So the eCommerce industry continues to flourish across vertical markets and geographies as more and more businesses flock to the online channel. In this digital age, setting up an eCommerce store is relatively easy but expanding web operations and generating revenue – not so much.
With online retailers present in abundance and consumers being pickier than ever, fostering customer loyalty is an issue and a rather challenging one. The cut-throat competition in the eCommerce spectrum is hard to crack and that’s pretty obvious.
Based on numbers from the US Census Bureau, Online retail sales are expected to continue to grow by almost 20% between 2018 and 2022 in the US, reaching almost 380 million in 2022. This is great news but listing the businesses which will generate the maximum revenue by that period is unpredictable.
Securing a solid spot in the eCommerce industry for years to come is suddenly the need of the hour. Don’t worry – we at Wigzo have got you covered. Implementing the marketing strategies mentioned below may offer new opportunities to you to grow your online business:
Best Tips to Boost eCommerce Profitability In 2020
1. Design a spectacular website
Did you know it takes about 150 milliseconds for visitors to decide if they like a website or not? So if your website is dull, boring or too traditional, the bounce rate of your website is going to be really high.
Visual communication is important as 80% of customers remember what they see and a staggering 20% of them never forget what they read on the website. To improve your site navigation, pay attention to how easy or difficult it is to browse through your online store.
Make sure the presentation of your products and services piques their interest. Just check out the “New Arrivals” section of H&M website, and you’ll know what we mean:
Lastly, your ‘About Us’ page must be equally mind-blowing. According to Marketing Sherpa, 7% of visitors on the homepage click to see the ‘About Us’ page. Those who see this webpage are 33% more likely to convert into viable buyers. In a nutshell, your ‘About Us’ page should be able to spark curiosity!
2. Your email marketing should be on fleek
As you know digital marketers have finally taken notice of how important email newsletters are in molding a brand’s tone and image. Most eCommerce stores have also finally realized how easily customers can be captured with the help of a simple newsletter sign-up popup.
With email expected to reach 90.9% of those who are online by 2019, it’s a given that email marketing is not going anywhere! Try offering your customers a free incentive (or a free guide – depends on what you sell) and see how positively they’d react.
Moreover, 2017 is the year of 1:1 marketing. This year is dedicated to reinventing that “personal touch” that has been absent from many kinds of business interactions till now. 1:1 marketing is also known as “segment of one”.
To foster greater customer loyalty and better returns on marketing investment, it is important to increase the personalization count of the email content – not just on a segment level but also on an individual basis.
3. Create a compelling push strategy
Push notifications were originally used in Blackberry devices to notify users that they had new emails. But as you can see – they have clearly gone beyond that and evolved into a smart marketing tactic. A 2014 Responsys survey states that push notifications deliver 50% higher open rates than emails.
Push notifications on mobile and web are being used as a default feature to communicate with users on a daily basis. Here’s what they seem to do effectively:
- Reduce cart abandonment rates by pushing out messages that create a sense of urgency.
- Generate location-based messages to prompt the customers to check out the store in their vicinity.
- Encourage wishlist to help the brands better understand what their customers are exactly looking for and then delivering just that. Just like Myntra does it!
- Keep the subscribers informed with the latest information because that’s what your job is!
4. Lure the consumers with multiple perks
Online shoppers love free shipping! In fact, the lack of this option is the #1 reason why visitors abandon a purchase. 93% of online buyers would buy more products if free shipping is offered. With this simple service, you are guaranteed to not only decrease cart abandonment rates but also increase the size of the orders.
Secondly, discounts and coupons are also powerful marketing tools. A Oneupweb consumer study clearly states that 95.5% of consumers love low prices on online stores. Therefore, make sure info on any ongoing sale is flashed boldly across the website and of course, emails.
Macys.com saw an impressive rise from 12% to 15% in their online sales in 3 months in 2018 because of the increased level of personalization in messages on emails and website.
5. Provide with Smarter Payment Options
Being the final step before a customer completes his journey it sometimes becomes the step that can make or break the deal. A customer has gone through several other stages, that of awareness, consideration and then has decided to purchase a product from your brand. But if the experience right before completing the ordeal turns out to be a hassle and isn’t smooth going, consider a potential customer lost.
