Every major eCommerce company, such as Amazon, eBay, Wal-Mart, and Flipkart, uses marketing automation to streamline routine tasks. Marketing automation aims to build better relationships with customers. Marketing automation can evolve into an amazing tool. Many businesses are now taking advantage of marketing automation software.
Did you know that most of the eCommerce revenue is due to a few giants in the business? Data reveals 2-3 million e-commerce businesses worldwide, and North America (USA and Canada) alone has 1.3 million e-commerce companies. It is estimated that big e-tailers dominate the e-commerce revenue in the USA. Amazon receives nearly 44% of US eCommerce sales, followed by eBay, Apple, and Walmart.
So, how do startups or small businesses compete with established brands and stay ahead of the competition? Marketing automation software benefits companies of all sizes and shapes by allowing them to run complex campaigns successfully and manage their time efficiently. It even allows small businesses with limited budgets and staff to mimic large companies.
Also Read: How Marketing Automation Empowers Small Businesses?
Ways to Improve Ecommerce Businesses with Marketing Automation to Drive Growth
Personalized customer journeys
Marketing automation allows e-commerce companies to segment their customer base more effectively and create personalized experiences for different audiences. With the help of data and automation tools, businesses can track customer behavior, preferences, and past purchases and tailor communications based on this information. For example, when customers add an item to their cart but don’t purchase it, an automated email or SMS reminder can prompt them to finish the transaction.
Personalization extends beyond simple reminders. It can include personalized product recommendations, exclusive offers, or special discounts based on browsing history or purchase behavior. This enhances customer satisfaction and drives repeat business.
Setup automated emails
Email automation is the heart of marketing automation. Automated emails work so well due to their secret – ‘relevance.’ eCommerce customer acquisition via email has quadrupled over the last 4 years. E-commerce companies leverage the data available in a CRM to identify customers, segment them, and trigger automated email workflows. They can be categorized into – new user welcome emails, cart abandonment emails, order follow-up emails, we-miss-you emails, etc. Omnisend shows some statistics on eCommerce email marketing:
- Every email, on average, brings $0.71 to the US
- Automated emails have better click rates
- Promotional campaigns have a 4.15% click rate
- Cart recovery emails have a 7.1% click rate
- Sending a series of three abandoned cart email reminders brings in 69% more orders than a single email.
Also Read: Ways to Optimize Customer Segmentation to Improve Conversions
Segment your customers
ECommerce companies must segment their customers to personalize their reach. When incorporated well, customer segmentation helps these companies to:
- Increase conversion rates – Customers are likelier to buy from you when you market messages relevant to their interests and circumstances.
- Achieve long-term revenue through customer retention—The marketing target should be to increase customers’ lifetime value as much as possible.
- Better insight into customer base—The performance of each customer segment gives you insight into what’s resonating with a particular audience and what’s not. This provides vast data on trends and patterns to set up the right metrics.
Segmented lists allow you to showcase relevant branded items to customers, special offers that work well with a segment, or message coupon codes for festive seasons.
Also Read: How to Use Marketing Automation for Lead Nurturing
Optimizing lead nurturing and conversion
Marketing automation helps e-commerce businesses nurture leads through targeted messaging. Whether through emails, retargeted ads, or social media posts, automation allows businesses to stay top-of-mind with potential customers. For instance, if users abandon their shopping cart or browse specific product categories, automated retargeting ads, and emails can bring them back to the site with a special offer or discount.
These automated strategies can also help reduce cart abandonment rates by sending reminders or incentives at critical moments in the purchase journey.
Data-driven insights and analytics
Marketing automation’s most significant advantage is collecting and analyzing vast amounts of real-time data. E-commerce companies can track customer interactions, monitor performance metrics, and identify channel trends. Automation tools provide valuable insights into which campaigns, products, or strategies work best and which areas need improvement.
For example, companies can analyze which email campaigns have the highest open rates, which social media ads generate the most engagement, or which products are trending. This data-driven approach helps e-commerce businesses make informed decisions and optimize marketing strategies for better outcomes.
Loyalty program automation
Automated loyalty programs help e-commerce brands retain customers by offering incentives for repeat purchases. These programs can be personalized and managed seamlessly through automation tools:
- Reward Points for Purchases and Referrals: Offer customers points or rewards automatically when they purchase or refer new customers.
- Special Discounts for Loyal Customers: Reward repeat customers with exclusive discounts or offers, automatically tracked and applied through the loyalty system.
- Milestone-based Rewards: Recognize significant milestones like birthdays, anniversaries, or certain purchase thresholds with personalized offers.
Automation makes managing loyalty programs efficient and enhances the customer experience by delivering rewards without manual intervention.
Also Read: How Can Marketing Automation Boost Customer Loyalty?
Cross-selling and upselling opportunities
Marketing automation helps identify cross-sell and upsell opportunities, enhancing e-commerce companies’ average order value. Automated systems can trigger relevant recommendations in emails, product pages, or during checkout by analyzing customers’ past purchases and browsing behavior.
For example, an automated email could suggest complementary accessories like laptop bags or wireless mice after a customer purchases a laptop. These tactics can increase overall customer spending without requiring direct intervention from the sales team.
Automate customer support and communication
Automating customer support is another way marketing automation can benefit ecommerce businesses. Chatbots, for example, can provide instant assistance to customers 24/7, answering common questions or guiding users through their shopping journey.
Automated follow-ups on order status, delivery notifications, or tracking updates also enhance customer experience, keeping buyers informed at every step. This reduces the workload on human support agents and ensures faster responses to customer inquiries.
Improved ROI and budget efficiency
Marketing automation helps e-commerce companies improve their ROI by reducing the time spent on manual tasks. Businesses can focus on strategic activities that drive growth by automating repetitive tasks such as social media posting, email follow-ups, and product recommendations.
Automation tools also help optimize marketing spending. By analyzing campaign performance, businesses can shift budget allocations to the most effective channels and campaigns, ensuring marketing dollars are spent efficiently.
To summarize
In today’s competitive e-commerce landscape, leveraging marketing automation is crucial for success. By automating key processes such as customer communication, lead nurturing, social media management, and customer retention, e-commerce companies can increase efficiency, reduce manual work, and improve customer satisfaction. Furthermore, automation allows businesses to make data-driven decisions that optimize marketing strategies and drive long-term growth. For e-commerce companies looking to scale, adopting marketing automation is no longer optional — it’s a necessity.