I’ve been on a customer discovery journey over the last couple weeks. I haven’t dug deep on Mom Test-esque questions. Instead, I’m setting a baseline on the e-commerce space for myself.
Below are highlights from my discussions so far –
- Initial round of 7 folks from the e-commerce space representing directors and managers of marketing with a couple in sales. Companies were each in the $1B+ category largely in consumer, but also having B2B opportunities.
- Primary levers for growing e-commerce businesses:
- Customer acquisition
- These two levers have the greatest effect on net revenue
- To achieve higher sales, too, companies are evaluating:
- Shortest path to revenue -- "click-to-checkout"
- Building an "optimal" customer experience
- Customer experience for companies range from custom, and temporary, showrooms to shortening the path to revenue with engaging design elements (e.g. imagery, product information consistency)
- The Amazon Effect has affected some of the longest-standing fundamentals of web. That is, time on site used to be a valuable metric. Amazon has proven that a winning strategy can be the opposite -- get in, find what you want, check out and get out. Fast. Come back again
- Combating the big players in customer acquisition can be difficult as they spend millions upon millions in advertising, especially, on Google and Facebook. Smaller players have to focus on niches and aiming for the repeat buy
- There are big opportunities, still
- Most folks still believe less than 30% of the market value (10%, more likely) is still uncovered in e-commerce ("Everyone's gathering data, but how do you use it?")
- There is a lot of data being collected; however, most companies still don't know how best to utilize the data to deliver good value
- Dynamic pricing is highly sought after with most folks seeing this as a prime opportunity for customer acquisition and revenue growth (new and recurring)
- Exceptional customer support and returns processes are vital to keeping customers. When you consider the difficulty of acquiring customers, keeping customers should be an ongoing strategy top-of-mind