The world of e-commerce has experienced unprecedented growth in recent years, with global sales expected to be reaching an astonishing £5.5 trillion in 2023. However, despite the seemingly endless opportunities for online businesses, not all have managed to thrive in the competitive landscape. Scott Dylan, a renowned e-commerce expert who is the co-founder of Inc & Co, has a proven track record in revitalising struggling businesses, and in this article, we’ll delve into his top strategies for breathing new life into underperforming online enterprises.
Identifying Key Issues in Struggling E-commerce Businesses
- Inefficient Sales Funnels
One common problem plaguing underperforming e-commerce businesses is an inefficient sales funnel. A sales funnel maps the customer journey from initial awareness to making a purchase. According to Scott Dylan, “A poorly designed sales funnel can lead to a high rate of cart abandonment and missed opportunities for upselling and cross-selling.”
To address this issue, businesses should carefully evaluate their sales funnel and identify areas of friction that may be hindering conversions. This can include simplifying the checkout process, offering multiple payment options, and incorporating personalised product recommendations.
- Lack of Market Differentiation
With the rise of ecommerce platforms like Shopify and WooCommerce, it’s easier than ever for businesses to set up shop online. However, this has led to a saturation of similar products and services, making it increasingly difficult for businesses to differentiate themselves in the market. “Failing to stand out can result in lost sales and stunted growth,” warns Scott Dylan.
To combat this, businesses should focus on establishing a strong brand identity, carving out a unique selling proposition (USP), and targeting a specific niche within their industry.
- Inadequate Digital Marketing
In the world of ecommerce, a robust digital marketing strategy is essential for driving traffic, building brand awareness, and ultimately, generating sales. However, many struggling businesses have yet to fully harness the power of digital marketing channels such as search engine optimisation (SEO), social media, and email marketing.
Scott Dylan emphasises the importance of developing a comprehensive digital marketing strategy, stating, “A well-rounded marketing plan will encompass multiple channels, enabling businesses to reach their target audience, nurture leads, and convert prospects into paying customers.”
Implementing Data-driven Solutions for Business Recovery
- Utilising Web Analytics
In order to turn a struggling ecommerce business around, it’s crucial to make data-driven decisions. Web analytics tools like Google Analytics and Adobe Analytics provide valuable insights into customer behaviour, allowing businesses to identify trends, optimise their website, and improve their overall online presence.
Scott Dylan highlights the importance of leveraging web analytics, stating, “By understanding how customers interact with your website, you can pinpoint areas for improvement and implement changes that will have the biggest impact on your bottom line.”
- Personalisation and Segmentation
Personalisation and segmentation are essential components of a successful ecommerce strategy. By segmenting their customer base and delivering personalised content and offers, businesses can significantly improve customer engagement and increase conversions. Research shows that personalised recommendations can drive a 7.8% uplift in revenue, illustrating the potential benefits of this approach.
Scott Dylan advises, “By utilising customer data and employing advanced segmentation techniques, businesses can deliver targeted marketing campaigns that resonate with their audience and ultimately drive sales.”
- A/B Testing
A key aspect of data-driven decision-making is the use of A/B testing, a process whereby two variations of a web page, email, or advertisement are tested against each other to determine which performs better. By continually testing and iterating, businesses can optimise their online presence and maximise their chances of success.
Scott Dylan emphasises the importance of A/B testing, stating, “By testing different elements of your e-commerce site and marketing campaigns, you can identify the most effective strategies and make informed decisions that drive growth.”
Enhancing Customer Experience and Retention
- Streamlining the User Experience (UX)
A positive user experience (UX) is crucial for fostering customer loyalty and repeat business. Scott Dylan advises, “To enhance the UX, businesses should focus on simplifying navigation, improving page load times, and ensuring mobile-friendliness.”
By investing in a streamlined and intuitive user experience, businesses can reduce bounce rates, encourage longer browsing sessions, and ultimately, increase conversions.
- Offering Exceptional Customer Support
Exceptional customer support is a vital component of any successful ecommerce business. In today’s competitive market, customers expect prompt, helpful, and personalised service. Scott Dylan suggests, “Businesses should invest in multiple customer support channels, such as live chat, email, and phone support, and ensure their customer service representatives are well-trained and empathetic.”
By prioritising customer support, businesses can not only resolve issues more effectively but also foster positive brand sentiment and customer loyalty.
- Implementing a Customer Loyalty Programme
Customer retention is a critical aspect of business growth, as it’s significantly more cost-effective to retain existing customers than to acquire new ones. Research has shown that increasing customer retention rates by just 5% can lead to a 25% to 95% increase in profits.
Scott Dylan recommends implementing a customer loyalty programme, stating, “Loyalty programmes incentivise repeat purchases and reward customers for their ongoing business, leading to increased customer lifetime value and a healthier bottom line.”
Reviving a struggling ecommerce business may seem like a daunting task, but by identifying key issues, implementing data-driven solutions, and focusing on enhancing customer experience and retention, businesses can turn their fortunes around. As Scott Dylan aptly puts it, “By embracing a proactive, data-driven approach and prioritising customer satisfaction, businesses can unlock their full potential and achieve ecommerce excellence.”
