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Collaboration over competition: the winning customer acquisition strategy

Reading Time: 4 mins
By Published On: July 26, 20230 Comments

preezie shares why partnering with Adore Beauty, Blue Bungalow, & other leading retailers is the winning customer acquisition strategy.

Disrupt or be disrupted: Stay ahead in the digital advertising game.

Traditional digital advertising channels are oversaturated and underperforming. Even leading brands grapple with skyrocketing ad costs, a higher cost per acquisition (CPA), declining conversion rates, and diminished return on ad spend (ROAS). Many ecommerce brands struggle to reach new audiences and acquire customers through conventional ad channels like Google, Facebook, and Instagram.

When advertising on these platforms, you still pay for clicks regardless of whether your ad spend results in a sale. This can add up quickly, especially with a large number of ads or when targeting a broad audience. Additionally, it’s difficult to predict an ad’s performance, even when targeting the right audience and using effective ad copy and creatives. There’s no guarantee that users will click on your ads or that those clicks will lead to sales, leaving many brands wasting money on ads that yield no real results.

Our research reveals that 68% of Australians are neutral or unlikely to engage with social media posts from their favourite online retail brands in the next 6 months.¹ Given this disinterest in social media posts, it’s crucial to explore new avenues to effectively reach, engage, and convert your audience.

By diversifying your advertising strategy and experimenting with different digital channels and tactics, you can potentially yield better results and gain a competitive edge. It’s time to think outside the box if you want to generate more brand exposure and drive sales fast.

Collaborate for customers: Harness brand synergy with preezie’s nextbuy network for increased sales.

With nextbuy, preezie’s brand-to-brand referral network, you cross-promote with other popular retailers and leverage the power of shared audiences to drive high-quality customer acquisition.

Your brand gains exposure and boosts sales by collaborating with other retailers, reaching a wider audience that shares similar interests and needs.

By displaying the nextbuy widget on your checkout confirmation or ‘thank you’ page, you can offer exclusive discounts and special offers from brand partners to your customers. In return, they reciprocate and do the same for your business. All retailers in the nextbuy network are both gaining and sharing customers from their checkout or ‘thank you’ pages. It’s a win-win for all parties involved!

nextbuy captures shoppers when they’re in the buying mindset, providing an added incentive to keep shopping. With just a simple click on the nextbuy widget, shoppers can effortlessly navigate to your website and make an instant purchase using your special offer or discount.

Also, you only pay when a referred shopper converts, ensuring a cost-effective approach that drives actual results.

The advantage of nextbuy’s post-purchase momentum.

nextbuy works exceptionally well during the post-checkout or post-purchase phase because it taps into the customer’s heightened engagement and excitement at that moment. When a customer completes a purchase, they’re in a positive buying mindset and more receptive to exploring additional offers and related products.

By presenting shoppers with relevant and enticing offers or rewards from other brands in the nextbuy network during this critical phase, nextbuy capitalises on the customer’s eagerness to continue their shopping journey. This creates a seamless and convenient experience for the customer, as they discover new brands and products that align with their interests and needs.

Additionally, the ‘post-purchase high’ builds trust and confidence in customers. Having already made a purchase from one brand, they’re more inclined to trust recommendations from other brands within our network. We’ve found that 54% of Australians find it very appealing to receive discount codes for future purchases from other brands recommended by the retailer they initially purchased from.¹ This trust factor from shoppers enhances the effectiveness of nextbuy in driving conversions and generating sales for participating brands.

From costly to cost-effective: Blue Bungalow reduces CPA by 78% on nextbuy, outperforming Google Ads.

Blue Bungalow is an Australian online boutique destination that offers a curated range of apparel, shoes, and accessories. With a constant stream of new arrivals, their customers can discover the perfect everyday, event, and travel pieces to enhance their wardrobe.

Like many retailers, Blue Bungalow was grappling with the escalating cost of customer acquisition through paid channels. The company had to weigh the options of reducing advertising spend, potentially leading to a lower customer acquisition rate, or increasing the budget in hopes that competitors would decrease spending due to intensified competition. These options were not viable, prompting the need for a solution that would allow Blue Bungalow to reach new audiences, convert them into customers, and achieve these objectives without exceeding their advertising budget.

Through preezie, Blue Bungalow was introduced to nextbuy. By collaborating with non-competing brands, Blue Bungalow could gain exclusive access to highly engaged audiences from the checkout pages of other retailers. Blue Bungalow found the pay-per-conversion model of nextbuy to be a major unique selling point. 

To assess its effectiveness, we conducted a comparative analysis of nextbuy’s performance against Blue Bungalow’s advertising on Google and Facebook during the first four months of 2023.

Compared to Google Ads, nextbuy achieved an impressive 27% higher conversion rate, with customers spending an average of 14% more. What’s even more notable is that Blue Bungalow experienced a 78% lower CPA on nextbuy.

In comparison to Blue Bungalow’s Facebook ads, nextbuy outperformed with a conversion rate that was 7 times higher and a 13% increase in customers’ average order value (AOV).

Emma Filliponi, Head of eCommerce and Marketing at Blue Bungalow, shared: “One of the major advantages of being a part of the nextbuy network is the significant reduction in cost per acquisition. When using traditional paid channels, it’s not uncommon to pay over $20 to acquire a single transaction on your website. However, with preezie’s nextbuy, the cost per acquisition for us is approximately $8.”

Want to join the nextbuy exclusive retailer community? 

Participating brands in the nextbuy network collaborate to support and promote each other, fostering a thriving retailer ecosystem where collective growth is the norm.

Setting up nextbuy is effortless and requires no maintenance. Simply plug in preezie’s  nextbuy code onto your checkout confirmation page and let the traffic flow in, reaching new customers who are ready to buy.

Our powerful ecommerce solutions leverage behavioural psychology principles to reach new audiences, drive engagement, gain deeper insights, convert visitors into loyal customers, and generate more sales.

Let’s partner together and take your acquisition strategy to the next level!

¹preezie (2023). Inside the mind of the 2023 online shopper

About the Author: Power Retail

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