Why Most Online Businesses Fail
The world has never seen business start so easily. Just an online store, you absolutely can master your business career.
Mistakes In Online Business
However, many mistakes make you not succeed as expected. Are the 10 mistakes outlined below the main cause of your online business failure?
1. Selling Products
A typical mistake many marketers make today is trying to sell things that people don’t really need.
There is nothing wrong with wanting to be a pioneer, but instead of trying to recreate the shape of the wheel, figure out what people need and then create a product that meets your needs.
You should become a student in a large school called the market. The question is: How can you learn about the market? There are some tips for you below:
- Become a social “listener”. You don’t need to conduct surveys of up to thousands of people to understand what customers want.
- The information you seek can be everywhere, the only thing you need to do is “listen.”
- Tools like Mention.net or Google Alerts allow you to discover related keywords and conversations. This way, you can quickly update the wishes of your target customers.
- Believe in quantitative data instead of qualitative. When you interview or survey people, they tend to give you answers they think you want to hear.
- Therefore, instead of relying on qualitative data, you should focus on numbers. What are people actually buying?
- How often do they buy and what price range do they accept to pay for the product? Those are the numbers you should have on hand before you embark on a business plan.
Note: Many people do not achieve satisfactory results when conducting interviews, questionnaires or surveys. However, if used properly, these methods will give you valuable insights about your target audience. Numbers never lie, trust them.
2. Designing Websites
If you design an online store based on what you “think” is effective, you’re almost certain to fail. Why is that? Because you and your prospects think in very different ways.
For example, there has been a lot of literature proving that color influences purchasing decisions. Suppose, you are about to open an online store that sells electrical appliances and your target market in Latin America.
You decide to use mainstream red just because “you like red”. However, you do not know that Latin Americans often associate red with religion and blood, so many website visitors feel nervous and decide to leave without leaving a purchase decision.
This example happens very often, especially when you don’t delve into your target audience and build a website that is only for personal taste.
The company’s most valuable asset is its customer base. However, many companies do not realize that clearly.
They only focus on acquisition, optimization of conversion rates or focus on SEO. However, they forget that one of the factors that make e-commerce success is Customer Service.
Some studies have found that 84/100 customers refuse to complete a transaction because the service experience is not satisfactory.
Some companies, like The PIG, have seen a 250% increase in annual revenue when investing in customer service development.
4. Improve Customer
Avoid making shopping complicated. You need to make it easier for customers to buy instead of vice versa. Make sure they get the fastest support and avoid unnecessary steps in the buying process.
Multi-channel support – 9/10 people expect to receive support through various communication channels such as email, phone or online chat service.
Provide an online chat service. Everyone hates waiting and your customers are no exception. Online chatting is one of the fastest ways for customers to receive assistance.
Supporting customers with Live Chat as soon as customers have any questions while visiting the website will help you increase your chances of turning viewers into buyers.
Read:- How To Start Home Business
You will not be surprised to know that up to 77% of customers prefer to buy in places where online chat service is provided.
Beware of bad feedback on social networks. People tend to complain about bad products or services on social media. Make sure you reach these conversations and try to fix the problem as quickly as possible.
5. Marketing Channels
There are 3 common ways to attract visits today:
- Social Network
In fact, there are still many other marketing channels that have not been exploited and invested properly. Try to think a little bit way out and find ways to allow your business to grow stronger.
6. Affiliate Program
Affiliate marketing is a form of promoting products or services of the Supplier who is a company whose products or services want through the websites of partners promoting goods and services to end-users.
When you run an affiliate program, you will only have to pay the partner for the cost of each new customer that their service brings.
7. Increase in Advertising
According to research conducted by Ogilvy, Google, and TNS, 74/100 customers believe that word of mouth information influences their buying decisions.
8. Referral Program
People are four times more likely to buy things if they are referred by a friend, researched by Nielson.
And the best way to encourage these referrals is to give motivation. Dropbox is a famous example. They give you an additional 500MB in a data store for every new user you refer to.
Texas Tech says that 83% of customers are willing to recommend the product to their acquaintances if they get great experiences.
That’s why you should develop customer journey maps, do great customer service and A / B test.
HBR points out that people are not really loyal to a certain company unless the company represents something. TOMS’s famous campaign “One for One” is a prime example. TOMS said,
“With every pair of shoes you buy, TOMS will bring a new pair of shoes to the children who need them.” This campaign was successful because it hit one of the most important psychological aspects.
E-commerce is an environment full of competition. To be successful, you need to start with the right steps and always be ready for opportunities.
The best way is to avoid any mistakes that you can avoid. Do you have a story you would like to share with swiftblogging in the process of building an online store?