In today's world, no matter which social media platform, app, or website you use, you will see advertisements and promotions for products and services. It is evident that e-commerce in Thailand has grown significantly, as indicated by statistics from the Electronic Transactions Development Agency (ETDA), which states that Thailand's e-commerce had a value of up to 3.78 trillion baht in the year 2020. With increased competition, small business owners who are just starting out must strive to find ways to increase sales and generate substantial profits.
Today, we will share some online sales strategies that will help all business owners excel in selling their products online. These strategies will help you thrive amidst the competition in the e-commerce market.
7 Ways to Increase Sales from E-commerce Sales: A Game-Changing Guide
In the online retail market, there is a wide variety of products and services available, which means that each individual merchant, business, or store has its own unique strategies, techniques, and approaches to increase sales. In order to boost sales for their own businesses, entrepreneurs employ different tactics and methods.
1. Upselling Technique
Upselling is a technique that many merchants commonly use without realizing it. Upselling is a highly effective method because it involves offering customers products or services of higher value than what they initially intended to purchase. By explaining the additional benefits and advantages that customers will receive from the upsell, you can convince them to choose the higher-priced option over their initial choice. Offering bonuses or special rewards can also be done to meet customers' needs and create satisfaction. Additionally, the merchant benefits from increased profits through upselling.
Another example of upselling is offering customers a set or promotion that has a higher price than the item they are interested in purchasing, but provides additional quantity or higher quality. For instance, if a customer is interested in buying a single foundation for 690 baht, the seller may suggest, "For just a little more, you can get a complete makeup set priced at 1,190 baht." In this case, the business would make a profit of 500 baht more than the initial sale.
The strategy often used in conjunction with upselling that was mentioned earlier is Cross-Selling, which refers to offering other related products or services alongside the customer's primary interest. Cross-Selling is considered as one of the methods to increase sales for businesses and provides an opportunity to recommend products or services that customers may be interested in.
Cross-Selling allows businesses to leverage the customer's initial purchase and introduce additional items that complement their needs or preferences. By suggesting related products, businesses can increase the average order value and maximize the sales opportunity.
For example, if a customer is purchasing a camera, the cross-selling strategy could involve recommending additional lenses, camera bags, or memory cards that are commonly used alongside cameras. This approach not only enhances the customer's overall experience but also increases the revenue generated from the sale.
Cross-Selling is effective because it taps into the customer's existing interest and presents relevant options that they may not have considered initially. It allows businesses to showcase a wider range of products or services and encourages customers to explore additional offerings. By strategically implementing cross-selling techniques, businesses can boost their sales and provide customers with a more comprehensive and satisfying shopping experience.
3. Various Types of Promotions and Offers
It refers to different methods of exchanging or trading purchases. These promotions and offers are designed to encourage customers to make a purchase by providing additional value or incentives. Here are some common types of promotions and offers
- Buy One, Get One (BOGO): This promotion offers customers the opportunity to receive a free or discounted item when they purchase a specific item at full price.
- Discounted Bundles: Businesses may offer bundled packages where customers can purchase a set of products or services at a discounted price compared to buying each item individually.
- Loyalty Programs: Loyalty programs reward customers for their repeat business by offering points, discounts, or exclusive perks based on their purchases. These points can then be redeemed for future discounts or rewards.
- Coupons and Vouchers: Coupons and vouchers provide customers with a discount or a special offer on their purchase. They can be distributed through various channels, such as online platforms, printed media, or email campaigns.
- Gift with Purchase: Customers receive a free gift or bonus item when they make a qualifying purchase. This incentivizes customers to buy and adds value to their purchase.
- Referral Programs: Referral programs encourage customers to refer friends or family members to the business. In return, both the referrer and the referred person may receive discounts, rewards, or other benefits.
- Flash Sales: Limited-time sales or promotions that create a sense of urgency, motivating customers to make a purchase quickly to take advantage of the discounted prices.
