Digital strategies
While it is true that each e-commerce has its own peculiarities, it is equally true that, in this historical phase, several elements seem to have them in common: the increase in acquisition costs and the conversion rates that are often too low compared to investments are undoubtedly two of the main problems. Obviously, it is not possible to generalize and a large part of the results depends on the role that e-commerce plays in the overall strategy of a brand; Is it the exclusive sales channel? Or are the same products found on marketplaces and in traditional distribution? What commercial policies can we adopt? We talked about the Different types of e-commerce in this article.
A key factor in improving your e-commerce margins is the ability to retain customers over time, i.e. increase their CLV (Customer Lifetime Value)
As Steve Dennis points out very well in this Forbes article , there are three lithuania cell phone number list main things that put the lives of many online businesses at risk:
Ever-increasing marketing costs, which drive the cost of acquisition to often unsustainable levels
More promotions, less attractiveness: as the business grows, in an attempt to acquire new consumers, the lever of promotion is often abused, in a process that accustoms consumers to expect these discounts to the relative detriment of gross margins. Consumers acquired aggressively are therefore worth much less than those acquired "organically"
Questionable (or even pitiful) lifetime value: The consequence of the two previous points is that over time, the number of customers with a very low or even negative CLV will increase.
The underlying reasoning is that without engagement , that is, without the ability to build a relationship with our consumers that transfers value to them (and not just convenience), our fate risks being really complicated.