Swapnil Srivastava, Vice President and Global Head of Analytics at Evaluation.
As the world grappled with the effects of Covid-19, companies with an e-commerce vision have thrived by rising to the top of the digital revolution. With the masses quarantined in their homes, online sales have skyrocketed.
However, there are still those who have been on the fence about investing in e-commerce. But they learned the hard way the importance of increasing their digital presence and investing in a well-thought-out e-commerce strategy. Latecomers will now face the difficulties of accelerating business at a much higher cost to achieve similar goals. However, the question of the hour is, “Is it too late to start now?” While it may be more difficult, no, it’s not too late.
The e-commerce market is expected to grow by $10.87 trillion between 2021 and 2025. With more companies revitalizing their online presence During the pandemic, the global trend towards digitization has accelerated. With restrictions easing in many regions, e-commerce sales are still on the rise, with global e-commerce revenue expected to reach $3.3 trillion by 2025, according to the Statista Report.
With so many companies continuing to accelerate their e-commerce strategies, here are some common pitfalls to look out for:
1. Unclear understanding of audience/buyer persons
The success of any business depends largely on its customers. Understanding your customers’ personalities, their journeys, and product preferences should be the first step companies take towards accelerating their business through online channels. It is critical to customize the customer experience by integrating e-commerce platforms with in-house ERP and CRM systems that aid in real-time decision making.
About 80% of customers are likely to make a purchase when the offer is customized, Epsilon study found.
Not having a 360-degree view of your customers’ behavior can result in higher operating costs and lower ROI. On top of that, customers have come to expect behavior-focused content and get mad when they don’t see it. According to a variety of studies in this Forbes article:
• 71% of consumers feel frustrated with impersonal shopping experiences.
• When website content is not customized, 74% of customers get frustrated.
• Sixty-six percent of consumers say that when content is not personalized, it prevents them from buying
Artificial intelligence and machine learning (AI/ML) play an important role in e-commerce today, so my advice to you? Understand your audience and customize their experience!
2. Discrete multi-channel marketing strategy
Your marketing strategy plays a major role in the continued advancement of your brand. Business leaders must ensure that they have a well-thought-out marketing strategy. Building your brand increases lifetime customer value, boosts conversion rates in the short term, and ultimately attracts new buyers. However, few business leaders see value in brand building investments. Using the right mix of channels to attract and retain your customers is another factor to consider when marketing your brand. Creating the right mix of paid and membership channels attracts the right customers.
When it comes to e-commerce and the digital marketplace, it is important to give your best shot. So, invest in your brand, and don’t miss the bus that takes you to big investments in the future.
3. Unspecified measurement frames
A common mistake many new e-commerce companies make is that they lack a KPI (Key Performance Indicator) framework. Looking at multiple metrics and KPIs in a disorganized way often leads to incorrect decisions. Using the wrong frameworks to generate real leverage often results in companies losing money trying to attract their audience but failing to deliver the right content at the right time. E-commerce leaders must develop a sound analytics strategy to avoid these pitfalls.
As a business owner and leader, you know that for your business to thrive, you must remain alert to current trends and flexible enough to adapt to them. While making the switch can be overwhelming, just remember to focus on the next step: Know your product, know the consumer, develop a solid strategy, and implement it. And don’t forget: mistakes are only lessons!