Sales and Marketing
Choosing the right sales model is the foundation of a commercially successful business. At the early stages of establishing a business, it is important to have a clear understanding of a target market and focus on it. Therefore instead of struggling to manage several sales models, we recommend putting all the forces into one option and leveraging its capabilities to create long-term competitive advantage.
Business-to-Customer (B2C) eCommerce model is the most prevalent sales model that implies selling goods directly to the end customer. This is basically a traditional retail model with an exception of the fact the goods are sold online via a standard eCommerce store and/or other online channels like Amazon, eBay, social media etc. Operating a B2C eCommerce model is most common for startups as it provides numerous advantages much needed for a new business.
B2C companies usually have a better vision of their potential customers’ profile and understanding their purchasing behavior. A thoughtful marketing strategy allows B2C companies communicate with customers directly via the website and social media. Hence the high level of customer service ensures customers’ loyalty and an increase in sales.
Unlike the B2B model, B2C sales cycle tend to be shorter due to the fact that consumers are more apt at making purchasing decisions. For customers, it takes less time to go from a stage of interest to actually buying a product. Moreover, most B2C transactions usually have only one decision maker and often include an impulse buying factor.
Modern technology and evolution of online shopping allow sellers to benefit from low costs of entering the market, especially with the B2C model. Online merchants have technical possibilities for fast infrastructure development as well as access to inexpensive distribution capacities. Additionally, the similarity of goods sold in B2C eCommerce sector results in lower transaction costs.
The eCommerce B2C sales model not only allows reaching millions of customers simultaneously but also offers an exclusive opportunity for a fast start of business. Low technological barriers and an abundance of online marketplaces allow establishing a business even within one month. Furthermore, with the help of the Amazon FBA program, it is possible to boost business expansion and immediately reach 5 biggest EU markets (UK, Germany, France, Spain and Italy).
The main characteristics of a modern retail market is a constantly changing buyers behavior. It is crucial to anticipate customers’ needs and provide them with a possibility to make purchases anywhere and anytime. Therefore, a Multichannel sales strategy that includes an Amazon platform, brand’s web store and social media stores is the best way to increase revenue and ensure a strong position on the market.
Moving forward, reaching sales and financial goals during the first 2 years of operating an eCommerce business will allow focusing on offline channels and opening physical stores in the EU markets that show the strongest performance.
Just like shopping transforms into an online experience, marketing techniques surely enter the digital world. A thoughtful marketing strategy helps eCommerce companies promote their goods (services) online and convert strangers into loyal and repeat customers.
Having a clear understanding of a company’s goals and a written action plan on how to achieve them by utilizing digital marketing solutions is as important as having a quality product or a service. A defined marketing strategy not only allows companies to stay ahead of their competitors but also provides an opportunity to establish a better connection with potential customers.
Depending on the business goals and the industry, brands use different digital marketing tactics and tools. Therefore, in order to gain the maximum benefit from the funds invested into marketing, it is crucial to identify which solution suits best. However, most of the time one technique is not enough. By using a set of complementary marketing tools companies are more likely to boost their sales and reach a full business potential.
Inbound marketing is technique that focuses on creating brand awareness and attracting new buyers by developing a trustworthy relationships with customers via search engine optimization (SEO), content marketing and social media marketing.
For instance, when it comes to driving customers, SEO is one of the essential tools that is used to help company’s website rank higher in the search engine results. SEO can be used to increase organic traffic and potentially drive business growth. On the other hand, Search Engine Marketing helps promote the brand via a wide range of different paid ads. Services like Google AdWords and Facebook Ads allow target a certain audience which makes advertising campaigns more successful.
Although it is necessary for the customers to become aware of the brand, the next step is to capture their attention with a valuable and relevant content. Nowadays Content Marketing implies providing customers solutions to their pain points, as well as answering any arising questions. Along with written information, videos are now the top viewed visual content. A creative Storytelling in a form of a video helps customers have a better understanding of what the brand is all about an see a more human side of the business.
Social media is one of the biggest platforms for content consumption, therefore an effective Social Media Marketing strategy can help reach brand’s target audience, especially when utilizing Influencer Marketing. At the same time, Email Marketing that uses compelling content is still an effective way to increase sales. Furthermore, it is one the most affordable (and even sometimes free) marketing methods.
And last but not least important factor of an effective marketing strategy is making sure to reach customers who are using mobile technology. According to Mastercard study, 8 out of 10 European customers make purchases via smartphone, which makes mobile-friendly websites an essential part of a digital marketing strategy. By having a website that is equally readable on various smart devices, companies can easily increase traffic and conversion rates.