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Market research

How Market Research Benefits E-Commerce Companies

Rising market competition demands businesses to keep a keen watch on the changing market trends and gain a deeper understanding of their buyer personas. Over the last few years, there were several instances of e-commerce companies that shut shop due to declining profit margins. One of the key reasons why many of these players failed was primarily due to the absence of an effective market research solution that rightly defines the needs of their target consumers and gives comprehensive insights on the changing market trends. Experts at Infiniti Research posit that at least 3 out of every 5 e commerce businesses that do not undertake a market research study will fail in the long run.

We have curated some reasons why a market research study is a non-negotiable for e commerce companies.

Market research gives you a qualitative and a quantitative understanding of why your ideal customers would want to buy your products. Request a free proposal to know more about our market research solutions.

Benefits of E commerce market research

Market researchAnalyze industry trends

E commerce trends are often fast-changing, making it difficult for companies to keep up with the market transformations. A market research study about the e commerce industry will help companies determine key factors relating to the market such as current size, growth rate, and the changing trends. Moreover, this also helps e commerce companies to gain a first-mover advantage.

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Develop customer personas

Most new-age entrepreneurs attempt to break the shell without understanding the rules of the market and try to formulate their own policies and business agendas. This attitude often derails their marketing campaigns and they end up paying for heavy losses. Having a clear understanding of the demographics and demands of various customer segments is one of the key benefits that market research has to offer e commerce companies. This helps them create better buying journeys leading to customer satisfaction and long-term customer loyalty towards the business.

Understand competitor strategies

The e commerce sector is dominated by cut-throat competition and many players are trying to gain a bigger chunk of the market share. Companies that are not agile will get left behind. A market research engagement helps avoid this by analyzing the competitors and their strategies thoroughly. E commerce companies can use this data while formulating their go to market strategy and devise ways to better attract and retain customers.

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customer retention strategies

Supercharging Your E-Commerce Business with Proven Customer Retention Strategies

Customers are the lifelines of business, irrespective of whether it is a brick and mortar store or an ecommerce business. According to industry experts at Infiniti Research, more than half of a company’s future revenue will come from approximately 20% of their existing customers. Furthermore, it is always wiser to lay greater emphasis on using customer retention strategies to retain existing customers, as attracting new customers could cost a company five times more. In the absence of strong customer retention strategies, companies will struggle to establish a strong customer base, eventually causing profits to tumble. By implementing customer retention techniques for online and in-store platforms, businesses can effectively encourage customers to keep coming back for more, by creating positive, personalized, and innovative experiences.

How to retain customers: 4 proven customer retention strategies

Launch win-back campaigns

Win-back campaigns involve contacting customers from whom you haven’t heard from in a while. This is an attempt made to win back these customers using highly targeted campaigns. This is one of the most popular customer retention strategies among several old-school direct response marketers. Timing is a crucial factor in the effectiveness of such customer retention strategies. E-commerce companies must try to win back customers as early as possible by offering attractive rewards and discounts. In order to get the timing right, it is essential to understand the frequency of purchase of the buyers. If on an average, customers order every 2 months, then it would be beneficial to implement a win-back campaign around the 60-day mark.

Before formulating your customer retention strategies, it’s critical to first and foremost understand who your customers are, and which of their actions matter to your site. Request a free proposal to know how our customer intelligence solution can help you identify your target customers.

Loyalty programs

The primary idea behind a loyalty program is simple, reward your customers for frequent purchases. Customer retention strategies like giving out loyalty points is highly effective and is commonly used by several successful companies. E-commerce companies can also benefit from such customer retention strategies. Although implementing a loyalty program does not guarantee increased sales, but when combined with a competitive product and great customer service it can play a key role in increasing sales and improving customer retention. Furthermore, it may be difficult to attract new customers into the loyalty category. However, offering some surprise loyalty points with their first purchase can one of the effective customer retention strategies to ensure repeat purchases. Get more info on how our solutions help you build customer relationships and promote customer loyalty.

Subscription-based business model

Many e-commerce companies are known to resist the subscription-based business model. But before dismissing the idea completely, companies must consider the fact that if a person has been buying the same supplement every month for several years, giving them the opportunity to save time and money by subscribing to regular delivery would turn out to be favorable. If they are able to pull this off, it means that the business would gain the benefit of recurring monthly revenue. When coupled with great customer services, customer retention strategies like monthly subscription guarantees a boost in the overall sales performance.

