How To Choose The Best E-Commerce Digital Marketing Services?
E-commerce is still one of the fastest-growing industries globally and is expected to grow from 4.2 trillion in 2020 to 6.5 trillion by 2023. The ongoing pandemic and the massive growth of remote work boosted the e-commerce economy even more and created an enormous opportunity for e-commerce companies ready for the changes. However, running an e-commerce operation is a monumental task, and the odds are you will need help. The massive growth in e-commerce means there is no shortage of competition, which means more and more companies are finding it hard to bring customers through their doors. That's where finding the right digital marketing company comes into play; if you choose a company with the right e-commerce digital marketing services, your odds of becoming triumphant rise exponentially. At CyphonDesign, we specialize in digital marketing services for e-commerce companies, and we know which services can take your business to the next level. So we thought we should help you choose the best e-commerce digital marketing company for your business.
What Makes A Good E-Commerce Digital Marketing Company?E-commerce is a multi-trillion dollar industry that is growing exponentially, it seems. Everyone is integrating some form of e-commerce capabilities into their business, and that means increased competition. That's why finding a great e-commerce digital marketing agency is essential to your success. Here is a list of traits that makes a good e-commerce digital marketing company great!
In-Depth Industry KnowledgeNo two e-commerce businesses are equal. Each industry has its own set of expectations, its own culture, unique jargon, and unique problems. That is why the e-commerce digital marketing service provider you choose must have in-depth knowledge of your customers, your business, and the industry as a whole. Whether your niche is in health and wellness, or fashion, make sure the agency you work with has significant experience in that space. The more technical or specialized your industry is, the greater the need for experts who understand your customers, business, and the industry well. Remember, in the e-commerce digital marketing world, knowledge is power. So if you work with an agency that understands and has all the know-how of your industry, they will have all the resources to promote your business effectively. For example, a digital marketing agency with in-depth will have a clear idea of the images that work best for your company, the words they should use, and the promotions your customers will respond to. So make sure you look for this trait when looking up an agency.
Intense Customer FocusFor any e-commerce operation, customers are the number one focus. Any great e-commerce digital marketing agency should help you focus on helping you serve your customers. Your e-commerce digital marketing agency should work to know your customers as well as you do. Remember, it's not about understanding what your customers want. It's about understanding and figuring out the best way to work with your customers. Each company has a different focus. Companies like Zappos focus on customer service, Apple focuses on quality, and Walmart focuses on low prices. Now, a great digital marketing e-commerce company will know and understand your business and its focus and create offers, content, or ads that appeal to your audience. You cannot overlook the importance of understanding the customer and business focus. If your agency understands your customers and your business, they know to generate the results you need. On top of that, it helps you manage the financials on your end. See if your digital marketing agency understands the breakeven cost for your business and understands your margins. That way, they can avoid creating ads with offers that put them in the negative. One example is that if you see your margins are tight on one product, there should be no discounts. Instead, the focus should be on low price guarantees and warranties to win customers over.
Focus Should Be On Sales & RevenueThe number one focus for any business should be generating leads, sales, and revenue. That's what the e-commerce digital marketing agency should focus on too. All their actions should orient around closing the deal and enticing customers to buy. If the agency focuses on brand building with no long-term plan to generate revenue, they aren't a good fit for you. Make sure the agency focuses on reducing expenses, especially expenses due to shipping or returns. The agency should look to lower advertising costs while increasing your return on ad spend. Now, this might seem like a no-brainer but trust us, and we see plenty of e-commerce digital marketing service providers ignoring this.
Understanding Your Metrics & KPIsWhen it comes to e-commerce metrics, there is plenty you can track, but it's never a good idea to try and track them all. Instead, the best idea to ensure sustainable growth is to identify the most critical metrics. That means you can build on the metrics you need later, on an as-needed basis. So here are some of the most important metrics your agency should focus on:
- Web-Traffic Rates: Make sure you work with the e-commerce digital marketing agency to identify several details. Find out the sources that make you money, sources that cost you money, and the sources that lead to increased conversion rates over time. If you see a supply of good traffic, then there is no reason you shouldn't be selling more products, right? Well, if your agency's CRO protocols are consistent, then you should see an increase in revenue whenever you increase your traffic.
