By Global Connect Advisor, Kent Panther, Senior VP, Director of Strategic Planning & Business Development, Wray-Ward
The United States economy has changed dramatically throughout the last few years, fueling drastic movement in the e-commerce segment. E-commerce in the U.S. grew 16% in 2019 but jumped to an astonishing 41% in 2020 — almost three years’ worth of growth in 12 months.
The rise in e-commerce shows no signs of slowing down, growing by 14.2% in 2021. This growth has taken online business to a new level in many industries. With cumulative growth greater than 200% since 2019, furniture, building materials and electronics experienced the most meteoric rise.
A change of this magnitude simply cannot be ignored.
What does the growth of e-commerce mean for businesses?
Even with this rapid acceleration, the U.S. retail sector is still in the very early stages of digital disruption — barely representing 13% of retail sales — and the kitchen and bath industry is no exception. This is especially true when compared to a more digitally mature market such as China, where e-commerce sales represent more than 46% of all retail sales, according to eMarketer.
So what does this mean for you?
Like consumers, B2B prospects are going online to research and make purchases in unprecedented numbers. According to Digital Commerce 360, online sales on B2B e-commerce sites, log-in portals and marketplaces increased 17.8% to $1.63 trillion in 2021 from $1.39 trillion in 2020 in the U.S.
To account for this growth, nearly two-thirds (65%) of B2B companies across industry sectors now offer e-commerce capabilities, allowing customers to fully complete a sales transaction online — up from 53% in early 2021. From cabinets to countertops, B2B sellers are now more likely to offer e-commerce channels than in-person selling.
Furthermore, two-thirds of corporate customers, when given a choice, now intentionally reach for digital engagement at every stage of the purchasing journey. All told, e-commerce has surpassed in-person sales as the single most effective channel for conducting business.
How can digital marketing help you get in on the action?
The move to e-commerce bodes well for new entrants to the U.S. market, as conducting business online lowers the barrier to entry. With this in mind, it’s more important than ever to have an effective, easy-to-use website with content that is relevant to your audiences, enabling your digital marketing strategies to be more effective.
Here are a few digital marketing strategies you can implement to reach your customers more effectively.
- Search engine optimization and paid search: These are incredibly valuable tools for reaching customers wherever they might be searching.
- Pay-per-click advertising (PPC): PPC is an immediate way to drive traffic to your website by paying to bring in potential customers.
- Conversion rate optimization: This method optimizes a website experience based on visitor behavior to increase the probability of the visitor taking predetermined, desired actions and converting.
- Strong product and project photography: A high-quality and varied library of images can be leveraged in multiple ways, including content, social and public relations efforts.
- Social media strategies: Focusing on target audiences and engaging with them, putting quality over quantity and engaging in two-way communication are all more effective than posting randomly or chasing trends.
- Artificial intelligence and machine learning technologies: AI and machine learning can result in improved social performance, greater analytics precision and more.
- Email outreach: Capturing leads for ongoing connections will help you build a stronger brand and relationships.
Digital marketing offers a variety of solutions to meet increasing e-commerce needs. A digital marketing plan should be part of a larger integrated marketing plan that supports your business goals — but it’s also important to figure out what not to do, by prioritizing your goals and audiences and then prioritizing tactics.
In this industry, a strong digital presence is more important than ever. For customers, being able to shop for their home from the comfort of their home can make a big difference. These tips, along with a mobile- and user-friendly website created for your on-the-go audience, can provide a strategic way to drive conversions.