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Conversational Commerce Metrics

Your Support Team Drives More Revenue Than You Think: Conversational Commerce Metrics

Your chat might be closing more sales than your checkout page. Here’s how to measure it.
By Tina Donati
0 min read . By Tina Donati

TL;DR:

  • Support chats can now be directly tied to revenue. Brands are measuring conversations by conversion rate, average order value (AOV), and GMV influenced.
  • AI resolution rate is only valuable if the answers are accurate and helpful. A high resolution rate doesn’t matter if it leads to poor recommendations — the best AI both deflects volume and drives confident purchases.
  • Chat conversion rates often outperform traditional channels. Brands like Arc’teryx saw a 75% lift in conversions (from 4% to 7%) when AI handled high-intent product questions.
  • Shoppers who chat often spend more. Conversations lead to higher AOVs by helping customers understand products, explore upgrades, and discover add-ons — not just through upselling, but smarter guidance.

Conversational commerce finally has a scoreboard.

For years, CX leaders knew support conversations mattered, they just couldn’t prove how much. Conversations lived in that gray area of ecommerce where shoppers got answers, agents did their best, and everyone agreed the channel was “important”… 

But tying those interactions back to actual revenue? Nearly impossible.

Fast forward to today, and everything has changed.

Real-time conversations — whether handled by a human agent or powered by AI — now leave a measurable footprint across the entire customer journey. You can see how many conversations directly influenced a purchase. 

In other words, conversational commerce is finally something CX teams can measure, optimize, and scale with confidence.

Why measuring conversational commerce matters now

If you want to prove the value of your CX strategy to your CFO, your marketing team, or your CEO, you need data, not anecdotes.

Leadership isn’t swayed by “We think conversations help shoppers.” They want to see the receipts. They want to know exactly how interactions influence revenue, which conversations drive conversion, and where AI meaningfully reduces workload without sacrificing quality.

That’s why conversational commerce metrics matter now more than ever. This gives CX leaders a way to:

  • Quantify the revenue influence of conversations
  • Understand where AI improves efficiency — and where humans add the most value
  • Make informed decisions on staffing, automation, and channel investment
  • Turn CX into a profit center instead of a cost center

These metrics let you track impact with clarity and confidence.

And once you can measure it, you can build a stronger case for deeper investment in conversational tools and strategy.

The 4 metric categories that define conversational commerce success

So, what exactly should CX teams be measuring?

While conversational commerce touches every part of the customer journey, the most meaningful insights fall into four core categories: 

  1. Automation performance
  2. Conversion & revenue impact
  3. Engagement quality
  4. Discounting behavior

Let’s dive into each.

Automation performance metrics

If you want to understand how well your conversational commerce strategy is working, automation performance is the first place to look. These metrics reveal how effectively AI is resolving shopper needs, reducing ticket volume, and stepping into revenue-driving conversations at scale.

The two most foundational metrics?

1. Resolution rate: Are AI-led conversations actually helpful?

Resolution rate measures how many conversations your AI handles from start to finish without needing a human to take over. On paper, high resolution rates sound like a guaranteed win. It suggests your AI is handling product questions, sizing concerns, shade matching, order guidance, and more — all without adding to your team’s workload.

But a high resolution rate doesn’t automatically mean your AI is performing well.

Yes, the ticket was “resolved,” but was the customer actually helped? Was the answer accurate? Did the shopper leave satisfied or frustrated?

This is where quality assurance becomes essential. Your AI should be resolving tickets accurately and helpfully, not simply checking boxes.

At its best, a strong resolution rate signals that your AI is:

  • Confidently answering product questions
  • Guiding shoppers to the right SKU, variant, shade, size, or style
  • Reducing cart abandonment caused by confusion
  • Helping pre-sale shoppers convert faster

When resolution rate quality goes up, so does revenue influence.

You can see this clearly with beauty brands, where accuracy matters enormously. bareMinerals, for example, used to receive a flood of shade-matching questions. Everything from “Which concealer matches my undertone?” to “This foundation shade was discontinued; what’s the closest match?” 

Before AI, these questions required well-trained agents and often created inconsistencies depending on who answered.

Once they introduced Shopping Assistant, resolution rate suddenly became more meaningful. AI wasn’t just closing tickets; it was giving smarter, more confident recommendations than many agents could deliver at scale, especially after hours. 

BareMinerals' AI Agent recommends a customer a foundation that matches their skin tone

That accuracy paid off. 

AI-influenced purchases at bareMinerals had zero returns in the first 30 days because customers were finally getting the right shade the first time.

That’s the difference between “resolved” and resolved well.

2. Zero-touch tickets: How many tickets never reach a human?

The zero-touch ticket rate measures something slightly different: the percentage of conversations AI manages entirely on its own, without ever being escalated to an agent.

This metric is a direct lens into:

  • Workload reduction
  • Team efficiency
  • Cost savings
  • AI’s ability to own high-volume question types

More importantly, deflection widens the funnel for more revenue-driven conversations.

When AI deflects more inbound questions, your support team can focus on conversations that truly require human expertise, including returns exceptions, escalations, VIP shoppers, and emotionally sensitive interactions.

Brands with strong deflection rates typically see:

  • Shorter wait times
  • Higher CSAT
  • Lower support costs
  • More AI-influenced revenue

Conversion and revenue impact metrics

If automation metrics tell you how well your AI is working, conversion and revenue metrics tell you how well it’s selling.

This category is where conversational commerce really proves its value because it shows the direct financial impact of every human- or AI-led interaction.

1. Chat Conversion Rate (CVR): How often do conversations turn into purchases?

Chat conversion rate measures the percentage of conversations that end in a purchase, and it’s one of the clearest indicators of whether your conversational strategy is influencing shopper decisions.

A strong CVR tells you that conversations are:

  • Building confidence
  • Removing hesitation
  • Guiding shoppers toward the right product

You see this clearly with brands selling technical or performance-driven products. 

Outdoor apparel shoppers, for example, don’t just need “a jacket” — they need to know which jacket will hold up in specific temperatures, conditions, or terrains. A well-trained AI can step into that moment and convert uncertainty into action.

Arc’teryx saw this firsthand. 

Arc'teryx uses Shopping Assistant to enable purchases directly from chat

Once Shopping Assistant started handling their high-intent pre-purchase questions, their chat conversion rate jumped dramatically — from 4% to 7%. A 75% lift. 

That’s what happens when shoppers finally get the expert guidance they’ve been searching for.

2. GMV influenced: The revenue ripple effect of conversations

Not every shopper buys the moment they finish a chat. Some take a few hours. Some need a day or two. Some want to compare specs or read reviews before committing.

GMV influenced captures this “tail effect” by tracking revenue within 1–3 days of a conversation.

It’s especially powerful for:

  • High-consideration purchases (like outdoor gear, home furniture, equipment)
  • Products with many options, specs, or configurations
  • Shoppers who need reassurance before buying

In Arc’teryx’s case, shoppers often take time to confirm they’re choosing the right technical gear.

Yet even with that natural pause in behavior, Shopping Assistant still influenced 3.7% of all revenue, not by forcing instant decisions, but by providing the clarity people needed to make the right one.

3. AOV from conversational commerce: Do conversations lead to bigger carts?

This metric looks at the average order value of shoppers who engage in a conversation versus those who don’t. 

If the conversational AOV is higher, it means your AI or agents are educating customers in ways that naturally expand the cart.

Examples of AOV-lifting conversations include:

  • Recommending complementary gear, tools, or accessories
  • Suggesting upgraded options based on needs
  • Helping shoppers understand the difference between product tiers
  • Explaining why a specific product is worth the investment

When conversations are done well, AOV increases not because shoppers are being upsold, but because they’re being guided

4. ROI of AI-powered conversations: The metric your leadership cares most about

ROI compares the revenue generated by conversational AI to the cost of the tool itself — in short, this is the number that turns heads in boardrooms.

Strong ROI shows that your AI:

  • Does the work of multiple agents
  • Drives new revenue, not just ticket deflection
  • Provides accurate answers consistently, at any time
  • Delivers a high-quality experience without expanding headcount

When ROI looks like that, AI stops being a “tool” and starts being an undeniable growth lever.

Related: The hidden power and ROI of automated customer support

Engagement metrics that indicate purchase intent

Not every metric in conversational commerce is a final outcome. Some are early signals that show whether shoppers are interested, paying attention, and moving closer to a purchase.

These engagement metrics are especially valuable because they reveal why conversations convert, not just whether they do. When engagement goes up, conversion usually follows.

1. Click-Through Rate (CTR): Are shoppers acting on the products your AI recommends?

CTR measures the percentage of shoppers who click the product links shared during a conversation. It’s one of the cleanest leading indicators of buyer intent because it reflects a moment where curiosity turns into action.

If CTR is high, it’s a sign that:

  • Your recommendations are relevant
  • The conversation is persuasive
  • The shopper trusts the guidance they’re getting
  • The AI is surfacing the right product at the right time

In other words, CTR tells you which conversations are influencing shopping behavior.

And the connection between CTR and revenue is often tighter than teams expect.

Just look at what happened with Caitlyn Minimalist. When they began comparing the results of human-led conversations versus AI-assisted ones over a 90-day period, CTR became one of the clearest predictors of success. Their Shopping Assistant consistently drove meaningful engagement with its recommendations — an 18% click-through rate on the products it suggested.

That level of engagement translated directly into better outcomes:

  • AI-driven conversations converted at 20%, compared to just 8% for human agents
  • Many of those clicks led to multi-item purchases
  • Overall, the brand experienced a 50% lift in sales from AI-assisted chats compared to human-only ones

When shoppers click, they’re moving deeper into the buying cycle. Strong CTR makes it easier to forecast conversion and understand how well your conversational flows are guiding shoppers toward the right products.

AI Agent recommends a customer with jewelry safe for sensitive skin

Discounting behavior metrics

Discounting can be one of the fastest ways to nudge a shopper toward checkout, but it’s also one of the fastest ways to erode margins. 

That’s why discount-related metrics matter so much in conversational commerce. 

They show not just whether AI is using discounts, but how effectively those discounts are driving conversions.

1. Discounts offered: Are incentives being used strategically or too often?

This metric tracks how many discount codes or promotional offers your AI is sharing during conversations. 

Ideally, discounts should be purposeful — timed to moments when a shopper hesitates or needs an extra nudge — not rolled out as a one-size-fits-all script. When you monitor “discounts offered,” you can ensure that incentives are being used as conversion tools, not crutches.

This visibility becomes particularly important at high-intent touchpoints, such as exit intent or cart recovery interactions, where a small incentive can meaningfully increase conversion if used correctly.

2. Discounts applied: Are those discounts actually influencing the purchase?

Offering a discount is one thing. Seeing whether customers use it is another.

