Optimizing the Customer Journey for Ecommerce Success

– The average brand making $1 million in revenue spends about $300k in ad spend, resulting in a 5x blended ROAS.
– Most brands aim for a ROAS of 2-3x, with an average of 2x for first touch.
– Inefficiencies in ecommerce arise from misalignment in various points of the customer journey, such as audience targeting, creative messaging, landing pages, popups, offers, product pages, pricing, and product differentiation.The key action item is to focus on understanding and attracting a quality audience in order to optimize the customer journey and increase conversions in ecommerce.The average brand making $1 million in revenue will spend about $300k in ad spend to do so. The average brand fully optimized will spend around $200k to do so. This translates to a 5x blended ROAS. But it’s one and done. This figure incorporates return customers into it. When we look at a paid acquisition channel: A super great ad campaign might do 5x. Most brands would be thrilled with ROAS of between 2-3x. But on average across all of them with first touch, it’s likely you’re somewhere around 2x being considered good. The same brand is chasing at max around an 8% conversion rate on a day without a big sale or an email boost. They are actually happy with anything over 2%. The truth is, there’s a massive amount of inefficiency in e-commerce. But when you take a deeper look, it becomes quite clear why this is the case. There are 9 points in the customer journey that can all play a role in conversion for a first purchase: Audience, Creative, Ads, Landing Pages, Popups, Offers, Product Pages, Price, and Product. Often they aren’t aligned. The audience isn’t known. The creative doesn’t speak to that audience. The ads don’t stand out in a feed. The landing pages are trying to just sell. Popups don’t offer any real value and show only once. Offers are the same for all traffic sources. Product pages lack all the necessary information. Price is usually inflated or unclear on the value. Product looks the same as other competitors. The truth is, most of the time, website owners are just too close to the problem to see the issues. We’re all very good at creating the company journey, we’re all pretty bad at creating the customer journey. A lot of this stems from not knowing your audience and not seeking to understand your audience. Your success starts with attracting a quality audience, one that is looking for a solution and has the budget necessary to purchase from you. It’s about molding your copy and content to match what they are looking for while providing the value needed for them to feel comfortable making a purchase. #ecommerce #customerjourney #strategyhttps://www.linkedin.com/in/jivanco

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