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What is Web Design?

Web design refers to creating and maintaining websites for users. It includes interface designing, graphic designing, mobile application designing, and website designing. 

Web designers select the perfect font, theme, and buttons to make the interface attractive. They design the website according to the client’s requirements. 

Web Design vs. Web Development

Some people interrelate the terms web design and web development. However, both terms are different. The responsibilities of web designers and web developers are also different from each other. Let’s study the key differences and similarities for the critical analysis.

Difference

Web DesigningWeb Development
DefinitionWeb designing refers to the designing and maintaining the layout, visual appearance, themes and usability of a website.Web development means developing a website. It includes tasks involved in developing and maintaining the core structure and functionality of the website.
Roles and ResponsibilitiesA web designer is responsible for designing a website interface, visual structure and appearance.A web developer is responsible for the performance of various features of a website.
Programming LanguagesJavaScript, Java, HTML and CSS are commonly used in web designing.Python, Ruby, PHP and Java are commonly used in web development.
Technical knowledgeWeb designers need less technical knowledge about programming. However, they need to be creative while designing a website.Web developers need more technical knowledge about programming languages and technical aspects of websites to maintain the core structure.
TypesWeb designers usually have three types: UI, UX and visual designers.Three types of web developers include Front end web developers, Back end web developers andFull stack web developers.
SkillsWeb designers need editing software like Adobe Photoshop, WordPress and CMS. They also use coding libraries.Web developers need advanced programming skills. They must have a good grip on programming languages, including java, python and ruby, for programming and coding.

Similarities

Web designers and web developers work closely with each other. Both of them need technical knowledge to execute the ideas. However, the level of technical expertise of a web designer and web developer can differ.

Companies that must ensure their online presence need web designers and developers. Sometimes, a single person performs the web designer and developer tasks. Some companies also hire a team that performs all the duties interchangeably. 

Well, web designers and developers should have enough problem-solving skills to ensure the smooth functionality of websites. They need to keep themselves updated about the trends to execute innovative ideas. 

Key Takeaways

We can integrate the work of web developers and designers to some extent. Instead of several similarities, the technical roles of web designers and web developers do not lie on the same level. Companies need both of them to pursue the functionality of their websites.

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How to Calculate Customer Lifetime Value in E-commerce?

Customer lifetime value (CLV) refers to calculating the contribution of each customer to your business for the lifetime. You indeed have to pay something to get another thing. So, a customer’s lifetime value is the return of your marketing efforts.

Customer lifetime value helps you to improve your services to get maximum ROI. So, let’s study several methods to calculate CLV.

Calculate by CLV Formula

The CLV formula is similar to calculating return on investment (ROI). Subtract the total cost you spend on the customer from the total revenue you got from the customer for the lifetime.

Formula: CLV = lifetime revenue – lifetime cost

For example:

You spent 100$ to gain, retain and serve a customer. However, the revenue you generate from that customer is 160$. 

Then according to the CLV formula, 

160$ – 100$ = 60$ 

60$ is the customer’s lifetime value.

Well, each customer is different. Some customers make one-time purchases, and some are loyal ones. So, we can only determine the lifetime value of each customer through this formula. 

Calculate by Customer Revenue Distribution

Customer revenue distribution is the more reliable method of CLV calculation. Initially, we group the customers based on their purchases. 

Let’s assume the groups to make a better understanding:

Group 1: Customer who purchase for 35$ 

Group 2: Customers who purchase for 70$ 

Group 3: Customers who purchase for 100$

We must determine how many customers fall into each group to pursue customer revenue distribution.

For instance:

Group Number Number of customers
186
2120
3159

Now put the values in the formula to calculate CLV.

Formula: CLV= (group 1 no. of customers x group 1 purchases) + (group 2 no. of customers x group 2 purchases) + (group 3 no. of customers x group 3 purchases) and so on…

Calculation:

CLV= (86 x 35) + (120 x 70) + (156 x 100) = 27,010

Now divide the total value by the total number of customers to get CLV

CLV = 27,010 / 362 = 74.6$

We take into account the one-time customers, the occasional customers, and the regular customers in the revenue distribution method. So, the CLV calculated from this method is more reliable and accurate.

Use Purchase Frequency Rate and Average Order Value

It’s a slightly complicated method of calculating customer lifetime value. Let’s start with the formula of CLV.

Formula: CLV = Customer value x Average customer lifespan

Now, how to get the customer value and average customer lifespan? Analyze purchase history to determine the average customer lifespan. Generally, we take 1 to 3 years as an average customer lifespan.

