How to Grow your e-Commerce Store on a Budget
Starting an e-commerce business has never been easier. Platforms like Shopify and WooCommerce have lowered the barrier to entry, now anyone with an idea and some internet connectivity can launch their own store even if they have no prior experience.
The challenge, however, is that a low barrier to entry often leads to more people wanting in on the action, and consumers getting spoilt for choice. Competition in the e-commerce market is currently extremely tight, the only way to be successful is by standing out.
This article will go over 8 digital marketing hacks to help you rapidly scale your e-commerce business and firmly stand out from your competitors.
Digital Marketing Hacks for e-Commerce Businesses
1. Build social proof
Social proof is the idea that we humans are innately wired to copy each other. For instance, when a child sees another child playing with a toy, he/she will automatically want to play with it as well.
Even as adults, social proof is the driving force behind most of our decisions. Our brain prefers to copy what other people are doing because it’s the most efficient way to keep with the latest trends and not be social outcasts.
Apple products like iPhones and iPads are increasingly growing in popularity, not because of their features, but because people want to be seen with them.
If you can make social proof the foundation of your digital marketing strategy, you’ll be able to make your e-commerce store stand out and become the most logical destination for shoppers. Here’s an article that goes over 8 ways to build social proof.
2. FOMO marketing
If you spend lots of time on social media then you’re probably familiar with the term “fomo”. It is short for “fear of missing out” and is often used to describe that anxiety we feel whenever there’s something great going on and we’re missing out.
FOMO marketing is one of the most powerful ways to get people to take action immediately. The way it works is simple: you create an exclusive offer that’s only available for a short time, or to a set number of people, and then aggressively advertise it to your target audience. The goal is to induce that “fear of missing out” in consumers and thereby force them to make impulsive purchase decisions.
For instance, if you’re looking to increase your app downloads, you can create a limited-time offer that’s only available via the app, and then advertise it to your website visitors. Here’s an article that goes over 11 creative FOMO marketing strategies.
3. Actively collect ratings and reviews
Most people read reviews before buying anything online. There’s no better way of showing credibility and social proof than by having lots of positive reviews.
You can start collecting them by simply asking. For example, whenever somebody buys a product from your store, you can send them a “thank you” email along with the request for a rating and review. You can also ask your friends and family for their honest reviews (if they’ve actually bought from your store before).
Make it a goal to have more 5-star ratings and reviews than your competitors. That will clearly set you apart from them. By collecting ratings and reviews, you’ll understand your leads better, allowing you to create a more effective inbound sales strategy.
Inbound sales refer to a modern way of selling by understanding your target customers’ goals and pain points. Having an inbound sales strategy is a good idea in boosting your lead generation and overall sales.
With a good inbound sales tactic, your sales representatives can present your offerings to sales-qualified leads (leads who are ready to make a purchase) as the best potential solution to the challenges your leads face. In that way, you can encourage them to leave good ratings and reviews.
4. Give out freebies
Giving out free things is one of the most effective growth hacks because it gives people an incentive to try out your platform.
Many startups and established businesses use this strategy as part of their customer onboarding process. Uber offers free rides to first-time users to get them to download the app and use it risk-free. You can offer freebies such as gift vouchers, coupons, t-shirts, etc.
Take note that giving freebies should be limited because there are also some risks involved, especially if your online startup business is still establishing a good name. Avoid leaving any negative impression as one of the cheap brands in the market that can only make sales using giveaway freebies.
When is the best time to give out freebies? Reward new customers with a limited-time discount code they can redeem on their first purchase. For loyal customers, offer freebies on your anniversary date or upon reaching a certain purchase amount added to their shopping carts. Like Thanksgiving or Christmas, the holiday season is also a perfect time to give out freebies since the competition is tough.
5. Start a referral program
Referral marketing is a fantastic way to build social proof by getting other people to spread your word. All you need to do is set up a reward system for people who refer customers to you. You can do that in the form of paying out a commission or a fixed amount of money per sale.
The more attractive your rewards, the more people will want to sign up to your program and then work hard promoting you to their peers. Companies like Hostgator and Bluehost offer affiliates up to $100 for every referral. As you may imagine, a large percentage of their sales is driven by them.
Consumers are more likely to purchase from a brand that has been recommended to them by other people than the ones they see in ads.
6. Social media competitions
Just like referral marketing, this is another great way to gain brand awareness by getting other people to spread your word. You can host competitions whereby anyone who shares your photos and uses your hashtag automatically enters the draw to win a reward.
This strategy works exceptionally well even if you have a relatively small social media following. For example, if you only have 300 followers on Instagram, and only 20 participate by sharing your photo, it could get seen by thousands of people from their network. The best way to get many people to participate is by simply having lucrative prizes.
7. Get featured on popular publications
Your brand’s reputation and perceived value can play a massive role in your success on the internet. Getting featured on popular publications such as magazines and blogs is one of the best ways to show that you’re a legit brand.
Imagine if someone were to Google your e-commerce store and one of the first things they saw was an article about it on Forbes or Business Insider. How do you think that would affect their impression of it?
There are many ways you can get featured in well-known publications. If your marketing budget allows, the easiest would be through sponsored articles. If not, then you can sign up to be a contributor on various blogs in your niche. As a contributor, you’ll be able to briefly talk about your business in your author bio.
Another great way of getting free coverage is by signing up on HARO and then responding to interview questions. HARO is a popular platform used by journalists to obtain feedback from the public. Whenever they feature your quote, they’ll usually mention your business and sometimes even link to its website, which is great for SEO.
8. Form cross-promotion partnerships
Cross-promotion involves partnering with other businesses that target a similar audience as you, however you’re not in direct competition, and then actively promoting each other.
For example, if you’re in the fitness niche and you’re selling workout apparel through your e-commerce store, you can partner with local gyms and fitness instructors. As part of the partnership agreement, they will promote your store to their members, and you will reciprocate by promoting them to your website visitors. It’s a win-win for both of you.
