As we know that E-commerce is becoming mainstream as more buyers and giving brick-and-motor stores a run for their money.
According to Wikipedia –
Electronic commerce, commonly known as e-commerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce,electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.
In Layman’s term on setting up an E-commerce – Plan and organize all product information, add items, set up global rules, set up payment methods and E-commerce options, publish to the website and keep on updating and the list goes on . That’s how a simple e-commerce set-up works.
Growth Hacking for E-Commerce Business:
So, why is Growth hacking important for E-Commerce companies?
Growth hacking is the backbone for a successful E-commerce business. Growth hacking is all about user acquisition i.e. understanding the users and developing the product to approach the users and as well as the market. Once the product is developed, growth hacker needs to do the following — Acquisition, Activation, Retention and Revenue. Growth hacker uses Search Engine Optimization (SEO), A/B testing – a method to find the most optimal design for your website, Email marketing, content posting, social marketing and lot more. Growth hacker combines their knowledge of coding, marketing, product development and operations.
The success rate of e-commerce companies is less than 10% – mainly their inability acquire users. Customer acquisition is the lifeblood of any e-commerce company. Hence, making growth hacking the top priority. E-commerce is based on – Push and Pull – kind of marketing.
In Push digital marketing the marketer sends a message without the consent of the recipients such as display advertising on websites and news blogs. Email, text and web feeds can also be classed as push digital marketing. While in Pull digital marketing, the consumer actively seeks the marketing content, often via web searches, subscribing to email, text message or web feed. Websites, blogs and streaming media (audio and video) are examples of pull digital marketing.
Growth hacking is based on pull digital marketing. Growth hacker uses their creativity, technical skills, tools and lot of applications to pull the users directly. They test their ideas which includes –
- How to approach the market?
- How to improve the page rank?
- How to reach existing new set of users?
- How to make a promotion go viral ? And, more activities to which help competing in the market.
Here’s an example of how it is being practiced – Jabong vs Myntra in India.
As you can observe from the above comparison, Jabong is getting more traffic than Myntra even though Jabong was launched back in 2012 and Myntra has been around longer, started its operation back in 2007. Other insight, which you would also like to check the number of pages indexed in Google Search. So, here’s the data:
Myntra.com has about 33,000,000 pages indexed, where as Jabong.com About has 872,000 indexed result in google search.
This is an example of analyzing some basic data. The data needs to slices and diced to evaluate sources of traffic, organic vs inorganic, user engagement, bounce rate etc.