Importance of Digital Marketing for ECommerce Sites

In today’s world, technology has provided every business with a plethora of remunerative avenues, which has secured its growth, sales, and brand value among the people.

Economic Times report in 2019, explicitly mentions that the business’s year-on-year profit and revenues have witnessed a 19% rise, due to the incorporation of technology and automation.

It’s not rocket science to understand that technology has not only transformed the business’s perception towards their marketing strategies but has also brought a significant impact on the consumer’s behaviour.

In the world of complexities and incessant trend changes, it has become pivotal to assimilate digital marketing strategies, which is nothing but an extension of technology and automation.

The rise in digital marketing has not only become prevalent but also has exponentially evolved owing to internet usage among the masses.

The reports of Statista.com indicates the global internet penetration rate to be around 59% which is expected to increase by 5-10% in the coming decades.

These further advocate the case of digital marketing as the best, most effective, and most efficient marketing strategy for a business that has the potential to bring a significant rise in its profits, revenues, and sales.

Especially, for businesses whose buying and selling functions in a digital environment like eCommerce, requires a flawless and supple digital marketing strategy.

Now, it may raise a pertinent doubt in your mind, that if eCommerce is an online business then why do they need a good and effective digital marketing strategy?

They require it because reports suggest that 49% of e-commerce either use a very minuscule amount of digital marketing strategy or have no well-directional strategy as such which has remarkably hindered their growth and brand image.

Therefore, to present the blog readers with conceptual clarity, Uvisible brings some of the significant benefits of digital marketing for e-commerce businesses:-

1. Brand and Reputation Management

The world is globally interconnected through a close-knitted web, and the pace with which information travels is fast, if consumers get dissatisfied with an eCommerce service or product, the chances are that a business to receive negative reviews, which not only affects their brand equity but also hampers the potential purchase intentions of their products or services.

To prevent reputational damages like these, an eCommerce business needs to implement a robust digital marketing strategy to accentuate its positives and provide a stronghold to its brand equity and goodwill.

Digital marketing in this scenario helps businesses to grow and reach the pinnacle of success through customer satisfaction, as rightly said by Seth Godin, “Don’t find customers for your products, find products for your customers.”

Customer satisfaction for any e-commerce business is a must because, in this digital era, everything depends upon e-WOM (electronic word of mouth), it plays a vital role in brand building and acquiring new customers for the products and services offered.

Various reports have mentioned that a single bad experience for the customer can lead to a 30% loss in their loyal customer base, and several bad experiences may cause more than a 40% loss.

Thus, for an eCommerce business, customer-oriented and customer-satisfaction marketing strategies are the need of the hour, which can be achieved through digital marketing strategies.

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2. Trackability

Ecommerce businesses find it difficult to identify their target audiences because the internet has brought a drastic change in consumers’ decision-making process, which is no longer pedestrian, with time it has become dynamic and trend-centric.

Digital marketing makes this capricious behavior of consumers trackable by analyzing their choices, decisions, likes, dislikes, and so on, and predicting their patterns and thought processes, which help businesses to form perfect marketing strategies, which further increases their conversion rates.

According to the ‘statista.com’ report, the top 4 social networking sites ranked by the number of active users in 2021 comprise Facebook – 2.8 billion, YouTube – 2.2 billion, WhatsApp – 2 billion, and Instagram – 1.3 billion. 

This report paints a highly complex picture of social media platforms concerning the users which may become a headache for the e-commerce businesses, as they do not have a streamlined digital marketing strategy to address it.

In this scenario, a digital marketing strategy can help the eCommerce business to a great extent where it tracks the social media traffic with several analytical tools and provides a consumer-oriented functional marketing strategy that is quantifiable.

3. Transparency

At times, customers often feel disconnected from a particular brand because of the superior perceptions they try to create.

Digital marketing with its lucrative strategies establishes this whole process of transparency, where the customers interact not only with the product or services but with the business itself.

Especially for eCommerce businesses which ought to get lost in the virtual realm, and most of the time get disconnected from the customers, leading to a reduction in sales and tarnishing the well-formed brand value.

Digital marketing has worked to re-establish this brand value and trust among the customers, where the marketing strategies allow businesses to open their back doors and invite potential customers to their various processes including production, manufacturing, operations, and so on.

When e-commerce businesses open up their processes under the influence of digital marketing, it leads to improved customer experiences which positively impacts their bottom-line revenues and growth.

4. Optimum Use of Social Media 

Social media has always driven the change in people’s perceptions, interests, behavior, and preferences. It has revolutionized marketing strategies and has penetrated even the remotest corners of the world.

Ecommerce businesses despite having a quality products or services often lack in their social media marketing strategies and they become negligent.

By relying on digital marketing this issue can be resolved by the eCommerce businesses, as it includes social media marketing strategies that focus on the ways to increase engagement of eCommerce business with billions of people using social media.

Ecommerce businesses should not forget that an average internet user spends more than 3 hours on social media applications, giving these businesses ample time to influence the users to not only interact with their products or services but use them as well. 

Digital marketing through social media promotions captures the ‘pulse of the consumers’ tracked through the ‘buzz’ created on it, which helps it shape its marketing strategies which not only save time and money but guarantee a positive conversion rate, as data suggests that 1 out of 3 social media users gets influence by the social media marketing posts of businesses.

The findings of another study explicitly mentioned that out of the businesses that have incorporated the digital marketing strategy of social media, more than 50% of businesses have found it to be effective for their businesses.  

5. Dealing with the New Age Audience

The golden rule of marketing states, “Before selling your product know your audience”. For e-commerce businesses, it’s become crucial to keep a strong eye on the same because audiences are evolving and transforming in this ‘digital era’.

An article from “businessinsider.in” in 2020 confirmed that Generation – Z (Gen Z) accounted for 24% of the global population, highlighting the importance of digital media for business promotion.

As reports have mentioned on average Gen Z spent more than 4 hours on the internet compared to 2 hours spent by an adult, which shows that the current times marks for the digital dominance by Gen Z, who are quite proficient in this aspect.

Therefore, it has become more necessary for e-commerce businesses to swiftly implement a digital marketing strategy that caters to the needs of Gen Z and millennials and attracts their interest to their websites leading to a rapid brand-building process and increased revenues.

6. Better Search Performance 

Ecommerce websites, despite their digital presence, many times fail to generate the necessary demand for their products or services and find themselves lost in the haystack of other e-commerce websites with significantly low traffic.

This issue persists because of bad website optimization and the unavailability of a focused keyword strategy.

Digital marketing resolves all these issues through meticulous Search Engine Optimization (SEO), further supported by an Ecommerce PPC Strategy, and establishes businesses with authority in the digital domain.

Reports have shown that 75% to 80% of small to mid-sized e-commerce websites have invested in SEO and have witnessed staggering positive results.

Ecommerce websites need to understand that on search engines for particular keywords, they need to be listed on the first page, as 95% of the search traffic comes from it. 

To make this journey easy for e-commerce websites, they require an effective digital marketing strategy with flawless SEO for their growth.

We believe, the benefits discussed in this blog by Uvisible must have encouraged you to deploy your digital marketing strategy at the earliest because, in the world of cut-throat competition, no one likes to stay behind, especially when it’s about your business success, growth, and brand value.

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