David Perry is the CEO of Carro, an eCommerce partnership network with over 30K Shopify brands and more than 320M visitors a month.
The global market is no stranger to economic recessions, and online merchants must be prepared to navigate the obstacles that come their way. As consumer spending patterns shift and their interest in non-essential purchases wanes, e-commerce companies must adapt their sales tactics to boost their revenue. As CEO of an e-commerce partnership network, I’d like to share some techniques that can assist e-commerce stores not just in surviving, but excelling during an economic downturn with successful examples in the industry.
By creating an “OUTLET” section on their website, ASOS—a successful fashion retailer—has been able to cater to shoppers who prioritize getting the most bang for their buck, especially during a downturned economy. They’ve achieved this by offering deals on lower-priced products and offering discounted bundles to keep consumers happy.
As economies falter, e-tailers have the potential to skyrocket earnings and uphold faithful patrons through calculated price reductions and deals. Intermittent bargains, time-bound incentives, and customer appreciation benefits promote an air of immediacy, exclusivity, and inspire buying behavior. To illustrate, Wayfair’s “Daily Sales” division introduces fresh price-slashed goods every day, compelling clients to act with haste.
Maximizing the potential visibility and appeal to potential buyers is essential for online retailers in times of economic decline. This can be achieved through effective usage of product evaluations, high-quality images and detailed product information to communicate the product’s benefits, uniqueness and overall value proposition. As customers tend to be more cautious during these times, tailoring product listings and descriptions can be key.
Consider teaming up with complementary businesses, brands or influencers to elevate your reach and boost your brand recognition. These mutually-beneficial partnerships can facilitate the creation of unique co-branded offerings and strengthen your reputation. Additionally, consolidation of resources and shared expertise can result in increased exposure and sales for both parties, which is especially advantageous during economic hardships.
Motivating consumer purchases can be accomplished by implementing flexible payment methods like buy now-pay later options or installment plans. For example, Afterpay partnered with Revolve, a fashion vendor, to offer the option of paying using installments, which can alleviate financial pressure on buyers.
Fostering repeat business and building customer loyalty separates online retailers during times of economic uncertainty. To achieve these goals, prioritizing top-notch customer service is key. Immediate and personalized support via live chat and responsive email communication, in addition to a comprehensive FAQ section, are crucial components for e-commerce companies.
Offering complimentary items during economic hardships can increase average order value for businesses. An instance where this can apply is an online electronic shop that includes affordable accessories, or a makeup store that can add brushes, mirrors and several kinds of bags. Some stores add upsells like extended warranties with their primary products. Some have added subscriptions using services.
Displaying customer reviews, testimonials, and other user-generated content is an effective way to showcase positive consumer experiences and strengthen your brand’s credibility and trustworthiness through social proof. The use of this strategy on your website and social media platforms can be a great advantage.
Despite times of financial strife, some industries and products have proven to be resistant, earning them the name “recession-proof.” To meet the needs of consumers during hard times, e-commerce retailers can offer an expertly chosen collection of such items. For instance, Amazon elevates vital products such as groceries, personal care items and household supplies to its Essentials category.
Easily browsing and purchasing on your online store is crucial for consumer satisfaction, so it’s important to optimize for mobile devices and improve website usability. Implementing these measures can improve conversion rates, which is especially important during economic slumps.
Personalized product recommendations and shipping cost reductions can be instrumental in amplifying sales by analyzing consumer data and browsing history to unveil items that are most relevant to customers.
Diversifying your marketing channels is crucial in building a sense of community and brand loyalty. Interacting with customers on social media channels assists in promoting repeat purchases and word-of-mouth marketing. Engaging content, promotions, and updates can be shared to help achieve this goal.
Establishing a customer loyalty program is a great way to cultivate loyalty from your clientele. The creation of a rewards system that encourages repeat business is a potential option. By offering loyal clients first dibs on sales, exclusive discounts or free goodies, you can increase their customer lifetime value which may then prompt them to come back for future purchases.
Work with brand ambassadors and influencers to extend the promotion of products and broaden the audience. This method can carry significant impact because consumers tend to favor the recommendation of well-known personalities over typical advertising.
Optimization of inventory management so as to boost cash liquidity while minimizing expenses. Consider employing inventory tracking software and just-in-time inventory strategies can keep stock levels optimal and prevent instances of overstocking or stockouts for online vendors.
Amid a downturn in the economy, expanding one’s clientele can prove to be both arduous and costly. Therefore, I find the wiser course of action is to dedicate resources towards preserving one’s current customer base. By means of individualized interactions, membership rewards and exceptionally hospitable customer support, companies can breed loyalty within their audiences.
Online retailers can greatly benefit from investing in data analytics and consumer insights. By doing so, they can gain crucial information that can aid them in making informed decisions on various aspects of their business, including marketing, pricing and product offerings in turbulent times.
Adjusting your product offerings is crucial to thriving in the face of fluctuating consumer demands. Fresh opportunities for growth can be stimulated by recognizing niche markets and new trends.
By adjusting their strategies and focusing on value, I believe retailers can still flourish even during economic hardships. To do this, they can carry more budget-friendly merchandise, curate a collection of recession-resistant products, use sales and deals, fine-tune product descriptions, give customers more payment options, and ensure top-tier service. These methods can help e-commerce businesses navigate economic challenges to maintain sturdy sales.
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