The first step to take when considering ecommerce marketing is to define and establish the bases for planning your Ecommerce Marketing Strategy. It is time to ask yourself and know the value of our products and services based on the Buyer Persona and answer the following questions:
- Who are our clients, what interests them and where are they located?
- What is the value of our product/service to our Target?
- What do we want to achieve?
- How are we going to get it?
- When are we going to get it?
To do this, we are going to divide the Ecommerce Marketing Strategy into two phases, one qualitative and the other quantitative:
How to define an Ecommerce Marketing Strategy
The objective of this first phase of the Ecommerce Marketing Strategy is qualitative, we will focus on defining and knowing our clients, our products/services and our competition. It is an exercise that is not usually done in depth, we assume that we know these concepts since we work with them daily, but it is likely that because of this we are contaminated and have developed vices in our perception of them. Doing an in-depth exercise of defining and analyzing the value of our products, and identifying the reasons why our customers are interested in us will provide us with the best basis to build our Ecommerce Marketing Strategy.
The steps to define an Ecommerce Marketing Strategy
We draw the initial map of the current situation of our business, market and competition based on branding, recruitment and loyalty. Our objective is to answer questions such as: What value does my brand and product have? Who are my competitors and where do they invest the most? Who is my client and what are they looking for? And types of interesting segments?
In this phase of the Ecommerce Marketing Strategy, internal research work is carried out to know and define the most basic concepts of our business and our products, identify and define the types of clients we have, their concerns and needs, and land this information on the eCommerce side for subsequent exploitation.
- Business
- Define the relevant components of the business: current and future value proposition and business model.
- Analysis of the company’s customer and historical database.
- Study and conclusion of the analysis of the company’s internal analytical tools.
- Customer
- Target persona:
It consists of defining the group of consumers whose characteristics, desires and needs are most suited to the products and services offered by a specific brand. It helps us name the target audience, market niche and potential clients. - Buyer persona:
A buyer persona is a semi-fictional representation of the ideal customer, defined based on market research and real data from the business’ customers. Its description details demographic aspects, behavioral patterns, interests and objectives. It allows, both in offline and online communication, to focus efforts towards a potential client whom we know much better.
- Target persona:
- Competence
- Who they are: List of competitors and relevance.
- What they are doing: Where to attract qualified traffic.
- Where they invest.
- What should we imitate from them?
The budget and KPIs, the great ally of the Ecommerce Marketing Strategy
Both the budget and the KPIs are essential tools in the Ecommerce Marketing Strategy, while the budget establishes limits and priorities, the KPIs offer a clear vision of the performance and success of the implemented strategies.
The importance of the budget in an Ecommerce Marketing strategy
Planning and proper budget allocation becomes a fundamental pillar for the success of an Ecommerce Marketing strategy. The budget not only determines what marketing actions can be carried out, but also establishes limits and priorities, ensuring that resources are used as efficiently as possible.
- Resource optimization: A well-defined budget allows Ecommerce Marketing managers to identify and allocate resources to the areas that offer the highest return on investment. This prevents waste and ensures that every euro spent contributes to business growth.
- Flexibility and adaptability: The digital environment is dynamic. Trends change and platforms evolve. A structured budget provides your ecommerce marketing strategy with a framework that allows some flexibility to adapt to unexpected changes or take advantage of emerging opportunities.
- Measurement and accountability: Establishing a clear budget is also a way to be accountable. It allows you to compare actual expenses with those projected and analyze whether investments are generating the expected results.
Example of budget allocation in different areas of Ecommerce Marketing
Below we give a simplified example of a structure of how resources can be allocated in different areas of Ecommerce Marketing:
Annual Budget for Ecommerce Marketing Strategy
- Total quarterly budget: €100,000
Quarterly Budget Breakdown:
- Digital Advertising: €40,000
- Objective : Increase website traffic by 30% and improve conversion rate by 2%.
- Platforms : Google Ads, Facebook Ads, Instagram Ads.
- Strategies : Audience segmentation, retargeting, dynamic product ads.
- Ecommerce Platform Optimization : €20,000
- Goal : Improve site speed by 50% and reduce cart abandonment rate by 3%.
- Actions : Redesign of the interface, improvement of the mobile experience, implementation of quick payment options.
