The ease and importance of sharing opinions on the Internet
The central element of every sale should be the customer. Understanding it is a multi-stage process that includes, among others: collecting and analyzing market data, segmentation and creating a customer profile (so-called persona). Relatively easy access to information and advanced analytical tools make it easier to recognize customer needs and expectations in e-commerce than in traditional sales channels. At the same time, due to the ease of sharing opinions and the importance of recommendations in the virtual world, the area of adapting the sales process to the customer, providing him with the highest quality service and ensuring his satisfaction is extremely important.
Adapting to the needs of targeted segments
The process of defining which customer the company addresses its sales to is also crucial from the point of view of a broader operating strategy. Is the target a mass customer whose main decision-making criterion is price, or rather a specific target group looking for added value (e.g. specialized services related to the product being sold)? In the case of smaller entities operating in the e-commerce sector, the value obtained from each customer, rather than their volume, is often a more important indicator and determines profitability.
Marketing personalization
A good understanding of the customer allows for fuller use of the advantages that e-commerce offers over traditional sales channels. Personalization of the customer experience, product recommendations, behavioral marketing and retargeting are activities that can increase loyalty and, consequently, the value of the basket.
No physical limitations
The basic area in which we use our understanding and knowledge about the client is the preparation of a sales offer. In this regard, we should remember to take advantage of the advantages we gain by selling online. The lack of physical limitations in the range of products offered allows the sale of the range in an infinitely larger number of variants. Additionally, when offering more specialized or niche products for which the customer is more tolerant of extended delivery times, it is worth optimizing the approach to inventory management.
The width and depth of the assortment
The minimal cost of maintaining the assortment, compared to traditional sales channels, can sometimes be a trap. The more product categories on offer, the more difficult it is to control margins. This is an important aspect to consider when choosing an e-commerce strategy. When focusing on a specific customer, a selected market niche, the practice is to work on the depth of the assortment, not necessarily its breadth. This translates into fewer categories of products offered, which in turn gives the possibility of greater control over margins.
Monitoring competitors' activities
E-commerce in Poland is a relatively mature market, with a high intensity of business activity, where dozens, hundreds and sometimes even thousands of sellers strive for the same customer. For this reason, the right choice and then understanding the target customer are so important. However, even if we operate in a well-recognized market niche, it is necessary to analyze the activities of our competitors. This will enable us to better adjust our competitive strategy strategically and, operationally, to better adjust our pricing and discount strategy, which will have a positive impact on profitability.
Profitability in e-commerce depends on whether we know and understand our customers, and to what extent we are able to use this knowledge – experts sum up.
