Growth marketing in e-Commerce
Nowadays, innovations are appearing so quickly in almost every professional field that it is very easy to fall behind. In the past, phrases like omnichannel and Agile sounded like the name of infectious disease, and today we integrate them into everyday language (not only at work) without any problems and misunderstandings. However, in the name of the principle: “something has to replace the old”, new concepts are constantly appearing and it could give us a headache. This article will be about growth marketing in e-Commerce and how to start building the growth of your sales. Here we go!
Growth marketing? What is it anyway?
All marketing tricks have one common denominator – sales. Whether we have elegant writing style, we are creative masters or born influencers, we always want to sell something by our actions: a product, a service or ourselves. This time it is no different. Growth marketing is another gateway to influence sales results. Separate entities such as the analysis, product development and marketing departments are starting to play to one goal in order to work together on the growth of the company.
We can shorten the basic definition to a statement that it is a departure from traditional marketing and a transfer of activities to quick experiments on many channels, which will allow us to assess what brings the greatest growth and development. In fact, it is much more than that.
Growth marketing assumes:
- going beyond the framework in order to find new (sometimes surprising!) methods of reaching the user,
- development and adaptation of the product to the expectations of the market,
- understanding what drives us to buy and adapt to these variables,
- continuous analysis of activities,
- identification of the most effective activities related to customer acquisition and retention.
Mission growth marketing
As you probably know, customers can be set into stages due to their emotional and shopping state, creating a so-called marketing funnel. As a reminder, it consists of phases:
At each of these stages, the recipient expects something different from us. He has different needs and worries. The main goal of growth marketing is not to focus on a particular phase, but to work on the whole funnel. It is known that marketing budgets often limit our capabilities, but it is thanks to “small steps” and skilful division of financial resources into each stage that you will be able to measure the results and see what really works.
A few words about the analysis
Before we move on to the examples of growth marketing techniques, let’s stop for a moment at the analysis. What will be most important for you is to understand what users are guided by when buying or choosing a service provider.
Let’s assume you’ve been running a shoe shop for jogging for five years. The customers are there, the sales results cover the holes in the budget. It is stable, but there is also nothing to boast about. From the very beginning, you have been using traditional advertising and high-quality products, which you focus on advertising communication because it is the most important thing when choosing footwear. And this is where the first temptation appears. Maybe it used to be like that, but you forgot that with the time of your existence on the market, customers have also changed. Today, apart from functionality, consumers focus on appearance and social support. If you analyze what your customer really thinks before buying, it may turn out that thinking about comfort is far behind checking on the Internet, whether a given shoe model has recently appeared in the entry on recommended clothing for daily training with your favorite blogger, or whether it was this couple that played the main role in the advertisement, which all friends talk about.
Do you understand now what I mean? Only by analyzing and optimizing your actions, you can count on the sales bars to go up instead of standing still or worse – still falling. There is a so-called behavioral analysis, whose main task is to study human behavior and the causes of its change.
The same analogy should be applied when improving a product or service. The fact that you manage to reach the recipient does not mean that the product will meet his expectations.
Where to get the knowledge from?
Customers say more about themselves than they might think at first glance. At this point, the online shop takes a definite lead over offline. Thanks to our presence on the Internet, we can easily find answers to the following questions:
- how users behave on the website,
- what time of day is the most convenient time for them to shop,
- when they drop their baskets,
- what their activity in the social media looks like,
- what is the range of the individual channels,
- what is the effectiveness of email campaigns.
This is where the important advantage of growth marketing comes into play. Conclusions are drawn on the basis of hard data. And this is what they allow (sometimes unexpectedly) to appear on the market!
Remember that there are quite a few places where you can get information about your users:
- an online shop,
- social media,
- company blog,
- landing page,
- video marketing,
- mailing campaigns,
- paid commercials.
The most important thing to remember is that the best conclusions are drawn from the facts and behind every action, there must be a clear goal you want to achieve.
Everything seems obvious on this subject, but in fact, it may not be, so I wanted to devote a separate paragraph to it.
Behind all the actions that we do or want to do, there must be a goal that we can measure with specific KPIs (to remind you what KPIs to measure in e-Commerce). Of course, there are people representing the “let’s do it and what happens is we will see it” approach – this is not a good tactic, especially if you care about tangible results.
Depending on what stage you are at, your goals may vary – both in quantity and size. If you are just starting your adventure with growth marketing, I recommend starting by specifying the 3 most important ones and building a pyramid out of them.
- At the top, set the most important, overarching goal, e.g. “increase the number of transactions per month”.
- A bit less important inside, but equally important, as e.g. “increasing the number of new users on the store”.
- And on the basis of “new content on the site”.
