– Ecommerce brands are skilled at understanding the company journey but struggle with understanding the customer journey.
– Many ecommerce companies spend a significant amount on advertising, which may result in their ad spend being equal to or less than their profit.
– To counteract this, ecommerce brands can become more efficient, improve the customer experience, or build a community.Build a better customer experience.The smartest thing that most ecommerce brands should do to drive revenue isn’t an ecommerce play. They just don’t know it or understand it. Ecommerce companies, know one thing: make a product, sell the product. They are incredibly gifted at understanding the company journey. Make the product, say how great it is, everyone should want it, sell the product, make money. They are not so gifted at understanding the customer journey. Participate in an activity, start taking the activity more seriously, seek out specialized gear for the activity. This applies to all activities. A consumer moves from good enough to seeking out something in their price range to investing in the absolute best they can find. As the madness of Black Friday and Cyber Monday is officially behind us, I want to take a moment to reflect on the collective billions of dollars that have been spent in the past month or so on advertising one-to-one. One solution to one product for purchase. This insanity is going to be repeated next year too and the year after, and when companies look at their ad spend bills for the 2022 calendar year in terms of the raw percentage of money spent, it’s going to make them sick. Roughly speaking, for a lot of companies, their spend will be equal to or less than the profit they take home on the year. (This will vary by brand) but usual budgets are around 20%, and this is the average profit of most ecommerce-based companies. Kind of crazy, right? There are only a few ways to counteract this: become more efficient as prices continue to go up, build a better customer experience, and build a community. The problem with the third, though, is everyone says the words but has no idea what they really mean from a customer journey perspective. Building a framework for that third element that works is going to define the next 20 years of business. #ecommerce #content #marketinghttps://www.linkedin.com/in/jivanco