Skip to main content
Placeholder

Mastering Ecommerce: Consumer-Centric Strategies To Succeed Beyond Brick And Mortar

Written by: Andrew Glor
Date: July 14, 2024

First published here on the Forbes Council website.

While ecommerce growth has slightly tapered off post pandemic, it remains a significant avenue for sales and brand visibility. Yet brands across all industries are still trying to navigate this evolving landscape. So, how can brands adopt consumer-centric strategies to win online? Based on examples in the industry and my own experience in brand growth consulting, here are several steps to keep in mind.

1. Understand the obstacles to overcome.

One significant hurdle is the fragmented nature of the retail environment and its busier competitive arena—more niche and direct-to-consumer players—compared to offline channels. As a result, traditional brands may not experience the same level of market share online as they do in-store. The adoption of omnichannel strategies with various sub-channels (e.g., buy online, pick up in-store, and ship from store) can also be challenging, and while convenient for consumers, it often complicates execution.

Data analysis can also be problematic due to its limited integration with traditional sources, often requiring triangulation or ad hoc research in order to achieve accurate insights. Factors like higher fulfillment and shipping costs, increased competition from online-only retailers, and the need for additional investments in digital marketing and technology can also result in lower profit margins for online operations when compared to in-store operations.

But understanding that these challenges exist is just the first step. Let’s take a look at what you can do to overcome them.

2. Put strategy first.

Identify your overall growth strategy: What is your brand aiming for from a consumer perspective? What growth levers are you trying to activate?

Whether it’s recruiting non-users to trial your products, converting non-brand users or enhancing the frequency of existing brand users, it’s important that you have a clear consumer strategy. This should then align with your target audience’s needs, including what channels and retailers are most effective for reaching them. This initial information can inform how important ecommerce is for your growth objectives.

Remember that many consumers shop omnichannel. They engage in both “webrooming” (conducting online research before purchasing in-store) and “showrooming” (browsing in-store before buying online). This is because different products require different types of interaction: in-store purchases are mostly for products requiring physical interaction or spur-of-the-moment buys, while online shopping suits products with less urgency or higher familiarity. Either way, retailers must recognize the impact of online interactions—from social media to loyalty programs—on in-store success, even for products traditionally associated with brick-and-mortar purchases. When working within the digital space, it’s important to understand your consumers’ online shopping behavior and identify tactics you can use to engage both existing and potential customers within your category.

How can you do this? Think about who you’re targeting and implement the relevant strategy. Are you trying to reach online shoppers who are already browsing in your category? If so, I recommend prioritizing the digital shelf by optimizing product listings and content to appear in search results. If you’re aiming to engage new customers who aren’t shopping your category, focus on display ads, promotions and cross-branding initiatives.

3. Build availability.

Put yourself where shoppers are—including mobile apps and online platforms. Taking advantage of digital tools like search engine optimization (SEO) to increase visibility and pay-per-click (PPC) strategies to target specific demographics online can greatly increase your traction. You can also explore promotional bundles with other products on retailer websites to capitalize on the same shopping occasion and attract more customers.

For example, many successful consumer packaged goods (CPG) companies are expanding their online presence by selling through food-delivery platforms like DashMart and Cornershop and through social platforms such as TikTok and WhatsApp. This strategic move aligns with evolving consumer behavior, leveraging emerging channels to reach a wider audience.

Online can also serve as a way to strategically build your price pack architecture (PPA). Extended pack counts, sizes, styles and flavors can be stocked online as a way to accommodate niche customer preferences and facilitate shopping missions, like stock-up and bulk-value seekers.

4. Build loyalty through tailored experiences.

There’s a reason why the “Dollar Shave Club” subscription models are so popular. It’s an easy way to create a smooth consumer experience, removing the barrier of repurchasing and building long-lasting habits around your brand. These models can also provide an avenue for brands to offer up trials, or samples, of new innovations, to upsell or cross-sell their existing consumers across their portfolio.

Establishing direct-to-consumer relationships can also enable your brand to collect valuable consumer data directly and voluntarily, addressing data privacy regulation concerns. With this data, you can personalize your marketing efforts through tailored email campaigns, including abandoned cart reminders. This targeted approach can encourage repeat purchases and—if done right—enhance the overall consumer experience.

Companies like Stitch Fix are a great example of providing tailored experiences. With human stylists and big data, Stitch Fix curates personalized clothing and accessory boxes. By leveraging billions of data points on style preferences and feedback, they refine future selections, predict consumer behavior and deliver curated recommendations for enhanced brand experience.

5. Nurture brand affinity.

We can learn a lot from brands that are successfully navigating ecommerce and building affinity with consumers. As businesses adapt to the omnichannel paradigm, the fusion of online and offline strategies is becoming more important for a great consumer experience. In my experience, building a brand community helps cultivate loyalty and advocacy (which, in turn, can justify premium prices).

Take Nike, whose omnichannel approach seamlessly integrates online and offline. The 360° experience for their Nike Epic React sneaker allowed customers to virtually explore the shoe’s features. This experience was accessible through Nike.com, the app and interactive installations in select stores, delivering a cohesive customer journey. GoPro’s “Million Dollar Challenge” incentivizes user-generated content that nurtures a sense of belonging and affinity, encouraging brand advocacy among creators. And through its blog and Instagram, Allbirds showcases sustainability, shoe technology and customer stories, leveraging online influencers for added reach. With effective storytelling on social media, brands can engage their audience and foster loyalty.

By effectively navigating these ecommerce challenges, brands can unlock a multitude of benefits. From increased market reach and heightened brand visibility to enhanced customer engagement and loyalty, a well-crafted ecommerce strategy can open doors to new opportunities for your business to succeed in the digital age.