With the explosive and continuing growth of e-commerce across the world, consumers have access to a number of options no matter what they want to buy. They are bombarded with all kinds of marketing everyday, some go unnoticed, some are ignored, some are given attention to, and some actually work!
So how do you as an online seller or online retailer decide on what marketing strategies to follow that will click with consumers? How do you ensure your efforts and money are being channelled in the right direction?
In order to understand what clicks more in the challenging world of e-commerce marketing, Magento and MarketingSherpa (a firm that specialises in tracing what works in marketing) did an unbiased research to understand what marketing strategies and programs work to drive e-commerce success.
Some key takeaways from the report are mentioned below.
Channels that drive significant traffic (by revenue)
Email marketing and organic search were the most frequent sources of e-commerce traffic while channels such as affiliate marketing and content marketing were less frequently used.
Overall barrier to growth
Size of marketing budget was the most significant barrier to growth, followed by generating additional demand.
Barriers to growth by e-commerce revenue
Technology was the biggest barrier for high-revenue companies, while marketing budget constraint was the biggest barrier for low-revenue companies.
Having low conversion rates need not necessarily mean you have been unsuccessful, as there’s always room for improvement. Conversion rates should always be rising, given steady traffic.
Number of orders
E-commerce companies with the most orders also experienced the most growth in orders.
Companies where the level of unique customers was steady had higher average number than those whose numbers were “rising” or “falling”.
Companies with more returning customers are likely to see an increase in the number than those lesser number of returning customers.
How do challenges change as e-commerce companies increase market share?
Product innovation and quality are bigger challenges for high market share companies.
What do e-commerce companies show on their product pages?
- Product credibility indicators
- Product value proposition
What efforts are companies making to be customer-centric?
- Most e-commerce companies do not force customers to open an account to make a purchase.
- Companies that do not constantly evaluate their customer service responsiveness will not be able to keep up with their pace of growth.
- The more frequently companies make changes based on customer feedback, the more successful they will be.
As long as you give the best customer experience, customers will not go somewhere else. So make them lazy, give them more than what they expect and they will keep coming back for more.
For the detailed MarketingSherpa e-commerce benchmarking report (with charts), click here.