In our previous article, we explored the complexities of marketing within the travel industry. Today, we shift our focus to another significant vertical: e-commerce. Just like the travel sector, e-commerce has its unique characteristics that influence the formulation of effective marketing strategies. This article will highlight key aspects specific to the e-commerce industry, particularly focusing on mobile commerce.
The E-Commerce Industry
Selling products online means you're not limited to local consumers. This gives you nearly unlimited potential for new demographics—and the statistics show companies are taking advantage. The global e-commerce market is expected to be worth $6.3 trillion this year—up from $5.8 trillion in 2023. By 2027, experts predict it will total over $7.9 trillion. Amazon accounts for 37.6% of e-commerce sales, the highest market share of all e-commerce companies.
Mobile commerce, a significant subset of e-commerce, is also experiencing remarkable growth. Mobile commerce totaled $491 billion in sales last year. Additionally, 91% of consumers make online purchases using their smartphones. Since 2018, the global mobile e-commerce market has been steadily increasing. It was a mere 56% back then, but experts estimate it will reach 62% in 2027. In just three years, mobile commerce sales will nearly double to $856 billion.
Specific Features of E-Commerce In-App Marketing
Consistent Demand
Unlike the travel industry, which experiences clear seasonality with apps being used sporadically, e-commerce apps enjoy constant demand throughout the year. Although there are peak moments, such as holidays or sales events, the need for e-commerce services remains relatively stable, driving continuous engagement. This continuous use ensures a steady stream of data and interaction, which can be leveraged to fine-tune marketing strategies and improve user experience.
Unlike the travel industry, which experiences clear seasonality with apps being used sporadically, e-commerce apps enjoy constant demand throughout the year. Although there are peak moments, such as holidays or sales events, the need for e-commerce services remains relatively stable, driving continuous engagement. This continuous use ensures a steady stream of data and interaction, which can be leveraged to fine-tune marketing strategies and improve user experience.
Customer Retention and Repeat Purchases
The primary objective in e-commerce is maintaining customer retention, as profitability often hinges on frequent, smaller purchases rather than one-time large transactions. Ensuring a seamless and engaging user experience is crucial to encouraging repeat purchases.
The primary objective in e-commerce is maintaining customer retention, as profitability often hinges on frequent, smaller purchases rather than one-time large transactions. Ensuring a seamless and engaging user experience is crucial to encouraging repeat purchases.
Data-Driven Personalization
E-commerce platforms have access to a wealth of user data, including browsing behavior, purchase history, preferences, and financial capability. This data allows for highly personalized marketing strategies, enhancing the relevance and effectiveness of ads and promotions. By analyzing this data, marketers can create targeted campaigns that speak directly to the needs and interests of individual users, increasing the likelihood of conversion and customer satisfaction.
E-commerce platforms have access to a wealth of user data, including browsing behavior, purchase history, preferences, and financial capability. This data allows for highly personalized marketing strategies, enhancing the relevance and effectiveness of ads and promotions. By analyzing this data, marketers can create targeted campaigns that speak directly to the needs and interests of individual users, increasing the likelihood of conversion and customer satisfaction.
Recommendations for In-App Marketing in E-Commerce
Segmentation: Segment users based on behavior and preferences to create tailored ad campaigns. Personalized messages and offers for different user segments can maximize engagement and conversion rates. For example, create separate ad campaigns for users who have made a purchase in the last month, those who have browsed but not bought, and those who have been inactive for over six months, tailoring messages and offers to each group to maximize engagement and conversions.
Post-Purchase Retargeting: Engage customers who have completed a purchase with ads for complementary products, loyalty programs, or future promotions. This strategy aims to build long-term loyalty and encourage repeat purchases. For instance, after a user buys a camera, retarget them with ads for accessories like lenses, tripods, or memory cards, and promote your loyalty program to reward continued engagement and purchases.
Incentivized Installs: Offer compelling incentives such as discounts, exclusive content, or loyalty points to new users who install your app. This strategy effectively drives downloads and initial engagement. For instance, providing a 15% discount on the first purchase can drive installs and encourage initial transactions, boosting both acquisition and conversion rates.
Create Strong First Impressions: It's crucial to demonstrate the best features of your app right from the start to simplify the user experience. Request only essential information from customers and make these requests brief and clear—users should be able to navigate your app in just a few steps.
Simplify the Checkout Process: Every slow-loading screen, untimely pop-up, or poorly placed button can cause a mobile shopper to reconsider and abandon their cart. It's also vital to thoroughly test your payment screen to prevent customers from dropping out of your sales funnel.
Use Banners as a Showcase: Design your ad creatives to highlight the benefits of the product, its usage, or how it fits into the user's interests and lifestyle. Effective visual representation can significantly increase user engagement and interest.
Abandoned Cart Retargeting: Use personalized ads to retarget users who have abandoned their shopping carts. Offering a limited-time discount or free shipping can incentivize them to complete their purchase. For instance, showing an ad featuring the exact items left in the cart, accompanied by a limited-time 10% discount code, can effectively bring users back to finalize their transaction.
At Mediasurfer, we recognize that the key to successful e-commerce marketing is maintaining engagement and retaining customers. The most effective way to achieve this is through in-app retargeting.
How We Can Help You
To this end, we have developed an AI-powered platform specifically designed for in-app retargeting — Holdy.app. We analyze user behavior and spending habits to develop precise user segments and craft personalized ads that resonate with these segments.
Using AI, our platform dynamically generates ad content tailored to individual user preferences, ensuring relevance and timeliness. Our approach includes algorithmic performance optimization to predict and enhance user conversion rates based on their in-app behavior.
This innovative method has propelled Mediasurfer into the top 10 of the AppsFlyer Performance Index 16 in 2023.
If you want to leverage Holdy.app to boost your customer engagement, reach out to us.
Our expertise in the e-commerce industry and our proprietary technologies can elevate your e-commerce marketing strategy, driving higher engagement and conversion rates.
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