In the evolving landscape of digital advertising, brands face a significant challenge—the steep increase in the cost of online advertising post-Covid, particularly on biddable platforms.
This surge is eroding profit margins for many, presenting a formidable obstacle. However, within this challenge lies a strategic opportunity that forward-thinking brands are seizing.
Instead of succumbing passively to the financial pressures of escalating advertising costs, these brands recognise the prospect of redirecting their focus and financial resources from media-centric endeavours toward conversion and retention enhancement.
This paradigm shift not only addresses immediate financial concerns but positions these brands for sustainable growth and resilience in a competitive marketplace.
Strategies for conversion enhancement and innovative e-merchandising
To thrive amid escalating advertising costs, brands are strategically investing in conversion rate optimisation (CRO) and refined e-merchandising techniques.
The focus on CRO involves meticulous approaches aimed at amplifying onsite conversion rates. From streamlining website navigation to simplifying the checkout process, brands enhance the user experience, fostering a seamless journey for visitors and increasing the likelihood of conversion.
Additionally, data-driven approaches, including real-time A/B testing of different online user journeys, provide valuable insights into customer behaviour, enabling targeted adjustments that enhance user engagement and satisfaction, tailoring offerings and marketing messages more effectively.
Alongside these CRO efforts, brands are increasingly recognising the pivotal role of e-merchandising.
This involves the strategic presentation and promotion of products to maximise user engagement and conversion.
Personalised product recommendations, powered by advanced algorithms analysing user behaviour, dynamically showcase items tailored to individual preferences, enriching the user experience and significantly increasing the probability of conversion.
Dynamic content displays, adjusting in real-time based on user interactions, ensure that the presentation remains engaging and relevant throughout the customer journey.
Brands also incorporate limited-time offers and urgency tactics, employing countdowns and flash sales to create a sense of urgency and prompt immediate action.
Furthermore, the integration of user-generated content, such as reviews and testimonials, contributes to authenticity, positively influencing purchasing decisions.
By adopting these innovative e-merchandising approaches, brands not only enhance the online shopping journey but also contribute synergistically to overall conversion and retention strategies, fortifying their position in the competitive digital landscape.
Retention: A strategic imperative amid rising advertising costs
In the context of rising costs, the significance of customer retention emerges as a strategic imperative.
As brands grapple with the financial pressures of increased advertising expenses, retaining existing customers becomes a must for sustained profitability.
Forward-thinking brands recognise that cultivating loyalty is not just a counterbalance to rising costs but a proactive investment in long-term success.
Loyalty programmes, offering exclusive perks and rewards to repeat customers, create a sense of appreciation and incentivise continued engagement.
Personalised communication strategies, such as targeted email campaigns and tailored promotions based on past purchases, fortify the brand-customer relationship.
Proactive customer support, committed to swift issue resolution, contributes to a positive customer experience, further solidifying retention.
In a landscape where acquisition costs are soaring, prioritising retention ensures that brands not only weather the challenges but also nurture a loyal customer base poised for sustained value.
Brands that will dominate the digital landscape tomorrow are not merely reacting to financial pressures but are proactively shifting their focus and financial investments from media-centric approaches to strategies centered around conversion and retention enhancement.
This adaptive approach not only addresses the immediate impact of rising advertising costs but positions brands for long-term success in an ever-changing digital landscape.
By Timothée Desormeaux, Co-founder & Managing partner of Acquisit
