The Big Five Fundamentals of Ecommerce Strategy

Posted on July 22, 2009
Filed Under Ecommerce, Ecommerce Strategy |

The Big Five Fundamentals of E-commerce Strategy.
In response to a twitter request from Maureen Alley (@maureenwm ) to post tips for Website Magazine , I had to resist the urge to go after the latest and greatest e-commerce widget or buzzword to think about long-term success. Few merchants pull away from the latest trends to zoom out for the high level areas of strategy that yield success over the long term. It is so easy to get distracted with the latest trends, sometimes I feel like a basketball coach yelling: “Its all about the fundamentals!!!!”

There are areas of consistent focus where we have spent the last decade helping to grow businesses online. Ultimately every tactic should fall under the what I call the “Big Five Fundamentals of E-commerce.” In relative order of importance they are:

traffic

conversion

average sale

engagement

repeat purchases.

Brilliant huh? Sorry to provide something so obvious. Unfortunately, the obvious fundamentals get buried by the latest and greatest widget or trend.

Ultimately, without traffic, e-commerce is just a lonely hobby. Without conversion it is just an information site. Without some sort of consistent average transaction it isn’t a business. Without engagement (engaging design and compelling user interface), visitors just bounce away in seconds. Without a repeat purchase strategy, costs of customer acquisition dilute profits.

Interestingly, all the posts so far in the article “E-commerce Tips for the Holiday Season” fall in one of these areas. While good tactics by themselves, it is consistent discipline and focus on the “Big Five, that will yield Big Results!

Now is THE TIME to review analytics for weakness and to define specific unique tactics to strategically focus on each area of the “Big Five” to make this Christmas the best one yet!!! Every success to all of you!