Customer value is different from customer lifetime value. We calculate customer value through a different formula.

Customer value = Purchase frequency rate x average order value

We must calculate purchase frequency and average order value before calculating customer value.

Purchase frequency rate = the number of orders in a certain period/number of customers in a particular period

Average order value = Total sales / number of orders

Firstly, we must calculate the average order value and purchase frequency rate. Put both values in the formula to calculate customer value. Eventually, multiply customer value by the average customer lifespan to get customer lifetime value.

Multiply Profit by the Lifetime Value

It’s another method of calculating CLV. To calculate it, we will use the formula:

CLV = lifetime value x profit margin

Firstly, we have to determine the lifetime value to calculate further. Here is the formula to get the lifetime value:

Lifetime Value = average customer lifespan x number of transactions x average order value.

Once you get the lifetime value, put it in the first formula to calculate CLV.

Use Calculation Tools

Instead of doing complex calculations manually, you can use various tools to calculate CLV. Some marketing platforms, online calculators, and software are used for this purpose. The tools and software even provide accurate results.

These tools access the purchasing history to calculate CLV. Some tools use artificial intelligence to analyze customers’ purchasing behavior. 

Why is Customer Lifetime Value Important?

It is always beneficial to know about the contribution of each customer in your business. This information will help you recognize your potential customers. Hence, you don’t have to waste your time and marketing efforts on the wrong audience.

Once you calculate CLV and know about the insights, you can use them to make business strategies. The following are the advantages of calculating CLV:

  • Get a better return on investment by investing in the right marketing strategies. 
  • Once you recognize your target customers, it will help you to put all your efforts and resources in the right direction.
  • Make better retention strategies for potential customers.
  • Personalize your services for each group of customers according to their concerned segments.

Final Words

Businesses calculate customer lifetime value to make customer retention strategies. This value also helps in designing marketing campaigns. Businesses must calculate it regularly to track their business progress. 

Manual calculations are good enough to make a rough estimate. However, you can take different tools on board to get accurate values.

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How to Handle Customer Support for an Ecommerce Website?

Many ordinary customers approach e-commerce websites daily. Some of them need proper guidance to complete the buying process. So, Provide the best assistance to your customers through customer support services. Also, ensure your availability for your customers to answer their queries instantly. 

Following are some helpful tactics to efficiently handle customer support for an e-commerce website:

Offer Multiple Communication Channels

You must offer multiple communication channels to avoid any inconvenience to customers. Indeed, you can only consider each customer’s preference regarding communication channels. However, at least you can ensure your availability on some most common and best communication channels.

Be Proactive

Instead of adopting the reactive approach, be proactive in every situation. Be sure to solve the issue before customer complaints. As soon as you know about an issue, send message alerts to your customers and an instant apology.

Keep sending automated messages until the problem is fully resolved. Update them, even after solving the problem. You can also ask them whether they are still facing the same issue or not.

Introduce the Live Chat Option

Live chat options work amazingly to respond to customers quickly. You can simultaneously connect with multiple customers to give a personalized response. It’s the best way to value your customers.

Even though some customers feel uncomfortable contacting you for basic questions, they can avail live chat facility to obtain an instant response.

Some best live chat options for e-commerce websites are:

  • Freshdesk
  • Zendesk Chat
  • LiveChat
  • Tidio Chat

Ensure 24/7 Availability

E-commerce websites allow customers to shop 24/7. So, customer support agents should always be available to answer their queries. 

Instant response to your customers creates an excellent brand image in the customer’s mind. Also, customers are delighted when they find quick solutions to their problems.

Create Online Knowledge Base

Contacting the customer support department is the second thought that comes to most customers’ minds. Firstly, they try to figure out things. So, try to mention instructions on each necessary spot to enable self-help.

Create an online knowledge base for your customers. Here are some examples that could help:

  • Instructional Videos
  • Blogs and articles
  • Mention Instructions
  • FAQs

Mention all the details comprehensively. Each product must include relevant instructions for the customers. Also, mention the things like estimated delivery days, return policy, and refund process.

Automate the Services

Many software allows users to automate their services. Automation will help you to improve your response time. We can set an automatic response to every text to ensure the availability of our services. So let’s take the right tool on board to improve our customer support system.

Automatic sales and discount alerts help to retain your loyal customers. Sending scheduled emails and texts is also very common in e-commerce. 

Personalize the Services

Personalized services boost the satisfaction level of customers. If you start the text by writing the first name of customers, it creates a sense of association. 

It delights the customers when you mention that something is exclusively for your loyal customers. Similarly, sending greetings for customers’ birthdays and festivals tighten your bond with customers. 

