In many categories Internet sales constitute a growing share of the total volume sold. Consumer Packaged Goods (CPG) companies miss out on the potential of this channel, by not giving it the same attention as the bricks & mortar channel. Conversion can often easily be increased by basic fixes in the customer experience. A 1200 touch-point survey on shampoo, baby-food, coffee and jeans shows that only 21% of investigated products score on or above average on all aspects.
Companies that do actively manage the e-Channel, including eCategory discussions with Merchants, do not just reap the benefit of extra revenue, but also get better insight in their consumer, leverage new channel innovations and get more sales out of social marketing.
Here are some insights on e-Commerce that help to set your agenda:
- Your market share on-line should be at least your share off-line: Besides your own direct on-line revenue, sales via eTailers and eRetailers should allow you to exceed your performance in the off-line segment.
- e-Commerce = Commerce: There are four key drivers you should address to increase revenue:
. [Revenue = Traffic x Conversion rate x Average basket x Repeat purchase ]
- In the e-Channel, the visual is you product: As the consumer needs to make the buy decision before physically touching the product, the importance of good visuals and product information is key.
- Social commerce relies on e-Commerce: Investment in social media is often brand related. By making it easy and pleasant to buy on line, straight from the social environment, social investment can be leveraged to create direct revenue.
In these times where revenue and margin are not easy to grow, e-Commerce provides an excellent “low hanging fruit” opportunity to improve your business.