A high “discounts applied” rate suggests:

  • The offer was compelling
  • The timing was right
  • The shopper truly needed that incentive to convert

A low usage rate tells a different story: Your team (or your AI) is discounting unnecessarily.

This metric alone often surprises brands. More often than not, CX teams discover they can discount less without hurting conversion, or that a non-discount incentive (like a relevant product recommendation) performs just as well.

Understanding this relationship helps teams tighten their promotional strategy, protect margins, and use discounts only where they actually drive incremental revenue.

How CX teams use these metrics to make better decisions

Once you know which metrics matter, the next step is building a system that brings them together in one place.

Think of your conversational commerce scorecard as a decision-making engine — something that helps you understand performance at a glance, spot bottlenecks, optimize AI, and guide shoppers more effectively.

In Gorgias, you can customize your analytics dashboard to watch the metrics that matter most to your brand. This becomes the single source of truth for understanding how conversations influence revenue.

Here’s what a powerful dashboard unlocks:

1. You learn where AI performs best (and where humans outperform)

Some parts of the customer journey are perfect for AI: repetitive questions, product education, sizing guidance, shade matching, order status checks. 

Others still benefit from human support, like emotional conversations, complex troubleshooting, multi-item styling, or high-value VIP concerns.

Metrics like resolution rate, zero-touch ticket rate, and chat conversion rate show you exactly which is which.

When you track these consistently, you can:

  • Identify conversation types AI should fully own
  • Spot where AI needs more training
  • Allocate human agents to higher-value conversations
  • Decide when humans should step in to drive stronger outcomes

For example, if AI handles 80% of sizing questions successfully but struggles with multi-item styling advice, that tells you where to invest in improving AI, and where human expertise should remain the default.

2. You uncover what shoppers actually need to convert

Metrics like CTR, CVR, and conversational AOV reveal the inner workings of shopper decision-making. They show which recommendations resonate, which don’t, and which messaging actually moves someone to purchase.

With these insights, CX teams can:

  • Refine product recommendations
  • Improve conversation flows that stall out
  • Adjust the tone or structure of AI messaging
  • Draft stronger scripts for human agents
  • Identify recurring questions that indicate missing PDP information

For instance, if shoppers repeatedly ask clarifying questions about a product’s material or fit, that’s a signal for merchandising or product teams

If recommendations with social proof get high engagement, marketing can integrate that insight into on-site messaging. 

Conversations reveal what customers really care about — often before analytics do.

3. You prove that conversations directly drive revenue

This is the moment when the scorecard stops being a CX tool and becomes a business tool.

A clear set of metrics shows how conversations tie to:

  • GMV influenced
  • AOV lift
  • Revenue generated by AI
  • ROI of conversational commerce tools

When a CX leader walks into a meeting and says, “Our AI Assistant influenced 5% of last month’s revenue” or “Conversational shoppers have a 20% higher AOV,” the perception of CX changes instantly.

You’re no longer a support cost. You’re a revenue channel.

And once you have numbers like ROI or revenue influence in hand, it becomes nearly impossible for anyone to argue against further investment in CX automation.

4. You identify where shoppers are dropping off or hesitating

A scorecard doesn’t just show what’s working, it surfaces what’s not.

Metrics make friction obvious:

Metric Signal

What It Means

Low CTR

Recommendations may be irrelevant or poorly timed.

Low CVR

Conversations aren’t persuasive enough to drive a purchase.

High deflection but low revenue

AI is resolving tickets, but not effectively selling.

High discount usage

Shoppers rely on incentives to convert.

Low discount usage

You may be offering discounts unnecessarily and losing margin.

Once you identify these patterns, you can run targeted experiments:

  • Test new scripts or flows
  • Adjust product recommendations
  • Add social proof or benefit framing
  • Reassess discounting strategies
  • Rework messaging on key PDPs

Compounded over time, these moments create major lifts in conversion and revenue.

5. You create a feedback loop across marketing, merchandising, and product

One of the biggest hidden values of conversational data is how it strengthens cross-functional decision-making.

A clear analytics dashboard gives teams visibility into:

  • Unclear or missing product information (from repeated questions)
  • Merchandising opportunities (from your most popular products)
  • Landing page or PDP improvements (from drop-off points)
  • Messaging that resonates with real customers (from AI messages)

Suddenly, CX isn’t just answering questions — it’s informing strategy across the business.

CX drives revenue when you measure what matters

With the right metrics in place, CX leaders can finally quantify the impact of every interaction, and use that data to shape smarter, more profitable customer journeys.

If you're ready to measure — and scale — the impact of your conversations, tools like Gorgias AI Agent and Shopping Assistant give CX teams the visibility, accuracy, and performance needed to turn every interaction into revenue.

Want to see it in action? Book a demo and discover what conversational commerce can do for your bottom line.

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min read.
AI Alignment

AI in CX Webinar Recap: Turning AI Implementation into Team Alignment

By Gabrielle Policella
0 min read . By Gabrielle Policella

TL;DR:

  • Implement quickly and iterate. Rhoback’s initial rollout process took two weeks, right before BFCM. Samantha moved quickly, starting with basic FAQs and then continuously optimizing.  
  • Train AI like a three-year-old. Although it is empathetic, an AI Agent does not inherently know what is right or wrong. Invest in writing clear Guidance, testing responses, and ensuring document accuracy. 
  • Approach your AI’s tone of voice like a character study. Your AI Agent is an extension of your brand, and its personality should reflect that. Rhoback conducted a complete analysis of its agent’s tone, age, energy, and vocabulary. 
  • Embrace AI as a tool to reveal inconsistencies. If your AI Agent is giving inaccurate information, it’s exposing gaps in your knowledge sources. Uses these early test responses to audit product pages, help center content, Guidance, and policies.
  • Check in regularly and keep humans in control. Introduce weekly reviews or QA rituals to refine AI’s accuracy, tone, and efficiency. Communicate AI insights cross-functionally to build trust and work towards shared goals.

When Rhoback introduced an AI Agent to its customer experience team, it did more than automate routine tickets. Implementation revealed an opportunity to improve documentation, collaborate cross-functionally, and establish a clear brand tone of voice. 

Samantha Gagliardi, Associate Director of Customer Experience at Rhoback, explains the entire process in the first episode of our AI in CX webinar series.

Top learnings from Rhoback’s AI rollout  

1. You can start before you “feel ready”

With any new tool, the pre-implementation phase can take some time. Creating proper documentation, training internal teams, and integrating with your tech stack are all important steps that happen before you go live. 

But sometimes it’s okay just to launch a tool and optimize as you go. 

Rhoback launched its AI agent two weeks before BFCM to automate routine tickets during the busy season. 

Why it worked:

  • Samantha had audited all of Rhoback’s SOPs, training materials, and FAQs a few months before implementation. 
  • They started by automating high-volume questions such as returns, exchanges, and order tracking.
  • They followed a structured AI implementation checklist. 

2. Audit your knowledge sources before you automate

Before turning on Rhoback’s AI Agent, Samantha’s team reviewed every FAQ, policy, and help article that human agents are trained on. This helped establish clear CX expectations that they could program into an AI Agent. 

Samantha also reviewed the most frequently asked questions and the ideal responses to each. Which ones needed an empathetic human touch and which ones required fast, accurate information?  

“AI tells you immediately when your data isn’t clean. If a product detail page says one thing and the help center says another, it shows up right away.” 

Rhoback’s pre-implementation audit checklist:

  • Review customer FAQs and the appropriate responses for each. 
  • Update outdated PDPs, Help Centre articles, policies, and other relevant documentation.
  • Establish workflows with Ecommerce and Product teams to align Macros, Guidance, and Help Center articles with product descriptions and website copy. 

Read more: How to Optimize Your Help Center for AI Agent

3. Train your AI Agent in small, clear steps

It’s often said that you should train your AI Agent like a brand-new employee. 

Samantha took it one step further and recommended treating AI like a toddler, with clear, patient, repetitive instructions. 

“The AI does not have a sense of good and bad. It’s going to say whatever you train it, so you need to break it down like you’re talking to a three-year-old that doesn’t know any different. Your directions should be so detailed that there is no room for error.”

Practical tips:

  • Use AI to build your AI Guidance, focusing on clear, detailed, simple instructions. 
  • Test each Guidance before adding new ones.
  • Treat the training process like an ongoing feedback loop, not a one-time upload.

Read more: How to Write Guidance with the “When, If, Then” Framework

4. Prioritize Tone of Voice to make AI feel natural

For Rhoback, an on-brand Tone of Voice was a non-negotiable. Samantha built a character study that shaped Rhoback’s AI Agent’s custom brand voice.

“I built out the character of Rhoback, how it talks, what age it feels like, what its personality is. If it does not sound like us, it is not worth implementing.”

Key questions to shape your AI Agent’s tone of voice:

  • How does the AI Agent speak? Friendly, funny, empathetic, etc…?
  • Does your AI Agent use emojis? How often?
  • Are there any terms or phrases the AI Agent should always or never say?

5. Use AI to surface knowledge gaps or inconsistencies

Once Samantha started testing the AI Agent, it quickly revealed misalignment between Rhoback’s teams. With such an extensive product catalog, AI showed that product details did not always match the Help Center or CX documentation. 

This made a case for stronger collaboration amongst the CX, Product, and Ecommerce teams to work towards their shared goal of prioritizing the customer. 

“It opened up conversations we were not having before. We all want the customer to be happy, from the moment they click on an ad to the moment they purchase to the moment they receive their order. AI Agent allowed us to see the areas we need to improve upon.” 

Tips to improve internal alignment:

  • Create regular syncs between CX, Product, Ecommerce, and Marketing teams.
  • Share AI summaries, QA insights, and trends to highlight recurring customer pain points.
  • Build a collaborative workflow for updating documents that gives each team visibility. 

6. Build trust (with your team and customers) through transparency 

Despite the benefits of AI for CX, there’s still trepidation. Agents are concerned that AI would replace them, while customers worry they won’t be able to reach a human. Both are valid concerns, but clearly communicating internally and externally can mitigate skepticism. 

At Rhoback, Samantha built internal trust by looping in key stakeholders throughout the testing process. “I showed my team that it is not replacing them. It’s meant to be a support that helps them be even more successful with what they’re already doing," Samantha explains.

On the customer side, Samantha trained their AI Agent to tell customers in the first message that it is an AI customer service assistant that will try to help them or pass them along to a human if it can’t. 

How Rhoback built AI confidence:

  • Positioned AI as a personal assistant for agents, not a replacement.
  • Let agents, other departments, and leadership test and shape the AI Agent experience early.
  • Told customers up front when automation was being used and made the path to a human clear and easy.

