If you’re looking to drive eTail performance, here are 8 critical factors to consider:
Innovation — the invention of new products and services, as well as the ability to transform ideas into new offerings — should be the first order of business for anyone interested in driving eTail performance. Although online retail sales are expected to reach $370 billion in 2017, brick-and-mortar companies still hold the reins. People enjoy the experience of going into a store, touching and seeing merchandise, and interacting with other people.
For these reasons and more, it’s imperative that the online commerce world embrace innovation just as much as, if not more than, brick-and-mortar operations. Proctor & Gamble is a shining example of how and why innovation works. In 2000, the company had a commercial success rate of approximately 15 to 20 percent, thereby meaning that for every six products the corporation introduced, one would be profitable. This was on par with other companies in the packaged good industry.
Fast forward 17 years and the company enjoys a success rate of 50 to 60 percent. That is, about half of all products the business brings to the market becomes a commercial success.
The difference? Innovation. By CEO A.G. Lafley’s own account, “The decision to focus on innovation as a core strength throughout the company has had a direct influence on our performance. In (2007), we spent US $2.1 billion on innovation, and received $76.5 billion in revenues. We’re getting more value from every dollar we invest in innovation today. The focus on innovation has also had a direct effect on our portfolio of businesses,” he explained.
Process optimization refers to how a company adjusts its processes to maximize gain without sacrificing other important qualities, such as cost, time, or efficiency. The benefits of undergoing business process mapping and optimization are multifaceted; however, doing so brings these primary advantages:
- Identification of problem areas
- Appropriate risk and damage control
- Underscoring best business practices
- Training of employees
- Greater predictability
Global Supply Chain
When companies nosedive into oblivion, it is often due to a problem that resonates among many businesses that rely on multiple suppliers to deliver parts and products: a shortage of transparency and accountability across multiple supply chains. When corporations are unable to monitor their suppliers in real time, they struggle to prevent risks or contain them once a problem arises.
To see this in action, look at Chipolte’s downfall in 2015. When an outbreak of E.Coli at the chain’s restaurants left 55 customers ill, the ensuing news reports, restaurant closures, and investigations exposed the vulnerability of not having a global supply chain. Sales plunged and the company’s share price plummeted 42 percent to a three-year low, where it has remained ever since.
Conversion rate pertains to the percentage of people that visit a website and then make a purchase. It goes without saying that this number is crucial to driving eTail performance.
What may comes a surprise is just how low this number is for most businesses. In 2013, a mere 2 to 3 percent of visitors wound up making a purchase, a number that has largely stayed the same in the years since. In some ways, this is hardly surprising. After all, for every $92 spent acquiring customers, only $1 is spent converting them.
While there are countless reasons for people to avoid handing over their credit card information, an online store that wants to see profits must keep an eye on — and actively strategize about how to improve — its conversion rates.
Prior to even considering conversion rates, however, a business owner must think about how to corral visitors to the site in the first place. Some businesses are big enough that they receive direct links to their website. After all, it is difficult to find someone who isn’t familiar with Nike or Microsoft; as such, they garner hundreds of direct search inquiries every day.
For smaller and lesser-known companies, however, it’s difficult to even make a blip on a search engine’s radar, particularly for generic or competitive search terms. E-commerce sites often struggle to wrangle search engine love or inbound links, namely due to a lack of high quality content.
Thanks to the lack of free, inbound traffic, these companies must rely on paid traffic. That is, highly targeted traffic generated as a result of paid advertising. While there are several paid traffic advertising networks available, marketing departments must weigh the pros and cons of each to determine what acquisition costs they are willing to swallow.
Some paid traffic sources worth consideration include:
- Yahoo! Bing Network
- Google AdWords
- AOL’s Sponsored Listings
Unique Value Proposition
Target audiences have fleeting attention spans. They won’t hesitate to click away from an unknown business’ page if questions aren’t answered clearly, succinctly, and immediately. As described by Forbes, there are three questions that start-ups must answer in order to develop strong value propositions and capture audience attention right away:
- What does the company do?
- What are the key benefits of the products or services provided by the company?
- What makes that company unique or different from others that are similar?
GoPro mastered the art of identifying a UVP by crafting an entire campaign around synergy. They developed a strategy that complemented their product, thereby increasing sales and marketability exceptionally well.
Not only does having a Unique Value Proposition help a company connect with its audience, it also helps steer sales and marketing efforts. It also provides employees with clear talking points when discussing the company with others.
Nearly everyone can agree that business productivity stems from a company’s ability to accurately execute an overall strategy. Yet it remains difficult to do so without the best technology for small business. Fortunately, technology solutions for small business today are affordable and widely accessible. Business owners no longer need to have an enterprise company in order to take advantage of technology.
- Web design
- International eCommerce
- International product design and marketing
- Freight forwarding
- International compliance
- Global financing
- Global payments
How Veem can help
Point 7 above is where Veem comes in. Veem is a global payments platform built to help medium-sized businesses streamline their global payments process, bypass the banks, skip the clearing houses, and get back to business. Our global payments platform is built on a mix of pioneering financial technologies, including blockchain, which means you save on bank fees. It also means you get a fully transparent process. You can sign into Veem any time and track your global payments in real time.
We move money directly from account to account — you get a seamless experience without the bank fees. We provide full transparency every step of the way, so you never have to worry about where your money is again.