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What we learned from Adobe’s acquisition of Magento

The current buzz in the digital marketing space these days is about the much-awaited acquisition of Magento by Adobe at a whopping $1.68 billion. What does that mean for enterprises, brand owners for marketers? To start with, here are few observations that we can derive out of this powerful alliance of a digital experience giant and a market-leading platform in the e-commerce space.

Innovation in the most important ingredient for sustainability

In the last few years, Magento has positioned itself beyond a simple e-commerce solution. By partnering with all kinds of technology powerhouses, it expanded its product base and built a robust ecosystem of content management, business intelligence, and social solutions. With a notable name like Adobe, we can expect progressive innovation and improved strategy in adapting to the changing consumer trends and volatile market behavior which could outdo its competitor platforms.

Creative Integration is the next big step in e-commerce

When it comes to e-commerce, we are somehow used to focusing on sales, marketing and the rising numbers on the monthly report. And, that is why we most platforms offering direct e-commerce and performance marketing solutions. But, with Adobe stepping into the picture, the entire landscape of e-commerce could take a creative leap. With one of the most comprehensive ecosystems for the creative aspect of businesses, marketers can look at a visually exciting store with a host of direct e-commerce tools- all under the same umbrella.

Best of both worlds

On one hand, there is Magento’s expertise in the mid-market segment. On the other, there is Adobe Digital Marketing with innovative and experience-driven products. The Adobe-Magento integration is most likely to bring together two separate technologies and systems into one seamless strategy that would change the way consumers interact with the digital.

A market ripple-effect

Any major acquisition stirs up the market, and the Adobe-Magento deal is no different. Graduating from SMB user base of Magento, the new partnership is all set to target larger enterprise clients, which is sure to have a ripple effect on the enterprise software market. And, competitors are most likely to use this as an opportunity for reanalyzing their numbers and step out with a whole new strategy.

Overall, we can look at a highly altered B2B and B2C experience with this new acquisition of Magento by Adobe.

10 KPIs to Measure eCommerce success + Free Resources

10 KPIs to Measure eCommerce success + Free Resources

Key Performance Indicators are a measurable value to denote how a business is meeting key business objectives. Businesses segregate their KPIs into High-level KPIs and Low-level KPIs based on the impact they have on their business goals. High-level KPIs focus on the overall performance of the organization whereas low-level KPIs focus on performance of their departments.

Why set KPIs

  • KPIs help drive business to greater heights
  • They ensure that everyone in the organization is working efficiently to fulfil business goals
  • KPIs help meet strategic and operational goals effectively

KPIs for eCommerce

There are a number of KPIs you can set, but we have curated a list of 10 KPIs that are absolutely essential to monitor to tweak your eCommerce performance

 1. Return on Investment (ROI): One of the most thrown-around Jargon in any industry, Return on Investment (ROI) is one of the most important metrics to monitor when it comes to eCommerce. Return on investment may be measured per each important channel or per total marketing spends.

  How to Calculate: Revenue/ Costs

  Tools: Google Analytics & Measurable

 2. Year over Year Growth (YOY): Scaling your business consistently over time is a mandate if you want to succeed instead of merely surviving the wave of eCommerce. Year over Year growth can be measured as a variation of revenue, conversion rate, average order, customer lifetime value.

  How to Calculate: (Metric) Last Year / (Metric)Current Year

  Tools: Google Analytics & Measurable

 3. Customer Lifetime Value (CLV): Customer lifetime value is a prediction of the net profit attributed to the entire future relationship with a customer. CLV is one of the most important metrics for measuring gross profit and success over time. Generating new customers has been proven to be the most expensive endeavor for almost all eCommerce businesses and so CLV becomes an important metric to watch out for.

 How to Calculate: Profit/Customer/Year x Average number of years

 Tools: Google Analytics & Measurable

 4. Average Order Value (AOL): Average order value (AOV) is yet another important metric for your ecommerce store. Average order value (AOV) tracks the average amount spent each time a customer places an order on your website or mobile app.

 How to Calculate: Average Revenue / Customer

 Tools: Google Analytics

 5. Conversion Rate (CR): Conversion Rate is a metric to measure the efficacy of your marketing and eComm efforts. A high conversion rate reflects the success of a business. Though the benchmark over industries vary, conversion rate remains an important metric in every industry including eCommerce.

