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.
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.
Size of marketing budget was the most significant barrier to growth, followed by generating additional demand.
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.
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.
Product innovation and quality are bigger challenges for high market share companies.
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
After dwindling with her family business, into travel and hospitality, for more than 3 years, Pooja Vishant found her true love in writing. Happy-go-lucky and cheerful, she loves pink; so pink is the way to go if you want to get into her good books. The Associate Editor keeps track of even a leaf that has moved in the ecommerce world!