- Sales Conversion Rates: The formula to find your sales conversion rate can be calculated by dividing sales numbers by the number of users times 100 percent. The average conversion rate for e-commerce is 2 to 4.9 percent in the United States. That's why your digital marketing agency should continuously be testing to increase conversion rates year-over-year. Make sure they track both micro and macro conversion rates to find new ways to increase your sales conversion.
- Average Order Values: The average order value is the metric that tracks the dollar amount spent by your customers each time an order is placed. If you have a great e-commerce digital marketing agency, they will always look to increase your average order values and customer lifetime values over time.
- Email opt-in rates: In a 2019 study by Campaign Monitor, they found that email produces an ROI of $42 for every $1 spent. Email marketing is one of the biggest growth tools e-commerce companies have. If you can build up a comprehensive email list, you won't need to depend entirely on paid media to grow. Your digital marketing agency should help you build your email list. Remember, the more dependent you are on "earned media," the better your chances for stable cash flow and revenue.
- Refund & Return Rates: Any good e-commerce digital marketing agency will help you find any hidden problems that might be behind your refunds and returns. Your agency should be able to use non-traditional sources like online reviews and competitor research along with traditional sources like customer feedback to help you reduce your refund and return rates.
- E-Commerce Churn Rates: E-commerce churn rate is a valuable metric that measures customer attrition. It is a massive problem for e-commerce businesses. But how do you find the e-commerce churn rate if customers never cancel on you? Well, your agency should be able to use metrics like repeat purchase rate or time between orders to calculate your churn rate. The digital e-commerce marketing agency should provide you with a clear plan to reduce churn in the future.
What To Expect From An E-Commerce Digital Marketing Company?One of the biggest problems our clients had faced before was expectation and reality being far and wide apart. From what we saw was that usually, e-commerce operations aren't prepared to receive the help needed. Therefore, you have to make sure your budget reflects the kind of attention, value, and support you receive. Remember. The bigger your budget, the more attention and support. However, there are other things you should look for in an e-commerce digital marketing service provider. Here are some characteristics you should look for.
A Clean Track RecordYou should always check the e-commerce digital marketing agency's track record to see if they are suitable for you or not. Ask for their samples, references, case studies, and reviews that will showcase their past performance. If you stumble across the digital marketing agency through ads, you should think that they are good at their jobs. It's also the same if you are introduced through partnerships or referrals.
Check For Clear ExpertiseEnsure that the agency you are talking to is evident in their wording and communicates all their strengths and weaknesses to you. There should be no tricky, unclear answers, generalities, or weird marketing jargon when you talk to the experts. Instead, the e-commerce digital marketing agency should provide you with examples that highlight their expertise and experience quite clearly.
Timely DeliveriesTimeliness is one of the most important criteria you should look for when checking out e-commerce digital marketing services. The e-commerce digital marketing team should be able to provide you with a clear timeline. In addition, they should be able to show you how they will approach the campaign, how long everything will take to implement, and when you can anticipate seeing results.
Asks You QuestionsThe agencies will always ask you questions regarding your capacity. For example, they might ask you about who has what responsibilities. They should ask questions that will clearly define the e-commerce digital marketing services team's tasks and what will be handled in-house. Make sure to set clear boundaries and expectations ahead of time to avoid any confusion in the middle of your campaigns.
Check Their CredentialsThe best e-commerce digital marketing service provider will have specific credentials that showcase their ability and understanding of the marketing sphere. For example, you can check whether or not the agency is a Google Premier Partner or Facebook Pro Partner. You can look for a HubSpot certificate as well. Make sure you ask for their list of credentials before making your decision. These will verify their experience and expertise in several areas, ensuring you make the right decision for your e-commerce business.
Check The Process, Policies, & ProceduresFinding out the process, policies, and procedures of the agency you want to work with should take colossal precedence. Check out how they will approach your campaign or project. They should be able to breakdown custom the marketing approach for your business. Check out their approach to the campaigns and their internal dos and don'ts, as it might have implications for your business.
Communication PathCommunication is a pillar of success in digital e-commerce marketing, and you need to know how the agency and its team will communicate with you:
- Check out what communication tools they use like Slack, Skype, Trello, email, or others.
- Find out who will be the point of contact and whether or not you will be able to call your point of contact whenever you need help or if there is any specific time they're available.
- Check if support is included in their service, and you should include support.