During the coronavirus, e-commerce became a bright spot among retail channels. In days of social distancing and lockdown, the internet became the only ally for most of the population.
But of course, it’s not all that simple. According to a study published by eMarketer, retail e-commerce sales worldwide grew 16,5% in 2020. Some specialists affirmed that because of substantial deceleration in two large markets (China and India), we can expect global totals to show a downshift versus sales in many individual national markets like Germany and UK increasing like never before.
Some niches like baby products and food and beverage saw a 237% and 20% WoW increase, respectively. While others, like apparel, jewelry, and electronics haven’t experienced good results.
This disparity can be explained by several reasons, such as the economic situation of your country during the crisis and changes in buying patterns. On her AMA with AMA with GrowthHackers, Olga Bartinick, Managing Director at Barclays Accelerator, explained that there’s a clear change in how people are willing to spend their money. It all comes down to how your product is perceived by your audience, and how you’re positioning your brand in times like these.
But how to prepare your e-commerce for the coronavirus and what comes next? How to follow these trends to achieve sustainable growth?
To stop relying on paid marketing to pull in traffic, shifting to a growth hacking methodology became a must-have for high-performing e-commerce businesses willing to learn faster than their competitors and use that learning to grow faster.
To put us all on the same page, the growth hacking methodology, coined by Sean Ellis, is all about creating a culture of high-tempo experimentation where growth teams are continually testing, analyzing, and learning new ways to grow their business.
For Sawaram Suthar, CMO at Acquire, growth hacking is a combination of laser-sharp intuition, analytics, and innovation to get the best possible results in the shortest time. It helps you toss the hype around “hacks’ and focus on achieving that which matters the most; ‘Growth.’
One of the most famous examples is Amazon, they are known for combining multiple strategies in both marketing and growth, including SEO, SEM, PR, content, referral, invitation, etc. During the pandemics, the leading platforms of the segment, famous for having a well-defined growth culture, experienced an uptick in e-commerce sales, slower delivery times in multiple markets, and greater shares for their retailers.
Every year, the GrowthHackers Community collects data from thousands of growth practitioners all around the world to get insights on team structure, success rate, strategy definition, and more.
For this year, we’ve done something different. Instead of giving a static long ebook, we presented the results as an interactive dashboard that you can filter by industry, segment, geography, company size, and play around.
- E-commerces have as their main growth challenges collecting data to analyze results and running experiments (48%). In the end, is based on data that you can discover the needs of your target audience, and which metrics you should be looking at. Other challenges faced by these growth teams that come up in our survey were: generating growth ideas, managing the process itself, and reporting.
- Experiments are the fuel of any growth team. While the majority of the e-commerce teams that answered the survey declared running less than 10 experiments per month, almost 30% of respondents are running more than 10 experiments on the same timeframe. And it all comes down to the idea of high tempo testing, the more tests you run, the more you learn about new tactics to grow your business.
- When asked about how successful are these experiments, 33% said that less than 25% of them were successful, for 37% the success rate is between 25 and 75%, and 11% said that 100% of their experiments were successful. Further analysis showed that, among other things, overall goal achievement by companies is caused by growth teams that focus on retention lever of growth, use behavior tools, and have people with data science on the team.
- Speaking of which, 89% said that marketing is involved in the growth team, while only 30% have a data scientist composing their dream team. Following the same pattern, when asked about the most commonly used growth tools, 59% of them said that are using Marketing Automation tools (Salesforce, Hubspot, Marketo, others), and 33% are using Customer Experience Analytics (Hotjar, Fullstory, CrazyEgg, others).
This is your first time reading about the Growth Methodology applied to Ecommerce? Or do you want to discover more insights? The State of Growth report is a good resource to learn more about the practices of the best-performing e-commerce growth teams in the world.
Growth Hackers – Medium