Building a Resilient E-Commerce Business in 2023
As we look towards e-commerce in 2023, it is imperative that businesses focus on building resilience. With macroeconomic headwinds, and consumer demand yet to be seen, resilience is key. This includes mitigating reliance on acquisition metrics to dictate profitability and focusing heavily on extending lifetime value. With this blog, we will discuss some tips for how businesses can do this in 2023 by utilizing email/SMS marketing correctly and being diligent with paid acquisition spending.
Utilizing Email/SMS Marketing Effectively
Email/SMS marketing is still one of the most effective channels when it comes to driving customer engagement and increasing lifetime value (LTV). To make sure you are using these channels effectively in 2023, start by understanding your customers' purchasing behaviours and develop strategies that facilitate repeat buyers. A great way to get started on this is by utilizing tools like Triple Whale to analyze product affinity. You should also focus heavily on segmenting by engagement on email and SMS messages sent to maximize ROI, and additionally ensure good domain/sender reputation. Additionally, you can use basic A/B testing to determine which message formats generate higher open rates and conversion rates.
Also, consider sending out post-purchase survey links or feedback forms in your emails or SMS messages to understand what customers think about your products. This data can be used to further tailor your emails and SMS messages through even more segmentation and ensure they remain relevant through 2023.
Be Diligent with Paid Acquisition Spending
It is essential for businesses to stay vigilant with their paid acquisition spending in order to maximize their efficiency. Analyzing data from 2022 is key as this will provide insight into what periods of the year you should expect better efficiency from paid acquisition efforts versus poorer efficiency due to seasonality or other external factors. Companies should also experiment with different types of ads such as display Ads, video Ads etc., to ensure they are showcasing ads in all formats if they want to get the best bang for their buck in terms of ROI from their ad spend.
It's critical for e-commerce companies looking ahead at 2023 that they focus on extending LTV while mitigating reliance on acquisition metrics for profitability. To do this successfully, companies need to utilize email/SMS marketing effectively. Additionally, businesses need to be diligent with their paid acquisition spending by analyzing trends from 2022 so they know which periods of the year they can expect to spend heavier due to an increase in efficiency, and vice versa going forward into 2023. Doing this correctly will help businesses become resilient even amidst macroeconomic headwinds and uncertain consumer demands come 2023.
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