How to build brand loyalty in an e-commerce saturated internet.
When we all woke up on January 1st 2020 none of us could have predicted how the year would have ended. With the massive shut downs and unfortunate layoffs that took place, small businesses in particular had to find alternate ways to make ends meet and hopefully hire back their talented staff. For most, the transition to an online retail space became not only necessary but detrimental in generating income. It is estimated that the Covid-19 pandemic accelerated this shift to e-commerce by 5 years!
With this massive shift in e-commerce growth, many small businesses found themselves in this whole new arena, now competing with massive Fortune 500 companies (*cough* Amazon *cough*) as well as retail giants who dominated the market share and have the massive budget to sustain market share. Not all is lost though, there is enough room on the internet for everyone to share. Towards the end of 2020, there was a united front to shop small. Consumers, while they appreciate a good deal, also appreciate the character and economic benefit small shops bring to their little corner of the world and would be devastated to lose them.
How can I set my brand apart from the rest?
Find your brand mission and re-evaluate what didn’t work in 2020
While you may have had a solid business plan and marketing strategy in place prior to the pandemic, 2020 made many business have to switch their strategies for reaching clients quickly in order to keep up with the changing market. While experimentation is key and trial and error can only make a business stronger it is helpful to take stock in what didn’t work moving into the future. A good place to begin is to sit down with your team or your journal and ask the tough questions:
- Did you make more or less money than planned?
- Did you spend more or less money than planned?
Starting with your financials can help you dig deeper into what may need to be adjusted in the next year to regain your profits, hire back staff, cut back on expenses, or expand your market presence.
- What did or did not go well?
- What challenges did you overcome?
- What did you learn about your business?
- What did you learn about your customers?
- What would you change moving forward?
- Do you still have the same goals?
- What is your competition doing that you did not?
- What did you accomplish that your competition did not and how can that be improved?
Stay flexible with your plan and create contingencies
If we learned anything from 2020 it is that nothing is steadfast and everything is subject to change, including your best laid plans. So, have patience with yourself and your business by starting slowly. You don’t have to have your calendar filled before the end of the first quarter, instead think in a more broader sense, as your business goals may look completely different in 6 months than they do right now.
Set a few firm dates
Planning ahead for major holidays or sales that you hold every year should not change especially if your customers expect them. If you are planning a website re-launch, a Black Friday sale, or the launch of a new course, its important to keep those dates as solid as possible, however delays are to be expected so be sure to create space and flexibility in your calendar for the unforeseen.
Set flexible dates and be prepared to move them if needed
Speaking of open ended, life happens and in these unprecedented times we are in, staying flexible and creating space will be something you will thank yourself for later. In the event of a city lockdown, having kids home from school, delayed shipments, social media outages, technical issues, or general life stuff, giving yourself some flexibility with product launches can help them go smoother. As long as you stay honest and upfront with your customers, they won’t miss a beat.
Research your consumer base & find your buyer persona
If you are not new to entrepreneurship then chances are you have done the work to figure out who your buyer is, their age range, demographic, income levels, what makes them a repeat customer and the challenges they face.
When doing business online it is not only important to understand who your customer is but also how they consume content and what channels they utilize to get that content.
- Do they use Facebook regularly, read through blogs, or scroll Instagram for hours?
- Do they utilize voice search like Siri or Alexa?
- Is your audience utilizing newer platforms like TikTok, NextDoor, or Quora?
Early adopters to these social media platforms can give you leverage over your competition and allow you to cultivate and interact with your customers before they get saturated with advertising.
Understand who your competition is
With a variety of businesses opting to expand to e-commerce, you may find that your business is not only in competition with local vendors but also with national vendors. To stay on top of your game it is important to first, narrow down who your new competition is and re-evaluate what your current competition is doing, how they pivoted, if they had to shut down.
To start, you could either complete a full SWOT analysis or a simpler evaluation but either way you must look at the following criteria.
- How they target their customers: What messaging do they use and how do they reach their audience? If instagram is working better for them and you have been sticking primarily to Facebook advertising, perhaps it is time to pivot.
- The products they sell. In many cases you may have some product overlap but your lines may not be identical so it may be beneficial to see which lines sell better for your competition and compare them to your own stock. It may be enlightening to realize that you could update your products to target an entirely new crowd.
- How they price their products. Perhaps they may be selling their products at a cheaper price than you are able to. There are many factors that go into pricing however, if they are receiving more of a market because they out price you perhaps it is time to re-evaluate your strategy or plan for more sales.
Digital Strategies:
Having taken a look at your business goals for the new year I hope you have a better idea where you stand in the marketplace. My work would not be done unless I helped you through targeting the digital market.
