Happy New Year, a few weeks in. Despite one of the most challenging years for retail in recent memory, those of us in e-commerce had, by most reports a positive 2009. Cash strapped consumers turned to our channel for research, relevance and convenience like never before, using new devices and tools to access our brands. Most of the colleagues I speak to are teetering on that pivot point between energized and exhausted.
Even if (or perhaps especially if) your 2009 was successful, chances are your business has changed, and the role of e-commerce in your organization has changed. When you were in the heat of the moment reacting to the recession, the sand was shifting beneath your feet. You were doing what needed to be done, hardly coming up for air. Now that it's January and you can actually take a breath, you're probably finding that some of the reactionary activity of last year has become commonplace, and it 's probably time to hit "refresh" on your strategic plan (oh, and if you never HAD a strategic plan to begin with, chances are you need one now more than ever).
If you find your e-commerce business facing two or more of the following, it's time for a strategy check in:
1) Your competitive landscape has shifted. The recession has brought exciting innovations to e-commerce (see social and mobile points below), but it's also brought the demise and consolidation of many retailers. Some that were big (think Amazon) have gotten even bigger and expanded into new categories. Do you have an updated, clear picture of what you're up against, where you stand and who you're trying to beat?
2) You reduced the size of your team. A lot of pruning took place in 2009, through attrition and layoffs. Many times, the team gets smaller but the amount of work stays the same (or even grows). If you haven't re-examined priorities, roles and processes in light of your new resource structure, chances are you're not operating as efficiently as you could be.
3) You delayed or initiated a site redesign or re-platforming effort (or think you need to). With demands on e-commerce sites increasing at a rapid rate, record numbers of retailers are looking to upgrade or replace their site experience and infrastructure. As a result, the e-commerce platform landscape is more crowded, confusing and complex than ever before. Do you have a solid understanding of what you need to innovate at the pace your company and customer expect? Have you re-calibrated what your site experience needs to deliver to more savvy, discriminating consumer?
4) The multi-channel initiatives in your company are increasing in number and importance. If 2009 found you shifting gears to drive in-store sales in addition to online transactions, it's time to re-evaluate and clearly re-state the purpose of the online channel in your organization. Is it about driving direct sales? Building integrated experiences across channels? Somewhere in between? Does everyone know and agree to the success measures for the e-commerce?
5) Mobile is moving from R&D to bread and butter. If you launched a mobile commerce site, app, or mobile marketing initiative in 2009, it's probably time to determine mobile's strategic role in your business and how you'll fund and resource this exciting new digital touch point. Likewise, if your company yet to make a mobile move, it's time to plan when that needs to happen and what that should look like (hint: sooner would be good).
6) Social marketing and social commerce are moving to the center of the marketing plate. Ok, you've experimented and hopefully had enough success to say this is no longer a novelty. The conversation with your customer is only going to continue to ramp up from here. Do you have the resources to listen, converse, measure and maximize the power of the dialogue?
7) You're going (or thinking about going) global. With U.S. e-commerce maturing, many reatilers are looking for growth in new places and finding that it really is a whole new world out there, with plenty of challenges. Do you have a roadmap (when, how) for entering new markets or better serving those that you cover?
Chances are your e-commerce business has become more sophisticated and complicated than it used to be. That's to be expected given what it needs to deliver.
Creating (or updating) a strategic plan for the online channel doesn't have to be (and really shouldn't be) a monumental effort. After all, you have REAL work to do, and things in e-commerce change rapidly. But, taking some dedicated time to get everyone informed and on the same page on what's important in the new reality, where your resources will go, and how you'll measure success will allow you to execute better, have more focus, and, yes, react more nimbly to new challenges (even recessions) when they occur.
Great list of points for merchants to sell more effectively online. I especially like point 6 on social marketing and social commerce.
While we have always made purchase decisions based on our social networks, we now have new tools to leverage better, more actionable information from those we know.
For any merchants looking to leverage Facebook (and the 400-million person consumer base) we can set up a Facebook store in a matter of minutes. Find out more here: http://bit.ly/2Ix1Rz
Andy
Posted by: Andy Cary | February 12, 2010 at 03:47 PM