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Joe Chavez

Want more new customers? Steal this tactic from Costco & the mall.

Published over 2 years ago • 2 min read

“Would you like a free sample?”

At Costco it’s usually it’s a small taste of a new snack you don’t actually need, but is so dang good you can’t help but buy a bag that should last you a month and eat it in a day.

If you’re walking through the makeup section of the mall this may look like trying on an eyeliner on one eye to see how much better the done eye is than the undone eye. 👁

I personally don't love spending time in the mall to buy stuff, but I love taking the family to learn from retail tactics (in-person) and think about how I can use them with the e-commerce stores (online) I work with.

The free sample method is also known as a new customer offer.

Online, new customer offers are usually shown via an email popup. By giving your email, you get access to the special offer shown.

Here’s a couple tips & insights for having success with new customer offers. While protecting your profits.

  1. Because I get asked this question alot I'll answer it first. What’s a good opt-in rate? On average, 1-5% of site traffic opting into email for your offer is average. But, let’s not aim for average. Let’s aim for greatness. Ideally you’re hitting 10% or higher. Meaning every 1 in 10 people who visit your site will opt in for your offer. Not there yet? No worries, let's make your offer more appealing (while keeping your margins in mind.)
  2. Make sure you have an email popup with the offer on your website. Basic, but you'd be surprised how many stores have popups that say "Signup for Updates." Newsflash. People don't value updates like they value exclusivity & deals.
  3. ⚠️ Common Mistake: Limit this offer to new customers only. If you’re using Klaviyo you can make sure that you are only showing the offer to the people who have never purchased before.
  4. Make sure you have at least 3 automated emails following up on the back of the opt-in. In those emails you should break objections to buying, show social proof / reviews and then remind them about the offer they have access to. Call people to action by using urgency wherever it makes sense. An example of this looks like letting people know the offer expires in 72 hours.
  5. Use an appealing image & copy that opens a loop in the visitors mind.
  6. Make the offer something that you would actually want if you visited a store you had never been to and were on the fence about making a purchase. For example, 10% off your first order is better than nothing, but not something that excites me to buy. Getting a FREE best-selling product with my first order is something that gets me more excited. And both of those examples are likely the same amount of money, but positioned in a different way.

TLDR; Invest the time to craft an appealing offer. It’ll pay off in a decrease of new customer acquisition costs.

Below is a slide from my e-commerce fundamentals course where I dedicate an entire module to teaching you how to craft a strong offer that converts visitors into buyers based on your unit economics to make sure you're profitable!
Text with black background = Type of offer
Quote = What type of consumer you're attracting.

Now that you know the types of offers you can leverage & some tips for making sure you protect your profits in the process. Go get some more new customers!

Joe Chavez

👨🏽‍💻 I help e-commerce marketers start & grow their career by teaching what I'm learning in my own journey as an e-commerce marketer scaling 6 figure brands, to 7 figures & beyond. 🚀 Signup below to get my "daily-ish" newsletter that'll help you become a better e-commerce marketer in just 5 minutes a day.

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