Every company wants revenue growth. But it is more important to achieve profitable revenue growth! That means minimizing churn and maximizing customer retention. The challenge is that customer retention strategies are not long-term, sustainable strategies. The better long-term, sustainable strategy is finding ways to make customers want to stay loyal to the brand. The million dollar question is: How do you make them want to stay? Request a free brochure to know how our customer intelligence solutions can help you find the answer.

Paid memberships

Offering additional perks through a paid membership is another highly successful customer retention strategy that is not only an additional revenue generating source for companies but also promotes customer loyalty. Take the example of Amazon prime which has been highly successful in getting customers to sign up to their membership program by offering exclusive benefits and discounts to members all year round. However, not every ecommerce company can be successful in implementing this model. To start off, they must have a loyal customer base and also serious thought and planning to implement it. If successful, paid memberships will reward loyal customers and increase their level of commitment to the business. Moreover, paying the small fee will give them yet another reason to come back and purchase from the company.

Get in touch with our industry experts and uncover new market trends and solutions to drive business growth.

omnichannel strategy

Creating an Ideal Omnichannel Strategy: What Businesses Must Know

What is an omnichannel strategy?

The consumer path to purchase is no longer linear. Instead, their shopping journey has many touchpoints, both online and offline. An omnichannel strategy refers to an approach to sales that seeks to provide customers with a seamless shopping experience across various channels. Today, it has become increasingly important for businesses to operate on both online and offline channels in order to gain a better foothold in the market and to prevent themselves from losing out on important local sales leads. The bottom-line result of such a strategy is immense, as businesses that provide an omnichannel experience achieve greater annual customer retention rate, compared to companies without an omnichannel strategy.

Planning to enhance your retailing strategies? Request a free brochure to know how you can leverage our solutions to formulate the right go-to-market strategies.

How to create an effective omnichannel strategy

omnichannel strategyOmni channel retailing is a great way for companies to enhance their customer experience and promote better business growth. Modern customers rarely depend on only one channel (online or offline) to make a purchase. They tend to shift between both these channels. This makes it vital for brands to ensure that they invest in an omnichannel strategy for their business. Experts at Infiniti have curated some key steps involved in creating an excellent omnichannel strategy:

Discover where the audience is

A company’s omnichannel strategy should begin with a clear idea as to where their customers are. Companies must identify which platform their customers frequent and the medium/devices that they use the most. The goal here is to have a clear idea as to where the target customers hang out, and where they normally shop.

Convert touchpoints

Converting all the touchpoints into shoppable ones is the key to omnichannel strategy. Taking care that customer has a memorable shopping experience irrespective of how they shop is the key here. Identify what other channels can be leveraged other than the offline and online stores to garner sales. For instance, several brands are now using social media channels such as Instagram and Facebook to engage with customers and even lets them shop through these channels.

Ensure smooth transition

Brands that have both online and offline presence must bridge any gaps that exist between the two channels. The ultimate goal here is to ensure a smooth transition between transactions occurring on both channels. For example, customers can be allowed to place their orders online, and then pick them up at the brick-and-mortar store of the company. This will ensure an enhanced customer experience as customers can save a lot of time.

Keeping up with the changing customer demands can prove to be challenging. Request a free proposal to know how we can help you stay updated with the market trends and build agile strategies to meet the changing demands.

Omnichannel strategy vs multichannel strategy

Multi-channel and omnichannel strategy, though quite similar, aren’t exactly the same thing. So, what is the difference, and what is its importance to retailers?

Earlier, multi-channel selling in retail took two forms:  in-store and mail-order catalogs. However, a multichannel strategy in retail now takes several forms including brick and mortar, pop-ups, catalogs, telephone, online store, social media, mobile apps, and third-party online marketplaces. Multi-channel retailing strategy involves selling to customers through both traditional offline outlets like brick-and-mortar locations as well as online outlets.

Omnichannel strategy, on the other hand, includes more than just the transactional channels, it refers to every interaction and touchpoint customers have with your brand. Omnichannel strategy in retailing is a more holistic approach to understanding how all of the various entities, interactions, and transactions work together to create a singular experience.