 How to Calculate: Conversions / Visits

 Tools: Google Analytics

6. Customer Acquisition Cost (CAC): Customer Acquisition Cost is the cost associated with convincing a customer to buy your product/service. This cost is incurred by the organization to convince a potential customer via marketing efforts. This cost is inclusive of the product cost as well as the cost involved in research, marketing, and accessibility costs

 How to Calculate: Traffic Cost + Discounts + Incentives + Prizes

 Tools: Google Analytics & Measurable

7. Cart Abandonment Rate (CAR): Abandonment is an ecommerce term used to describe a visitor on a web page who leaves that page before completing the desired action. Examples of abandonment include shopping cart abandonment, referring to visitors who add items to their online shopping cart, but exit without completing the purchase.”

 How to Calculate: Conversions / Cart Visits

 Tools: Google Analytics

 8. Purchase Intention (PI): Purchase Intention can be broadly defined as the number of visitors on your webpage willing to make a purchase

 How to Calculate: % of visitors that want to buy

 Tools: Marketizator

9. Search Penetration Index: SPI can be defined as the number of visits you are getting on your site from all search volume like PPC and SEO efforts.

 How to Calculate: Number of visits / number of searches

 Tools: Google Analytics & Measurable

10. Customer Satisfaction Index: CSI can be determined with post-purchase surverys. Customer satisfaction plays an important role within your business. Not only is it the leading indicator to measure customer loyalty, identify unhappy customers, reduce churn and increase revenue; it is also a key point of differentiation that helps you to attract new customers in competitive business environments.

How to Calculate: Monthly Surveys

Tools: email and Marketizator surveys

Understanding consumer behavior to improve sales

As markets evolve, so do consumers. With changing business trends, buyer behaviors also change which ultimately affect sales and revenue. Unlike earlier, the sole determining factor for buyers to make a purchase decision does not limit to the price-point but extends to more intangible ones.

The key factors behind shifting consumer behaviors:

Evolving online trends:

With evolving online trends, consumers look at ‘buying activity’ differently. Widespread social conversations, reviews, and an array of digital channels lead to more ‘informed buying decisions’. Also, being better connected to their favorite brands increases brand loyalty.

Cultural elements:

Even though their purchase technique and choice of products are different for the digitally savvy consumer, their decision is largely influenced by their society, social class, and its respective cultural elements. The cultural and social influences go hand-in-hand to define a consumer’s behavior. A classic instance of such behavior is how family habits and practices influence people. For example, if a family has had a ritual of buying precious jewelry on major festival days, the children tend to continue the practice, as a subconscious habit.

Personal preferences:

The personal preferences of millennial buyers largely impact their buying decisions. General demographics like age, occupation, and personality will determine what they are more inclined to buy and how. Also, since the modern lifestyle keeps radically changing, the consumer behavior also becomes more volatile. For instance, a sudden rise or drop in an individual’s annual income can change their preference in clothes, accessories, mode of travel, and even accommodation.

Psychological factors:

Lastly, psychology plays a significant role in defining a consumer’s behavior. As a marketer, to be able to successfully position your brand as a solution to your buyer’s need/s, you need to extract from their behavioral study which explains what they buy and how. Sentiments like needs, beliefs, attention, perception, and attitude can become motivational factors that drive the ultimate purchase decision of an individual.

The millennial consumer has more know-how and better connect with brands, and hence, is more perceptive and adept at assessing the brand value. This requires brand owners to have an in-depth understanding of consumer behavior and take a more customer-centric approach to drive sales.

 

5 sure-shot ways to increase your conversions

For the digitally evolved marketer, the success of their marketing campaign goes beyond website traffic and social media buzz. As much as these numbers look great on the monthly/quarterly reports, it ultimately boils down to the number of conversions that the campaign resulted in.

Find out how you can increase your website conversion rate with these 5 sure-shot ways:

Pay attention to search campaigns

Search campaigns have evolved to be one of the most popular techniques to increase conversions. Because PPC campaigns are paired with a website landing page, there are higher chances that users would land on the same and sign up. Provided, they are allured with excellent copy and right keywords leading them to your page.

Crack that perfect headline

The headline of your website landing page or of your search engine campaign is the first thing that your visitor sees and gets hooked on to. Ensure that your headline contains the most desired and unique benefit that your business provides and how it can solve a problem for the user.