Prioritize effective messaging vs producing tons of content
Once you have a better idea of who your target audience is you can better utilize the tools to outperform your competition starting with the correct messaging that will effectively reach buyers. If I were to offer one piece of advice, I would say that effective messaging begins and ends with original content and a big dose of your unique personal touch. Mass producing lots of canned content is like throwing a bunch of darts at a wall and hoping one sticks. It is easy to think that over saturation will cover your bases, however now more than ever consumers are taking ownership over the messages they receive and curating their content accordingly. Having a clear understanding of whom you are targeting and writing your marketing as if you are talking to just them personally will be far more effective in building loyalty. Every consumer feels overlooked in an oversaturated market, making your customer feel valued even from thousands of miles away will build trust in not only your brand but in the business owner they are supporting. Yes, its about you too! You are not just your business, make your content reflect who you are as an individual or group of individuals.
User Experience – improve your product pages
Once you’ve done the work to get the customer to your website you want to make sure that they have a seamless experience and actually convert. They key to this is solid website planning and making sure customers can easily navigate through your website sales funnel.
First, you want to create awareness. There is a test I’ve used in digital marketing called the five second test. We go to a website we have never visited before without having any background on the product or service they offer, from there we open it and look through the home page for five seconds then immediately close it. If a website passes the test we are able to accurately say what the business does or sells, and if not, then we must work on further explaining or simplifying awareness of the product or service.
Second, does the website interest your potential customer and invite them to explore further? Having inviting photography, exciting content, and well thought product descriptions will help build loyalty in the mind of your customer.
Third, speaking of building loyalty the decision making process for your customer is the most crucial. You must re-iterate throughout your website how important it is for the customer to have your product in their life by matching their intent. Building trust with real customer reviews and social proof as well as listing your business location, telephone number, and social profiles re-affirms your trust as a business in the mind of a customer. Having an about page that tells the story of you and your brand and showcases the members of your team tells your customer that you take pride in your work and your staff. In my experience I have found that the about page is one of the top viewed pages on a website so make sure that it is goal oriented and strongly conveys your mission statement.
Lastly, your customer is ready to take action and complete their purchase but can they do it easily and effectively? You want both your “quantity” and “add to cart” buttons easy to spot on a product page, and your “shopping cart” link should be easy to access on every single page of your website. Ensure that there is an option for guest checkout, having this option will greatly reduce the cart abandonment rate from those who do not wish to create an account just yet. Lastly, simplify the number of steps needed to check out by auditing the information you collect during the billing process (Do you need to have both the business and personal phone numbers of your customer on file?) and consider adding one click secure payment options like PayPal or Samsung/Apple Pay.
Collect email addresses and know when to send them
It is important to stay in contact with your customers but you do not want to bombard them with multiple sales emails a day. A customer who is loyal to you will be more likely to click on an email when they know you have something important to say about a special discount or a new product launch.
So, the question is, when should you send emails?
- To welcome new customers, perhaps with a discount and free ship offer.
- To thank your customers for subscribing and for purchasing (order # and shipping updates should be included in this category).
- Replenishment emails for out of stock items.
- Cart abandonment emails perhaps with an incentive to complete the purchase.
- A post purchase follow up email to your customers to show gratitude with an invitation to review the product, learn more about a VIP program, or simply shop products related to their purchase.
- An email to win-back customers who have not shopped with you in awhile perhaps with a discount to encourage them to complete another purchase.
- When new products launch (This will depend on your business structure. If new products launch daily keep updates on your social media platforms.) or when special sale events take place.
The Golden Rule: Think about how many emails you want to receive from your favorite businesses or how many you actually read, and follow suit.
Customer service strategies
Your business is more than just its merchandise and the website you build, its about the experience your customers take away long after they have made a purchase. There is an old saying that goes “the customer is always right” and while that does remain true it is ultimately up to the business owner to lead the customer to the right conclusion about their business.
Know your strengths
Whether you have loads of competition or are just competing with one local shop down the street, knowing your strengths is essential in the business world. Customers will go where they see value even if they can get the same product at a different location. So I would encourage each business owner to highlight what value incentives they can provide whether it be product discounts, a loyalty program, free or low cost repairs, excellent customer service, or an employee who is always available for questions or concerns after purchase.
