E-commerce has made its mark in the online world and it’s still evolving. However, this year, due to the coronavirus slowdown, we have seen the stock market plummet and over 10 million individuals in the US filing for unemployment.
As an owner of an e-commerce business, these factors can have an effect on your store as experienced by over 40% of businesses in the same industry. You don’t want your business to fail and so, you must find ways to start boosting your finance despite the current situation.
Focus on high-value
High-performing businesses can increase Return on Ad Spend (ROAS) and decrease customer acquisition cost (CAC) by diversifying marketing strategies. As an owner of one such business, optimizing your e-commerce business allows you to survive when others find themselves struggling. To do this, you must focus on high-value through the following:
High-Value Customers – Many businesses often try to focus on winning over customers via excessive discounts even if the market plummets. This is a very common impulsive reaction when the going gets tough. The main problem with this kind of reasoning is that it won’t do the business any good. You will only target customers who show loyalty to your brand based on prices.
The digital marketing experts at assignment help and term paper help services say that these will be the same customers who won’t stick around when they’re offered better deals and at each economic downturn. Instead of this strategy, it’s better to focus on delivering a seamless and enjoyable shopping experience to your faithful customers.
These are the people with the highest customer lifetime value – the customers who always return to buy your products no matter what the situation is. Conduct conversion research to identify these customers then optimize your e-commerce store to ensure that these customers always enjoy shopping from your online store.
High-Value Products – Make a list of products that your customers find the most value in. These products are the ones that your high-value customers purchase regularly. After you have identified these products, the next thing to do is to sort these out according to their highest margin then optimize your website experience around these products.
Making use of data-driven optimization gives you the assurance that the high-margin product pages will also give you the highest conversion rates. This will lead to more profits for your business together with a stronger bottom line.
High-Value Acquisition Channels – Marketing channels differ depending on your industry. For instance, traffic originating from organic searches might have a higher rate of conversion than pay-per-click ads on Google.
College paper writing services and case study writing service It can also be possible that email marketing might generate more sales compared to Instagram campaigns. In other words, some marketing channels offer a higher ROI than others. As such, during difficult times, you should concentrate more on those channels.
Focus more on optimizing and spending on your highest performing channel’s conversion rates. This gives you a compounding effect where your revenues exponentially increase as you stack several improvements on top of one another.
Take advantage of social media
Today, most businesses have existing accounts on various social media platforms. Nothing can be more advantageous than advertising your products or services on these platforms as many other businesses have already done so. The best part is, signing up on these platforms is free!
The marketing research experts at assignment help and research paper writing services say that it is, therefore, not surprising that many businesses have started growing on these platforms until they have established their own e-commerce sites. But, you should also remember that social media can be very tricky.
For one, you can drive results through sponsored posts, which you need to pay for. In social media, sponsored posts are content that businesses pay for so they can reach their target audience.
This is one of the easiest ways to get more relevant viewers to see your posts. It’s very important to have an audience in mind before you pay for sponsored posts to get the most out of these.
Make the best of SEO
As the e-commerce economy experiences growth, more businesses will feel interested to take part in this crowded space. As a result, it becomes more important for your business to stay on top.
By learning about and harnessing the power of SEO, you can remain better than your competition. If you have no idea what SEO is, you need to connect with and hire someone skilled in SEO to help your business stay competitive and relevant in the long run.
Don’t cut down your advertising budget
Spending on advertising might sound counterintuitive right now because it involves spending more money when there are fewer customers purchasing your products or services.
Still, experts firmly believe that it is not a good move to cut your current budget on advertisements. In fact, they even suggest that you increase this budget to your business’s highest capability. There are many reasons that support this strategy including:
The cost of advertising usually decreases during a recession – Everybody will cut down on advertising, even your fiercest competitors. This gives you more leverage to bargain with advertising service providers so that you can get more value for what you will pay for.
You want your business to stay relevant – Generally, in times of recession, competitors are more concerned with focusing on how to cut back. This means they won’t focus much on how they will retain their customers. But your customers still need to remember that your products or services still exist.
This situation creates a kind of self-fulfilling prophecy – if you think that you’re going under and you act basis this belief, you might just find your business going down soon.
It solidifies the image of your brand – During an economic downturn, customers look for stability. A brand that can stand up to this concept will increase its value, especially to your loyal customers.
At the same time, you will also get to focus on other areas where you can reduce expenses. The savings you make here can make up for the increase in advertising expenses you will make.
As an e-commerce business owner, remember that some methods to keep your business growing despite an economic recession come at a price. You would have to shell out some money to increase your sales. But spending during a tight financial situation isn’t necessarily a bad thing, as long as, you do this for the right reasons and a guaranteed ROI.