Invest in landing pages

Besides capturing visitor data, landing pages also help boost conversions. Depending on how convincing and appealing the design, navigation, and content of your landing page is, your users would stay longer and take action. A landing page that leads to conversions should ideally be concise, direct and immensely attractive. With most users using smart devices for browsing, it is essential for marketers to also focus on optimizing their landing pages for higher conversions.

Make offers your audience cannot refuse

Who doesn’t like an attractive deal? However, depending on your business type, you could consider making your offer exciting. If your product or service does not call for interesting offers, then consider packaging it differently to create intrigue and appeal. For instance, an explainer video or animated info-graphic works as great marketing content thus helping brands generate more conversions.

Consider live chat

Customers look for experiences today. A live-chat application on your website can help transform your website conversion rate by turning your brand into an experience. By being a virtual ‘in-store’ support to your visitors and providing real-time engagement, live-chat influences their decision-making process.

How to tie up Content marketing and SEO effort

Content is undoubtedly the cornerstone of digital marketing. A well-designed content marketing strategy take your brand far and wide and make it grow. On the other hand, there is SEO, which is needless to say, an indispensable tool that a brand needs to be visible and find their own niche in the ever erupting online landscape. The perpetual conundrum of the modern marketer, however, is whether Content Marketing and SEO can be tied together or treated individually.

A solution-driven response to this is that both of these indispensable tools of digital marketing go hand-in-hand. They are never separate, but rather, interlinked to each other in their functions and objectives. SEO has its own set of requirements which can only be fulfilled by effective content marketing.

To be able to successfully connect SEO strategy of a brand and its related content marketing activities, here are a few things to take into consideration:

  • The best way to apply a SEO strategy is to drive it through well structured, quality content. Similarly, content marketing becomes successful by applying the right SEO techniques.
  • Content marketing develops the ‘content’ which SEO demands. In other words, there cannot be an SEO without content. Anything and everything that is developed for a brand- articles, keywords, social engagement, videos, blogs, etc. comprise content. And when SEO techniques are applied to them, it yields visibility to your brand across the online ecosystem.
  • When SEO demands a keyword or keywords, content marketing fulfills them by integrating them in the brand content. This whole technique and practical application of SEO forms the core of content marketing.
  • When it comes to inbound links needed for SEO, Content Marketing introduces the same in its content at the right places.
  • While SEO helps spread your brand message through powerful content, content marketing helps build an authority of the brand to improve the SEO.

The picture-perfect end objective of the SEO strategy can only be fulfilled through a robust content marketing effort. And, rather than keeping both SEO and Content Marketing in silos, marketers need to blend the key features of each to get the optimum results.

Top categories that are pegged to grow big on eCommerce

The global e-commerce industry is growing at light speed and is a standing testament of where and how the market is headed.  With changing behavior of retail buyers and sellers alike, the industry space is expected to cross trillions in the coming years. It owes largely to the increasing users of internet across the emerging markets, rising spending power of consumers, payment options, convenient purchase processes and cheap logistics. With more strategic e-commerce business process management, innovative offerings, and creative marketing strategy, retailers have managed to build strong customer loyalty.

Here are the top categories in e-commerce which are expected to grow in the next few years:

Apparel & Accessories

As the best-selling e-commerce category, the ‘apparel & accessories’ space beats every other industry space to the top. Unlike in its earlier days, apparel retailing is more mature with interactive e-commerce websites, better shipping facilities, flexible buying and returning options and so on. Also, by optimizing the power of mobile channel, ecommerce applications of apparel and accessories make this category more popular among the ‘always-online’ shoppers.

Automotive

As surprising as it may sound, global automotive industry seems to be ahead of other industry segments when it comes to the e-commerce space. With more convenient buying/renting/selling options, 24/7 real-time support, doorstep services, and above all, a completely stress-free shopping experience, are making more customers to resort to new and evolved automotive retailing business.

Games and gaming accessories.

For the 24/7 online consumer, the most convenient and comfortable way to unwind is through gaming. For mobile users, just an app does the trick. But, for the more pro and serious gamer, it is all about the ultimate experience. This category in e-commerce continues to surge as more game lovers get unbound access to cheaper gaming devices, more creative game plays and easily available apps.

Jewelry & watches

As jewelry retailers restructure their ecommerce business process management and get more liberal with their marketing techniques, they encourage increased number of buyers every time. With seamless shopping experience and credible user-generated content, jewelry (fine) marketers are hitting it high in the e-commerce space.