Read more: How CX Leaders are Actually Using AI: 6 Must-Know Lessons

Putting these into practice: Rhoback’s framework for an aligned AI implementation 

Here is Rhoback’s approach distilled into a simple framework you can apply.

  1. Audit your content: Ensure your FAQs, product data, policies, and all documentation are accurate.
  2. Start small: Automate one repetitive workflow, such as returns or tracking.
  3. Train iteratively: Add Guidance in small, testable batches.
  4. Prioritize tone: Make sure every AI reply sounds like your brand.
  5. Align teams: Use AI data to resolve cross-departmental inconsistencies and establish clearer communication lines.
  6. Be transparent: Tell both agents and customers how AI fits into the process.
  7. Refine regularly: Review, measure, and adjust on an ongoing basis.

Watch the full conversation with Samantha to learn how AI can act as a catalyst for better internal alignment

📌 Join us for episode 2 of AI in CX: Building a Conversational Commerce Strategy that Converts with Cornbread Hemp on December 16.

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min read.
Food & Beverage Self-Service

How Food & Beverage Brands Can Level Up Self-Service Before BFCM

Before the BFCM rush begins, we’re serving food & beverage CX teams seven easy self-serve upgrades to keep support tickets off their plate.
By Alexa Hertel
0 min read . By Alexa Hertel

TL;DR:

  • Most food & beverage support tickets during BFCM are predictable. Subscription cancellations, WISMO, and product questions make up the bulk—so prep answers ahead of time.
  • Proactive CX site updates can drastically cut down repetitive tickets. Add ingredient lists, cooking instructions, and clear refund policies to product pages and FAQs.
  • FAQ pages should go deep, not just broad. Answer hyper-specific questions like “Will this break my fast?” to help customers self-serve without hesitation.
  • Transparency about stock reduces confusion and cart abandonment. Show inventory levels, set up waitlists, and clearly state cancellation windows.

In 2024, Shopify merchants drove $11.5 billion in sales over Black Friday Cyber Monday. Now, BFCM is quickly approaching, with some brands and major retailers already hosting sales.

If you’re feeling late to prepare for the season or want to maximize the number of sales you’ll make, we’ll cover how food and beverage CX teams can serve up better self-serve resources for this year’s BFCM. 

Learn how to answer and deflect customers’ top questions before they’re escalated to your support team.

💡 Your guide to everything peak season → The Gorgias BFCM Hub

Handling BFCM as a food & beverage brand

During busy seasons like BFCM and beyond, staying on top of routine customer asks can be an extreme challenge. 

“Every founder thinks BFCM is the highest peak feeling of nervousness,” says Ron Shah, CEO and Co-founder of supplement brand Obvi

“It’s a tough week. So anything that makes our team’s life easier instantly means we can focus more on things that need the time,” he continues. 

Anticipating contact reasons and preparing methods (like automated responses, macros, and enabling an AI Agent) is something that can help. Below, find the top contact reasons for food and beverage companies in 2025. 

Top contact reasons in the food & beverage industry 

According to Gorgias proprietary data, the top reason customers reach out to brands in the food and beverage industry is to cancel a subscription (13%) followed by order status questions (9.1%).

Contact Reason

% of Tickets

🍽️ Subscription cancellation

13%

🚚 Order status (WISMO)

9.1%

❌ Order cancellation

6.5%

🥫 Product details

5.7%

🧃 Product availability

4.1%

⭐ Positive feedback

3.9%

7 ways to improve your self-serve resources before BFCM

  1. Add informative blurbs on product pages 
  2. Craft additional help center and FAQ articles 
  3. Automate responses with AI or Macros 
  4. Get specific about product availability
  5. Provide order cancellation and refund policies upfront
  6. Add how-to information
  7. Build resources to help with buying decisions 

1) Add informative blurbs on product pages

Because product detail queries represent 5.7% of contact reasons for the food and beverage industry, the more information you provide on your product pages, the better. 

Include things like calorie content, nutritional information, and all ingredients.  

For example, ready-to-heat meal company The Dinner Ladies includes a dropdown menu on each product page for further reading. Categories include serving instructions, a full ingredient list, allergens, nutritional information, and even a handy “size guide” that shows how many people the meal serves. 

The Dinner Ladies product page showing parmesan biscuits with tapenade and mascarpone.
The Dinner Ladies includes a drop down menu full of key information on its product pages. The Dinner Ladies

2) Craft additional Help Center and FAQ articles

FAQ pages make up the information hub of your website. They exist to provide customers with a way to get their questions answered without reaching out to you.   

This includes information like how food should be stored, how long its shelf life is, delivery range, and serving instructions. FAQs can even direct customers toward finding out where their order is and what its status is. 

Graphic listing benefits of FAQ pages including saving time and improving SEO.

In the context of BFCM, FAQs are all about deflecting repetitive questions away from your team and assisting shoppers in finding what they need faster. 

That’s the strategy for German supplement brand mybacs

“Our focus is to improve automations to make it easier for customers to self-handle their requests. This goes hand in hand with making our FAQs more comprehensive to give customers all the information they need,” says Alexander Grassmann, its Co-Founder & COO.

As you contemplate what to add to your FAQ page, remember that more information is usually better. That’s the approach Everyday Dose takes, answering even hyper-specific questions like, “Will it break my fast?” or “Do I have to use milk?”

Everyday Dose FAQ page showing product, payments, and subscription question categories.
Everyday Dose has an extensive FAQ page that guides shoppers through top questions and answers. Everyday Dose

While the FAQs you choose to add will be specific to your products, peruse the top-notch food and bev FAQ pages below. 

Time for some FAQ inspo:

3) Automate responses with AI or macros

AI Agents and AI-powered Shopping Assistants are easy to set up and are extremely effective in handling customer interactions––especially during BFCM.  

“I told our team we were going to onboard Gorgias AI Agent for BFCM, so a good portion of tickets would be handled automatically,” says Ron Shah, CEO and Co-founder at Obvi. “There was a huge sigh of relief knowing that customers were going to be taken care of.” 

And, they’re getting smarter. AI Agent’s CSAT is just 0.6 points shy of human agents’ average CSAT score. 

Obvi homepage promoting Black Friday sale with 50% off and chat support window open.
Obvi 

Here are the specific responses and use cases we recommend automating

  • WISMO (where is my order) inquiries 
  • Product related questions 
  • Returns 
  • Order issues
  • Cancellations 
  • Discounts, including BFCM related 
  • Customer feedback
  • Account management
  • Collaboration requests 
  • Rerouting complex queries

Get your checklist here: How to prep for peak season: BFCM automation checklist

4) Get specific about product availability

With high price reductions often comes faster-than-usual sell out times. By offering transparency around item quantities, you can avoid frustrated or upset customers. 

For example, you could show how many items are left under a certain threshold (e.g. “Only 10 items left”), or, like Rebel Cheese does, mention whether items have sold out in the past.  

Rebel Cheese product page for Thanksgiving Cheeseboard Classics featuring six vegan cheeses on wood board.
Rebel Cheese warns shoppers that its Thanksgiving cheese board has sold out 3x already. Rebel Cheese  

You could also set up presales, give people the option to add themselves to a waitlist, and provide early access to VIP shoppers. 

5) Provide order cancellation and refund policies upfront 

Give shoppers a heads up whether they’ll be able to cancel an order once placed, and what your refund policies are. 

For example, cookware brand Misen follows its order confirmation email with a “change or cancel within one hour” email that provides a handy link to do so. 

Misen order confirmation email with link to change or cancel within one hour of checkout.
Cookware brand Misen follows up its order confirmation email with the option to edit within one hour. Misen 

Your refund policies and order cancellations should live within an FAQ and in the footer of your website. 

6) Add how-to information 

Include how-to information on your website within your FAQs, on your blog, or as a standalone webpage. That might be sharing how to use a product, how to cook with it, or how to prepare it. This can prevent customers from asking questions like, “how do you use this?” or “how do I cook this?” or “what can I use this with?” etc. 

For example, Purity Coffee created a full brewing guide with illustrations:

Purity Coffee brewing guide showing home drip and commercial batch brewer illustrations.
Purity Coffee has an extensive brewing guide on its website. Purity Coffee

Similarly, for its unique preseasoned carbon steel pan, Misen lists out care instructions

Butter melting in a seasoned carbon steel pan on a gas stove.
Misen 

And for those who want to understand the level of prep and cooking time involved, The Dinner Ladies feature cooking instructions on each product page. 

The Dinner Ladies product page featuring duck sausage rolls with cherry and plum dipping sauce.
The Dinner Ladies feature a how to cook section on product pages. The Dinner Ladies 

7) Build resources to help with buying decisions 

Interactive quizzes, buying guides, and gift guides can help ensure shoppers choose the right items for them––without contacting you first. 

For example, Trade Coffee Co created a quiz to help first timers find their perfect coffee match: 

Trade Coffee Co offers an interactive quiz to lead shoppers to their perfect coffee match. Trade Coffee Co

Set your team up for BFCM success with Gorgias 

The more information you can share with customers upfront, the better. That will leave your team time to tackle the heady stuff. 

If you’re looking for an AI-assist this season, check out Gorgias’s suite of products like AI Agent and Shopping Assistant

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min read.
Create powerful self-service resources
Capture support-generated revenue
Automate repetitive tasks

Further reading

Boost Sales With Ecommerce Blog

How to Boost Sales with Blog Content for eCommerce Brands

By Ronald Dod
6 min read.
0 min read . By Ronald Dod

The fact is that content marketing can help an eCommerce brand immensely, given that content is a foundational element for visibility in the SERPs, social media engagement, the cultivation of thought leadership and industry authority, lead generation, customer self-service, and other vital business activities.

But the reality is that most blogs fail, and for a variety of different reasons. One of the most prevailing is that it doesn’t generate immediate results, ultimately discouraging future content creation.

However, there are various tactics that merchants can use to cultivate traffic to blogs and boost conversions as a result of those visits.

For merchants who want to take advantage of the benefits that content marketing has to offer, here are seven ways to boost conversions with eCommerce blog content.

Focus on User Intent

One of the best ways to gain more site visitors who turn into paying customers is to create content that targets the intent of the user.

Of course, “user intent” is the reason behind the individual’s Google search. It is the outcome they aim to achieve.

For instance, if a consumer searches "best Bluetooth headphones," the intent behind the user's search is to obtain information that will narrow down their purchase options to just a couple of products.

When looking at how people search, there are three main types of user intents, often referred to as “Do, Know, Go.” Those intents are:

  • Transactional (Do): Here, a consumer is aiming to make a purchase or some other form of transaction.
  • Informational (Know): With this type of search, people are looking to learn, as in the aforementioned headphones example.
  • Navigational (Go): When conducting such a search, users are trying to get to a specific website or location. These can often be branded searches.