- Email Marketing: €10,000
- Goal : Increase open rate by 5% and click rate by 3%.
- Strategies : Mailing list segmentation, personalized campaigns, abandoned cart reminders.
- Content and SEO: €15,000
- Objective : Improve positioning in the SERPs by 20% and increase organic traffic by 25%.
- Actions : Blog content creation, keyword optimization, quality link building.
- Social Networks : €10,000
- Objective : Increase the follower base by 15% and improve the interaction rate by 5%.
- Platforms : Instagram, Facebook, Twitter.
- Strategies : Regular publications, collaborations with influencers, exclusive promotions.
- Customer Service and Loyalty : €5,000
- Objective : Reduce customer complaints by 10% and increase retention rate by 5%.
- Actions : Implementation of a live chat, loyalty programs, satisfaction surveys.
Evaluation and KPI Adjustments:
The spending and performance of each area will be reviewed quarterly. Based on the results, adjustments will be made to budget allocation to maximize return on investment.
The importance of KPIs in an Ecommerce Marketing strategy
Key Performance Indicators (KPIs) are essential metrics that help companies measure the success of their Ecommerce Marketing strategies and campaigns. In the context of ecommerce, KPIs are even more crucial, as they provide insights into customer behavior, campaign effectiveness, and the overall health of the business.
- Data-driven decision making : Instead of being based on assumptions or intuition, KPIs offer concrete data that can guide strategic decisions. For example, if a KPI shows that an advertising campaign is not generating enough traffic or conversions, it is a clear sign that the strategy needs to be re-evaluated and adjusted.
- Identification of areas for improvement: KPIs can highlight areas where performance is lower than expected. This can be in terms of customer acquisition, retention, average order value, among others. By identifying these pain points, companies can take specific steps to address them.
- Establishing clear objectives: KPIs provide a framework for setting and monitoring objectives. By having clear, measurable goals, companies can chart a clear path to success and ensure that all marketing efforts are aligned with these objectives.
- ROI Assessment: Ultimately, it all comes down to return on investment. KPIs, such as cost per acquisition or customer lifetime value, can help companies determine if their marketing strategies are generating a positive return.
Example of an ecommerce KPI: Shopping Cart Conversion Rate
- Definition : The Shopping Cart Conversion Rate measures the percentage of visitors who add products to the cart and ultimately make a purchase. It is an essential metric to understand the effectiveness of the purchasing process and the user experience on the website.
- Objective : Increase the Shopping Cart Conversion Rate from the current 2% to 3% in the next 6 months.
- Current Data :
- Number of Carts Started in the last month: 10,000
- Number of Purchases Completed in the last month: 200
- Current Shopping Cart Conversion Rate: 2%
- Strategies to achieve the goal:
- Optimizing the payment process : Reduce the number of steps in the payment process and offer quick payment options such as PayPal or Apple Pay.
- Limited-time offers : Provide discounts or free shipping to incentivize users to complete their purchase.
- Abandoned Cart Reminders : Implement automated emails to remind users about the products they left in their cart and offer them an incentive to complete the purchase.
- Site UX improvements : Ensure the website is responsive, fast and easy to navigate, especially on mobile devices.
- Monitoring and Evaluation : The Shopping Cart Conversion Rate will be reviewed weekly to evaluate progress toward the goal. Adjustments to strategies will be made as necessary based on the data collected.
This KPI is crucial for an ecommerce marketing strategy because a higher conversion rate means that more visitors are converting into customers, which can lead to an increase in revenue without having to increase traffic to the site. By setting a clear goal and specific strategies to achieve it, companies can focus their efforts and resources effectively.
How to create an Ecommerce Marketing Plan
Once the phase of defining the Ecommerce Marketing Strategy is completed and we have understood the importance of the budget and the Kpi, we have the necessary information to prepare the Ecommerce Marketing Plan. The Ecommerce Marketing Plan consists of landing on a schedule the set of most relevant actions, separated by channels and verticals of action.
To build the Ecommerce Marketing Plan we will follow the following steps:
Objectives and KPis
Once the Ecommerce Marketing Strategy is defined, we focus on Creating the Ecommerce Marketing Plan with the purpose of identifying and establishing achievable, measurable objectives and on which we can take actions. For it
- We prepare a table of objectives according to lead capture, subscription models, content consumption and/or conversion.