Prioritize your unique merchandise and create opportunities in the marketplace by understanding threats
The key to finding opportunities in a saturated marketplace is to figure out what your competition doesn’t have and capitalize on their weaknesses. Let’s use a plant store as an example. I could walk into The Home Depot to buy a Golden Pothos, but I choose to frequent my locally owned plant store because with my purchase they will recommend which soil to purchase, a fertilizer, and give me a list of instructions for how frequently I must water my plant. In addition, if I encounter any issues, say my plant is getting a couple brown leaves, I can ask them for help and they will gladly tell me that my Pothos needs filtered, indirect light and to move it to my East facing window. This customer service is second to none and has made me a frequent customer of their shop. (Editors note: my Pothos is happy and thriving!)
Make your business more than just about getting business.
The best small businesses are the ones who are the most passionate about their communities and giving back. Consider going out of your way to lend a helping hand at a food bank event, or team up with some other business owners to donate products to a good cause. This not only helps your karma, but also allows you to build loyalty for the locals in your area who may not have considered frequenting your business previously.
Prioritize creating loyal customers
The best advertising for any business can’t be bought because it comes from your customers word of mouth. For example, if a customer reaches out to you saying that a product they bought from you broke, send them a new item with an extra goody inside. The chances are higher that your customer will rave about your good deed and view your business in a positive light by sharing it. Going the extra mile for your customer will help build evangelists who will pass the word a long to their friends and family.
Create a loyalty program to nurture repeat buyers
My local coffee shop around the corner offers a punch card for a free drink of choice after 9 purchases. I could go to Starbucks, but knowing that I am supporting the three gals who always greet me with a smile and know my order by heart makes me want to help them in whatever way I can. Plus, they’ll hand me some extra candy around Valentine’s Day or a discount on my bagel because I am always there, literally always.
Form partnerships with other businesses
Consider partnering with your competition. Sounds so crazy it just might work? There are so many ways to work together with each other to build brand awareness in your community. Perhaps you could team up and have a street sale with a few items and pool some extra money to invite a food truck to your event, or perhaps you could create a loyalty program with your fellow businesses with a punch card, (Editors note: I love punch cards). If you spend a certain dollar amount at each store you can receive 20% a purchase at the store of your choosing.
An example of understanding your audience
In early March of 2020 I was scrolling through Instagram and happened upon an Instastory for a jewelry company I had never heard of previously. Within the story was a mention for a free pair of earrings; tiny gold studs with crystals and all I had to do was pay for shipping costs. I was intrigued and followed the link to the website where I immediately purchased the earrings, because, why not. I looked through the website and noticed that all of their jewelry looked to be high quality, and handmade in Brooklyn, NY. When I received my earrings, they were neatly wrapped with instructions for care. I also received a “thank you” card with an invitation to come back for free shipping on any purchase. A few weeks later I returned back to the website and purchased a second pair of earrings with my coupon.
In full transparency when I first came across Maison Miru, I was pretty nervous to purchase from a shop I had never heard of from an Instagram ad, but I was so pleasantly surprised by the outcome. I wear my earrings everyday, without any infections from bad metals, and I even sleep in them. Months later they still shine like the first day I bought them. This is not a promotional piece to convince you to buy their jewelry, and I was not paid to write this review, although I would gladly promote this company regardless. What I want to convey is the power of smart advertising for a small business by using what tools are given to them.
Trisha is the owner and creative director for Maison Miru and runs a small but mighty team of 4. In 2017, after she needed a break from slaving over spreadsheets as a tech product manager, Trisha began working with her husband to create jewelry by hand with the idea of simple but beautiful pieces that can be mixed and matched to anyone’s unique style. She built her business with the consumer in mind and this shows not only in the quality of her pieces but in the way she markets her business. Taking a huge risk and giving earrings away for free is not something every business owner is willing to do but shows Trisha’s willingness to get her product in the hands of the customers knowing that her pieces speak for themselves. In addition, she knows the identity of the audience she is reaching and where she needs to go to reach them. Despite the pandemic hurting many small businesses she has been able to expand her product lines with the success she has received.
Lastly, prioritize your opportunities and never stop learning
The key to success in this new digital world is to come to the conclusion that you will never have it all figured out and that’s okay! It is from a place of questioning where you can gain the most wisdom and cultivate the most opportunities. Never let yourself believe that you can’t do something but keep yourself open to every opportunity by writing lists of every wild thought and prioritizing them by which will make the most sense in the current stage of your business. No one can run their business like you can so never hesitate on putting an idea out there that may be completely unique because on the other side of that plan may be exactly what your customers are looking for. Also keep researching the market, the industry is constantly changing and it is up to business owners to adopt the technology and knowledge needed to change with it. The landscape for 2021 looks drastically different than it did even two years ago so where there are opportunities there is also a space for your business to thrive. I’m rooting for you!
For another example of how businesses have adapted in the midst of a pandemic, check out this article on Fogue Studios based in Seattle, Washington.