If you could make just three strategic bets to boost the long-term growth of an e-commerce business, what would they be?
Boosting e-commerce requires much more than just creating an online platform. To achieve success and stand out amid fierce competition, it is essential to adopt a strategic approach and invest wisely in key areas that will drive business growth.
In this context, this article explores three indispensable strategic investments that have the potential not only to increase the visibility and credibility of your e-commerce, but also to solidify your position in the digital market.
From technological optimizations to innovative marketing strategies, these investments not only represent opportunities for growth, but have also become imperative for any entrepreneur seeking lasting success in the highly dynamic e-commerce environment.
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The reality of modern e-commerce
Although e-commerce has come a long way since its inception, many retailers and brands still face huge challenges, be it with user experience, returns, payments and many others. But challenges related to modern e-commerce are more macro-oriented.
According to research, there are 3 realities that become challenges in the e-commerce market: they are:
- 38% reduction in the effectiveness of digital ads after the iOS 14.5 update, recent changes in Apple's privacy policy have made the ads less effectiveand Google has plans to discontinue external cookies in Google Chrome by the end of 2024.
- 22.5% growth in retailers' stock levels in 2022, despite falling demand. Since the start of the Covid-19 pandemic, brand and retailer stocks have been in a state of chaos. Disruptions in manufacturing and the supply chain and record consumer demand drove retailer stocks to alarmingly low levels in 2021. The supply chain have largely been resolved, but now it's demand that's slowing down (and changing).
- 69.8% of all e-commerce shopping carts are abandoned by shoppers. Considering that almost seven out of ten digital shopping carts are abandoned (a figure that rises to 85% on mobile11), merchants are missing out on a lot of money.
Three strategic bets for success in e-commerce
How can digital merchants overcome the challenges and focus their investments on strategies that will boost the results of their digital channels?
1# Get more from the customers your store already has
Investing in customer retention is proving to be a valuable strategy for e-commerces in search of sustainable growth. Unlike the constant search for new customers, concentrating efforts on maintaining those you have already won offers significant advantages. Firstly, the cost is substantially lower. Acquiring new customers involves considerable expenditure on marketing and publicity, while retention requires less costly investments to maintain established relationships.
In addition, loyal customers tend to contribute more value over time. This loyalty translates into repeat purchases and exploration of other e-commerce offers, increasing the lifetime value of each customer and generating more consistent and lasting revenue. In addition, satisfied customers have a natural propensity to recommend e-commerce to friends and family, taking advantage of the powerful marketing channel of word of mouth.
Another advantage is reduced price sensitivity. Retained customers tend to value the overall shopping experience and the relationship with the brand, making them less likely to be affected by small price fluctuations. In this way, investing in customer retention not only boosts immediate revenue, but also establishes a solid base of loyal and engaged customers, who are fundamental to the growth and stability of e-commerce over time.
2# Turn stock and fulfillment into your strengths
In an increasingly competitive e-commerce market, turning stock and fulfillment into strengths is an extremely important strategy for standing out. Stock, often seen as a mere operational aspect, can become a competitive differentiator. By optimizing stock management, it is possible to avoid problems such as product shortages or an excess of unsold items, guaranteeing consistent availability of the most sought-after products.
In addition, efficient fulfillment is essential for the customer experience. The ability to process orders quickly, pack them carefully and deliver them within the promised time frame not only increases customer satisfaction, but can also become a loyalty factor. By investing in technologies that automate processes, such as warehouse management systems and order tracking, the accuracy and speed of fulfillment is improved, resulting in faster and more reliable deliveries.
3# Relate to customers in new ways
The traditional sales approach is being replaced by a more dynamic and engaging interaction. One effective way of achieving this is through the strategic use of social media. Platforms such as Instagram, Facebook and Twitter are not just channels for promotion, but also opportunities to build authentic relationships with customers.
In addition, the implementation of live chat tools and chatbots on the e-commerce website enables instant and personalized service. This approach speeds up the resolution of customer queries and problems, improving their shopping experience. Automating simple responses allows the team to focus on more complex issues while maintaining a high level of customer service.
Another innovative way to connect with customers is through valuable content. Creating blogs, educational videos and buying guides not only positions the brand as an authority in the sector, but also provides customers with useful information that encourages them to return to e-commerce. This strategy not only increases engagement, but also helps to build a loyal and informed audience.
In addition, personalization is a key trend in customer relations. The use of data analysis and algorithms makes it possible to better understand customer preferences, offering relevant product recommendations and targeted campaigns. This approach creates a unique shopping experience for each customer, increasing the likelihood of conversion and return.
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In summary, investing in customer retention, strengthening inventory and fulfillment, and adopting new approaches to interacting with customers are essential strategic investments to boost e-commerce. Retention reduces costs and increases loyalty; optimizing stock and delivery improves the customer experience; and innovations in interaction strengthen engagement. These actions not only ensure competitiveness in the digital marketplace, but also lay solid foundations for sustainable growth and lasting success.
Do you want to understand how Codeby can help your e-commerce business boost its sales? Get in touch with our experts.
