April 20, 2023 / 2 min read
Photo by Bruno Martins on Unsplash
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The signs of e-commerce stagnation are clearly visible – the growth is slowing down, stock is becoming more difficult to liquidate, the stream of new customers seems to be drying up and the existing ones tend to visit less frequently and buy less.
Yet, since the pandemic had accelerated digital transformation in retail, significantly more players compete for the same buyer. Increased market saturation translates into higher advertising costs. And the ongoing legal regulations of privacy is not making it easier, decreasing customer targeting capabilities and in consequence swelling Cost Per Click budgets.
On top of that, customers prefer sticking to what they know and are hesitant about testing new product or business models, such as leasing or subscription.
To overcome stagnation, it’s crucial to simultaneously strengthen the foundations of your business and focus on removing obstacles in the customer journey. But you need to approach it in a smart and humble way to reduce risk. Rather than relying on costly and risky "big bang" launches, businesses should test new ideas iteratively. This allows experimenting in a controlled environment, leading to more efficient use of resources and a greater chance of success.
Effective strategy to navigate the crisis is investing in customer loyalty. Building strong relationships with customers through loyalty programs, personalized experiences, and exceptional customer service can create a sense of personal preference that encourages repeat business and positive word-of-mouth.
But most importantly, a proper e-commerce health check is needed to understand which way to go and which areas of your e-commerce ecosystem to invest in first.
This specialist-led audit of various areas of your e-commerce ecosystem is a reliable source of insights on translating KPIs into strategy goals. It also delivers a prioritized backlog of improvements that ensure low hanging fruit to be harvested.
Typically, the areas covered by an e-commerce health check are:
As a result of this type of business audit, you should be equipped with a set of tools that impact the bottom line - wisely designed traffic channels, ready-to-implement strategies for increasing customer retention and order frequency that delivers increase in conversion rates and average order value.
If the challenges of low sales, not enough customers and overwhelming business stagnation sound familiar, we’ve prepared a dedicated e-commerce health check webinar to help you address these issues.
Don’t let your e-commerce business fall behind. Unlock your access to the webinar here. Learn how to identify root causes, focus on foundations and stay up to date with the market.
e-Commerce Strategist
Małgorzata’s 15 years of experience have seen her delivering effective solutions to ecommerce brands of all shapes and sizes across the EU and UK. Małgorzata is experienced in brand positioning, traffic and ecommerce sales analytics and leading ecommerce teams and projects for B2B and D2C businesses.
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