Posted by Fred Lizza, CEO, Dydacomp
2011 was a record year for eCommerce sales as companies achieved double-digit growth over the previous year. But as merchants increased sales online, they also exposed business issues that were preventing them from providing the ideal customer experience and growing revenue. For example, electronics provider Best Buy had to cancel orders from November and December due to a system error, leaving holiday shoppers scrambling to find gifts in time. While larger businesses can absorb these issues, smaller and medium sized businesses tend to suffer far greater losses. But in order to compete with the bigger merchants, SMBs must focus on solving the top business issues that are standing in the way of experiencing double-digit growth.
#5: Inability to Market to Customers and Prospects
It costs five times more for companies to earn a new customer than to retain an existing one. If you’re not effectively marketing to your existing clients, you’re missing one of the biggest opportunities to grow your business. This means that your customer list is one of your most valuable assets, but can you unleash its value?
In order to determine if this is an issue for your business, ask yourself these questions:
- Do you have visibility into customer preferences and behavior across all of your channels?
- Can you segment your list for targeted offers that increase response rates?
- Can you incorporate ‘offline’ buying history in your retargeting campaigns?
- Are you able to track and evaluate your ad spend to measure response and determine the cost of acquiring a customer, including PPC and online campaigns?
If you aren’t able to answer “YES” to all of these questions, then you are underutilizing your assets. Instead, you are most likely spending more time and money than you need to in order to increase revenue by focusing all of your efforts on new leads.
To be continued…