In Data We Trust, Vol. 4

Know Your Place: Stay Local and Do You

Once again, we turned back to our data science guru, Dr. Gaby Pogge, and pinned her down for the goods, asking her point blank, how a small business can implement an e-commerce store effectively.

“E-comm offers an opportunity to extend your inbound methods for driving traffic to your website. Doing this effectively means establishing a localized, targeted online presence in your surrounding areas. You should see your e-comm opportunity not just as an additional source of revenue but also as an additional source of traffic to your storefront.” Sure, shipping orders (when financially feasible) can cater to a broad range of customer segments and preferences. But, as Dr. Pogge notes, for small businesses a shipping-only e-comm model actually works against a localized, inbound sales strategy.

Assuming you’re not trying to shutter the doors of your storefront, you need your e-comm store to drive more foot traffic to your physical locations in addition to facilitating online purchases.

“You need your online store and physical storefront to work hand-in-hand, not compete against each other,” Dr. Pogge explains. “To get the most out of your e-comm store, consider offering an option to place orders online but pick up purchases in-store.” As many of our readers can confirm, this model for fulfilling online orders became popular during the pandemic – and continues to persist.

For people who prefer to peek at their options before walking in, e-comm stores offer a chance for them to think about what they like, see pricing, and figure out any questions they might have before going “live shopping.” Although shipping is (generally) hassle-free for consumers, it lacks the personalized experiences that have long been central to transactions in this industry. Not to mention, have you ever tried to deal with UPS customer service over the phone? Of course, you have—and you know what a nightmare it can be. That’s a drag for your operations, but a boon for your local appeal.  At Dr. Pogge’s behest, let’s pause here for a moment to think about why this in-store pickup option for online orders has persisted in our return to (relative) normality post-pandemic. What added benefits might consumers experience when they follow up an online order with an in-store pickup at your physical location? Maybe that looks something like expert staff advice, opportunities for customers to touch before they buy, promotional deals, personalized offerings, or simply “good vibes.” Whatever it is that sets your store apart from the others, your website and web store should clearly demonstrate these added benefits to your potential customers.

“Leverage the enduring drive for human connection—especially in this industry—is your strategy,” Dr. Pogge says. “Once consumers put a foot in your store, you can work your good old magic.” And there’s your opportunity for the upsell. Customers who walk in to pick up online orders are 100% more likely to make additional, unplanned purchases than customers who choose to ship to home—purely because they have the opportunity to do so. Offering in-store pickup allows you to capture sales that otherwise would not occur with a purely online model.

Beyond immediate revenue generation, whether online or in-store, e-comm also offers opportunities to boost both customer retention and the insights you can gain about your customers. A loyalty program enables you to collect much more detailed customer data than POS systems typically offer, beyond the product IDs associated with specific sale values and times. “Understanding your customers’ shopping preferences is critical to informing your marketing and sales strategy and allows you to create personalized experiences and offerings for them.”

In a previous article, we discussed the importance of tracking and measuring website performance and how you can do that with Google Analytics. Integrating your website’s performance metrics with actual sales data is crucial—otherwise, how can you know if your web strategy is actually paying off? Fortunately, Google Analytics offers a user-friendly way to achieve this with both free and paid accounts.

Particularly important to the current discussion, you can use Google Analytics to track both your website performance and your e-commerce store performance simultaneously. Integrating e-commerce operations allows for a more holistic view of business performance, linking website activity directly to sales outcomes. This is particularly valuable for businesses that traditionally operate offline, as it provides a clearer picture of the online channel’s contribution to overall sales, and again, it gives you a better picture of your customers’ buying habits.

“By marrying e-commerce with digital marketing efforts, businesses can establish a feedback loop where sales data informs online content and engagement strategies, which in turn, influence broader sales tactics,” Dr. Pogge adds. “This synergy ensures that the e-commerce platform is not just a sales channel but a vital part of the strategic business ecosystem, enhancing competitiveness in the digital marketplace.”