How Nine 7-Figure E-commerce Companies Scaled Their Customer Acquisition Channels

When you’re looking to scale your customer acquisition channels in order to grow your business, it can be tough to know in advance which platform will bring your site enough high-converting traffic to make a difference to your bottom line.

Even if you have killer content on your site and blog and you study your site analytics – so you know exactly which channel is bringing in the money – the question is how you get more and better traffic. Finding new channels inevitably involves some testing and learning, but you can always new test channels faster, be more flexible, and leverage existing customer data to plan your next testing hypotheses more efficiently.

To help get you where you want to go, we spoke with 9 founders and marketing heads at 7-figure e-commerce companies who learned how to scale their customer acquisition channels for killer results.

From turning loyal customers into brand ambassadors, to streamlining and automating inbound marketing strategies, here are 10 key lessons that can take your customer acquisition process to the next level.

Lesson #1: Find Your Channel and Double Down

Most successful e-commerce companies have tried-and-tested customer acquisition channels that deliver, whether a well tined social media marketing strategy or an emailing and landing page combination sales funnel that delivers again and again.

But designing a successful customer acquisition channel doesn’t happen by accident. Finding a strategy that works typically involves a lot of testing and learning and further iteration based on the results of those tests.

After chatting with heads of leading companies, one strategy, in particular, became crystal clear: you should focus on the inbound marketing tactics that work for your company – and ditch the ones that don’t – to help you land more sales. Of course, the more you know about your audience – including the kinds of content they find valuable and how they like to consume it – the easier this will be.

“Pursuing different channels was difficult for us because we didn’t have enough data to know exactly what we were going after,” Joshua Bingaman, the founder of HELM Boots, told us via email.

When you do have accurate data about ROI, the results can be transformative, says Mike Filbey, the co-founder of ButcherBox.

“I understand the idea that you want to have ‘back up channels’, but the reality is that you really only need one, maybe two channels to succeed,” Filbey wrote. “For example, doing some split testing on your landing page could double the conversion rate. Experimenting with a new offer could be the ticket. Finding a new tool to supplement your follow-up process could lead to a quicker sales cycle. Paying influencers more money could double the number of customers they sign up each month.”

“There are always things to improve, and when you compound a handful of seemingly-small improvements, the impact can be huge,” he added. “Do that before putting a ton of money into testing new traction channels with an unknown ROI.”

Lesson #2: Figure Out How to Leverage Affiliates and Influencers

In e-commerce, influencer marketing can be a big revenue driver. With the right influencer working with your team, your you can create long-term partnerships rather than on-off campaigns that reach the right audience for your brand.

Time and again, the e-commerce store owners we spoke with emphasized how powerful influencer marketing had been for scaling their business. When you’re a new brand, however, influencer campaigns can be difficult and costly to get off the ground. Working with influencers can require a hefty budget and plenty of management – plus, it can take influencers time to trust you and your product. At ButcherBox, Filbey and his team found influencers were reluctant to work with their brand – until they saw evidence of the brand’s success.

“In the earliest stages it was difficult to get big influencers to [accept] a pay-per-performance affiliate structure,” Filbey wrote. “Many of them wanted money up front and were unsure how ButcherBox would convert. Turns out, we convert great – and they make more money doing pay-per-performance than a fixed payment upfront.”

“Once you get a few big influencers pushing your brand, it’s WAY easier to onboard more top-tier influencers,” Filbey added. But “nobody wants to be first.”

Once you have influencers on board, you should keep working to build smart strategic partnerships with them and think ahead about what they – and your company – will need to drive more results.

“We soon learned that it was easier to partner with larger influencers if we paid out commissions for each sale they referred us,” explained Jack Meredith, senior growth marketer for Kettle & Fire.

“Once we saw huge results from our first affiliate promotions, it became clear that this was a channel to double down on,” Meredith added. “Our CPA sweet spot gives us great margins on each purchase, and keeps our influencers happy so they continue to promote.”

