For marketers and brand managers, there are fundamentally three ways to grow a business and the emergence of e-commerce is and will continue to have a significant impact on the levers brand managers and marketers can pull to grow their business in a meaningful way:
- Increase prices: The rise of e-commerce has created a world of abundant, free, and easily obtainable pricing and cost information for consumers. It has created a world of incredible pricing and cost transparency, arming consumers with the tools necessary to ensure that they are paying the lowest price available at all times — eroding margins and mangers abilities to increase prices.
- Increase Purchase Frequency: E-commerce platforms are increasingly looking to push consumers into subscribe and save models that allow consumers to order goods on a predictable basis. While this doesn’t directly prevent consumers from purchasing more of a good, at it’s core it is changing consumer consumption behavior, as consumers become “trained” and comfortable with only consuming the quantity that they have ordered over a set period of time. Thus, decreasing the need for increased consumption, making it ever more efficient.
- Increase Number of Purchasers: Arguably, the most challenging and costly lever that brand managers and marketers have at their disposal, yet the lever least impacted by e-commerce in a negative manner. This will be the key objective of brand mangers and marketers over the coming years, as they look to grow their business. However, it is a daunting challenge, as it has become increasingly difficult to get the attention of consumers, who are overwhelmed with options and have diminishing attention spans.
Marketers and brand mangers — if we want to grow the businesses we run, moving forward we will have to:
Create products that our consumers cannot live with out.
Products and experiences that consumers would truly miss if they were gone.
Products and experiences that make people feel more connected to the world that they live in.
Products and experiences that cultivate authentic, not transactional, relationships.
This is a tall task. The world has changed. How are you helping your business grow?