When creating content for a blog, merchants will likely be targeting information queries. These types of searches will result in a consumer finding high-ranking materials that relate to their search for knowledge.

Alternatively, a transactional search will often lead shoppers directly to product pages.

However, this isn’t to say that sellers shouldn’t link to their item listings within information blogs, assuming that the product is relevant to the piece. This can actually be a great way to pull a shopper from the top of the funnel down to deeper stages. More on this momentarily.

The sales funnel model is something that marketers use to delineate the path to purchase that consumers take. While there are numerous iterations of this model, the basics are that:

  • Consumers become aware of a product
  • Prospects then begin to consider the product, research and compare their options
  • Consumers make a decision and purchase a product or service

The job of site owners is to get consumers to move through the entirety of the brand’s sales funnel. Since awareness and research are highly dependent on the content offerings available to shoppers, merchants must craft quality content that targets top-of-funnel prospects.

Optimizing top-of-funnel content relies on uncovering and integrating long-tail keywords into various pieces. Since long-tail phrases are highly-specific and generate less search volume (and more conversions) than broad-head keywords, these phrases are a must.

Fortunately, a variety of tools such as Answer the Public, Keyword Tool, Ubersuggest and many others are geared specifically towards this task.

While all of these tools are extremely useful, Answer the Public is a favorite as it provides long-tail keywords questions that consumers are searching, thereby cluing in retailers even further as to what precisely potential buyers want to know.

In addition to these tools, sellers can also mine incredibly useful information about consumer queries from sites like Quora, Reddit and similar boards.

Speaking of answering questions, we also recommend you host an FAQ page on your website to help customers. Check out our free FAQ template to get started.

Optimize for SEO

While this idea was touched upon slightly with targeting long-tail terms and phrases, there is a lot more to optimizing content for conversions than just plugging in a few keywords.

For retailers to get the visibility required to earn clicks and conversions, it is necessary to optimize blog posts according to Google’s SEO ranking factors. Some tactics that merchants will want to utilize include:

  • Optimizing for the targeted keyword
  • Employing keyword variations
  • Adding images and optimizing alt tags
  • Linking to authoritative, relevant external pages
  • Including related links to internal destinations
  • Ensuring content is readable/scannable
  • Creating a proper meta title

Additionally, while meta descriptions have no bearing on SEO performance, they do influence clicks, which does impact rankings. Therefore, crafting a concise, alluring and accurate meta description is also a necessity.

Link to a Relevant Product

Linking to a product within a piece of content is a simple yet effective tactic for driving clicks to product pages and earning conversions.

However, the key thing to remember here is that the item must be relevant to the content. If sellers create a blog centered on ways to remedy plantar fasciitis and then include a link to great running shoes, that link will generate very few clicks and even fewer sales.

Alternatively, if a seller talks about and links to shoes or inserts for plantar fasciitis, it is far more likely that the content will earn sales as a result of the internal link.

The point of the post is to solve the reader's problems. If merchants have a product that can achieve that goal, then it is vital to include a link to the item. That said, do not promote products that are not relevant to the piece just for the sake of promotion. Doing so could damage a store’s credibility in the consumer’s eyes.

Employ Social Proof

Social proof has become a necessity in the eCommerce industry. With all the shady dealings that are happening online, consumers want to know that what they are getting is the real deal.

Therefore, including social proof within content and on product pages is a powerful strategy for increasing conversions and encouraging that elusive second purchase.

Some excellent forms of social proof that can be deployed in content or on product pages include:

  • Testimonials
  • Reviews
  • User-generated content from social media

By providing the evidence that other customers love their purchase, others are more likely to follow the same path.

Utilize Visuals

Visuals are a critical element for content.

Including images throughout blogs dramatically increases the readability of the piece and helps consumers to retain more of the information contained therein. The fact is, nobody likes reading massive walls of text.

Therefore, several ways that merchants can increase the readability of a piece and keep it engaging include:

  • Using screenshots to demonstrate ideas, topics of discussion or uses of a product
  • Employ visual indicators like graphs or charts to highlight figures
  • Summarize blog posts using embeddable, easily shared infographics

There are a slew of tools out there for creating such visuals, including Canva, Pablo, Easil and many others.

If merchants are looking to create content that converts, visuals are a must.

Include a Clear Call-to-Action

No matter if merchants are looking to drive traffic to product pages, get readers to share a post or simply generate comments, including a clear, direct call-to-action is vital to meeting that goal.

The fact is that if a merchant wants to achieve something with their content, they often must make it explicit by letting consumers know what step they should take next.

By including a call-to-action at the end of a piece for visitors to check out a product page or other content, retailers are far more likely to generate conversions than if they were to leave consumers to their own devices.

Retarget Content

For retailers who employ tracking pixels, those who visit their site can be retargeted to on Google, through social media and other popular online destinations.

Retargeting is an essential tactic for earning more conversions as consumers have already shown interest in a brand’s offerings–be they content or products.

While some consider retargeting to be an off-putting practice, looking at the facts about retargeting shows that this strategy is extremely useful in reaching consumers, generating sales and optimizing conversion rates.

In today’s attention economy, merchants must remain top-of-mind. Retargeting adverts help them achieve that end.

Final Thoughts

Creating eCommerce content that drives conversions is critical for merchants to compete in the increasingly crowded online retail industry. Moreover, by targeting user intent with such pieces, sellers can reel in new readers and bolster their customer base while still catering to existing shoppers.

For other ways to grow your ecommerce store, check out our list of ecommerce growth tactics.

Utilize the strategies listed above to help ensure that your company’s content earns the visibility it needs to generate clicks and conversions from shoppers–new and old. Don't have enough time to start a blog? Check out our ecommerce customer service automation guide to see how you can save time by automating many of the repetitive tasks that go into running an online store.

Integration: Loop Returns

Loop X Gorgias: The Key To Reducing Return-Related Questions

By Billy McClennan
2 min read.
0 min read . By Billy McClennan

You might be assuming that there’s really nothing you can do to change this outside of overworking your team, or hiring more people.

This is completely normal, but there’s no need to panic. That’s because with Gorgias you can now integrate Loop in your ecommerce store. In case you’re wondering, Loop is an on-demand portal that allows customers to get the product they want, with less support touchpoints. 

Using Loop, there are many ways you can reduce one of the biggest and more time-consuming support-related requests… returns. Plus, they do this while still giving your customers a seamless experience. 

So, let’s dive in.

What’s the problem?

Did you know that 40% of support tickets are order related, with 5% being about returns? It might not seem like something worth looking into, or too problematic, but it is. 

Though these customers returning items do deserve a great level of customer care (everyone does), it’s not the most valuable way to actually use your support team’s skills. 

Why? Glad you asked.

There’s already a lack of resources

It’s always good to remember that your support team is juggling a lot more than you think because there’s so many different types of requests that come through. One of those requests that takes a lot of time is, you guessed it, return requests. While these are important, they don’t exactly require a human touch since they’re very straightforward and focus heavily on process. 

If your support team isn’t able to address other requests in a timely manner, that could mean losing new customers or returning ones because of those support tickets. 

Luckily, return-requests can be easily automated.

Customers want to control their returns

It may come as a surprise to hear that your customers don’t actually want a high touch support experience for returns from your team. They actually want to be the ones to choose where and when they want to engage with support teams. 

Since customers want a more on-demand experience when it comes to returns and something that happens fast, automation doesn’t hurt in these scenarios since it can be quick. 

What’s the solution? Enter Loop.

loopreturns.com

Bringing Loop and Gorgias together for a seamless customer experience that saves your team time is like a dream come true. 

But how exactly, can this address the issues we’ve been discussing?

First off, this partnership will allow your support team to use that extra time in valuable ways that make sense and benefit the business. For example, focusing more on new customers, shipping issues and more.

Secondly, it benefits your customers since it allows them to take control of their returns and do things on their own time. This makes it more seamless and makes them feel like the return process is easier than ever. 

Loop Returns widget in Gorgias helpdesk

Using both Loop and Gorgias together will create a better environment all around, decreasing stress both within your support team and customers so that your team can focus on conversions instead of returns.

Whether you’ve been looking for a way to reduce your support requests related to returns, or if it’s something new on your radar, it’s worth thinking about. Thankfully, you can sign up for a free 7-day trial with Gorgias and add in the Loop integration to see just how much time it can save.

BigCommerce API

What Can You Do With All Those BigCommerce API Calls?

By Lucas Walker
4 min read.
0 min read . By Lucas Walker

A quick look into BigCommece, and you'll quickly see one of the main advantages about

As eCommerce-Aholic says in their YouTube video: 5 reasons to choose BigCommerce over Shopify, when deciding whether a SaaS ecommerce platform is right for you, you have to consider APIs.

What does this mean for you?

Because more often than not, you don’t have access to the underlying code fuelling your ecommerce website. 

This is where APIs come into their own.

In short, API stands for 'Application Programming Interface.' This enables two apps to communicate with each other. As such, this is what allows you to extend the overall functionality of your chosen ecommerce platform.

With that in mind, let’s delve into this subject a little deeper. 

BigCommerce APIs

BigCommerce's API coverage is incredibly impressive. As is the number of API calls that BigCommerce can process per second. In fact, it can handle 100 times more API calls per second than Shopify Plus! 

Shopify limits you to just two API requests a second, or four API per second if you’re a Shopify Plus user. Whereas BigCommerce can handle a whopping 400 API calls per second!

How Often Will You Need to Hit an API Call?

Let’s take synchronizing your entire stock list with BigCommerce’s Catalog API as an example. This API enables you to integrate your BigCommerce store with your POS and multiple online sales channels...so that you can handle everything from a single platform. Needless to say, this makes selling on popular third-party platforms like Amazon, Walmart (Jet), Wayfair, Best Buy, Houz, etc. a breeze!

So, suppose you’re running a large enterprise and have thousands of items to synchronize (or have tons of different product options). In that case, 25,000 products could take over four hours to sync on Shopify! Whereas, with BigCommerce, that same volume of merchants would take around a minute. 

Following this same logic, if you're syncing multiple systems with your ecommerce store, you’ll be thankful that BigCommerce handles so many API calls per second. After all, there are only so many hours in the day!

The biggest perk?

But, that isn't the best thing about BigCommerce's APIs. In fact, it's the real-time information your shipping and logistics partners feedback to your store that's of the most value. 

Of course, this also has a knock-on effect on the quality of your customer support. Slow and unreliable API calls adversely impact your store's inventory levels and shipping updates for customers.

BigCommerce's API can sync inventory across multiple locations including warehouses and instore.

