Guest Post by Alex Soncini – VTEX The True Cloud Commerce Platform, North America GM, vtex.com
Your strategy is a huge part of unified commerce, and creating the appropriate strategy for your operation is one of the most important aspects of successful selling. The key to better converting visitors into buyers is to sharpen your digital commerce merchandising strategies focusing on reducing the CAC (customer acquisition cost), improving ROIs and increasing online revenue. There are generally three top merchandising strategies that you can start immediately to increase your conversion rates by over 40%.
- Increase product assortment
We have been following Amazon for several years now. The marketplace giant follows a steadfast, customer-centric strategy that is based on increasing product assortments while offering a higher concentration of SKUs and focusing on customer retention and experience. Coupled with an aggressive and keen pricing strategy, it is a very stable approach that produces excellent results.
You can increase your product assortment by offering products from other sellers in your online store, without adding them to your inventory. Making this happen is just a matter of having the right technology in place. Having the option to offer other sellers’ products in your online store, without having to purchase these products, will increase your assortment, reduce the CAC, and improve customer retention simply and conveniently.
- Drive shoppers directly from social media to your shopping cart
Stop the endless discussion about selling on social media or generating leads and start acting. We all know that when most people use social media it is not necessarily to buy a product, same as when someone is searches something on Google or reads emails. It is possible to engage social media users who are interested in buying your products online. By focusing on the message and shortening the path by which you drive users to your online store, it’s possible to sell more organically with the right tool: the “Social Buy Button”.
By adding a “Social Buy Button”, you can easily promote products on social media and redirect users directly to the shopping cart and checkout. The result is an intuitive and seamless shopping experience that brings results with fewer clicks to purchase.
- Implement multi-pricing strategies
For the last 17 years, I have worked with several big box retailers, and the majority of them are passionate about developing pricing strategies that align to their different customers. I am not saying that pricing is just a matter of reducing product pricing, because it’s not! It comes down to a matter of offering the right price to the right people, at the right time.
For example, a VTEX retail customer had over 80 different price points for the same SKU at the same time. Depending on the campaign, target, and competitors, they used each price point in order to maintain absolute competitiveness based on their market. This resulted in an increase in conversion rates, as well as an increase in margins. It was clear that you don’t always need to offer the best price to everyone.
Developing the right strategy and using the right measures to ensure sales will allow you increase conversion rates by as much as 40%. As digital commerce businesses and supporting technologies continue to advance, retailers need to constantly revise merchandising and marketing strategies to achieve maximum benefit for their own profitability, as well as the customer’s journey and overall experience.