Welcome to the second blog in our series, where we interview experts in the e-commerce field. We will pick their brains to uncover the best-kept secrets and tips about how to work within this industry.
At Clerk, we are constantly inspired by e-commerce experts and know there is a vast amount of untapped knowledge that deserves to be shared with a larger audience.
E-commerce success often hinges on the mastery and strategic deployment of key tactics. In the second of its kind, we have interviewed Kasper Løndal, Partner at Obsidian Digital. His insights are crucial for navigating the ever-evolving landscape of online retail stores and e-commerce prosperity.
Let’s get into it, shall we?
Kasper's top 3 e-commerce tips:
Tip 1: Completely optimize your product selection to maximize your revenue
Kasper’s first tip is simple yet severely underestimated: have the right products on your website, especially those that should never go out of stock.
What does he mean by this? Well, beyond the sheer number of products offered on your website, the heart of your profitability lies in identifying and highlighting the perennial best-sellers. These unsung heroes consistently drive store revenue and often serve as the backbone of your webstore’s revenue generation.
"These products are the lifeline of your store. Strategic product placement can make or break an online store," Kasper emphasizes. Ensuring that these items are not just available but are showcased consistently and prominently across your website capturing customer attention and influencing customer browsing behavior and, ultimately, purchasing decisions.
Marketing isn’t everything. While campaigns drive traffic, it's the presence of these best-selling products that ultimately convert visitors into customers. You always need the best-selling products on your website all the time. These are the revenue generators.
And not only that, but Kasper also highlights the significance of data-driven product selection.
Analyzing customer behavior, purchasing patterns, and seasonality of products can help in fine-tuning your inventory. It's a continuous process of refinement and adaptation.
By leveraging analytics tools and consumer insights, e-commerce owners can stay ahead by predicting and meeting customer demands effectively.
Tip 2: Know your market and tailor payment and delivery options to each
Kasper’s second tip is that understanding the intricacies of diverse markets is pivotal, especially concerning payment and delivery preferences. They demand a nuanced approach and must be tailored to each specific country or region.
"It's not just about offering a multitude of options but tailoring them to meet local expectations," Kasper explains. Integrating region-specific payment gateways and catering to preferred shipping methods significantly enhances the customer experience. When it comes down to it, you need to know your markets.
For instance, if you are operating within the German market, PayPal is integral in this country. You must research and incorporate locally preferred payment systems, as this will have a significant influence on your conversion rates.
This, of course, also applies to shipping. In Germany, you should use bigger shipping companies such as DHL, while in Denmark you should use GLS, and for the USA, UPS is a great option.
Kasper further emphasizes the role of flexibility in payment terms and delivery choices. Adapting to regional preferences, be it free freight thresholds, home delivery versus parcel shop options, or varying shipping paths, builds trust and resonates with customers on a personal level and profoundly impacts customer satisfaction.
Everything is about delivery. With free freight thresholds, in some countries, you can increase the free freight threshold higher than in other countries. And with preferred shipping delivery options, customers in Denmark are happy to pick up a delivery from a parcel shop, but in Germany, home delivery is key. Be aware of the local markets and attitudes.
Kasper highlights, "Payment terms and delivery experiences are the cornerstones of trust-building in e-commerce. A seamless checkout process and adaptable shipping options are imperative”.
Seamlessly aligning these aspects with market-specific demands will create a sense of reliability and convenience, which is crucial in customer retention in all markets.
Tip 3: Harness the power of an effective search function to increase customer conversions
"The search function on your website isn't just a tool; it holds immense potential and is a goldmine of insights,” Kasper stresses.
Kasper’s final tip is to utilize an effective search tool, like Clerk’s own Search, as this function on your website is incredibly vital. Implementing an intuitive search feature and optimizing it for accuracy and relevance transforms it into a powerful conversion tool.
It is also especially important if you have more than 100 items in your store. You really don’t want your customers to be searching for a product amongst pages and pages of your catalog.
In fact, he states that he has seen up to 3x higher conversion rates for customers who use the search bar function rather than browsing through products until they find their desired one. He also implores you to always show the search function bar on your website and have it prominently displayed and easy to find on all pages.
Kasper advocates for continuous refinement of the search experience by analyzing user behavior and refining search algorithms to showcase the most relevant results. Work with the data you gain. Use these insights from your target groups and learn what they expect from your website. You can even use these insights for further product development.
Expanding on the importance of data gleaned from search analytics, Kasper mentions, "This data isn't just about product discovery; it unveils customer preferences, trends, and even gaps in your product offerings."
Leveraging this information not only enhances the customer journey but also fuels product development strategies and website optimizations.
Bonus Insight: Market-Specific KPIs are crucial
Kasper has one bonus tip, which is to understand the necessity of crafting tailored strategies for different markets. "Each market operates under unique demands and dynamics," he says.
Setting market-specific KPIs allows for targeted and measurable goals aligned with the particular dynamics and preferences of each region."
We extend our deepest gratitude to Kasper Løndal for sharing these pearls of wisdom. These insights serve as invaluable guidance for e-commerce owners in their quest for digital retail success.
Stay tuned for more expert insights in our ongoing series!