E-commerce is the new frontier of business, with countless opportunities for expansion, growth and innovation. It is a world that waits for no one, that moves at a dizzying pace, exciting and sometimes intimidating. To maintain a competitive edge in this dynamic landscape, setting good, actionable goals is essential.
Setting good goals for your eCommerce business will help you focus on what’s important. Without clear goals to aim for, you may find yourself trying many different strategies and ultimately getting nowhere with them. That’s why the goals you set for yourself should be in line with the type of e-commerce business you want to build
However, not all business goals are created equal. Some goals work well for some types of businesses, but not others. For this, you need to set the right goals for your eCommerce business. Here are 8 of the most important ones you should consider setting up.
Increased website traffic
This should be an obvious first goal. And a primary goal for any online business. However, many e-commerce entrepreneurs are too concerned with the design and functionality of their site without working with people who visit their online store.
Every e-commerce business aspires to increase their website traffic. More traffic means more leads and a higher likelihood of conversions. This goal can be achieved by implementing an effective SEO strategy, which includes keyword optimization, link building, and content marketing.
Having a blog on your site that offers useful and high-quality content can attract visitors. With data analysis, you can identify which marketing channels drive the most traffic to your site and then focus more resources on those channels. For an online business, increasing traffic should be important target for your first year of business. However, it should also be an ongoing goal that companies pursue throughout their existence.
Increase conversion rates
Increased traffic does not guarantee improved sales. Your eCommerce site needs to convert visitors into buyers efficiently. Effective product descriptions, professional photography, easy navigation and a smooth checkout process are all part of creating a site that converts.
To increase conversion rates, e-commerce businesses should use high-quality product images and persuasive descriptions to influence purchasing decisions. The better your products look and sound, the more likely your visitors will buy.
Then incorporate customer reviews to build credibility and trust. Honest reviews act as social proof of the claims you’ve made about your product. Be careful, though, to use real reviews. Fake reviews will make you lose the trust of potential visitors if they spot a fake.
Also, and this is one of my pet peeves, simplify the checkout process. A complicated checkout process gives your customer more time to change their mind and can increase the doubts they had about your purchase in the first place.
Improve customer retention
Acquiring new customers is often more expensive than retaining existing ones. By many estimates, it costs e-commerce businesses $45-$50 to acquire a new customer. That’s 5x more than retaining an existing customer.
Therefore, e-commerce companies should prioritize customer retention. One way to improve retention is by creating a personalized shopping experience. For example, recommend products based on previous purchases or offer personalized discounts. Excellent customer service, including prompt responses to inquiries and quick resolution of issues, also contributes to customer retention. A loyalty program can incentivize repeat purchases and foster customer loyalty.
Expansion of the product range
By expanding the types of products available in their store, e-commerce companies create the possibility of growing revenue as well as their customer base. There are several different ways to expand the products you have to offer on your eCommerce platform.
First, you can collaborate with other manufacturers or sellers to diversify your product range. This could involve dropshipping, where products are shipped directly from the manufacturer to the customer, reducing overhead costs. Additionally, you can incorporate personalization by offering customizable products. This can increase customer engagement and loyalty.
Diversifying and expanding your product range is a strategic move for growth. It can help you attract a wider audience and increase your market share. However, companies must ensure that new products align with their brand and meet the needs of their target market. Market research and customer feedback are vital tools to ensure that new product offerings are successful.
Improved profit margins
Improving profit margins is a key goal for any e-commerce business. In fact, this should be a goal for any business. However, one advantage of the e-commerce business model is the potential to achieve profitability and the scale is greater. Because of the potential, improving profit margins shouldn’t be a goal that e-commerce entrepreneurs shy away from. Here are some ways to increase your ecommerce margins.
- Optimize product prices- Strategic pricing is key. Regularly review your pricing strategy and compare it to the competition. Offering competitive prices without compromising too much on profits can increase overall sales and therefore total profit.
- Reduce overhead costs- Any reduction in the costs of running the business will improve profit margins. This could involve negotiating better deals with suppliers or reducing shipping or packaging costs. You can even switch to a more affordable hosting company.
- Up-selling and cross-selling- Upselling encourages customers to buy a more expensive version of the item they’re viewing, while cross-selling recommends related products. Both strategies can increase the average transaction value, increasing your profit margin.
- Presentation of higher margin products-Find related products for your site. When selling them, try to target customers to those specific products.
- Private label Some products-Consider developing your own private label products. This allows you to control product quality, increase brand recognition and make more profit.
- Implement a customer loyalty program- This can increase customer retention and frequency of purchases. Rewarding customers for repeat purchases builds brand loyalty and increases customer lifetime value.