Influencer marketing worked for these brands because their influencers had genuine relationships with target customers, who trusted the influencer’s recommendations. But you can also build these kinds of relationships directly with customers through social media, leveraging positive engagement into word-of-mouth business.

Lesson #3: Consider Going Straight for the Sale

Most e-commerce companies invest considerable time and energy in persuading visitors to join their email list, hopping that over time – after experiencing value from newsletters – those subscribers will convert into customers. However, that’s not always the best approach. Depending on your niche, margins, and industry, it can make more sense to go straight for the sale at every customer touchpoint.

At BombTech Golf, a high profit margin meant founder Tyler Sullivan and his team could afford to shift their focus from getting newsletter sign ups to concentrating on the initial sale, improving customer service and then marketing to existing customers.

“Our unique brand position in the golf industry and perceived value allows us to profit on first sale almost always,” explained Sullivan. “We only focus on email acquisition via purchase. Our customers are worth so much more than just sign-ups for coupons.”

“Since our cost to acquire works – and we profit on sale – we use that method to get emails, then wow them on the customer service side to get them to come back for our other products,” he added. “This certainly is unlike many email capture methods, but we are crushing it!”

This strategy works especially well when your sales and marketing team have a killer strategy for converting visitor interest into sales. That could mean responding to abandoned carts with lightning-quick drip campaigns, or automating your sales funnels to capture real-time interest in your product. Once you and your team have priorities in place, it’s time to start converting those leads into sales.

Lesson #4: Content + Offer + Engagement = Scale

Customers know when they’re being sold to – but if you offer content that’s valuable, and they’ll keep coming back for more.

“Scale really is a function of offer and quality of content,” emphasized Sullivan. “I have been able to push our scale and ad spend up the better our content and offer became.”

“I don’t believe tactics are truly big levers, but engaging with customers in a meaningful way and building a real relationship is,” he added. “I have taught our employees to do anything and everything to make sure we communicate with every customer – even our haters!”

Engaging directly with customers helps develop trust and value, and when you couple this with content your customers need – like Sullivan did – you clearly have a recipe for success.

Since a majority of consumers trust the word of their friends and family over traditional marketing, your ability to leverage engagement into getting user-generated content – like product reviews or social media posts – will drive your bottom line.

Lesson #5: Commit to Consistent Quality

Now that social media users have more control over the ads in their feeds, it’s easier than ever for them to tune you out. That means your social media channels have to do more than market your brand – they have to add value with consistent, authentic, and engaging content. This is only possible if you imagine the kind of journey your customers take from first exposure to your brand and ending with a sale, says Day.

“Have a clean, clear consumer journey wherever potential consumers engage with your brand,” Day writes. “If they find your website, make sure it 100% represents the story that you’re trying to tell,” he adds. “If [your primary channel is] Instagram, don’t let one photo go up that doesn’t tell your story or your product’s story. Consistency and authenticity are essential.”

Of course, you can only provide content that resonates with your customers when you deeply understand your audience, a strategy Chris Gerbig, the co-founder of Pink Lily Boutique advocates.

“Use the available tools to understand who you are selling your products to,” suggests Gerbig. “Use this data to fine-tune your campaign so that you are only spending advertising dollars on customers who are more likely to convert. Once you know this you can make more informed decisions based on the available data.”

“Second, make sure the customer is engaged!” he adds. “This is very important to us at Pink Lily Boutique. There is a lot of competition in the e-commerce world. If you aren’t getting the engagement you want, take a look at what you are posting and make sure it’s something that would interest you as a customer.

Lesson #6: Stay on the Hunt for New Audiences

When it comes to paid advertising, you’ll see the best returns when you take the time to test new copy and new audiences. These tactics also work best when you’re using ads to target and create value for potential new customers, says Rachael Ulman, the president and COO of Greats Brand.

