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September 11, 2022

Brick-and-mortar brands have always faced difficult challenges. Competition, logistic issues, finding the key things that help drive growth, and many more...

Many physical stores did not make it past the 2020 events. The survivors are facing new challenges. Over the next 14 weeks, we will look at the most common issues and effective solutions. If you don't want to miss the next article, follow us for more.

Driving growth is the obvious goal for any brand. If the Direct To Consumer (DTC) approach is a feasible option for you, then it may be a great additional channel that drives sales. However, there are numerous clever tactics that e-commerce stores use to effortlessly drive high demand besides convenience. In this article, we will look at six of those strategies.

1. Conversion Rate Optimisation

Retail conversion rate is one of the most important KPIs for telling you how successful your product is. On average, E-commerce stores receive 3 orders for every 100 visitors. However, the top online brands see over 10% as their overall conversion rate. In large stores or shopping malls, there are more competitors' products. Even if the shopper makes a purchase, there is usually less than a 0.1% chance for your product to be purchased. There are two major strategies that can be enacted to create an above-average conversion rate. Enticing shoppers to visit a store, and ensuring your product stands out. Chances are that if your product does not stand out it will not be on the shelves, but there is a way to reliably and predictably persuade shoppers to leave their houses on a Saturday morning in pursuit of your product. You might have already guessed that it involves letting your target market know about your product - specifically, communicating this through digital advertising channels that are taking over conventional linear advertising channels.

2. Target market data

How well do you know your target market? Many brands have found a product-market fit. However, they don't know much about their actual customers. In comparison, online stores and direct-to-consumer brands know exactly who their customers are. Therefore, it is simple to analyse the data to find out what drives the shoppers year-round. Whilst this data can be acquired in numerous ways, we have found a simple and affordable way. Any brand can effectively collect target market data in a compliant way by analysing the engagement and Key Performance Indicators (KPIs) of its digital advertisements. If you would like to learn more about how you can do this,The main trick is to attribute the advertising efforts precisely.

3. Targeting

Before we get into attribution, it's important to note that advertising online without the right targeting can be compared to burning cash. Sure, you may be comfortable doing this with conventional channels, but why swim across the ocean if you have a boat or plane available?

The main problem facing companies is that precise targeting requires target market data. E-commerce brands frequently begin their digital advertising campaigns by testing broad audience segments and then re-marketing to the users and segments who responded the most positively to their ads. There is a new Artificial Intelligence (A.I.) technology emerging. It allows us to save up to 60% of the budget by using predictive audiences that focus on high-value consumers right from the start. These demographics are more likely to find your message relevant and therefore save a large chunk of the budget for paid ads by reducing media waste. If you are curious how your brand could take advantage of this.

4. Attribution

Limitless Now - Business KPIs at drifferent stages of growth.

In order to analyse the data from your advertising efforts, it needs to be attributed correctly. E-commerce brands use sophisticated tracking technologies that track the user journey from the first impression of the advert all the way to the conversion. Clear, solid data like this lets them make better decisions that have a huge impact on the health of the business. Unfortunately, tracking shoppers has been made increasingly difficult due to data privacy laws and regulations as well as companies' choosing to not share this data with advertisers. Luckily for us, there are numerous workarounds that let us gain the same insights whilst remaining compliant. If you can obtain Point Of Sale (POS) data outlining the time and quantity of your products being sold, it is possible to attribute your advertising efforts to a change in sales. To find out how we accomplish this Retail businesses who have mastered this are able to make their business more efficient, maximise their profit margins and drive predictable sales with ease.

5. Personalisation

Lately, mass personalisation has been a big challenge. D2C brands are masters at doing this at unimaginable speed. To offer new products that are personalised to the target market and also end up in high demand, more and more companies are starting to outsource the heavy lifting to A.I. models. This is so they can carry out lean split tests and accurately forecast consumer insights that can be used to prepare for changes in consumer expectations and behaviour. This is essentially a significantly more effective method of testing hypotheses that is more time and resource-efficient compared to traditional methods.

6. Communication

If you are presenting your product with only the mandatory features, it can be compared to a restaurant presenting its food as not contaminated. Experts recommend skipping these features and instead focusing on ones that will impress or delight the audience.

Studying the Kano Model, we can slot all features into three categories:

Mandatory features - “Yeah duh.”

Performance features - “Okay this is better than most.”

Delighter features - “Wow! What a nice surprise!”

Limitless Now - Kano Model.

Developing everything but only talking about aspects beyond the benchmark will help you shorten your message and get asymmetric results. However, over time, the delightful features will become mandatory - so never stop innovating or marketing as a brand.

There are also other dimensions that are even more powerful than delight. We will look at those and much more in the next article. Remember to follow us to guarantee you receive articles that take a peek at the most common issues retail and online businesses face, as well as effective solutions that contribute to the bottom line.

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