‍Customer Support

While we're on the topic of customer service, just think of the kind of high-quality customer support you could provide, using one of your many APIs to connect your BigCommerce store with Gorgias. 

You'll be able to offer all the following at lightning speed:

  • Real-time live chat (you can even trigger automatic live chat campaigns depending on your visitor's web page).
  • Centralize customer communications - social media, email, phone, etc. You can answer all pending support tickets from the convenience of one dashboard.
  • You can create template answers to respond faster to FAQs - just write your response once and save it as a macro. Then you'll be able to reuse it automatically.
  • Utilize machine learning to detect what customers will ask - shipping updates, refunds, exchanges, etc. Then, you can send laser-targeted automated responses to proactively answer their questions. 

How to Utilize API Calls

On top of the obvious benefits listed above, you can also use BigCommerce's API points to create mobile apps using data retrieved from your online store. Not only does this make app development much easier, but ultimately, it'll also provide a seamless experience for the end-user. Win-win!

For the sake of ease, we've listed some of the different kinds of BigCommerce APIs you can use and how they could benefit your online store. Hopefully, this provides some much-needed inspiration for making the most out of your abundance of APIs.

Storefront APIs: This enables you to manage customer carts and checkouts (from the client's side and your back end). For instance, you can add products to a shopper’s cart, gather and display customer order info, update billing addresses, and erase current e-shopping trolleys. 

GraphQL Storefront API: Similar to above, you can also use this API to access your customer's product info and modify customer details and orders. But more unique to this API, you can build frontend apps. This permits you full control over the look and feel of your brand. 

Scripts API: You can insert any scripts for analytics, single-click apps, live chat, support plugins, and theme extensions for any apps or integrations you’ve downloaded, so you'll no longer have to manually paste code into your control panel.

Widgets API: Here, you can create modular blocks of content to reuse wherever you want. Similarly, you can also develop tools to empower non-techy users to manage your content. Trust us, your team will thank you for not making them go to the trouble of modifying the theme files.

Payments API: As its name so aptly suggests, this API facilitates the acceptance of customer payments. You can create custom checkouts either using a Server-to-Server Checkout API Orders endpoint or via the V2 Orders endpoint.

Getting Started with BigCommerce APIs 

First off, you need to obtain the API credentials.

From there, you can experiment with your APIs using BigCommerce's in-built 'Request Runner.' Here, you just copy and paste your store_hash, client_id ID, and access_token. 

Then once you've done that, hit 'Send.'

Alternatively, you can use the REST Client extension to make API requests, using the Visual Studio Code. Once you've installed this extension, you'll need to create a new file called BigCommerce.http. 

Then you'll need to paste the following:

@ACCESS_TOKEN = your_access_token

@CLIENT_ID = your_client_id

@STORE_HASH = your_store_hash

###

GET https://api.bigcommerce.com/stores/{{STORE_HASH}}/v3/catalog/products

X-Auth-Token: {{ACCESS_TOKEN}}

X-Auth-Client: {{CLIENT_ID}}

Content-Type: application/json

Accept: application/json

Now, hit 'Save.' 

This should trigger a 'send request' link to display above GET. Click 'send request,' and the API response will appear in a split window.

There are other ways to start using BigCommerce APIs, but we don't have time to go through them all in this article. Hopefully, this has been enough to help steer you in the right direction. For more information, take a look at BigCommerce’s API documentation

Are You Ready to Start Using BigCommerce?

We hope having read this article, you have a better idea of what you could achieve with BigCommerce's generous API allowance. The BigCommerce API lets you sync inventory across channels, and locations, connect to apps, and offer exceptional customer support. How have you used the BigCommerce API?

Black Friday vs Buy Nothing Day

Black Friday vs. Buy Nothing Day

By Frederik Nielsen
7 min read.
0 min read . By Frederik Nielsen

For most retailers, Black Friday is the busiest and most profitable day of the year. However, not everyone is into shopping on Black Friday. Every year, more and more activists are protesting the consumer culture by celebrating ‘Buy Nothing Day.’

Never heard about it? Although the anti-consumerism celebration has been gaining traction in the last couple of years, it’s still not well-known among the general public.

How did we come to this point? That’s what we’ll learn today.

You’ll find out:                      

  • A short history of Black Friday
  • What’s Buy Nothing Day All About
  • Black Friday vs. Buy Nothing Day

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The History of Black Friday

As high-speed Internet spread across the planet so did Black Friday. What initially started as a mall craze has evolved in an online phenomenon. But do you know how Black Friday started? When and where did it happen and how did it spread?

How Black Friday Started

The holiday got started in the early-50s, in Philadelphia. The term was used to describe the heavy traffic on the day after Thanksgiving when hordes of tourists and suburbanites would storm the city in advance of the annual Army-Navy football game. 

While we don’t know for certain, the term “Black Friday” was possibly coined by the members of the Philadelphia police department to describe the shoplifting, traffic jams, and general mayhem. Yes, Black Friday incidents are nothing new.

Even though retailers tried to change its name to “Big Friday” during the late 60s in an effort to avoid the negative connotations, the original name persevered. In the mid-80s, marketers started using the term in connection to “being in the black” after a financially bad year. 

Cyber Black Friday, Cyber Monday, and Black November

Black Friday sales became commonplace across the United States, in the early 90s. By the mid-2000s, online shopping started gaining traction. In 2008, online shoppers spent $534 million on Black Friday

During the same period, Cyber Monday got its start. The holiday took off when the staff at Shop.org noticed a 77% increase in online sales on Monday after the Black Friday weekend. Since Cyber Monday was so successful, some of the largest store chains in the US, like Walmart and Amazon merged the two into a single shopping weekend

Soon after, retailers started creating different spin-offs of the Black Friday/Cyber Monday weekend. For example, the day after Black Friday is called Small Business Saturday. That’s why some retailers now celebrate Black November all month long. 

Image Source: Statista

Pros and Cons of Black Friday

Last year, retailers from all over the world saw more than 93 million people shopping online, during the Black Friday weekend. While a huge number of people are looking forward to the holiday, there are some that aren’t as nearly excited. 

The holiday has its positive and negative sides. Some of the Black Friday pros include:

  • Most consumers are able to save a lot of money on great deals
  • Retailers are able to make a good percentage of their yearly revenue during BFCM
  • It’s great for the economy; 30% of retail sales happen between BFCM and Christmas 

Of course, we need to take into consideration Black Friday cons as well:

  • People tend to overspend during BFCM and buy things they wouldn’t otherwise
  • Some retailers that artificially heighten their prices in the weeks leading up to BFCM
  • Some small businesses can’t compete with large discounts offered by large chains  

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The History of Nothing Day

Not all people see Black Friday as a great opportunity to buy that 40-inch smart TV for a fraction of its price. Some see it as nothing more than a decadent celebration of commercialism. That’s why some people opt to celebrate Buy Nothing Day.

Never heard of Buy Nothing Day before? You’re not alone. A lot of people haven’t. But don’t worry, we’re here to explain everything… 

How Nothing Day Started

Now, Buy Nothing Day is actually nothing new. The anti-holiday was originally thought out by a Canadian artist by the name of Ted Dave way back in 1992. His anti-shopping campaign started gaining steam once it got picked up by the non-profit magazine, Adbusters.

According to the official Adbusters website, the day is meant for ordinary consumers to re-examine their spending habits and take a look at the “issue of overconsumption.” 

During the 90s and 00s, this anti-holiday was mainly “celebrated” in the US and Canada, but in the last couple of years, thanks to the Internet, it reached a worldwide audience. While it’s certainly not popular as Black Friday, it’s slowly catching on.

How is Buy Nothing Day Celebrated

Seeing how Buy Nothing Day is still new, it’s no wonder that different people celebrate it in different ways. However, over the last decade, certain traditions have developed. Here a few universal ways in which people celebrate Buy Nothing Day:

  • Cutting Up Credit Cards: This is perhaps the most extreme way in which people celebrate Buy Nothing Day. Some consumers gather in front of shopping malls on Black Friday to cut up their credit cards in protest of consumerism. 
  • Starting Whirly Marts: Another “on-location” way to celebrate Buy Nothing Day is to take a shopping cart and create a long -conga-like line around the mall. As you might’ve guessed, the shopping carts are traditionally empty. 
  • Taking Buy Nothing Hikes: A less confrontational way to celebrate it is to ignore the stores and shoppers completely and go for a group hike. This allows people to leave the stress-filled spending day behind them and enjoy nature. 
Image Source: YouTube

Pros and Cons of Buy Nothing Day

People who are preoccupied with the negative aspects of commercialism are obviously more likely to participate in the Buy Nothing Day celebration. But just like its consumerism-celebrating counterpart, Buy Nothing Day has its negative and positive sides.

Let’s go over the positive aspects first:

  • It encourages people to think about how much money they’re needlessly spending
  • Also, it helps consumers control the urge to buy things compulsively and spend wisely  
  • Finally, it shows that your personal happiness doesn’t revolve around material objects

Nothing is perfect and Buy Nothing Day isn’t the exception. Here are some negative aspects:

  • Not overspending for a single day doesn’t mean you won’t do it for the rest of the year
  • Consumerism drives a country’s economy, so it’s not always the most sustainable protest. 
  • Not shopping for a single day won’t prevent consumerism on a large scale 

Black Friday vs. Buy Nothing Day

As a retailer, are you wondering if you should be worried? Can Buy Nothing Day turn some of your customers against you, destroy your relationship, and hurt your sales? Let’s see how the BFCM weekend will stack up against Buy Nothing Day in 2020. 

The Emergence of the Conscious Shopper

Consumers have become more conscious in recent years. They’re more worried about global problems than ever before, and they would like the companies they’re dealing with to share their concerns. 

But if overspending in rampant consumerism is such a problem, why isn’t Buy Nothing Day bigger? You have to remember that the day is competing with well-established holidays. Also, Black Friday backlash has been much more noticeable outside the US.

For example, just last year in France, protesters gathered in an attempt to block an Amazon warehouse in the suburbs of Paris. In other European countries, lawmakers are considering banning Black Friday altogether, due to the negative environmental impact.

Make Black Friday Green Again

Speaking of France, a collective known as MFGA (Make Friday Green Again) recently formed in the country, in order to help the citizens become more conscious about their consumption. More than 450 brands signed up to support the MFGA initiative in 2019. 

Faguo, the organization behind the movement is inviting consumers to drop unwanted clothing items into their stores and encouraging consumers to take part in their tree-planting campaign. 

The #OptOutside Campaign 

In the United States, REI, an outdoor-gear manufacturing company is doing its part to slow-down overconsumption during the BFCM weekend. On Black Friday, the REI officials close all of their stores, give their employees a paid day off, and encourage people to go outside for a walk, hike, or a campaign trip. 