“Any company will see tactic fatigue if you don’t mix up your creative, messaging, and audience,” shared Ulman via email. “The amazing thing about digital advertising is that you are able to measure real-time how your channels are performing. When you see your acquisition costs creeping up, it’s time to test new tactics.”

Use analytics to adjust your targeted audience, until you find the demographic that makes your business boom. When John Lott, the CFO of SpearmintLOVE, managed to connect with his target audience, the company took off.

“Getting the audience right took a considerable amount of time,” acknowledges Lott. “We had great organic content, but figuring out which audience to target was a trial-and-error process that took three months.”

Once you identify your audience, do your best to add value with your ads, offering content your customers want to engage with – rather than targeted ads they’ll simply tune out.

Lesson #7: Use Paid Advertising Wisely

Alternative to Ambassador Referral Marketing

Improve your paid advertising ROI by targeting and personalizing content for your demographic. This may mean that you’re reaching fewer people – but those leads are more likely to convert, says Gerbig.

“A couple years ago Facebook changed their algorithm,” Gerbig wrote. “We saw a drop in traffic to pinklily.com due to this change.

“Through Facebook’s business manager, we were able to customize our advertisements to make sure the followers that saw our posts were more likely to make a purchase on our website. We chose specific demographics, attributes, and customer traits that would lead to higher conversions. We still use these tools in our advertising.”

According to Michael Fishman, the founder of Pure Cycles, using strategic keywords and high-quality content are also key for making paid advertising work for you.

“It was challenging to find the most efficient adwords when spending on Google,” Fishman shared. “It can be very expensive to buy keywords like ‘bike,’ so it took awhile for us to figure out which keywords made the most sense for us to use.”

“If we could go back in time, we would have switched to Facebook and Instagram sooner, and we would focus more on videos and lifestyle images instead of seamless images,” Fishman added.

Lesson #8: Invest in Customer Research

Having trouble identifying new audiences or scaling your reach? Invest in customer research, starting with your own conversion data and web analytics, suggests Bonnie Chung, the founder of Miso Tasty.

“Invest in research to understand who your customers are and why they are buying, and why some customers are not returning customers,” Chung advised. “This is key to unlocking the channel and improving your products to stay competitive.”

Strong competitor research will also help you “reverse-engineer” the successes of your industry rivals, giving you greater insight into customer needs.

Lesson #9: Start Small

Even if you have a small marketing team and a tinier budget, you can gain plenty of insight from a targeted campaign. To grow successfully, test over short periods of time – and test frequently, advises Lott.

“Most other business owners we have encountered spent too much money on one or two campaigns and then quickly gave up,” Lott explains.

“No one gets this right the first or even second campaign,” he suggests. “If that is your expectation, you are setting yourself up for failure. Instead, start by spending $25 – $50 per campaign and keep running campaigns that incorporate what you have learned from the previous test.”

Lesson #10: Build a Stellar Attribution Model

In order to properly scale your customer acquisition model, you need to know where and how your leads are converting.

Be as specific as possible by mapping out the journey your customers can and should take before they take the plunge and buy your product. How many touchpoints did it take to close the sale?

The right attribution model will integrate data from across all of your platforms, argues digital marketing consultant Phillip Ohren, and it’ll be stronger if you don’t try to recreate the wheel.

“Data doesn’t lie, and when you’re trying to work out which media activity is driving you the best return on investment, you need to be confident that your systems are fail-safe.”

If you haven’t yet taken the leap to scale your customer acquisition channels – well, then, what are you waiting for? It’s time to line up all your data, customer research, killer content, and flip the switch. With smart digital marketing strategies, strong brand ambassadors, and great follow-through, you’ll be on your way to building an e-commerce empire. And we will be right there with you, helping you with your referral programme. Contact us now and we will set you up.

Are you an Ambassador client? After Ambassador announced its intention to stop supporting its referral marketing platform from September 2021, we have seen a lot of interest from their clients. If you would like to know why Buyapowa is the perfect replacement for Ambassador’s enterprise clients, you can learn more here.