Even before the coronavirus pandemic, e-commerce commerce should optimize advertising campaigns. It includes performance marketing, which is online campaigns that only cost the advertiser when a potential customer takes some action, for example by clicking on an ad per payment per click or starting a chat on Facebook Messenger.
Given that stores are closing and the social distance that stems from the pandemic, there are at least four steps an e-commerce marketer can take to improve performance in the short-term performance market.
Take an inventory of all current marketing messages. Remove ads that are potentially infringing, insensitive, or affected by a coronavirus.
Joe Yakuel, Founder and CEO of WITHIN, a New York-based performance marketing company, puts it this way: "You have to review every single security in the marketing, no matter what it is if something can come across as tone-deaf," you need to update it.
"You might have an ad with people at a wedding and you're selling a suit, and right now it's tone-deaf. Nobody is at a wedding, right? You might have an ad (showing) a family sitting on a restaurant, normally not tone-deaf. Now, tone-deaf. Who is sitting in a restaurant?
"So I think now, before you do anything, you just have to look at everything and say, 'Wait a minute … is it still appropriate or not? "And drag everything that is not."
Replace "tone-deaf" ad copy, landing page copy and visually with new content that communicates a real feel. Your messages should be meaningful in connection with your business, its brand and pandemic.
Confirm that you are open
Brick-and-mortar stores are not the only companies to shut down because people are trying to curb the corona virus. Many online stores have also temporarily closed.
As an example, L Brand & # 39; s Victoria & # 39; s Secret temporarily closed all of its physical stores and stopped e-commerce deliveries. Victoria's Secret posted a message on its website telling visitors that they did not accept orders. Not every online seller has been so polite. Sometimes a shopper will come to the checkout before realizing that the store is not working.
If your business is still selling online and is still marketing itself through performance marketing, you must inform shoppers.
An example is Michael & # 39; s, omnichannel craftsman. The company markets Michaels.com's online pick-up curb services. Visitors clearly understand that Michaels wants to do business.
Similarly, your company's e-commerce and performance marketing landing pages should make it clear that you are open.
Reduce sales friction
Merchants selling important products such as food and beverages, pharmaceuticals, household goods and the like have had a jump in sales revenue during the pandemic.
According to data from WITHIN's customers – which corresponds to about $ 500 million in advertising revenue and about $ 5 billion in revenue – retailers selling "essential" products have seen revenue increase as much as 221 percent as of March 19.
INNEN's data includes year-on-year results, which means, "If the sector had increased by 10 percent during the year before COVID-19, and the sector has now fallen by 15 percent during the year, we would report that it was a 25 percent decrease compared to with the reference period. "
If the revenue of a retailer in the essential segment had already increased, all growth may not be due to the virus. Nevertheless, the pandemic has raised demand for these products.
However, not all sectors have increased according to INNE. Omnichannel retailers and e-commerce with pure gaming in the fashion segment saw revenue as 63 percent off the benchmark.
If your business belongs to the important category, you do not need to do much to encourage sales. However, if your company is in the fashion or "non-essential" segment, remove as much sales friction as possible.
INS Yakuel suggested that it might be time to make new or additional free shipping offers. Or, if your business has physical stores, make it easy to click and collect items on the wall.
In short, before investing in performance advertising, try to reduce conversion friction.
The goal of profit
After preparing your ad and landing page, making it clear that your store is open and developing an offer with low friction or two, you optimize your performance marketing.
Depending on the business, this may include preserving cash during the crisis or maintaining or increasing investment.
First order break-even point. "There is a kind of threshold (in performance marketing spending) where it makes sense for everyone to reach," Yakuel said. "Then beyond that threshold, it really depends on your capital structure."
This threshold is "first order, break-even point", meaning "if you can spend incremental dollars (on performance marketing) and do it in a way that is profitable in the first order … there is no reason why you shouldn't "Don't spend that dollar," Yakuel said.
Think of it this way. If you can increase your daily marketing budget for performance and still make a profit on the first order from every shopper, do it. You should maximize your PPC investment to the first order, the break-even point.
"Spend as much as humanly possible until the last and least effective incremental dollar is at the first-order break-even," Yakuel said.
When optimizing your ads, you don't necessarily have to focus on statistics like clicks or impressions. Rather focus on profit per sale.
If done correctly, this method will increase cash flow.
In addition to the first order break-even. Make a decision after the first-order break-even point. Should your company invest in performance marketing with little immediate return on building long-term customer relationships?
If your business "has a lot of cash and you think you can weather this storm, you might want to spend money in a way that acquires customers beyond the first-order break-even …" said Yakuel.
"So maybe you can't break the first order anymore, but if you expect people to order three orders a year and you add deeper than first-order profitability, maybe to second-order profitability or third-order profitability, you still will to make the money back within 12 months. "
Here too, the key is to focus on profits.