New challenges and chances for e-commerce Marketing in 2021 – get creative
As a marketer, you’ll have to be strong now. In 2021 the obfuscations of data will continue. In the end, Google is, as the majority of companies, driven by profit maximization. That means that flexibility and the focus on the bigger picture will be key to success once again. An emphasis on the customer decision journey can work wonders. For many years the AIDA-model (Awareness, Interest, Desire, Action) was seen as a respected approach. However, with the explosion of new media, these four steps come short of what happens in most cases. In 2021 it will be more important than in the past years to have the best strategy to get in touch with your prospects at the exact right time.
One of the steps that influence purchase decisions made the most is social media. In 2021 this will be an even stronger marketing tool in e-commerce. In fact, a study by transaction shows that online stores that have a social presence have 32% more sales than the average online shop that doesn’t. Furthermore, individuals spend around 30% of their time online on social media. Instagram has become the single most effective channel in this regard (1+ billion active accounts of which 90% follow at least one brand). So-called online word-of-mouth (or word-of-mouse) is key for effective brand building and efficient sales. Similarly, you can not overestimate the power of reviews. It is the most persuasive method to convince people to trust the brand, hence make the purchase. This is especially true for younger people. However, while older customers (especially 50+ years) tend to not trust reviews as much as younger generations do, they engage substantially more in writing reviews.
Moreover, the industry is constantly changing. As a marketer in e-commerce, it is always important to keep your eyes and ears open to not miss any trends and opportunities. In 2021, many online shops will be able to tap into new target groups and new sales channels. If the product is suitable, it is important to observe the TikTok phenomenon more closely and seize the opportunity earlier than the competition.
Furthermore, Youtube is intensively testing the possibility of enabling sales directly via the video platform. In mid-January, it was announced that tests would enter the next phase.
E-Commerce Trends – Take-away
As tracking possibilities will get more restricted in 2021 and customer behavior online will be less transparent, marketers will have to find a way how to work with imperfect data. Creative and clever strategies will be key to success. Social media is increasingly crucial in increasing awareness, building brands, and supporting sales. Furthermore, best-in-class brands have realized the increasing importance and power of reviews. For that reason, many online shops shifted their strategy from traditional product descriptions on their pages to reviews, and user-generated content. That builds trust and leads, in many cases, to more sales.