How to Maximize AOV with Post-Purchase Order Editing: Hamish McKay

[Applause] today I have a super special guest all the way from Australia Hamish he is the co-founder of order editing and I'm going to be tapping into his knowledge today thank you for joining me on this call thanks for having me this is super exciting love it man Okay cool so we'll get stuck right into it um before I let you speak any further I I reached out to him I wanted to get him on the podcast because we we serviced uh e-commerce brand few years ago probably about two years ago and of course as email and SMS marketers WE Post purchase so the moment someone places an order you always want to tap into an immediate upell or cross cell just so you can increase the aov you know for the e-commerce business and this particular business told us that unfortunately is not possible within their business because once an order gets in the system they can't rework or edit the the order it's kind of a done deal so we were kind of stuck with their operational constraints so when I came across order editing I was like H is this potentially the way to accomplish that for brands with very strict uh you know f filment processes so I'm going to talk to him he's going to tell us about the problems they are solving for e-commerce businesses and I'll just let him go straight into a demo of that tool so off your go man wow was here yeah I think you um I think you reached out after I put up this this image that one of our clients was sending out naked Sundays where they effectively email their entire customer base that's email marketing subscribed with like beautiful image of like they like selling sunscreen they're holding empty boxes and they used this copy of this space in your package Hamish and that's like the subject line yes and their customers jump in the messages there's space in your package like we're preparing it for shipment x y and z are 20% off for the next 60 minutes and that's what a lot of email marketers get really excited over and I think you might have messaged after that absolutely but that Taps that Taps straight into what we do I mean we let customers make amendments to their order after purchase and it's a super common customer service issue where 10% of your help desk time is spent going changing customers addresses or canceling orders or applying discount codes retroactively doing all of this nitty-gritty work that customers should just be able to do themselves in a perfect world you should be able to check out and if you Apple paid your ex-girlfriend's house you should be able to change that without getting on the phone or having to write an email um and that functionality is super meaningful but for the email marketing side of things for the Ecom managers the head of digitals that are super focused on increasing revenue and driving profit they quickly head us up and they said look if a customer can change their address they surely can buy more products as well at the same time can we send out that email can we say there's space in their package can we do an SMS and actually start driving postp purchase UPS sales increasing items per car increasing aov all of that good good stuff that we both love and that's now being like the real driver of our business is been this upselling piece because no one's been able to do it before and the cool thing about it is it doesn't feel as forced as just a cold upsell cross sell email that someone receives hey before we process just buy more where you're almost giving your control back to to the buyer the consumer and they almost feel in control and this is actually great so it almost feels like a bit of a frictionless friendlier approach to to you know upselling cross which I absolutely adore yeah it's really neat and like we I think it Taps into two really key consumer behaviors and one is that we're all very anxious Shoppers right now um like the data that we have in our app is that if you're sending out that postp purchase email anywhere between 10 to 15% of your customers on average will go in and make a change to their order after purchase and a lot of brand owners like holy crap you know 15% of our customers are making a change after purchase like that's concerning um but in actuality it's just all of those customers going into their order they're looking at it again and they're confirming it before it ships and if you've got 10 to 15% of your customers revisiting their order after purchase and they seeing complimentary items or UPS sales or encouraged to increase the quantity for a discount that is just a gold mine of potential revenue and so when we're working with a brand we have these two metrics of like how can we increase frequency of use and get as many customers into our app as possible to make an edit like % is great we want 20 we want 30 and then how can you get the the upsell conversion really high of you know when 20% are in there how many are actually buying more products and that's usually about 10% nice and tell me do you guys pretty much sit within the post purchase transactional order confirmation emails or what is the best way to prompt people right after the order or do you actually sit on the the the website back inside yeah I mean we can run through the demo a bit later but essentially or do you want to do that now or why not let's do it yeah let's show people the the magic behind it so the customer journey is that they check out and that's screen sharing cool they check out they land on shopify's thank you page and there's a button there that says edit your order because this is all done through checkout extensibility if they click that it takes them through to shopify's order status so effectively your customer accounts literally where the customer goes for all of their information and then they see a set of components like shipping address buying additional products