The Three Most Important Rules for Successful eCommerce
Every successful business owner would probably give you their golden rules for making it in eCommerce. Suffice it to say that some of these would be more useful and relevant than others.
Still, irrespective of the type of business you intend to establish, there are specific standards you need to address to succeed. In fact, according to a report by Forrester, U.S. online retail sales are expected to reach $1.6 trillion by 2027, growing at a compound annual growth rate (CAGR) of 10%. So whether you're starting at ground level or looking to improve the performance of an existing business, here's a brief overview of the three most important rules for successful eCommerce.
1. It's all about the experience
First, it's no longer simply a case of combining quality products with low prices to guarantee success. You're looking at a dead end if you cannot provide every customer with a memorable and engaging experience.
The customer experience is the most critical and relevant tipping point in eCommerce. Studies have repeatedly shown that customers are typically willing to pay more for the same product and services if the overall buying experience is superior. A survey by PwC found that 73% of consumers say customer experience is an essential factor in their purchasing decisions.
Every step of the customer's journey must be smooth and capable of painting a positive picture of your brand. This includes everything from the initial product discovery phase to post-purchase support. A Salesforce survey found that 84% of customers say a company's experience is as important as its products and services.
If you fail to provide a stellar customer experience, all the low prices and traditional bargaining chips in the world will not matter.
2. Experimentation drives success
Traditional research lets you learn only a certain amount about your audience's behaviour and preferences. The reason is that, when it comes to it, all your predictions and general expectations could be entirely off the mark.
This is precisely why experimentation and A/B testing are compulsory for eCommerce success. Assuming everything you provide is 100% flawless is naïve and dangerous in the extreme. Irrespective of how solidly your eCommerce site is performing, there's always plenty of room for improvement.
Accept the industry's trial-and-error nature and conduct as many tests and experiments as you can. Allow the results of the tests to determine the best course of action to optimise your eCommerce website continually. If it works, go with it—even if it goes against your initial vision.
A Harvard Business Review study found that companies that embrace experimentation and continuously try out new ideas outperform those that don't by 30% in the most critical business metrics, including revenue and customer retention.
3. Metrics tell you all you need to know
Last but not least, once your eCommerce website is up and running, analytics will tell you everything you need to know to make it a success. By studying key metrics, you'll know exactly what's working, sending your customers in the opposite direction, and where things could be optimised. Then, it's a case of getting busy with A/B testing and determining what works.
Intensive and ongoing use of analytics means accessing all the information needed to create a blueprint for eCommerce success. It's all right there in front of you: the elements of your website that engage customers, bounce rate data, demographics, preferred access points (desktop/mobile, etc.), and so on.
A McKinsey report found that companies that extensively use customer analytics are 23 times more likely to outperform their competitors in new customer acquisition and nine times more likely to surpass them in customer loyalty.
Not only is it completely priceless data – it's also 100% free to access and analyse to your heart's content. If you don't have the time to do it yourself, consider hiring someone who does!
While numerous factors contribute to eCommerce success, focusing on providing an exceptional customer experience, embracing experimentation, and leveraging analytics are three of the most critical. By keeping these rules at the forefront of your strategy, you'll be well on your way to building a thriving and profitable online business.