Consider Customer Feedbacks

Remember to pay attention to customers’ feedback and suggestions. Consider those feedback to improve your business. Some online businesses also conduct surveys to assess the customer’s requirements.

You can get enough data from response texts, complaints, contact corners, comments, and reviews. Use this data to improve your services for customers.

Ensure Support Team Integration

Mutual interaction among each department is crucial for any business. So, try to keep seamless integration among support team members. It will help you to offer better customer support services. 

Seamless integration with other departments is also essential. So, the customer support team can report the customer complaint to the concerned department for an instant solution.

Final Words

Practice the right strategies to handle customer support systems. Instant response and quick solutions are all that customers want. So, improve the quality of your customer support services by fulfilling your customer’s expectations.

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How to Increase Sales on E-commerce Websites?

Engaging content plays a vital role in increasing sales on e-commerce websites. However, you must follow several strategies to make your content engaging and attractive. Therefore, we have piled up the most useful tactics to engage the audience.

Portray Products Attractively

Customers have to rely on images and videos in online shopping. So, portray your products in the best way to capture the customers’ attention. 

If a product is physically appealing, the sales ratio automatically increases. The same is the case with the digital representation of products. Better representation attracts more customers and eventually becomes a reason for boosting sales.

Set Competitive Prices

Reasonable prices have a significant impact on the sales of the products. Many tools and software allow customers to compare prices from different websites. So, keep your prices reasonable to get the maximum sales.

Study the competitors’ pricing strategy before setting the prices of your products. A complete research and market analysis will help you to get reliable information about pricing strategies.

Ensure Social Media Presence

Social media platforms help a lot to flourish your business. It’s the best place to promote an online business through free and paid marketing campaigns.

Your social media followers are no less than an asset to your business. Therefore, you can obtain sales by using several social media platforms. A handy “SHOP NOW” button can take your audience directly to the website.

Build Customer Trust

Ask yourself, why should customers purchase your products? Please give them a reason to buy your products. Make your brand trustworthy by offering reliable services.

Keep things simple and transparent. Also, make promises in promotional campaigns that you can fulfill. 

Focus on Quality

Quality should be the priority. You can only retain customers with high-quality products and services. Also, no business can increase sales without customer retention.

High-quality products will help you to get positive reviews and high ratings. You can mention the rating and reviews on the website to gain customers’ trust. 

Create Video Content

High-quality video content will help you to boost your business sales. Video content is perfect for showing the keen details of your products. In addition, an engaging voice-over in the video can be a game changer for your business. So, upload mixed content based on photos and videos to effectively portray the products and services.

Simplify the Shopping Process

A complex buying process can complicate things for an ordinary person. So, simplify the shopping process as much as you can. The interface should be easy to use, and add a “help” button for further assistance.

Make sure users get the products ordered in 2 to 3 simple steps. The steps may include the following:

  • Add to cart
  • Add details
  • Check out

Offer 24/7 Customer Support

You can satisfy your customers with the quality of your services. So, offer 24/7 customer support to your customers. Timely answering customer queries can help you to obtain instant sales. Also, you can help customers in the purchasing process to ensure smooth transactions. 

Maximum interaction with customers will also keep them engaged. Order confirmation texts or discount updates will help you to get potential customers.

Offer Deals and Discounts

Frequently offer deals and discounts to obtain maximum sales. Remember to update your regular customers about new deals and discounts. 

Mention the discount offers very clearly to capture the audience’s attention instantly. Following are some examples of deals and discounts:

  • Buy one get one free
  • 20% discount
  • Discount vouchers
  • Discount codes
  • Discount on 1st order

Stay connected with loyal customers and send them discount codes to retain customers. Discounts on 1st order also help to capture new customers.

Mention Reviews and Ratings

Mention the rating and reviews on your website. Most customers make the buying decision after reading other customers’ reviews. So, it helps to gain customers’ trust. Your website also looks attractive, professional, and authentic, with ratings and reviews on each product. 

Conduct Social Media Marketing Campaigns

Paid and unpaid marketing is a widespread practice in e-commerce. Regularly posting content can help you to obtain organic followers. 

Some e-commerce marketing tactics include the following:

  • Affiliate marketing
  • Paid ads on Facebook, Instagram, and other platforms
  • Email marketing

Key Takeaways

E-commerce is a field of high competition. So, analyze your business requirements and apply the appropriate strategies to get the best out of your efforts. Sometimes you need to do proper market research to get enough sales. However, we have summed up some best practices to increase the sales ratio of your online business.

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