Shopify

Shopify was founded by Tobias Lütke, Daniel Weinand, and Scott Lake in 2006. The company's origin story can be traced back to Tobias Lütke's frustration with existing e-commerce platforms when he was trying to set up an online store for his snowboard business, Snowdevil. Lütke, a computer programmer, decided to build his solution to overcome the limitations he encountered.

Using the Ruby on Rails framework, Lütke developed a platform that would eventually become Shopify. The trio officially launched the platform in 2006, and it quickly gained popularity for its user-friendly interface, customizable templates, and comprehensive set of features that made it easy for small and medium-sized businesses to create and manage their online stores.

Over the years, Shopify evolved and expanded its offerings, introducing various tools and services to help merchants with inventory management, payment processing, and shipping. The company went public in 2015 and has since become one of the leading e-commerce platforms globally, empowering businesses of all sizes to sell products and services online. Shopify's success can be attributed to its commitment to simplicity, scalability, and continuous innovation in the e-commerce space.

Problem Statment

• Businesses often struggle with the technical complexities of setting up and managing an online store.
• Many entrepreneurs lack coding skills and find existing platforms too complex or cumbersome.
• Some e-commerce platforms are not user-friendly, making it challenging for entrepreneurs to navigate and manage their online businesses efficiently.
• Existing e-commerce solutions might not offer enough flexibility for businesses to customize their online stores according to their brand identity and unique requirements.

Shopify Value Proposition

1. Easy Online Store Setup:
2. • Shopify lets you create your own online store without needing to be a tech expert. It's like setting up a shop online with a few simple steps.
3. Customize Your Store Easily:
4. • You can make your online store look and feel exactly how you want, even if you're not a design pro. It's like decorating your physical store but in the digital world.
5. Manage Everything in One Place:
6. • With Shopify, you can handle payments, keep track of your products, and manage orders all in one spot. It's like having a tool that helps you run your entire store from your computer or phone.

User Experience Value Prop

Businesses aiming to create an online store, whether they are direct-to-consumer (D2C) or established brands, choose Shopify for building their e-commerce presence.

Active User

• An active user is someone who consistently uses Shopify to manage their online store. This involves tasks such as updating product listings, adjusting prices, handling inventory, and ensuring a smooth and current shopping experience for customers.
• Active users are frequently involved in sales-related activities on Shopify. This includes processing customer orders, managing payments securely, and actively participating in marketing and promotional efforts to drive sales and enhance the overall performance of their online business.

Shopify Products

Engagement Framework

Product and Use cases

Engagement Framework

User Segmentation

Engagement Campaign

Retention & Churn

Visualising Retention Curve for Shopify

According to qualitative findings from user conversations and additional online research, it appears that Shopify experiences a substantial 66% annual churn. A detailed examination of the data suggests that this is largely attributed to involuntary churn, considering that survival rates in the e-commerce sector generally fall below 10%.

Source

A mere 34% of Shopify stores manage to endure their initial year. This figure raises concerns, especially when juxtaposed with competitors such as WooCommerce, Wix, etc. (see image below for reference).Source

Churn

Top negative actions to track

• Reduced Login Frequency: Significant decrease in the frequency of a user logging into their Shopify account.
• Decreased Product Listings or Updates: Infrequent additions or updates to product listings.
• Decline in Order Frequency: Substantial reduction in the number of orders placed over a specific period.
• Dormant Subscription or Plan Downgrade: Users downgrading their subscription plan or letting it become inactive.
• Unresolved Support Tickets: Multiple unresolved or long-pending support tickets.
• Negative Feedback in Surveys or Reviews: Expressing dissatisfaction or negative sentiments in surveys or product reviews.
• Inactive Participation in Community Forums: Lack of engagement in Shopify's community forums or discussions.
• Ignoring New Feature Announcements: Ignoring or not implementing new features introduced by Shopify.
• Abandoning Marketing Tools: Discontinuation of marketing campaigns or a decrease in email marketing activity.
• Extended Periods of Inactivity: Long periods of inactivity on the Shopify platform.

Resurrection Campaign

Campaign 1: Casual User Comeback

• User Segment: Casual Shopify users who have shown reduced activity or infrequent logins.
• Pitch: "We've missed you! Get back to your Shopify dashboard and discover exciting updates for your store."
• Offer: Exclusive discounts or freebies on new features to rekindle interest.
• Frequency/Timing: Send a warm, personalized email every two weeks during a user's historically active times.
• Success Metric: Measure the increase in logins and feature adoption after each campaign.

Campaign 2: Feature Explorer Revival

• User Segment: Users who haven't explored new Shopify features recently.
• Pitch: "Discover what's new! We've added powerful features to boost your store's performance."
• Offer: Access to in-app tutorials and guides showcasing new features.
• Frequency/Timing: Weekly in-app notifications during peak usage hours.
• Success Metric: Track the rise in feature usage and engagement.

Campaign 3: Discount Seeker Reengagement

• User Segment: Customers who made frequent purchases in the past but have been inactive.
• Pitch: "We've got something special for you! Exclusive discounts on your favorite products."
• Offer: Personalized discounts or buy-one-get-one offers.
• Frequency/Timing: Monthly email campaigns with limited-time offers.
• Success Metric: Measure the increase in purchases and engagement post-discount.

Campaign 4: Community Comeback Call

• User Segment: Users who were active in the Shopify community but have been silent.
• Pitch: "Your voice matters! Join the discussion and share your insights with fellow merchants."
• Offer: Highlight engaging community topics and discussions.
• Frequency/Timing: Bi-weekly community forum newsletters.
• Success Metric: Monitor an increase in forum participation and discussions.

Campaign 5: Shopify Success Story Reconnect

• User Segment: Merchants who experienced success but have become inactive.
• Pitch: "Your success inspires us! Share your story and let's continue growing together."
• Offer: Feature their success in Shopify's success stories section.
• Frequency/Timing: Quarterly personalized emails.
• Success Metric: Measure the number of success stories shared and the subsequent increase in activity.