A study by Baymard Institute reveals that about 70% of shoppers tend to abandon their carts. So even after researching, thoroughly going through the product(s) and adding them to their cart why do a majority of shoppers don’t complete the payment process?
The report by the Baymard Institute further states that 28% of cart abandonment takes place due to complicated checkout processes. So, this year focus on making this particular experience seamless for your customers if you want to stay ahead. Offer them with a smoother checkout process and easy payment options that ensure quicker conversation with our brand.
Further in the study, about 13% of the customers were stated to abandon their purchases for lack of local payment options. So, if you have plans on expanding your audience reach further across the globe, you will have to come up with better payment solutions for shoppers in other countries.
6. Enhanced Security does Wonders
While working to make customers’ purchase journey smooth and efficient it is also important to keep your website security in mind. The only thing that appears to be worse than a horrifyingly complicated checkout process is one that can compromise customers’ financial information to the hackers. It is not just your duty to keep your customers’ data safe but also a security breach scandal isn’t something a brand can afford.
Make sure that you only get professional security for your website and servers. This might cost you a tad bit more than plug-ins and other software but you can treat this as a long term investment that will only help business with smoother function.
Professional and dedicated security services are the ones to rely on as these are most effective in countering data losses and preventing hacks. Plus, authentic security systems can help your site better in case of a malfunction.
7. Create an omnichannel experience
With the increased use of mobile phones and tablets, there is a need for cross-device marketing. Unfortunately, 69% of companies don’t have a cross device communication plan, which is why “engagement” is such a big issue for marketers.
Therefore, in both B2B and B2C spectrum, aligning content and design across all platforms to maintain consistency is a must. The value proposition that you put forward in the market is your brand message. After all, it is a promise that is made to potential customers. You should make sure it is delivered clearly.
Apart from this, you should offer insightful information to your customers regularly. Showcase yourself as the authority in your industry. Integrate robust data and analytics into your omnichannel marketing strategy.
Use machine learning to update data as the market evolves. Companies such as Wigzo offer great tools to achieve this. It will help you to create more relevant content for your audience.
8. Give apt product recommendations
A 2015 study by Barilliance indicated that up to 31% revenue of the 300 eCommerce sites surveyed was generated solely from personalized product recommendations during the last quarter of 2014, and the worldwide average of the same was 12%!
If you don’t believe this, a Forrester study states that product recommendations are responsible for an average of 1–30% of eCommerce store revenues! For instance, Amazon’s product recommendation system is no joke! If you are a first-time visitor on the website, you will find generic recommendations such as “What Other Customers Are Looking At Right Now” or any “Best Seller”.
If you visit it again, you will find personalized recommendations on the homepage that are based on your previous visits’ browsing history. But don’t overwhelm your customers or divert them from completing the conversion process.
Instead, make sure your recommendations are relevant and are actually helpful to them in making an informed decision. But how can you ensure this? With the use of Wigzo! Wigzo’s machine learning technology helps you to understand the changing needs of these customers and optimize your marketing strategies accordingly.
When you know what a customer is looking for, the recommendations you make become more relevant to him.
9. Use the subscription-based model
There’s nothing new about this model. We have been subscribing to magazines, newspapers, fitness clubs, mobile companies for a long time. So eCommerce businesses can definitely leverage its effectiveness to acquire more conversions.
The graph below states that eFirms working with an average transaction value below $25 have customer lifetime values 1.78X higher for subscriptions than for non-subscription customers. Since CLTV is one such metric that is difficult to predict, a subscription-based model will surely sort out a lot of issues.
This model can provide a much clearer picture of the value of each customer, so you exactly know what type of customer is worth spending more to acquire as opposed to another. Typically, a subscription-based model offers very few different subscription levels which makes shipping costs less to bear and delivery time a lot more manageable.
It is easy to identify potential buyers and study the existing ones. You can conveniently create a niche market for your products which is great for any business!
Over to you
It’s all about making shopping or consuming information convenient and fun for the modern consumer. With these tips, we are sure your eBusiness will find its groove and boost its profitability faster than ever.