Ecommerce 2022 – Riding the Waves
Online Shopping – Riding the Waves
Many e-commerce businesses experienced a softening in the first half of 2022 – after the epic highs and growth during the lockdown periods. There are multiple macro factors that are impacting online spending – especially discretionary spending. The first being that people are getting out and about again in-store. Secondly, spend was redirected to travel with people desperate for a holiday. Thirdly, the mainstream media is spruiking endless doom and gloom headlines of interest rate hikes, inflation, supply chain issues, over stocks and property crashes. But who watches mainstream media these days, anyway? The US market is always interesting to follow, especially since most of our campaigns are run on US platforms and the likes of eBay and Amazon, and other online retailers are good trend indicators.
Check out this interesting read from the NY Times – Online Shopping Is Bananas Confusing.
“The uncertainty about the direction of online shopping is one of the biggest questions facing the tech industry and financial markets right now.”
Digital activity that focuses on ROI
When we are faced with market uncertainty – the first thing we should do as a business and marketers is evaluate our situation and respond quickly. Keeping leads, sales and cash flow as a priority and focusing on ROI will allow the business to tolerate any market turbulence. Growth at all costs mentality needs to be replaced with sales stability and positive cash flow, and ROAS.
1. Data Verification – ensure tracking is set up and data is verified, and you have clear insights into top converting traffic sources and ROI.
2. Invest more in direct intent traffic – or channels with the highest ROI.
3. Grow first-party data with initiatives to grow your database and nurture and grow your existing investment in your brand.
4. Service existing customers well – Offer great value and incentives and invest in brand loyalty.