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market segmentation

Popular pricing strategies that e commerce companies swear by

Choosing the right pricing strategy is one of the most crucial decisions that you have to make. Get it wrong, and it could cost big for your business. Online and offline retailers alike recognize pricing strategy as one of the key value levers, and, accordingly, companies have worked to refine their pricing strategy, tactics, and tools over the past several decades in hopes of optimizing their approach. Today, with the rising use of the internet and smartphones, customers can compare prices with just a click of a button. So, the pricing strategy that companies in the e commerce industry choose must be one that not only gives them a good ROI but also gives a sense of ‘value for money’ to the customers. There are endless ways for companies in the ecommerce industry to configure Get More Infoand set their pricing strategy. Here is our pick of the top five ways to get online pricing strategy right:

Loss leader pricing

This is a crucial pricing strategy for companies in the ecommerce industry to convert their customers into loyal customers and ensure repeat sales. This strategy is generally practiced by retail giants such as Amazon and Walmart. The main idea behind this pricing strategy is to price certain products at a price that is significantly lower than that of the competitors in the e commerce industry. This is similar to the predatory pricing strategy that is mostly followed by offline retailers. This technique not only drives traffic into the store but also help in converting window shoppers into paying customers.

Basket-based pricing

Basket-based pricing is a common pricing strategy that is used by players in the e commerce industry to entice customers to make a purchase. In this technique, certain price points or products are used to incentivize customers to purchase products. For instance, it is often seen that online retailers offer free delivery if your total basket value exceeds a particular limit. This sometimes makes customers purchase more than they would have initially intended so that they can avail of the benefits.

Quick-delivery pricing

Amazon is a prominent example of an e commerce industry player who has been leveraging this pricing strategy effectively. The company leverages its state of the art logistics network to not only serve its customers at the shortest possible time but also to use it as a profit-making pricing strategy. They give customers options such as same day delivery, next day or 2-day shipping, in return for an additional premium from the customers. This is a great way for the company to keep its prices lower than the competitors but at the same time drive profitability for the business.cta ir

Real-time price optimization

With the advent of advanced technology, it is now possible for companies in the e commerce space to gain real-time insights on determining whether the rate at which the products are priced is the ideal way of ensuring profitability or not. It is not advisable to always price the products lower than that of the competitors. Instead, players in the e commerce industry can use retail analytics to identify and adjust the prices based on factors such as demand and out-of-stock situations.  Out-of-stock situations are opportune moments for setting prices at a higher rate as customers looking for these products on competing sites will surely navigate to you.


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5 Customer Centric Ways to Boost Your E Commerce Revenue

One of the significant advantages of operating online is the effortless access to unlimited data on customer centric trends, preferences and shopping behavior. E commerce companies can easily gather necessary information based on the past shopping data of their customers. In general, there are three basic ways in which e commerce companies can spur their revenues – firstly, by increasing the total number of customers, secondly, by increasing the average number of times that each customer buys from your brand, and finally, by increasing the average order value of each customer. But marketers often find it difficult to prioritize between these parameters. In that case what can be the next move? The answer is to have a customer centric approach and knowing exactly what your buyers want. Being customer centric is a sure-shot game changer in sales and marketing for companies.

Ways to Implement Customer Centric Marketing Strategies

Psychographic segmentationRequest Proposal

Gathering demographic information of the buyers, like age or gender is one of the primary steps towards a customer centric approach. Also, knowing where the customers live and tracking their behavior is an added advantage. But beyond the demographics, customer psychographics plays a vital role in understanding the goals, emotions, values, hobbies, and habits that help drive purchase decisions among customers. Psychographic segmentation is crucial for marketing in a customer centric manner.

Targeted promo e-mail

Though e-mail marketing is an efficient and cheap way for e commerce companies to market their products to the target buyers, what makes it successful is the ability to stand out from the other swarm of promotions in the customer’s inbox. Targeted e-mail marketing is a highly customer centric approach, purely based on the customer’s purchase history or browsing data on e commerce websites. This will not only give the customer a feeling of personalization but might also spark an impulse purchase.

Customized checkout

The amount of time customers spend on browsing through products is inversely proportional to the amount of time they want to spend in billing and checkout, this holds true for both brick and mortar as well as e commerce platforms. A lengthy checkout page will result not only in customer dissatisfaction but it might also result in the customer terminating the purchase.

Chatbot conversion optimization

Chatbots are becoming increasingly popular among customer centric e commerce sites, especially due to the absence of a customer care associate to assist the customers like in the retail stores. Chatbots give buyers the opportunity to interact with the brand and get their queries resolved in real-time. Due to massive customer traffic, most e commerce companies have automated chatbots on their websites to cater to customer centric queries. Chatbots can also help in improving the conversion rates.

 Authentic reviews

A common trait among online shoppers is to read the product reviews before making the purchase. The main reason for this is to protect themselves from being duped or receiving products that do not meet the expected standards. However, several dishonest players in the online business display fake reviews about a product.  Aiming for customer satisfaction is the key for customer centric companies to be successful. Authentic reviews, be it good or bad is in the best interest of the customer, and therefore is the right move.


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