A Make-or-Break Opportunity for E-commerce Marketers to Gain Market Share

 

As America moves to a new normal, consumers are ready to spend, and the pent-up demand creates opportunities for e-commerce marketers to grow their customer acquisition and brand loyalty. In fact, the National Retail Federation projects retail sales will grow between 10.5% and 13.5% in 2021 as economic recovery accelerates. This presents a make-or-break opportunity for e-commerce brands to target these consumers and gain market share.  

Changing consumer behavior presents new opportunities 

It’s no secret that the pandemic altered consumer shopping behavior virtually overnight. In fact, 76% of consumers adopted a new shopping behavior like digital shipping or a new website during the pandemic. 75-84% of those consumers plan to continue their newly adopted shopping habits even after COVID, according to a McKinsey & Company study. 

The pandemic paved the way for e-commerce to play an even larger role in consumers’ daily lives.  

  • From 2019 to 2020, e-commerce sales growth outpaced brick-and-mortar sales with a 44% increase from 2019 to 2020.  
  • During the first quarter of 2021, e-commerce sales increased 39% over the same period in 2020—that’s nearly triple the increase recorded for the first quarter of 2020.  

This increased adoption of e-commerce combined with shifting brand loyalties resulting from the pandemic presents a tremendous opportunity for online retailers to gain market share. A McKinsey study revealed nearly 40% of U.S. consumers had switched brands or retailers by April 2020. But competition is on the rise as brick-and-mortar retailers reopen and continue to offer hybrid services like BOPIS (buy online pick up in store).  

Now is the time for ecommerce retail marketers to differentiate their brand to acquire new customers and increase their market share. Defending against competitors with competitive blunting should be a key ingredient in the ecommerce marketing mix. Is your marketing strategy equipped to target and acquire new consumers and blunt competitors effectively?  

Target and acquire more consumers with a multichannel approach 

E-commerce may be the fastest growing channel of all retail sales, but the most effective marketing strategies utilize a multichannel approach to acquire customers and gain market share in this competitive landscape.  In fact, 55% of shoppers who prefer online shopping have responded to an ad/coupon in the mailbox in the past 12 months. When you add a digital advertising component to direct mail, they work synergistically to boost response rates by up to 118% and conversion rates by up to 28%. 

Our integrated solutions feature direct and shared mail options to give you the ability to create one-on-one messages in a tangible format while addressable geofencing digital ads targeting those same households to drive awareness and traffic to your website. By partnering with Mspark, you leverage advertising experts who are familiar with your goals and challenges. We have the ability to target to the household level with an integrated print and digital campaign, allowing you to focus on consumers most likely to shop your e-commerce site. Reach out today to discuss your goals and strategy! 

Sources: Digital Commerce 360; Millward Brown Print Campaign Analysis; Simplifi; AdMall AudienceSCAN 2021

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