Their Opt Outside campaign not only helps their consumers become more physically active and financially responsible, but also spreads awareness about their values. The fact that the healthy activities they promote are what their products are made for is not a coincidence.  

Buy Nothing Day vs Ecommerce

Will Black Friday sales suffer from Buy Nothing Day? Not really. While some will choose to ignore the BFCM weekend, most people are either not aware of Buy Nothing Day or don’t feel like they have any trouble controlling their spending. 

Large stores probably won’t feel any consequences. However, their small-to-midsize counterparts might feel the hit. 

Around 60% of all online spending during BFCM goes to a dozen or so large retailers. None of them will feel the impact of Buy Nothing Day. The rest of the money goes to thousands of small stores. They’re the ones that could potentially feel the hit. 

How to Do Your Part

Should you be concerned about Buy Nothing Day? Yes and no. On one hand, you have to be aware that as a small business owner, you can’t afford to lose any customers. On the other, it’s not likely that many of your customers will choose Black Friday to ignore you. 

There’s a simple solution if you feel like Buy Nothing Day may be a problem. To get the younger, socially-aware crowd on your side, you just have to show them that you care. 

You can use your website to encourage people to spend more time outdoors or promote a good cause. Take DoneGood for example. In 2018, the Boston-based ecommerce website donated Black Friday revenue to the RAINN foundation.   

Looking Beyond Black Friday 2020

It took nearly 50 years for Black Friday to become a worldwide phenomenon. Although information travels fast nowadays, it’s not realistic to expect for Buy Nothing Day to become a large-scale protest against consumerism any time soon. 

When done right, Black Friday can be a great day for both retailers and shoppers. If you’re a store owner and you want to make it great for your customers, here’s what you need to do:

One thing is certain: your customers should always come first. You need to show them that you share their values, respect their concerns, and that you’re ready to take that extra step to keep them satisfied. And you can’t do that without a good helpdesk. 

With Gorgias helpdesk, you can attend to your customers, establish, and nurture relationships with ease. 

Go ahead, sign up for Gorgias, get your 15-day free trial, and see your customer satisfaction rates skyrocket.

Ecommerce Fundraising

The Ultimate Guide to Raising Funds for Ecommerce Brands

By Rohan Kapoor
13 min read.
0 min read . By Rohan Kapoor

As many of you already know, Gorgias has spilled their blood, sweat, and tears into creating the best customer support platform on the market. 

BUT...

We want to provide our customers with more.

More value. More possibilities. And, most importantly, more opportunities to grow and scale your online business. 

...Enter our new show Vested Interest

Like Shark Tank and Dragons Den, Gorgias is partnering with venture capital companies, including Greycroft, Swiftarc, and Rosecliff. You guessed it...successful applicants have the chance to pitch investors and receive valued feedback and advice. Pitching helps brands boost their profile, and may even lead to a second conversation with an investor.

So, in honor of our exciting new initiative, in this blog post, we're delving into ecommerce fundraising in more detail. More specifically, what it is, why you should consider it, and how to raise those all-important funds to transform your business dream into reality.

Does that sound good to you? Fab! Continue reading to find out more...

What's Business Fundraising?

First things first, we want to clarify what ecommerce fundraising actually is. In short, it's the process online merchants take to secure the funds they need to launch and/or grow their ecommerce businesses.

Traditionally, business fundraising was associated with start-ups, brick and mortar stores, and scaling companies to reach new heights.

But, fast forward to today, more and more DTC brand owners and online merchants are also leveraging capital to launch and/or expand their business. 

And there's no reason you can't do the same. 

Of course, there are several ways to raise business capital, but some of the more popular routes include:

  • Venture capital
  • Crowdfunding
  • Angel investors
  • Taking out a bank loan
  • Equity investors
  • Revenue-based financing

As we've just said, there are plenty of other fundraising avenues, but for the purposes of this article, we're focusing on these. 

What are the Different Business Fundraising Options?

Let's explore the options above in a little more detail...

Angel Investors 

Seeking funds from an angel investor(s) might be the ideal option if you're running a small ecommerce brand that's generating steady profits. I.e., without external funding, you're doing okay. Still, to take your business to the next level, you need a cash injection. 

This is where an “angel” investor might come in handy.  

Typically speaking, angel investors are wealthy people, or groups, who pool their know-how, research, and resources to provide promising start-ups capital. 

Generally, angel investors give companies some sort of financial assistance in exchange for either convertible debt (i.e., the promise of converting part (or all) of the loan into common shares, at some point in the future) or ownership equity.

Usually, you'll approach an angel investor with a pitch outlining who your business is, how much money you want to secure, and what you hope to achieve with their finances. 

As the size of angel investments substantially varies (usually anywhere under $50,000 to over $500,000), you'll have to prove how you'll provide reliable results. You need to show investors why your business is worth their time, and more importantly, money. After all, it stands to reason, if you can prove your brand will go the distance, the safer bet you are for them to invest in. 

Then, after your initial meeting(s) with the angel investor(s), they'll typically go away and conduct their own research, ask you questions, etc. to help determine whether your proposition is a good fit with their investment portfolio. 

Crowdfunding 

In short, crowdfunding is where a wider pool of small-time investors assist a company during its earlier stages. As crowdfunding is typically used to accumulate funds to launch, these businesses often have a minimal (if any) track record of their profits. As such, this fundraising method is ideal for those with a killer business idea, without the financial forecasts to wow angel investors, banks, or venture capital firms.   

There are tons of crowdfunding sites online. For instance:

These are just a few of the many online crowdfunding platforms on the web. But, the ones above are a great starting point - here, you can get your brand and business plan in front of loads of people actively looking to invest in fledgling businesses. 

How to Run a Successful Crowdfunding Campaign

Crowdfunding relies on your ability to inspire trust and enthusiasm in your audience. Show them you've done your research and are prepared to put their money to good use. This means breaking up your estimated costs and demonstrating where the money will go. For instance, how much is allocated to production, how much on design? Showing you understand your costs improves your credibility. 

Whatever crowdfunding platform you choose to use, post regular updates, and answer questions. Show the community that's building around your idea that you care for their involvement. Investing in a crowdfunding project can be daunting, some investors might fear that you won’t come through. So, demonstrate from the start that you're reliable and fully invested in putting their worries at bay. 

Last but not least, make sure your crowdfunding campaign is well presented. Where possible, use high-quality graphics and video content. Proofread your proposal, ensuring all the info is shown in a way that's logical and easy-to-read. Get friends and family to check over your campaign description for you. Professionalism goes a long way in inspiring the confidence of potential investors!

Venture Capital Investors

Securing investment from venture capital firms like Greycroft, Swiftarc, and Rosecliff, is (usually) better suited to larger online enterprises. For the uninitiated, 'venture capital' is a form of private equity and financing that investors provide businesses with long-term growth potential. 

Entrepreneurs typically secure this kind of financing from affluent investors or investment banks. But, it's worth noting that venture capital doesn't always take a monetary form. Venture capital can also be provided as technical or managerial expertise. 

As investments go, plowing money into an ecommerce business is one of the riskier options. But, the potential for above-average returns is enticing, so we're seeing more and more investors adding online brands to their investment portfolio. 

However, the main drawback for brand owners is that investors usually get equity in the company. As such, you'll give up the luxury of having full control over your business's operation. You don't need us to tell you that this a big deal. So, take your time weighing up the pros and cons of any investment agreement before signing the dotted line!

Equity Investors

Equity investors do precisely what they say on the tin. They're people who provide companies with financial investment in exchange for a share of the business's ownership.

Generally, equity investors don't get a guaranteed return on their investment. But, should the company be liquidated, the equity investor will get a share of the assets (as stipulated in your contract). 

Unsurprisingly, as equity investment is a riskier option for investors, they often expect to receive certain benefits to offset these risks. For instance, your investment agreement might stipulate that their initial investment is paid back within a specific time frame. Then, afterward, it's common for investors to be paid a pre-agreed share of the profits once you've paid back their initial investment.

Alternatively, (or as well as) equity investors can receive stock shares. Of course, stocks rise and fall depending on the market. So, again their return on investment isn't set in stone. But, the investor has the luxury of selling their stocks on the stock market or via other trading platforms, whenever they feel like it. So, be sure to bear that in mind while you're drafting up your agreement. 

Securing a Business Loan From a Bank

Of course, the more traditional route for securing funding is to apply for a small business loan with a bank or other reputable lending institution. 

If this is an avenue you're considering, you'll want to know why business loans get rejected to increase the likelihood of securing your requested funds. 

Interestingly, the most common reason cited for why business loans are rejected is 'risk.' This is why thoroughly preparing before meeting to discuss (or applying) for a potential loan is imperative. You want to do your utmost to show you’re ‘low risk.’

Part of this planning phase will be gathering the below details and documents:

  • Your personal credit history
  • Your business plan
  • The workability of the business you're launching/expanding
  • Your experience
  • Your education

As you go about creating your business plan, focus on explaining why the small business loan you're asking for is a low-risk proposition. Be sure to carefully assess how much money you need and why. Outline how you'll spend these funds, and how the loan will specifically help you launch and/or grow your business.

Be prepared to explain how you'll designate every dollar you've asked for, with specific reference to your business's following aspects:

  • Business operations (employees, software, marketing, utilities, etc.)
  • Physical assets (equipment, office space, warehousing, etc.)
  • Consolidating loans to pay off business debts.

You'll also need to explain how you'll repay the loan through your financial statements and cash flow projections. This should highlight to the potential lender that you're able to repay them over a set amount of time.

Revenue-Based Financing

Revenue-based financing is sometimes referred to as royalty-based financing, so don't let the interchangeable terminology confuse you. Both terms mean exactly the same thing!

In short, revenue-based financing is a method businesses use to raise capital from investors. In turn, the investors receive a percentage of the company's regular gross revenue until a pre-set amount is paid (in exchange for their original investment). Typically, this sum is three to five times the initial investment. Companies like Clearbanc charge a flat fee for their capital. Uncapped is also another fantastic example of a revenue-based financing company. 

Essentially, organizations offering revenue-based financing use data-driven methods to provide ecommerce companies with funding. Capital is typically spent on online marketing and inventory.  The best thing about this kind of arrangement for the entrepreneur is that there aren’t any credit checks, personal guarantees, warrants, or covenants involved.

Why Should You Leverage Investors to Build my Ecommerce Business?

Whether you're leveraging angel investors, an equity investor, or the help of a venture capital firm, there's one significant advantage. 

These kinds of investments are (usually) nowhere near as risky as taking out a bank loan. Unlike a loan, (depending on the contract you have with your investor(s)), invested capital doesn't typically have to be paid back if your business flops. 

