Surviving E-Commerce’s Great Client


Surviving E-Commerce’s Great Client | Surviving the great client acquisition crisis in e-commerce Brandon Amoroso is the creator of electrIQ marketing, a prominent direct-to-consumer e-commerce firm.

Surviving E-Commerce’s Great Client. Every e-commerce professional can tell you where they were on April 26, 2021. It was National Pretzel Day, and everyone was talking about the Academy Awards (even without an on-stage slap)

Every e-commerce professional can tell you where they were on April 26, 2021. Bindi Irwin gave her daughter her first pair of Crocodile Hunter khakis on National Pretzel Day, when everyone was talking about the Oscars (even without an on-stage slap). But that isn’t why that day is forever etched in the minds of my colleagues. It was also the release date of the iOS 14.5 update dropped.

The consequences of Apple’s more stringent privacy improvements were predictable. For months, we’d been preparing for this moment. Facebook was in full panic mode, attempting to unite the globe behind its marketers and push small and medium-sized businesses to the fore. DTC businesses, in particular, were racing to figure out how to survive in a world where Facebook ads were no longer driving purchases.

Surviving E-Commerce’s Great Client

In the end, Apple stood firm, defending corporate values that outweighed any commercial case Facebook could make. Facebook took it in stride and was left to watch helplessly as the world’s software upgrade went live. We’re getting close to the conclusion of the year. What effect has this modification had?

Crawling through business headlines regarding the update will only lead you to commenters preparing for the change, with little coverage of the actual business trends that followed.

It’s tempting to dismiss this as a sham—that Apple updated the privacy settings, and now Facebook targeting isn’t working as well—but that’s not the case. We might assume that the fearful bloggers of early 2021 were Chicken Littles attempting to attract attention to dramatic news.

However, the truth is more complicated.

For quite some time, customer acquisition has been a losing endeavour. Long before iOS 14.5, the price of eyes had been steadily rising. HubSpot found in 2018 that 65 percent of consumers distrust advertising, with 71 percent distrusting sponsored social media ads. According to a different survey released in 2019, customer acquisition costs (CAC) have climbed by 60% in the last five years.

DTC depended heavily on Facebook since its vast data bank allowed them to target with surgical precision, ensuring that only the right people saw their message. For skilled marketers, this meant a decreased cost per acquisition (CPA), suggesting that advertising could be a viable strategy. The fact that it took Facebook’s dubious data harvesting to make advertising cost-effective demonstrates how much acquisition methods had fallen behind.

As it turned out, the DTC industry was not sunk by rising CAC and decreasing Facebook effectiveness following iOS 14.5; nonetheless, it did leave some firms behind and changed the definition of success. When you add in an industry that was riding high on a pandemic-related rise before flattening down in 2021, it’s clear that DTC executives were already in a predicament. Nonetheless, the industry is expanding rapidly.

Regardless, iOS 14.5 marked the start of a new era. Marketers have to consider what they would do if they didn’t have access to this low-cost acquisition switch. How can they wow their clients or business leaders if they can’t say things like, “This month, we added X amount of new customers at an absurdly low CPA!” How can they maintain a healthy revenue stream?

Surviving E-Commerce’s Great Client

Working with DTC brands prior to, during, and after the Acquisition Crisis of 2021 has shown me that previous acquisition techniques were outdated and tired. How many different brands might be doing the same thing on Facebook before customers get annoyed?

We live in a time when customers are cynical, have strong values, and have access to the whole total of human knowledge in their pockets. These customers are highly expensive to acquire—often more expensive than the widget you’re selling them, especially when selling low-cost commodities like coffee.

It is long past time to focus on developing and cultivating client relationships in this new era. Successful direct-to-consumer firms have discovered that focusing on building a beneficial relationship with customers over time enhances the average lifetime value of a customer and overall revenue.

Many tools, particularly in the Shopify ecosystem, are geared to feed a DTC retention strategy, but marketers must shift their attention from looking for the next Facebook ads platform to double down on their existing client base and experience. Building a network of loyal clients and deepening your interactions with them over time is required for a healthy LTV:CAC ratio (3 or higher). Consider SMS capability that allows customers to make changes to their orders without logging in, or highly targeted emails that use zero-party data to guide customers through their brand journey.

Whether it’s rising consumer cynicism, Apple upgrades, or excessively cluttered marketplaces, DTC firms can no longer rely only on new client acquisition. Fostering the health of the customer-brand relationship is significantly more beneficial than bombarding new people with communications in the hopes that they will click their mouse and try your goods for the first time.

E-commerce in the COVID-19 Time

The COVID-19 crisis has propelled e-expansion commerce to new enterprises, customers, and product categories. Clients have been able to access a wide choice of items from the comfort and safety of their own homes, while businesses have been able to continue operating despite contact limits and other restraints.

Surviving E-Commerce’s Great Client

Despite persisting cross-country variations, the COVID-19 crisis has increased dynamism in the e-commerce sector and broadened its scope, including through new enterprises, customer segments (e.g. elderly), and products (e.g. groceries). Meanwhile, e-commerce transactions in many countries have shifted away from luxury goods and services and toward fundamental requirements that affect a large number of people.

Because of the prospect of new waves of the epidemic, the convenience of new purchase habits, learning costs, and the incentive for businesses to capitalise onSome of these ecommerce shifts, such as investments in new sales channels, will most likely be long-term.

Despite various governments’ efforts to promote e-commerce during the COVID-19 crisis, digital inequalities exist, implying that not everyone has been able to participate. 

Furthermore, in the case of expanding omni-channel sales models or novel modes of delivery, regulations that are not tailored to e-commerce might create impediments for businesses.

While many of these issues existed prior to COVID-19, the current crisis, as well as the increasing role of e-commerce for consumers and businesses, has increased the need for legislative intervention.

Systemic concerns in connectivity, financial inclusion, skills, and trust (e.g., digital security, privacy, and consumer protection) have been brought to the forefront for consumers. To address this problem, governments might provide affordable and high-quality connectivity to rural and underserved areas, improve financial inclusion, and promote trust and the learning of e-commerce skills.

Surviving E-Commerce’s Great Client

Firms should be able to create novel business models with less regulatory ambiguity, such as in the setting of an increasingly complementary interaction between retail and online sales methods.

Governments must also address SMEs’ specific needs, such as providing a level playing field in the context of intermediated services (e.g. online platforms). It is also critical to have adequate retail competition and a well-functioning enabling environment for e-commerce, including communication services, logistics, and trade.


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