- Cross-Promotions: Collaboration between businesses where they promote each other's products or services to their respective customer bases. This can expand the reach and visibility of both businesses and provide mutual benefits.
4. Expanding Product or Service Options
It refers to the strategy of increasing the available choices of products or services for customers. Expanding options can be beneficial for businesses as it allows them to cater to a wider range of customer preferences and increase their sales potential. Here are some ways businesses can expand their product or service options
- Product Diversification: Introduce new products or variations of existing products to offer a wider selection to customers. This can involve expanding into different categories, introducing new features or designs, or targeting different customer segments.
- Service Expansion: Add new services or service packages that complement the existing offerings. This can involve providing additional support, customization options, or specialized services to meet the diverse needs of customers.
- Customization and Personalization: Offer options for customers to customize or personalize their purchases. This can include choices in color, size, features, or configurations, allowing customers to tailor the product or service to their specific preferences.
- Add-Ons and Upgrades: Provide additional add-ons or upgrade options that enhance the value or functionality of the product or service. This can include accessories, extended warranties, premium features, or advanced service levels.
- Partnerships and Collaborations: Collaborate with other businesses or brands to expand the range of products or services available. This can involve co-branded offerings, joint ventures, or strategic partnerships to provide customers with a wider selection and create cross-promotional opportunities.
- Limited Editions and Seasonal Offerings: Introduce limited edition products or seasonal offerings to create a sense of exclusivity and urgency. This can generate excitement and attract customers looking for unique or time-sensitive options.
- Feedback and Market Research: Gather customer feedback and conduct market research to identify gaps or emerging trends in the market. Use this information to guide the development of new product or service options that align with customer preferences and market demands.
5. Targeted Customer Group Marketing
It refers to the practice of promoting products or services specifically to a closely defined group of customers who share similar characteristics or interests. Targeted customer group marketing allows businesses to tailor their marketing efforts to reach the right audience effectively. Here are some strategies for targeting customer groups
- Market Segmentation: Divide the overall market into distinct segments based on demographics, psychographics, behavior, or other relevant factors. Identify the customer group that closely aligns with your product or service and create targeted marketing campaigns for that specific segment.
- Customer Profiling: Develop detailed profiles of the target customer group by gathering data and insights about their preferences, needs, and behaviors. This information can be obtained through market research, surveys, customer feedback, or data analysis. Use these profiles to tailor marketing messages and strategies to resonate with the specific customer group.
- Personalized Communication: Craft marketing messages and content that speaks directly to the interests, values, and pain points of the target customer group. Use personalized language, visuals, and storytelling to create a connection and build trust with the customers.
- Channel Selection: Determine the most effective channels to reach and engage the target customer group. This can include social media platforms, industry-specific websites, email marketing, influencer collaborations, or offline channels such as events or targeted publications. Focus your marketing efforts on the channels where your target customers are most likely to be present.
- Customized Offers and Promotions: Develop tailored offers, discounts, or promotions that cater to the specific needs and preferences of the target customer group. This can include exclusive deals, bundling options, loyalty programs, or personalized recommendations based on their past purchases or preferences.
- Influencer Marketing: Collaborate with influencers or industry experts who have a strong influence on the target customer group. Their endorsements or reviews can help increase brand visibility and credibility within the specific customer segment.
- Referral Programs and Advocacy: Encourage satisfied customers within the target group to become brand advocates and refer others from the same customer segment. Implement referral programs or incentives to motivate customers to spread positive word-of-mouth within their social circles.
6. Stimulating Sales through Word of Mouth
Word of Mouth (WOM) is a powerful marketing tool that relies on recommendations and referrals from satisfied customers to generate sales. Here are some strategies to stimulate sales through Word of Mouth
- Exceptional Customer Experience: Provide outstanding customer service and ensure that every interaction with your brand exceeds customer expectations. Happy customers are more likely to share their positive experiences with others, leading to positive Word of Mouth.