Plus, most experienced investors understand that they're playing the long game. So, there isn't quite as much pressure to make quick decisions and turn high profits immediately. 

Why Shouldn't You Leverage Investors to Build an Ecommerce Business?

If you don't like the idea of losing some (or even complete) control of your business, then seeking the support of investors might not be the best option for you. Often investors become part-owners of your company, so depending on their share, there's a good chance they'll have a say about how you run your business. On top of that, should you ever sell your business, they'll also receive a portion of the profits.

How to Best Raise Capital to Fund an Ecommerce Brand 

For this section of the blog post, we're mainly focusing on angel, venture capital, and equity investors. 

When it comes to raising capital to fund an ecommerce brand, there are specific times in the business cycle when you're more likely to secure funding. 

Yes, your best bet is to seek investment when you're actually ready to grow your business. But, securing financing, especially from an angel investor, can take roughly six months to a year. 

So, it's advisable to start contacting and pitching investors roughly 12 months before you actually need the funds to boost your business to its next phase. 

Not only will this increase the likelihood of securing funding for when you actually need it, but for every failed pitch (yes, sadly, there will be failures), you'll benefit from those all-important pointers. 

The more investors you talk with, the more apparent it becomes what investors want to see from your company and your business plan before they're happy to invest. 

With this info to hand, you're then in a better position to adapt your business (and your pitch), to meet the needs of investors, when you actually need the funding. 

How do you strike up a Relationship with a Potential Investor?

Typically, you'll kickstart your relationship with an investor by presenting a business plan. Do your utmost to wow them from the get-go, so they'll only be telephone a call away when you need capital. 

As we've just said, if you're preemptively pitching investors before your business is fully investor-ready, the investor will probably point you in the right direction. 

You can then go away and mull over this information and make the necessary changes to increase the chance of them investing in your business in the future. 

What Can You do to Prepare your Business for Investment?

The best thing to do is to write a full business plan. The most important thing for lenders is what they'll get from the arrangement. As we've already hinted at, you'll want to highlight your expected financial projections. This serves as much-needed bait for enticing investors into funding your business.  

We talked about business plans a bit earlier. However, they're essential to securing funding, so we're delving a bit deeper into creating a killer business plan (of course, this advice also applies if you're considering a bank loan)...

Here are a few tips:

  • Keep your business plan as concise and to the point as possible. Just focus on what the reader needs to know. 
  • Thoroughly proofread your business plan - you can use Grammarly to help you weed out and fix any typos. 
  • Use charts to help illustrate your points, visuals are often helpful aids. 
  • Include any extra info in an appendix, for instance:
  • Financial forecasts 
  • Market research and data to back up your proposal
  • The resumes and credentials for all your key team members.
  • Any product/service literature that explains what you're bringing to the market. 

Don't be tempted to be overly optimistic about where your profit forecasts are concerned. Yes, this might up your chances of securing the desired finances. Still, in the long run, you're more likely to suffer from a cash flow crisis and damage your management credibility. Put simply, it's not worth it - stick to the truth. 

Also, ensure your business plan looks as professional as possible. Show the lenders you're taking their investment seriously! So, put a cover on it, include a contents page complete with page numbering, and kickstart your proposal with an executive summary. 

For those unsure what an executive summary is, it's just a condensed synopsis of the key points covered in your business. The reader's digest version if you will. 

On top of that, you'll also want to highlight the following details:

  • How your business runs, including a breakdown of your organizational structure and all the stakeholders' roles and responsibilities.
  • Your brand identity - who you are, your brand story, your goals, mission, aims, etc. 
  • A detailed report of your target market (this should include any weaknesses in your competitors’ products/operations you'll capitalize on). 

Other Tips for Securing Investment

As you go about creating your pitch, familiarize yourself with your audience. You want to know your potential lenders inside out and back to front to tailor your pitch accordingly. 

Yes, specific metrics (like your current profits and profit forecasts) lay the framework for any pitch. Still, you'll need to tailor your core messaging to appeal to each investor's needs. 

The key takeaway: Do your homework and modify your presentation accordingly. 

Last but not least, remember business financing is a process. It's likely you'll have to divide your financing objectives into two to three rounds. Securing funds for your business when it's brand-new, (and all risk), and has very little revenue behind it, is more of a challenge. 

So, when you first start out, you're unlikely to obtain all the money you need to launch and scale your business. But, once you have a working prototype and a loyal customer base, you'll take away some of the risks, and as such, you'll probably secure more funds. Prepare for this in advance by dividing your business's growth into specific sections that you raise funds for accordingly. 

How Much Can Ecommerce Brands Raise? 

There are tons of examples of ecommerce brands furthering their business by raising capital. Take Womenswear retailer, Hush, as an example. Hush sells women’s clothing, shoes, and lifestyle items. Currently, it's retailing its products via its website, its partnership with John Lewis.

But, recently, they've secured investment from a private equity firm, True. Hush, now worth over 50 million dollars, plans to utilize these funds to expand into new sales channels and markets.

True acquired a controlling interest in Hush, (roughly a 50% stake). This is what the owners of Hush had to say about the investment:

“We never thought [Hush] would get to a fraction of the size it is,” “We could have carried on [without outside investment], but we felt...real value in bringing in a partner with a similar vision to us, but different skills, to help us grow.”

Interestingly, this is what True had to say about investing in Hush: 

“We think highly profitable, predominantly direct-to-consumer brands such as Hush...will emerge in [good] shape from this current crisis – and completing the transaction now demonstrates that we’re very much open for business and excited about the opportunity ahead of us.”

What About Crowdfunding?

If you're considering crowdfunding avenue, below are a few brands that smashed their targets. Hopefully, these examples will fuel you with inspiration:

Pebble – also known as “The Kickstarter Watch”

Pebble successfully raised $10.3m, when their target was just $100k!

This is what they had to say about the process:

“We had a pretty firm idea of what Pebble would look like. We just didn’t have a bunch of cash to start actually building the product. So, we thought of some other ways to get funding, and one of them was Kickstarter."

Bo & Yana 

These are interactive toy robots that help teach kids how to code. Product owners, Play-i, managed to raise a whopping $1.4 million when their initial aim was just $250k. 

Play-i successfully attracted investors from dozens of countries around the globe, securing 11,000 pre-orders! Interestingly, this company utilized crowdfunding to test the market and get a feel for consumer demand, having already secured $1m from Google Ventures. 

How did Play-i manage to entice so many crowdfunding investors? 

In short, they provided various benefits to their first buyers: 

“We needed to build social proof right off the bat, so we created special perks for the first few buyers. Our first 1,000 backers got limited edition, exclusive outfits for their robots as an incentive to back early. We emailed our existing audience and friends several hours before our campaign went live [to] be among the first to back the project. This gave us the momentum we needed to get off to a good start.” 

The team at Play-i also responded personally to all their audience interaction - every email, comment on Facebook, query on Twitter, etc. It stands to reason investors and customers feel more confident in your brand when they have a personal connection with you and your business. By taking the time to write customized responses to each and every person who wrote them, they ensured people got excited about their product!  

OpenaCase 

OpenaCase is described as the 'world’s most functional iPhone case is a bottle opener.'

The ecommerce brand managed to raise an impressive $283k, massively exceeding their $150k target. 

This is what the founders had to say about the crowdfunding process:

“We didn’t have the capital, so we turned to crowdfunding... When we put the idea on Kickstarter, we realized... lots of people loved the idea and were willing to put money towards it to make it happen. [There's] Nothing better than having your idea validated by people voting with their wallets.” 

They attracted attention to their crowdfunding campaign by creating a Facebook page, and contacting online publications like Tech Crunch and Gizmodo, that's as well as their local paper. They spent lots of time cultivating as much possible PR to gain the traction they needed to raise those all-important funds. 

Are You Ready to Secure the Funds You Need to Launch or Scale Your Ecommerce Business?

We hope that having read this article, you now have a better idea about raising the funds you need to take your ecommerce brand to the next level. 

As we said from the get-go of this article, Gorgias wants to help ambitious e-commerce brands scale up, so we created the Vested Interest event. If you're interested in securing finances from high-quality investors, then what are you waiting for? Apply today to get the ball rolling! If you have any questions about the show, please feel free to reach out, and we'll furnish you with all the info you need. Speak soon!

Fighting Discrimination And Racism

Our contribution to help fight discrimination and racism

By Romain Lapeyre
1 min read.
0 min read . By Romain Lapeyre

2020 has seen two crisises so far. Because of the global pandemic, millions of people lost their jobs. We've responded with a plan to offer free credits to businesses that struggle.

George Floyd's death is showed us again how deep racism still is in the US and around the world. Gorgias is committed to supporting members of the Black community against racism, prejudice, and hate.

We're actively taking measures to make a difference now, and tomorrow:

  1. We're donating $10K to local non-profits that support minorities in the Bay Area and in Charlotte. We were profitable for the first time in May and this is 100% of our profits.
  2. We're proactively sourcing diverse candidates for our hiring needs and we remain committed to making sure everyone gets an unbiased chance through the interview process.

We realize this is only a small contribution to a big problem, but change has to start somewhere. We see lots of businesses take action so we hope the sum of all these initiatives will lead to long lasting change.

Shopify Subscription Trends

Shopify Subscription Trends & Tips to Navigate Through Crisis

By Ashley Kimler
8 min read.
0 min read . By Ashley Kimler

As brands have begun to evolve due to COVID-19, subscription offerings have been impacted tremendously. Many founders are baffled about what to do. But, you’re not alone. Learn about the trends we’re seeing with Shopify Subscription businesses and what successful brands are doing as they explore these new waters. 

Read on to learn what’s happening in the subscription service realm and how you can better navigate through the muck to a thriving company in a post-Coronavirus economy. 

eCommerce Subscription Trends From the Last 12 Weeks 

What happened in the eCommerce space due to COVID-19? In our helpdesk ticket platform, we’ve seen the following trends in subscription business customer service: 

  1. In the beginning, there was a tremendous spike in subscription cancellations. 
  2. Shortly thereafter, we saw an increase in requests for a partial refund. 
  3. A few weeks passed before we noticed an influx of solicitations for full refunds. 
  4. Most recently, order cancellations came pouring in. 


Now, partial refund requests are going down -- these requests were for shipping costs, specific discounts, and other related transactions. 

On the macro level, overall subscription order processing is up. However, on the micro level, a number of merchants aren’t weathering the storm as well as others. 

Subscription offerings in the higher-value, hobby space seem to be a bit slower than usual. Yet, merchants who offer subscriptions for essential consumer packaged goods have to hustle to keep up with demands.