On the other hand, the retail space for watches are experiencing a leap in their e-commerce business, owing mostly to smart watches and digitally enabled features for the millennium consumer. As the demand for IOT (Internet of Things) keep soaring, it pushes watch sales up the sky.

Why Magento Community vs. Magento Enterprise?

When it comes to using a comprehensive content management system like Magento, most brands tend to pause at this question- Magento Community or Magento Enterprise? Open-source and agile, here’s what each of them can do.

Magento Community vs. Magento Enterprise

Magento Community is an open source ecommerce platform, which you can download and use to build your online brand store. It serves as a good starting point for a small business that is not looking at a hefty investment right away. Magento Community’s flexible platform allows brand owners to experiment. Furthermore, with the Magento extension marketplace feature, you can add enhanced functionality to your site and maximize conversions. Being free and supported by a global network of developers and user support, the Magento Community remains a sought-after platform for ecommerce brands.

On the other hand, Magento Enterprise is a premium version of the platform, available at a cost. It is best suited for enterprises or brand owners who seek features beyond those of the Community edition. The Enterprise version of Magento is packed with advance features like a plugin module to integrate necessary SEO tools, added security updates, product enhancements, customer segmentation with targeted offerings, assisted shopping experience, and more. Each such feature comes with customizable options that is best suited for your brand and business type. To add to all this, Magento Enterprise is backed by a round-the-clock support team.

Here’s a quick comparison of Magento Community and Magento Enterprise:

Points of comparison Magento Community Magento Enterprise
Cost Free $15500/year. Plus implementation charges. Additional features might come for an extra cost.
Security ___ Powerful security feature with PA-DSS, secured payment bridges
Functionality Easy functionality
best for newbies
Complex interface, but works
best for a pro.
Performance Faster Better
Target user Small ecommerce enterprises,
newbies
For larger businesses with annual revenue
exceeding six-figure.
Marketing support __ An inbuilt marketing suite, supported by an internal and external team for usage, analysis and planning.

While Enterprise has high-end features that can be attractive, the Community version is practically more feasible for brand owners. Your business needs and growth plans would tell you which one is best suited for your enterprise.

How can FMCG win on e-Commerce?

In the constantly disrupting and erupting digital ecosystem, the e-commerce landscape remains the most pervasive aspect of retail businesses. Needless to say, it is indispensable to thrive in the modern world of business, without e-commerce and FMCG brands, particularly, find it quite challenging.

The E-commerce challenge of FMCG brands

Most often than not, FMGC brands across online supermarkets tend to lack integration of the customer’s decision-making processes and the brand marketing that influences sales. This has led to major FMCG players with a single-digit sales percentage range. To add it to, traditional FMCG brands are still trying to grasp the fact that the millennial shopper journey map has changed radically, with the first touch-point being a digital one. Unlike traditionally, marketing and sales are no more separate functions of the brand but merged as a holistic technique to connect with your audience and create customer influence.

FMCG needs a different digital marketing strategy

So far, we have been used to ‘high-involvement brands’ (books, gadgets, bags, shoes, clothes, holidays) ruling the e-commerce landscape. With such products it becomes easier to map the customer journey across online supermarkets, by mapping time, effort and interest. With FMCG the online behavior is rather different. Since the choice of the retailer drives the e-commerce purchase decision and is mostly instant, it is important for FMCG brands to adopt a different digital marketing strategy. Rather than following the established path of online retail marketing and reinventing the customer journey, it is more rational to align your brand behavior with your shopper.

It is important to remember that FMCG purchases often happen as a ‘part of a purchase’. You would rarely find someone buying ‘washing detergent’ standalone. Shoppers visit online supermarkets to save time, energy and money and get household needs in bulk. The idea is to optimize that investment by reducing time, effort and money for the shopper.

To win the battles of brands in the E-commerce war, every FMCG brand need to look at e-commerce platforms as not only a channel but a primary destination, where your shopper starts the brand journey. A more effective strategy would be to integrate e-commerce and its tools to design the entire brand communication and use it to jumpstart your customer’s journey. And, finally lead them to the point of purchase, thus taking them through a memorable customer experience.

Using Chatbots To Better Engage Your Customers

 

Chatbots have been used in IM (Instant Messaging) apps for quiet some time now but have recently made their way into B2B and B2C sales and services. In sales, chatbots can be used to assist customers to make purchase decisions by answering their queries and directing them to either make a purchase or a human service agent.

