introduction
In our 2023 example of the mid-sized online retailer, we have witnessed a company increase its annual gross sales by 100% within one year—not because it has added more products but because it has improved on how it markets to its current customer. This kind of success is no longer a one-off event. The increase in ecommerce competition coupled with an increasingly diminished customer attention span will only continue to create opportunities for ecommerce marketing. Marketing is therefore one of the most vital drivers for generating ongoing, sustainable sales via the internet.
Ecommerce Marketing is the overall collection of strategies and tactics that companies use to attract, convert, and retain their customer base within their virtual storefronts. With the continued rise in ecommerce and global ecommerce sales, a company that does not adapt will almost certainly be out of sight, out of mind in their highly competitive marketplace.
We will present an argument and examples that illustrate how a company’s ecommerce sales growth will only be realized through three eCommerce Marketing strategies: Data-Driven Personalization, Integration of Omnichannel Marketing (marketing to customers on many different channels), and Focused Optimization of Customer Experience through the Trust factor.
ECommerce Marketing and Its Impact: Data-Driven Personalization
Ecommerce Marketing: The Data-Driven Personalization (D2P) Model
How Does D2P Drive Customer Conversions?
Modern consumers have an expectation of relevance when they shop online. Research indicates that a good marketing campaign that “speaks” to an individual in a relevant way can improve a company’s conversion rate by more than 20%. Data-driven personalization analyzes and utilizes the behaviors of consumers, their preferences, and their past purchase history to better tailor marketing messages, promotional offers, and product recommendations for each individual customer.
In contrast to “generic” marketing campaigns (i.e., mass marketing campaigns), personalization provides individuals with an experience that conveys to them that they are receiving individualized attention.
Personalized Tactics are:
Product Suggestions for You
Email Marketing based on Your Actions
Web Pages Adapting to Your Behavior
Example of a Company Doing This well
Amazon is the best example of how personalized tactics work because their recommendation engine generates a large portion of the company’s total revenue by providing customers with suggestions of products that they are likely to purchase. Small business e-commerce websites are now following Amazon’s example and employing the same strategies through the use of Artificial Intelligence (AI)-built technology and customer data platforms.
How Is This Different Than Traditional Marketing?
Traditional marketing relies on large demographic groups and stationary messaging. Conversely, data-driven marketing continuously evolves in response to customer interactions rather than preconceived notions about the customer. This means that e-commerce marketing is now data-driven rather than guessing, giving online retailers significant and measurable competitive advantage over their competition.
Omnichannel Marketing Provides Customers with a Seamless Journey
The Importance of Marketing Consistently Across Multiple Channels to Customers
Increasingly, today’s consumers do not typically buy from businesses after one interaction. They often learn about a business through various means, such as social media, email campaigns, etc., and eventually purchase a product or service from a business via their website or mobile app. Therefore, an omnichannel marketing strategy is essential for creating a consistent experience for consumers across all channels.
The components of a successful omnichannel-related e-commerce sales strategy include:
- Social Media Marketing
- Email Marketing
- Paid Search and Display Advertising
- Mobile and Website Experiences
Evidence for Omnichannel Effectiveness
The omnichannel customer type usually purchases more than those who shop in just one channel. Omnichannel customers also tend to have a higher lifetime value. Companies that have all their marketing efforts aligned across all channels have better brand recall and greater customer confidence.
- Examples of Omnichannel Execution:
- Retargeting ads showing products that were browsed on the company’s web site.
- Promotions across email, social media, and paid advertisements that are all the same.
- All branding and messaging are consistent across all platforms.
Omnichannel vs. Multichannel
Using multiple channels is referred to as multichannel marketing. Connecting multiple channels together to create a seamless experience for the customer is called omnichannel marketing. Omnichannel marketing creates a feeling of connectedness with the customer by making them feel like they are dealing with one company, rather than multiple independent campaigns. Creating a complete customer journey eliminates customer friction and shortens the time to purchase.
Customer Experience Optimization to Build Trust
Trust is a Competitive Advantage for Your Company
One of the biggest barriers to e-commerce success is the lack of trust. Trust builds conversion rates for your e-commerce business. Customers are usually cautious when they are making online purchases, especially when they have to enter their credit card numbers and personal information. Having a marketing strategy that promotes transparency and credibility is the best way to lower the barrier to purchase for your customers.
There are four trust-building elements:
- A clear returns and refunds policy.
- Visible customer reviews and testimonials.
- Safe and secure checkout and visible trust badges.
- Detailed and accurate descriptions of your products and prices.
Merging Marketing and User Experience
Optimizing the customer experience can help you merge the marketing with your product’s usability. When marketing messages are consistent with the product that the customer purchased, customers are more likely to return.
How Companies Differentiate
Themselves with Trust-Focused Marketing vs Price-Focused Marketing
Ecommerce companies that choose to compete based solely on price often have a negative effect on profitability through lower margins. On the other hand, companies that utilize a trust-centered approach for marketing utilizes brand reliability and experience rather than discounts to allow themselves to maintain a premium price point and create a higher level of customer loyalty; supporting repeat purchasing. Therefore, the trust-centric approach is not only a way to achieve ecommerce growth but it also supports sustainable growth.
In calculation
Traffic alone does not lead to successful ecommerce; the future success of ecommerce will be established by how well companies can engage with and retain customers through their marketing programs. This article provided evidence that by using an omnichannel strategy, ecommerce merchants can create an integrated customer journey; one that is seamless and persuasive. It also showed that using data to create personalized experiences increases relevance and conversion rates for ecommerce business. Finally, through optimizing the customer experience by using a trust-centric approach will help reduce the barriers to customer retention while building long-lasting relationships with customers.
Moving forward, advancements in technology such as Artificial Intelligence, Automation, and Predictive Analytics will have an impact on the way ecommerce marketing will evolve over the next decade. Early adopters of these technology advancements will not only be able to increase their ecommerce sales, but also be prepared for future marketing efforts.
It is clear that now
is the time for companies to evaluate their current ecommerce marketing program; identify any gaps related to personalization, channel integration, and trust signals; and adopt a customer-focused approach. In today’s competitive environment, smart marketing is not just a vehicle for growth. Smart marketing will be the foundation for long-term success.