There's been a lot of talk about the growth of eCommerce and the increase in competition and rentability your company can reach. 2021 is going to be a key year for the industry. Only those companies that have the vision to grow and innovate in the industry will be able to keep a high level of competitivity. The fact is that many of the "traditional retailers" continue to struggle to put their fate in technology, for them is hard to accept that the digital world, even if it's not 100 percent different from traditional methodologies, carries a strategic and operative difference that for them is hard to assimilate.
It all branches out from the vision the company has, here's where directors and managers will find their biggest challenge.
It's no surprise that when talking about internet sales the first thing that comes to our mind is Amazon. Overnight, with little effort and a small investment, it's the mythical story that still goes around some companies and says that the eCommerce channel is cheaper and requires little to no effort.
When any of us working in the business read about the juicy numbers that big players are achieving, we get drunk on an energy and motivation shot expecting to see that result further down the path of our professional lives. Nevertheless, it's important to keep in sight the reality of some companies. This is why I’d like to share the five most common mistakes that should be avoided in the world of eCommerce.
1. Losing hope
We know it’s really important to reach critical mass on your first weeks of operation in order to reach sustainability, but it's also important to have in mind you might not see a huge change in numbers during the first six months. The fact is there`s still a lot of doubt and uncertainty about online shopping; this famous "Costumer decision journey" which refers to a process of investment and understanding from the client. SalesForce claims you need at least 7 to 9 digital touches to achieve a client´s purchase. Achieving this can be reached through different strategies (Remarketing, retargeting, etc.) which can take you from having a client with average to high purchases. Patience and consistency of strategies will help you reach a high rentability index nevertheless, just as any other business it requires a lot of work, consistency and a solid vision.
2. Not believing in technology
Internet sales is a synonym for technology. In 2018 he who doesn't believe in technology is lost. It's not necessary to be well in depth in the business to know that what took Amazon to place where it's at right now was their bet on technology. Just seeing the launch of Amazon One is example enough. This business is technology in a hundred percent taking the concept of omnichannel to the next level. Technology is your main weapon don't underestimate its use. Remember that only the most innovative branches have the possibility of breaking the market. Don't minimize whatever a technologist might accomplish, do not minimize their ideas just because he's not a salesman remember the biggest players in the market are companies mainly focused on technology. It's important to keep balance since technology won't exactly sell more but is no doubt fundamental in reaching an increase in sales; it'll help you develop winning strategies, innovative, even develop not only sales strategies but also customer service that as we know represents an important percentage of rentability.
3. Resistance to change
Just as eCommerce is growing, change is unavoidable, the companies with the biggest achievements are those whose strategies have been open to change. Not involving your processes, strategies, and planning with the growth in the technological world is a disgrace. Your companies processes play the main role, not having the willingness to make logistic, collecting, invoicing or other types of changes can lead you down the path of not having a solid channel, it's essential to have all areas involved in eCommerce operation. The optimization of processes and communication between areas is a cornerstone of the customer journey.
4. Forgetting innovation
When I say innovation I don't mean finding the black thread. You above everyone else know the strength of your company, doesn't stop yourself from taking advantage. You can take common practices from the market, pick up store for example, what makes the difference it's the benefits of your company such as ease of pay, partial payments, credits, etc. Don't question taking everything advantageous to your digital channel. Bottomline, just as it was mentioned at the beginning of this article, only retailers willing to innovate and develop new ideas will outstand during the eCommerce boom.
5. Thinking all strategies fit your company
It's important to stay grounded. Not all strategies and new releases were made for your company. Every time we want to implement a strategy we need to have a 360-degree vision of our strengths and weaknesses in order to direct our efforts into a strategy that really benefits the company. It's always important to do benchmarking with all the benefits your brand represents and look for a way to be differentiated in the market. A very common mistake for brands is using Influencer strategies, ad campaigns. As a matter of fact, not all this strategies work for every company. Managers and directors must be clear on what's the channel's conversion cost. Even if it's important to tackle head first phase one of the conversion funnels it's always good to set boundaries and implement dynamic strategies that allow us to adjust in case we don't get the expected response.
In conclusion, the best bet you can make for your company is putting all your money in digital media and avoiding this everyday errors. The best way to outstanding in the business is not being afraid of facing challenges and being willing to invest time and money to create a sustainable channel.
The right mindset is thinking ecommerce it's not here to kill off traditional means. It's just another step in evolution.
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