 

With Facebook having introduced Chatbots on their platform around 2016, businesses have been trying to build the best chatbots for their requirements. As of 2017, only 4% of businesses have launched chatbots but the number is set to increase to a staggering 80% by the year 2020.

Why consider chatbots?

  • Facebook Messenger has about 1.2 billion monthly active users.
  • People prefer messaging apps to communicate with each other over email. The average email open rates are roughly 20%, that is 8 out of the 10 people ignoring your marketing efforts. Click rates are even lower, at about 4%.
  • A report from Business Insider show the top 4 messaging apps surpassed the amount of monthly active users on social network
  • Chatbots are the ideal medium to educate your potential customers, build trust, and sell to them.

When comparing chatbots to various other means of communicating with potential customers, the following results were derived.

 

Chatbots are way more effective than the conventional methods having been followed over the years. Though phone seems to have a bigger impact on marketing efforts as compared to chatbots, it won’t be long until chatbots gain the upper hand.

As of 2018, Facebook Messenger is the best platform to build a chatbot as it is aggressive and ever-developing. No matter what business you run, you can get a bot custom-made for your business depending on what your objectives are.

 

Better Engaging your customers

 Step 1: EMBRACE THE CUSTOMER JOURNEY

Map the customer journey and jot down the questions that a potential customer would have about your brand / product / service. The ultimate aim of employing chatbots is to guide the customer through the sales funnel and finish it off in a sale.

Step 2: PROVIDE A HUMAN SERVICE AGENT WHEN REQUIRED

 It is no doubt that the AI programmed chatbot is a great way to engage your customers but it is a good idea use your chatbot to welcome customers, navigate them through your site as per their requirements, answer their queries but there might be times when human assistance is required, make sure to have a human service agent ready to provide seamless customer experience to the user.

Step 3: BACK IT UP WITH DATA

 Always have a database of the experiences your customers are having with the chatbots to improve performance in the future. Refine your chatbot based on live chats, search terms and interactions other users are having with the chatbot, emails and customer calls. No chatbot is perfect when built, it takes a lot of refining and experimenting to perfect it.

As consumers continue to move away from traditional forms of communication like emails and messages, chatbots and AI based communication methods are expected to rise. Implementation of chatbots have led to saving cost and providing customer service during hours where human service agents aren’t available.

 

 

 

6 Ways In Which Online Campaigns Drive And Influence Offline Sales

 

Until a few years ago, we expected all retail stores to either shut shop or migrate online to compete with other . However, nowadays we see more and more successful opening brick and mortar stores to cater to their TG. Apart from that, many multichannel retailers have realized they can leverage online content to increase their offline sales. Here’s how they’re doing it:

  1. Understanding your target audience

One of the plus points of having a strong online presence is that you can collect valuable data regarding your customers like age, sex, geographical location, shopping behaviors, interests, product requirements, etc. These can be used to create targeted campaigns to drive more offline sales.

  1. Targeting customers correctly

Targeted campaigns are successful since they target individual segments of users with specialized content. Factors like placement, timing, and location can be factored in to better predict the shopping behavior of your TG and how likely they are to shop offline. Therefore, call to action buttons, early bird offers, sales, and discounts, etc, all perform better with targeted campaigns.

  1. Creating useful content

Clever content curation can significantly improve customer engagement on online platforms. Ensure everything you say online reflects your company’s values. Also, use data to provide specialized content to the different customer personas in your TG. Try various types of content like blog posts, videos, GIFs, downloadable infographics and audios to connect with the customer.

  1. Consistent brand building

Think of your end users as your brand advocates. Work on building trust. Make sure that the branding of your offline stores is in sync with the tone of your online channels. This way, your customers will come to expect a seamless shopping experience and spread the word.

  1. Focusing on customer relations

Most customers switch companies owing to inferior products or terrible customer service. Use social media platforms to complement your customer relation activities. Ask for reviews and address negative reviews instantly to show that you care. This will further increase faith in your product and your company.

  1. Tracking offline results

Measure offline results with offline conversion tracking tools such as offline events or Bluetooth Beacon by Facebook. Optimize your targeted campaigns to make them measurable. Similarly, Google AdWords can help you keep tabs on in-store conversions of your campaigns.

 

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