And, this is not surprising at all. Many people had a knee-jerk reaction to the pandemic while others had a change in priorities. Right now, people are more reserved about making snap-decisions. We can likely expect purchasers and merchants to make more calculated decisions now and into the future. 

Now that we’re working from home, we need new essentials like office supplies and furniture. Plus, for some of the essentials like health and beauty products, we’re now turning online for where we might have gone to a brick and mortar shop before. 

Now, people can’t really hop into the store to pick up tp and other essentials on the way home anymore. So, consumers are looking to find the most convenient way to have them delivered. And, they want to know they have a reliable source of essential products. 

For example, at the beginning of this pandemic, everyone knows there was a tremendous run for toilet paper. And, merchants who offered this product saw 10-15X increases with toilet tissue sales. 

Who Gives a Crap is an Australia-based, charitable toilet paper subscription company. 

Accomodate your subscribers with a strategy that puts retention above acquisition
Accomodate your subscribers with a strategy that puts retention above acquisition

When this crisis started, Who Gives a Crap held back stock to accommodate subscribers rather than allowing new customers to order. They chose to prioritize loyalty over acquisition. 

This brand is now thriving because of a steady uptick in consumable goods online. And, while the 10-15X trend may not last, long-term retention and increased revenue are likely. People will want to subscribe to receive preferential treatment. 

Are Higher-Ticket, Hobby Subscription Services Suffering Higher Cancellations & Refunds? 

We don’t have the exact numbers, but just because you offer higher-ticket hobby products doesn’t mean you’re doomed. There are multiple causes for high order cancellations and refunds. 

For example, the supply chain is a key issue. If you don’t have inventory because you’re non-essential or shipping is too slow, you may have to cancel orders and offer full refunds. This happens because you don’t have the ability to fulfill an order, not because of an economic downturn. 

Consumers are also leveraging the freedom to skip shipments and utilize subscription flexibility in other ways. Some people have overstocked or stockpiled on certain products. Then, they realized they didn’t need the quantity, so they now want to pause while still maintaining a relationship with a subscription company.

The UK Independent noticed a trend with sex toys, which fall into the non-essential category -- sales have tripled across the board. While it may have been predictable in retrospect, this isn’t a typical trend for an economic crisis. But, with social distancing, people can’t really go in Tinder dates and they have a lot of time on their hands. So, consumers are spending more money on at-home entertainment. 

(Yet, if your supply chain runs out, no matter your niche, you may still see an increase in order cancellations.)

What are the Products With the Highest Interest for Online Shoppers Right Now? 

Supermarkets aren’t able to service people at their homes in many cases. So, consumers are turning online for many of their daily needs and wants. What we’ve seen is an increase in subscriptions for nearly anything that you use at home. Specifically, here are the products we’ve noticed are in high-demand. 

  • Food
  • Coffee & Tea
  • Alcohol
  • Pets (Cat Litter, Pet Food)
  • Toilet Paper
  • Cosmetic & Well-Being (Natural Deodorant)
  • Vape

Underwaterpistol, a leading Shopify Plus service provider, is working with a new client who was planning to launch a natural cosmetic and well-being subscription box prior to the pandemic. While Coronavirus has added some red tape to the logistics of the operations, consumer demand has accelerated rollout for these products.  

Keep in mind that, over the next few weeks, we are sure to see more changes and it will be important to watch them. 

What Do Successful Subscription Brands Do Differently? 

Some of the tactics we see successful brands using are the same across the board. Know what they are so that you can thrive in the subscription business world. 

1. Retain Subscribers with Preferential Treatment 

Preferential treatment is one of the most effective business tactics for subscription companies because it aligns with the core of why people subscribe in the first place: exclusivity. Who Gives a Crap “guaranteed” subscribers would get their products, which motivated people to subscribe.

Pre COVID-19, we did this at Gorgias and we can attest to the power behind the process. Our subscribers were grandfathered-into specific prices and features. And, we experienced high retention because of this. You will have similar results with consumer packaged goods subscriptions. 

2. Leverage a Wider Product Range

Most subscription box companies have core consumable items. They sell between one to three variations of a product. But, many of the successful brands we see leverage add-ons, either relevant to the core offering or not. 

Expand your product offering to increase one-time sales

A one-time product add-on is trending right now, especially on longer-time use items. So, if your core offering is toilet tissue, which people go through quicker, and you add another product to your offering that might take longer to use, like toothpaste, it can help you increase one-time sales. This is a smart move even if it feels negative that someone wants to cancel their subscription the next month. 

3. Adapt their Subscription Models to Change

If you can no longer offer your supplies because of a supply chain issue, you have choices: 

  1. Sit and wait for this to end while you lose money and loyalty. 
  2. Make a short-term investment to resolve the problem for long-term results. 

For example, some sellers can no longer use Amazon’s warehouses for fulfillment (which aren’t only for sales on amazon.com) because the company is only accepting essential items, at least temporarily. So, some of those sellers stop offering their products through FBA. Those merchants lose a ton of business. 

On the other hand, there have been sellers in similar positions who flew out to their suppliers and negotiated dropshipping solutions. And, guess what? These brands’ sales haven’t skipped a beat. 

4. Add Fringe Benefits 

Amazon Prime members get expedited shipment on purchases and discounts. Likewise, subscription companies can offer fringe benefits and free gifts to their subscribers. 

Freshly Picked is an infant moccasin company that implements this strategy well. 

Offer fringe benefits to create a feeling of exclusivity

Freshly Picked offers “The Fringe,” a membership that costs $10 month. Fringe members get expedited delivery, discounts, and the $10 is redeemable in the store. So, customers can apply their membership cost to purchases. Using this method, you create a perceived discount without giving up your margins. 

5. Use Shopper Objections to Fuel Membership Benefits

You have your customers who believe in you. Then, you have your non-believers who have objections about why they don’t order or why they don’t upgrade. When you know what causes people not to convert, you can make better business decisions. 

So, find out what makes people NOT order from you. Then, add value to your membership offer by providing those perks exclusively. Look to your customer service requests to discover what some of your audience’s greatest problems are, then solve them. 

6. Implement the Right Tools 

First of all, it’s super important to make sure the tools you use are compatible with one another. Next, you need to use reliable platforms. Third, make sure you leverage the features that are available to you. 

The following tools work well alone, together, and with Gorgias to power subscription businesses. 

Klaviyo 

A constant, consistent message is key. And, Klaviyo can help you deliver this by automating crucial analytics, email flows, and sequences.

Advanced Tip: It can work wonders to push for a new subscription after a customers’ second order. 

ReCharge

Recharge is a must for anyone who wants to process recurring payments at scale in today’s market. 

Little Data

You need to be tracking and monitoring visitor and user behavior. Leverage Little Data for advanced and relevant analytics. 

ChurnBuster 

Reduce customer churn with failed payment recovery options from ChurnBuster

LoyaltyLion 

Create data-driven loyalty programs to generate more engagement and subscriber retention. 

7. Communicate Beyond Email 

Email isn’t dead, but you now have an unprecedented opportunity to get in front of people where they are -- on social media and on their phones. Worldwide since the start of Coronavirus 45% of consumers are spending more time on messaging apps like WhatsApp and Facebook Messenger. And, brands are paying attention.  

As a subscription service offering, you should use social media and SMS for order updates, upsells, and other customer communications. Don’t limit yourself to email. And, choose tools that enable you to meet your customers where they are. 

8. Deliver a Consistent Brand Message

As always, your brand message is central to your success. Right now more than ever, people want to hear from you. And, if you stay consistent and connected, your customers will stick with you now and into the future. 

Be mindful that each detail is aligned across all communication platforms including your website, social media, email, and offline messaging. You have an unprecedented opportunity to be remembered if your messaging strategy is aligned across all channels. 

9. Incentivize Wisely

Brands that know how to incentivize see higher returns in business. To illustrate, many new subscription companies launch aggressively with 20% discounts for new users. And, while they believe they’re offering more incentive for customers or members to purchase, they’re actually only making a cut to their own profits. 10-15% discounts offer the same psychological incentive at less cost to the merchant. 

One incentive that does work well is to offer a small discount for the new subscriber and the same discount for a friend. This works well because it creates a sense of community and giving for the customer and generates a referral for the business. 

The bottom line is that successful companies seem to inform themselves about incentives that work and apply creative strategies that show proven results. 

Final Thoughts

The online shopping ecosystem is evolving, but that doesn’t mean it’s all doom and gloom. There are actionable steps you can take to stay in the game now and into the future. Stay informed and roll with the punches. Remember that a bit of extra effort now can have a lasting impact on the long-term outcomes of your business.


Gorgias Partners With Shopify Plus

Gorgias is now a Shopify Plus App Partner - And the only Customer Support

By Romain Lapeyre
1 min read.
0 min read . By Romain Lapeyre

As Shopify Plus continues to power a growing number of the world’s leading ecommerce sites, brands, and merchants, their eco system is evolving. They’ve grown their program to include certified Plus partners, who can keep up with the demand of merchants - one of the many benefits of Shopify Plus. We’re excited to announce that Gorgias is the only certified customer service platform for Shopify Plus merchants.

Not on Shopify Plus yet? Check out our Shopify vs. Shopify Plus breakdown to understand when to switch.

What makes the program special?

The Shopify Plus Certified App Program supports the largest Shopify merchants by helping them find the apps and solutions they need to build and scale their business. This program is exclusive to Shopify Plus apps that have shown a level of product quality, performance, and privacy, and support that can be relied upon for the unique and often advanced requirements of a Shopify Plus Merchants

Enterprise grade merchants need enterprise grade solutions they can trust. When thousands of customers are wondering where their order is after Black Friday, or wondering if they should order half a size up, they need a customer support platform that can keep up.

Which is why Gorgias is the only customer support platform to make the grade. We help merchants like Steve Madden, MVMT, and Death Wish Coffee reduce costs and increase profits.

Scale as you need

Whether it’s BFCM, a new drop, or being featured on Shark Tank, we can scale with you as your demand grows and slows. With unlimited users you can add more support agents or chat sales specialists as you need, without the commitment of multi year contacts. We’ve also partnered with some of the best contact centers specializing in supporting ecommerce merchants..

Automate more and save 30% of your time

Did you know that 70% of customer service tickets are related to to- helping customers with an update on their order, edit, change, or cancel their order? That’s a lot of tedious work that’s costly. Make the lives of your agents easier, by automating up to 15% of your tickets during your busiest days and saving 30% of your time.

Turn Customer Support from a Cost Centre to a Profit Generator

As more customers want questions before they buy, we help merchants monetize and track every interaction with their customers. Use the time that you’ve saved findiFrom questions to potential customers on your ads to targeted website chat, we help Shopify Plus merchants increase sales.

Building delightful customer interactions starts in your inbox

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