The daily objective of an eCommerce manager selling tobacco is the same as an eCommerce manager selling t-shirts. How can they make buyers happy and then convert those buyers into loyal customers?
This is an important question to have a strategy for because the data shows that repeat customers convert more often and spend more money.
The difference for the eCommerce manager selling tobacco online is the FDA’s regulation. To date, the FDA has conducted 1 Million compliance checks of tobacco retailers. Retailers of t-shirts don’t need to prepare for this.
An industry leading online vape shop decided to view the high regulation as a reason to focus on repeat customers. Their eCommerce team said that they were going to prioritize repeat customers, because they’re low risk and high value.
What are the advantages of focusing on repeat customers?
- More purchases
- Larger purchases
- Eliminate fraud
- Eliminate chargebacks
- High confidence that you are not serving underages
What was the online vape shop’s strategy? To make their online store member based.
They asked first-time customers to go through a minimal process to become members. Once members, these shoppers got a frictionless and safe shopping experience on future transactions.
Having a member based website allows the vape shop to comply with regulations, eliminate fraudsters and focus on their loyal customers.
What should be asked of customers before they become members?
- Ask first-time customers to attach billing information to their account
- Ask first-time customers to sign-up for marketing materials
- Require new members of your site to scan Government ID + Selfie Photo
When online shoppers turn from customers to trusted members, online businesses can be compliant with the FDA and eliminate fraud.
To see the advantage of verifying first-time customers with Token of Trust, go here.
How can Token of Trust help?
Token of Trust’s mission is to protect consumer data while providing online businesses the customer data they need to make safe sales. Anyone can partner with Token of Trust and use our customer verification tools. Get started here.