being able to increase your quantities changing product options upgrading shipping methods all of the types of edits that a customer might want to make yeah yeah absolutely no no I like the idea of of having it right there in the in the interface you know on the confirmation page I'm wondering yeah um you'll probably also touch on this um the the order does it get is there any chances of that order not processing because if you're kind of halting that order from processing and allowing people to almost um I don't know do people cancel is there any chance of people canceling the order before it process because I know I've seen brands that are quite worried like why are you guys then prolonging the processing of the order is that's not potentially bad for us yeah and that's the whole postp purchase upsell challenge is is once an order goes down to your WMS or your 3pl it's generally locked up what we build is functionality to stop that automatic pull from happening and actually incorporate some form of delay that you can set like to the second or the minute of what you want that to be most do 15 or 30 minutes where the orders of Shopify customers have a grace period to make The Pick of their order accurate and make sure it goes to the right place and then it gets sent Downstream um if there's a risk of overselling when you have a type of order delay like that we can also cancel and recreate orders and use a manual payment Gateway so you don't pay Shopify a whole bunch of processing fees that you don't need to um but in a perfect world you delay orders going down for an editing period and that's when you pick up all of these problems that's when if I don't make any action if I don't make any changes my order will Auto process in the back end 30 minutes after I purchase correct that's right okay that's right and if you have like a shipping SLA of you know if you place at before 2 p.m. your aut ship same day or order ships next day what we do is we just set conditional blocks and we say orderers plac between 1:45 p.m. and 2 pm. they go straight down so that we don't actually impact your processors at all got it got it nice smart it works it works it works and I mean it's just this astounding thing where you wake up the next day and you don't have any more support tickets and you never have any more support tickets after that and like you know we work with like I think the best example is represent CL who are about to go live in a few weeks um have' just finished up onboarding and they spent 40 hours a week changing addresses after purchase unbelievable like you know we work we work with a sunglass brand that used to spend like smaller smaller order volumes you know not one of the biggest brands in the world but smaller order volumes and they used to spend eight hours every week changing orders or 40 hours per month and now they're self serviced all of that but they also make 10 grand of us upsell Revenue every single 30 days sure which you know no that's that's that's amazing and tell me the um for the email SMS marketers and just marketers in general how would you debug something like this like like this problem this root cause would you just essentially ask questions around how frequently are people changing their addresses um and is your customer support team kind of blocked out doing that H how would you kind of support because some some e-commerce Brands out there might not be aware of the solution yet so it's obviously our marketers role to kind of inform them about some of their problems and how we can solve that like what is your recommendation on how someone can debug this for for their teams or even their clients yeah and I mean it depends on who you speak to if you speak to a customer service agent or manager they will immediately tell you that that's about 20% of their day or 10% of their day if you speak to an e-commerce manager or a marketing manager or a head of digital CTO there's a chance that they'll have less awareness of it because I find CS departments end up being quite siloed and the conversation there is usually and this is the conversation that I have is do you do any postp purchase up sales would you like to and then you show them an email like this and say you know would you be pretty happy if 1% of all your customers took up the software after purchase you just send this out through clavio with our integration customers click that button and then it takes them to page like this and this should load my order details this time customers can access their order status page from the auto confirmation email right from the thank you page and then an any clavio upsell email or you know that this space in your package email you just direct customers here and then they land in and they see all of the editing components and what a typical customer journey is is they click in they want to edit their shipping address we use Google Maps apis to verify it know here it's pulling up that my post code is wrong for this Australian address it calls out things like missing phone numbers and it's super clear when you save it drops the component up address saved and that's been saved against my order and then naturally what we're trying to do as these changes happen is try and get customers to upsell and they see that it's 20% off everything they see one clickup sales down the bottom they can view those they can see it they can add that to their order and then they effectively just get they get sent an invoice to their email which is just shown up on my phone they can also check out straight through the app oh god I've gone past the cut off point it's so funny and then you can view your invoice you're paying for the updated total less what's already been paid so here it's 885 that new product and then we're updating the original order so you can see the changes have already sync through here but it's