In this way, you will know what is the most important result for you and what it is made up of. After seeing the first effects, the next goals should appear spontaneously.
Remember, regardless of which industry you sell in, your overriding goals should always be: acquiring new customers, retaining existing customers and increasing profits! At the end of the day, these results will be the most important ones ?
Targets? They are. Ideas for their implementation? They are. Now is time to test them. Testing is the only and the best way to find out which activities need to be invested and which turned out to be a mistake.
Before you start testing, some good advice:
Each test should go hand in hand with a specified goal. Testing for the sake of testing itself does not make much sense. The most important thing is that after each test you will be able to answer the question whether the desired result has been achieved. Test briefly and on a large group. It is a pity to waste time on a long test that can be used for other experiments. Large sample = less chance of statistical error. Do not check several things at once. If you change content and graphics at the same time, how will you know which exchange brought more conversion? Test according to the target-. There is no point in wasting time and energy on checking the preferences of people who will not become your customers anyway.
|The process in a nutshell|
|1. We set a goal (we want to achieve X)|
|2. We collect ideas for action (brainstorming)|
|3. Identify the priorities of the ideas (most likely to achieve the set goal quickly)|
|4. We are conducting experiments|
|5. We measure the results|
|6. We continue practices that have proved their worth, we get rid of what has failed|
One Man Show? NO!
I hope you will remember the most important message. Growth marketing is a process that belongs to the whole company, not a task for one employee. The whole organization should contribute to growth: from building a strategy to implementing tactics in the online store.
The right people next to you are the ones who:
- They are still hungry for innovation – those who value stability will not be satisfied with the results. There are plenty of places around to gain new knowledge and inspiration. All you need to do is look at them.
- They know what to measure and how to measure – writing a monthly report with the most important data is not an analysis. Continuous verification is the key to drawing the right conclusions. And let’s not fool ourselves, it’s nice to get good news from the team before the computer turns on.
- They treat failure as a lesson – if you believe that every experiment will give a good result, unfortunately, I must disappoint you. But everything has its good sides. Failure will show you what to do for sure. Just a little perseverance is enough, and in the end, you will feel satisfied.
- They don’t treat every idea as their child – the growth marketer knows that emotional attachment to an idea doesn’t pay off. Most of them will simply quickly be forgotten. Even if the broken glass is constantly stuck together, it won’t make it useful.
- They just want to – constantly trying to combine and infect with the desire to pull as much as possible out of the bars is the greatest treasure.
A handful of inspirations
Finally, I have prepared for you a few tactics that will help you to enter the world of growth marketing. I hope that they will become an inspiration for you to come up with ideas that will bring results.
|Tactic #1||Destiny in SEO titles|
|Description:||SEO title is the first thing that the user sees when you display your offer in the search engine. Try to change the title of the offer to one that reveals its purpose, e.g. “White shirt for a wedding”. This way you will be sure that the customer will know that your product meets his expectations.|
|Measurement method||Comparison of the CTR indicator with the original title|
|Tactic #2||Use the FOMO effect|
|Description:||Effect FOMO (Fear Of Missing Out) – fear that something important will pass us by/leave us behind. Put the information on the product card that someone is watching it, or that the validity of the offer is limited by a specific deadline.|
|Measurement method||Comparison of conversion with the period when the information was not posted on the website|
|Tactic #3||Product Card|
|Description||Make small changes to the product card. For example, you can change the size of a photo and place the next price on the opposite side. The most important thing is to make one change each time.|
|Measurement method||Comparison of conversion with the period when the information was not placed on the website|
|Tactic #4||Social evidence|
|Description:||Start promoting your products by posting photos from satisfied customers. The Wellington brand is a great way to show how their watches look in everyday situations.|
|Measuring method||Check the entry rate and conversion rate after entering customer photos.|
|Tactic #5||Guest post|
|Description||Establish cooperation with bloggers and industry portals. Expert articles will surely increase your credibility. Don’t forget that the article is supposed to address a given issue and not be a description of your company.|
|Measuring method||Redirects from links to your shop.|
|Description||Create personalized ads based on the products your users have seen. This will remind your users about your offer and encourage them to come back.|
|Measuring method||Conversion from Advertising|
I hope that the article has not only been a source of knowledge for you but also brought you new ideas. The most important conclusions you should draw from it are:
- Growth marketing is an action strategy aimed at building sustainable growth – one-time shots or virals can happen, of course, but unfortunately, it is impossible to plan them;
- Continuous experimentation, testing and leaning on conclusions is the basis of e-Commerce growth marketing;
- Working on only one stage of the marketing funnel is not the task of the growth marketing team. A good growth marketer knows that CLV (Customer Lifetime Value) has the same effect on business development as increasing conversions.
Your business growth is up to you, and I wish you quick results. Good luck!