E-commerce stores can be broken down into three parts: customer acquisition, conversion as well as measurement.
Customer acquisition is what most of the online marketers are concerned. It is with all the different promoting efforts that you employ to make clients know your product.
Conversion involves convincing a buyer to buy your product. To a larger extent, it is ensuring that you are stocking what the customer needs and that the pricing is affordable to all. Conversion is, therefore, more related to your inventory management and pricing.
Retention and management have to do with the value that each new client brings to the firm. How much more of similar purchases are they likely to make in future? As such, you have to integrate your Enterprise Resource Planning EPR and the Customer Relationship management CRM systems to ensure you are getting quality out of your marketing spend.
If you are running a venture, do not downplay the importance of these three pieces of a tripod stand. Each of the tripod stand collects relevant data that should guide you in making the right decision. However, the primary challenge is that the facts gathered are never used to make any sound decision. As a result, the increased spending on marketing becomes a loss if no value can be obtained.
To achieve a truly optimized, marketers must be ready to integrate their products advertising efforts with price competitiveness and inventory management. Have a look?
Price Management and Product Advertising.
Remember if you fail at product pricing, you cannot make it at product advertising. The logic is simple; Google includes the price competitiveness as an algorithmic signal. As a result, products that have a lower price are likely to attract a higher conversion rate than the ones that are expensively priced.
If you price your product above average, it will almost be impossible to attain the conversion rate you need. As such, placing bids on products that are not appropriately priced is a complete waste of time.
Inventory Management and Product Advertising
As a businessperson, you have to understand the sales pattern of your products. Allocate enough funds to each product depending on its level of selling model. For instance, allocate more funds for products that have an extremely high turnover. Ensure that at least 40 percent of your total budget is spent on items that will be out of stock in less than 21days. Only allocate 21 percent of the budget to your slow moving stock.
CRM/ERP and Product Advertising.
The main reason why people are investing so many resources advertising their first moving products is to increase the returns per every ad spend. However, the model doesn’t work. Therefore, when developing your advertising ad, focus on the most efficient way to grow your venture. Think of how you will be able to capture a new client and increase the sales and profitability margins.
As a business, checkout Marketing tips for small business and focus on the specific ways in which you can achieve your long term goals. You can consult internet marketing experts such as Ameri Sales. Develop your ads in a manner that allows you to meet your goal, mission, and objectives. Ensure that your advertising plan is not just about the short term, it should also have an impact on the future of the firm. The ERP systems will help you determine the specific profit levels of your product mix.