- We establish the necessary KPIs to control the fulfillment of the objectives
Example of a summary table of the Ecommerce Marketing Plan according to objectives and KPIs according to segments:
| GOALS | Micro OBJECTIVES | Control KPIs | Segments |
1. Generate more sales 2. Make the brand known 3. Optimize Channels 4. Increase ROI of campaigns 5. Create community on social networks | – That visitors make a purchase | – % of visits that saw product sheet – % of unique page views per article – % of purchase process starts – Conversion rate | – traffic channel – User type (new/recurring)Device type (pc / tablet / mobile) – Geographic location – Product consulted – Demography |
| – Let visitors see the product landing page | – % of visits that saw at least one product – % of product information download | ||
| – Let the fans be interested in the differential values | – % of fans who interact with posts – % of fans who read about the brand/products | ||
| – Let the visits be recorded | – % of visits that started registration – % of visits that ended registration | ||
| – Increase conversion of products/categories | – % of visits that saw product sheet – % of unique page views per product – % of purchase process starts – Conversion rate |
Tools and platforms
Having designed a table of objectives and KPIs, we identify the most appropriate channels and verticals of the Ecommerce Marketing Strategy to achieve the objectives in the most effective way. We identify the set of tools and platforms on which to perform the required actions based on:
- Type of objectives and micro objectives established.
- Type and characteristics of the actions to be carried out.
- Type and characteristics of the targets on which action is taken.
- Tools necessary for managing KPIs.
Action Plan – Ecommerce Marketing
The Ecommerce Marketing action plan, based on the chosen channels and platforms, is the time to establish a chronology of actions to carry out to achieve the objectives of the Ecommerce marketing strategy. This set of actions requires planning that allows us to act as a block, and in a unified way, under the same strategic development, in this way we will be able to take advantage of the actions of the plan jointly and not as independent elements with no relationship between them:
- Duration of the Action Plan: It is necessary to establish a specific period for the action plan, establish temporary milestones where control points can be established on the fulfillment of the objectives.
Example of a 6/7 month Action Plan:
We must consider that the evolution of a business is something living and changing, as well as its needs, markets, audiences and competitors. The Action Plan is empirical and adaptable in an agile way to the evolution of the business.
- Action / Schedule : Prepare an Action Plan that has a schedule divided by channels, where the actions to be carried out are represented. Each action is described at the implementation level, as we can see in the following example:
- Objective / Micro objective : Objective / Micro objective described in section 2.2.1 Objectives and KPis
- Type of action: Publish a landing on site
- Channel : Content Marketing
- Platform : Magento + CMS page
- Segment: Segment described in the section “How to define an Ecommerce Marketing Strategy”
- Message: Description of the message to be transmitted described in the content strategy
- Required guide: The content must be written according to the guide established in the SEO Guide
- Scope of the action description: The objective of establishing an Action Plan is strategic, thus, in this section the actions do not include the development of their content: texts, images or any other elements. The development of the content of the actions is classified in the section of the corresponding channel/service.
Budget distribution
It is time to prepare a budget table linked to the verticals, channels, tools and actions, where the distribution of the Ecommerce Marketing budget is represented. The decisions in this budget table are made based on the data provided by the analysis carried out, and their objective is to distribute the budget in the most efficient way possible. In this way, this budget table answers the following questions:
- Which channel do I invest in and why?
- Type of actions to be carried out and cost per block of actions.
- Objectives that we hope to cover for each of the blocks of actions.
- Estimation of ROI per block of actions.
- Medium-term savings strategy.
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The world of ecommerce is fierce and customer expectations are increasingly higher. Therefore, it is essential to have a solid and well-planned ecommerce marketing strategy. As we have seen throughout this post, planning, analysis and adaptability are key to success in this area.
This guide is just the beginning of a broader journey into the universe of ecommerce marketing. I hope it has given you a solid foundation and starting point to develop and refine your own strategy. I invite you to continue exploring the series of posts that make up the guides on ecommerce marketing to delve deeper into each of the aspects and discover new tactics, strategies and tips.