying process, and their mind is less likely to wander elsewhere.
Because the customer is completing their original purchase, the Transaction MomentTM is the optimal time to bring them relevant offers. Each offer should correspond to the customer’s preferences and priorities. Bruce Buchanan says the customer is more likely to act on an offer they view as highly relevant and valuable.
The Role of Post-Purchase Marketing
Brand awareness and lead generation are key components of a brand’s marketing campaign. These (and other) marketing activities are focused on moving a potential customer through the sales cycle to a purchase. Brands should also recognize that a post-purchase marketing strategy has two significant benefits.
First, a highly relevant offer (even from a third-party company) can produce welcome business revenue. Equally importantly, this offer represents an opportunity to continue cultivation of a positive customer relationship.
Besides relevant offers, the brand may send prompt order confirmation and a personalized message of appreciation. This may also be an appropriate time to introduce a customer referral program. Over time, Bruce Buchanan remarks that these activities can help build customer brand loyalty.
Post-Purchase Marketing’s Significant Value
Market-savvy companies should understand that customers are constantly engaged in brand evaluation activities. These consumers often monitor company (and industry) news, follow a business’ social media pages, and research potential products before deciding whether to buy them.
From the brand’s perspective, companies that thoroughly understand their customers’ preferences and priorities will be better positioned to attract and convert these consumers. The brand will also be ideally situated to cultivate optimal customer relationships and increase revenues via relevant offers. Brands should also know that post-purchase marketing can also apply to a brand’s relevant, non-core offerings.
5 Important Benefits
An effective post-purchasing marketing campaign delivers five advantages. Companies in diverse industries can reap multiple benefits.
- Sets the brand (and its products) apart from competitors’ offerings
- Realizes add-on revenue via third-party ads and targeted partnerships
- Drives repeat sales from satisfied brand customers
- Cultivates loyal customers, referral sources, and brand advocates
- Produces consistently positive brand and product reviews
3 Substantial Challenges
Many brand leaders understand the value of an effective post-purchasing marketing strategy. However, they are often unable to pinpoint the optimal offers that will drive additional revenue. Rokt’s Bruce Buchanan details three challenges that can affect a brand’s ability to satisfy customer needs and purchase expectations.
Maintain Awareness of Customers’ Wants and Needs
Solving any problem begins with knowledge of the challenge. In a post-purchase marketing strategy, brands must first identify their customers’ wants and buying preferences. Equipped with that information, the brand can structure the customer buying experience. Ideally, the brand can access highly detailed and actionable customer data, enabling them to more easily deliver relevant offers in the Transaction MomentTM.
Identify the Approach that Will Bring Results
In any marketing campaign, crafting the right targeted approach sets the stage for success. In a post-purchase marketing world, the brand will continue effective communication during the entire buying process. These interactions should occur during the purchase, post-purchase, shipping and delivery, customer support, and post-purchase survey phases. A customer rewards or customer loyalty program will also promote customer retention.
Discover Additional Business Opportunities
Customers who have already placed an order are in the right mindset to embrace additional relevant offerings. Some brands promote an identical offer to every customer, resulting in missed sales to customers who don’t want that product.
The Paradox of Choice
Conversely, other brands broadcast multiple offers to the company’s entire customer base. Although some customers will accept an offer, others will become overwhelmed with the bombardment of choices. Hence, they may decide to choose nothing at all. Rokt CEO Bruce Buchanan is extensively familiar with The Paradox of Choice.
“I find things like the paradox of choice in consumer behavior fascinating. Most businesses would naturally assume if they had a broader range of products or services, they would win in a category. But consumer behavior is such that the leading players typically often have to do the complete opposite…And that’s because consumers get overwhelmed.
“And so things like that with consumer behaviors I just find fascinating. These tentacles are going to so many different parts of the way we interact with brands and businesses today,” Bruce Buchanan notes.
Changing the Post-Purchase Marketing Paradigm
As brands seek to optimize each transaction’s value, Bruce Buchanan emphasizes that first-party data (plus AI and machine learning) are the keys. These metrics enable the brand to unlock the Transaction MomentTM by delivering highly relevant offers to each customer. This strategy nullifies The Paradox of Choice, paving the way for enhanced advertiser revenue streams and an improved likelihood of higher lifetime customer value.