- Encourage Reviews and Testimonials: Prompt satisfied customers to leave reviews or testimonials on your website, social media platforms, or review sites. Positive reviews and testimonials serve as social proof and can influence potential customers' purchasing decisions.
- Referral Programs: Implement a referral program where customers are rewarded for referring friends or family members to your business. Offer incentives such as discounts, exclusive deals, or rewards to encourage customers to spread the word about your products or services.
- Influencer Marketing: Collaborate with influencers or industry experts who have a strong online presence and a loyal following. Their positive reviews or endorsements can significantly amplify Word of Mouth and attract new customers to your brand.
- User-Generated Content: Encourage customers to create and share content related to your brand, such as reviews, photos, videos, or social media posts. User-generated content acts as authentic and organic Word of Mouth, showcasing real customers' experiences and increasing brand credibility.
- Social Media Engagement: Engage with your audience on social media platforms by responding to comments, messages, and mentions. Foster a sense of community and encourage customers to share their experiences, tag your brand, or use branded hashtags when discussing your products or services.
- Provide Shareable Content: Create compelling and shareable content that resonates with your target audience. This can include informative blog posts, entertaining videos, infographics, or engaging social media campaigns. When customers find your content valuable or entertaining, they are more likely to share it with their network, spreading positive Word of Mouth.
- Collaborate with Partners: Seek partnerships with complementary businesses or brands that share your target audience. Cross-promote each other's products or services and leverage each other's customer base to generate Word of Mouth referrals.
7. Expanding Sales Channels on Online Platforms
Expanding sales channels on online platforms is crucial in today's digital age. Here are some strategies to broaden your sales channels and maximize your online presence:
- E-commerce Websites: Establish your presence on popular e-commerce websites such as Amazon, eBay, or Etsy. Create product listings with detailed descriptions, high-quality images, and competitive pricing. Leverage the built-in customer base and trust of these platforms to reach a larger audience.
- Own Website: Develop a user-friendly and visually appealing website that showcases your products or services. Optimize it for search engines to increase organic traffic. Incorporate secure payment gateways and provide a seamless checkout process to enhance the user experience.
- Social Media Platforms: Utilize social media platforms like Facebook, Instagram, Twitter, or LinkedIn to connect with your target audience. Create business profiles, share engaging content, and promote your products or services. Leverage features like Facebook Shops or Instagram Shopping to enable direct purchases from your social media pages.
- Online Marketplaces: Explore niche online marketplaces specific to your industry or target audience. These platforms cater to specific customer segments and can help you reach a more focused market. Research and identify relevant marketplaces to list your products or services.
- Mobile Commerce: Optimize your online presence for mobile devices. Ensure your website and e-commerce platforms are mobile-responsive, providing a seamless experience across different screen sizes. Consider developing a mobile app to offer a convenient and personalized shopping experience for your customers.
- Online Advertising: Invest in online advertising campaigns to increase visibility and drive traffic to your sales channels. Utilize platforms like Google Ads, social media advertising, or influencer marketing to target specific demographics and reach potential customers.
- Content Marketing: Create valuable and informative content related to your products or services. Publish blog posts, videos, or podcasts that address customer pain points, provide solutions, or share industry insights. Share this content through your website, social media, or email newsletters to attract and engage your target audience.
- Collaborations and Partnerships: Identify opportunities for collaborations and partnerships with complementary businesses or influencers. Cross-promote each other's products or services, run joint marketing campaigns, or offer bundled packages to tap into new customer bases and expand your reach.
Remember to consistently monitor and analyze your online sales channels' performance to identify areas for improvement and optimize your strategies accordingly. By expanding your sales channels on online platforms, you can increase your brand's visibility, reach a wider audience, and ultimately drive sales growth.
By implementing the strategies outlined in "7 Ways to Increase Sales from E-commerce Sales," you will gain a competitive edge, expand your customer base, and ultimately drive revenue growth.