on hold but it's not a fully paid order it's tag CH shiing address product data sitting with an invoice and we update it in the order timeline too zip code updated customer added this product here's their checkout link we're holding fulfillment it's waiting payment and H sitting with an invoice and until that's paid this won't get sent down to your Warehouse to your 3pl and it won't ship out but once it is it'll get set down automatically um and it's a quick run through that's pretty damn cool and tell me quickly yeah you obviously integrate directly with clavo so the the triggers that gets pushed into clavier you can get timing post purchase flow and transactional flows that's right clavio gorgeous it's all very accessible from here I love it love it I love giving power back to email and SMS markers especially because we drive a lot of you know post purchase transactional type of emails so having technology like this you know play well into our space and we can make people more money is just beautiful so it's something that I think all brands should sign up for but yeah thanks for the demo appreciate it no worries yeah um but those are the types of conversations that you need to have like whenever I speak to someone and they're asking about the ROI of this type of thing there's really three points to work through one is how many tickets do you receive relating to address changes I forgot my discount code can I cancel my order can I change product switch size all of those types of things and multiply whatever that number is by2 or three us because that's the average cost per ticket for every single e-commerce brand regardless of what you sell and then cost savings aside consider how many orders do you ship out per month if you do 10,000 then we know that you'll probably have at least 100 up sales through our app because 1% of all customers will buy more products multiply that by the average you know value of your items and you can get a pretty good forecast of what types of Revenue this would generate for you it's great the last the last really interesting piece and you know you spoke to it earlier of you know brands are wanted to ship out orders really quickly you don't want to do delays almost half the clients that we work with now went from this process of acknowledging that they sometimes ship orders the wrong address or with the wrong products and end up doing a return or refunding them because the help disc the help disc can't work through the tickets before they ship it out and I lit like I'll before before I meet with a brand I'll I'll order something I'll email them and say hey can I cancel my order or hey can I change my address and I'll see if they reply before I'll see before if they reply before it ships out you know 20 30% of the time they don't get back to me and my order goes to the wrong address but it's mine um super interesting and I've seen that within Shopify data like um returns refunds of course there's many reasons why there's a refund or return um but my goodness um we used to Ser as one brand they had probably at least three to four K of products that gets returned to them and exactly like you say if we can reduce 20% of that that is big money especially if they handling the shipping costs and they don't you know put that shipping expenditure on the consumer sending it back I mean that's that's loads of money um very cool man very cool and tell me is it only Shopify native for now do you guys support other platforms yeah so just Shopify um and likely will be for at least the next three or four months we we'll see if it makes sense to build for other platforms at that stage but I mean where this all started out from was like two years ago we were running a Shopify store for Mr Beast and a bunch more of the world's biggest YouTubers where you know we' have like one and a half million customers go onto our site within 48 hours to buy merchandise from them because you know these are big following and I'd wake up to I'd wake up to a th000 emails and that was on Shopify so we solved it for Shopify and then you know after using the product ourselves dog fooding it for a year it was time to kind of go to market and we' already built the infrastructure for it huge slid with the pie to grab so you know grab the pie of the the Shopify ecosystem and it is it's it's amazing um but okay cool I'm happy for you to what we'll do is um I'll I'll we can just attach a stitch a liveo or demo recording to this piece um and I'll basically add it this video um do you quickly just want to wrap up how can people I'll slotted into this little space between the two do you how can people get in touch is there a a demo that you guys offer um can they reach out to you connect to you via social media how can people get get in touch with you guys yeah if you want to get in touch with me linkedin's probably the easiest way just search up ham M on there and send me a DM otherwise my email is just heish Auto editing.com and feel free to get in touch with me there otherwise you can book a demo through our website again order editing.com love it easy enough do it people I think there's a a great product um year and why would you not get involved in this if you can a save you money and make you money I mean that's the two levers we want to pull but yeah thanks for your time today appreciate it and yeah I'm looking forward to seeing how you guys grow in the ecosystem and amazing ads off to you for what you guys are busy accomplishing appreciate it man [Music]

Channel: MagnetMonster

Views: 42

Keywords: klaviyo, email marketing, sms marketing, retention marketing, life cycle marketing, email marketing strategy, email marketing strategies, email marketing tactics, email marketing techniques, klaviyo training, klaviyo education, klaviyo FAQs

Id: mQHTFAfIbUs

Length: 18min 30sec (1110 seconds)

Published: Fri Jun 14 2024