It goes without saying that improving profits is crucial financial business objective. However, for e-commerce businesses, this goal can be achieved faster than many other types of businesses.
Creation of a newsletter list offering discounts
A newsletter is a powerful tool for e-commerce businesses. It allows direct communication with customers and offers a platform to promote new products, share news and offer exclusive discounts. Offering discounts or other incentives for signing up can increase newsletter subscriptions. Segmenting your newsletter audience based on their buying habits and preferences allows for personalized communication. This will help increase engagement and conversions.
One of the best ways to do this is by offering a discount even before your customer makes their first purchase. Make sure you have a pop-up subscription form on your website. The popup should appear after your visitor has been on your site for a certain amount of time. Plus, it should be an irresistible deal they can take advantage of right away.
Eventually, you’ll have an email list of customers who like to shop on your site and really like it. Ultimately, these are the customers you can target when you make a sale or launch a new product.
Cycle time reduction
Efficient operations are vital for e-commerce businesses, and reducing cycle times (the time it takes to complete a business process) is an important goal. This could involve streamlining the order fulfillment process, improving inventory management, or automating customer service processes.
Reducing cycle times not only makes your business more efficient, it can also improve customer satisfaction by speeding up delivery times and resolving customer issues faster. While this is a non-financial business objectiveit does have an impact on long-term e-commerce business results.
Lower shopping cart abandonment rate
Shopping cart abandonment rate is the percentage of customers who add items to their online shopping cart but do not complete the purchase. It is an important metric for e-commerce businesses as it directly affects their conversion rate and revenue. High cart abandonment rates can lead to issues with your website design, checkout process, or product pricing. All of this can deter customers from completing their purchases.
To reduce shopping cart abandonment rates, you should first simplify the checkout process. Focus on minimizing the number of steps required to complete a purchase. One way to do this is to reduce the number of forms to fill out and speed up the payment process. Ultimately, the goal is to make it easier for customers to complete their transactions. The easier it is for them to buy, the more likely they are to buy.
Another good idea is to implement a progress indicator on the checkout page. The indicator should show customers where they are in the buying process. Doing this can help reassure customers that their purchase is in progress, which will reduce the likelihood of cart abandonment.
Also, consider implementing a guest payment option. This is an option that allows customers to complete their purchases without creating an account. I know I’ve abandoned numerous shopping carts because I have to create an account just to buy something that’s available on Amazon or another platform where I already have an account.
Setting clear and well-defined goals is crucial to the success of an e-commerce business. By implementing these strategies and continuously monitoring performance, e-commerce businesses can stay ahead of the curve and continue to grow and prosper.
As most businesses look to digital markets for increased sales and consumer reach, e-commerce is becoming one of the most important aspects of a business. Businesses are quickly realising the importance of using digital tools and processes to succeed in an ever-growing digital world. Ikaroa is a full stack tech company promoting the use of digital to power businesses. Here, we are going to discuss 8 goals for an ecommerce business.
1. Increase Conversion Rates: An ecommerce business should set goals to increase its conversion rate – the rate at which visitors take the desired action (e.g. purchasing or subscribing to an email list). By optimizing the user experience on the website and offering great customer service, businesses can reach their desired conversion rates.
2. Improve Targeting: Targeting customers through personalized marketing and offers can create a great customer experience and help improve business growth. With digital marketing tools, businesses can track and analyze customer data to gain insights on their interests and preferences.
3. Improve User Experience: Customers expect a smooth and intuitive journey when browsing online stores. To build a great user experience, businesses should optimize website loading speed and navigation, make sure all content is up-to-date and relevant, and continuously test and optimize the website for better performance.
4. Increase Search Visibility: Businesses should also set goals to increase their visibility organically through search engine optimization (SEO). Proper SEO practices can help businesses appear on the first page of search engine results and generate more organic leads.
5. Optimize Inventory Levels: Having an optimized inventory is an important aspect of an ecommerce business. Adequate inventory levels must be maintained to ensure customers have access to the necessary products when needed.
6. Increase Average Order Value: It is also important to focus on increasing the average order value of customers. This can be done by offering bundle packages and discounts to entice customers to buy more products in a single transaction.
7. Increase Upselling and Cross-Selling: Upselling is the practice of offering customers additional or upgraded products within a purchase, and cross-selling is the practice of offering related products. By optimizing both of these practices, businesses can increase their sales.
8. Increase Customer Retention: Retaining existing customers is key to a successful ecommerce business. Offering premium services, such as free shipping and product returns, can help businesses build relationships and loyalty with their customers.
These 8 goals are essential for an ecommerce business to succeed in the digital world. Ikaroa provides businesses with the digital tools and services to help them achieve their digital goals and stay ahead of the competition. So if you’re looking to take your business to the next level, contact Ikaroa today.