The market dynamics today are characterized by an agile, data-driven, and highly competitive atmosphere, motivated by the rise of digitalization. In order to catch up with the changing structure of the marketplace every day, businesses are flocking in herds to various avenues in order to tap into the vast audience existing in cyberspace.
Two of the most widely accessed avenues to make the most of this digital opportunity are e-commerce and digital marketing. While they have slightly varying motivations and results separately, they have become increasingly intertwined over the years and have become essential components of modern business strategies. Digital marketing and e-commerce have a two-way relationship, where each one supports and enhances the other, leading to overall business growth.
“From driving traffic to customer data: What does digital marketing for an e-commerce business bring to the table?”
Both digital marketing and e-commerce involve selling goods and services over a digital platform. The former achieves it through a digital marketing campaign, whereas the latter achieves it via the creation of an e-commerce business. Digital Marketing deals with the promotional aspect of products and services, while E-commerce aligns itself with the actual transactions and gathering customer behavior information. Hence, these two digital avenues have distinct trajectories of functioning. However, in a well-planned marketing strategy, the two are employed in such a manner that they complement each other and lead to the enhancement of business revenues.
Getting down to the crux of it, Digital Marketing aids in the visibility and engagement of the business with the target audience, while E-Commerce lays out a platform for direct transactions with customers. They complement each other in a number of ways, which include, but are not limited to: –
1. Digital marketing directs user traffic to an e-commerce business, which in turn, provides data on customer behavior and preferences. This data is often utilized in future for the generation of a well-informed digital marketing campaign.
2. Data procured by e-commerce businesses can also prove to be a breakthrough in establishing personalized messages targeted to specific segments of customers. This can lead to greater customer loyalty and repeated purchases in the long run.
3. A hike in sales of an e-commerce business would directly impact the scope of a digital marketing campaign, and vice versa. In fact, Google claims that the incorporation of a digital marketing strategy would lead to a 2.8 x higher revenue growth expectancy for a business.
4. The revenue growth in e-commerce would also impact digital marketing by creating a positive feedback loop whereby, the success of one of these avenues improves the other directly, leading to the increased prosperity of the business at large.
5. An E-Commerce business is also in touch with its audience in real-time, hence possessing the ability to provide minute and extremely nuanced information on consumer preferences and even make precise and near accurate assumptions on future courses of action taken by the consumer with respect to a product or service. This gives a great edge to a digital marketing campaign for revamping itself to be more effective with time.
The functional dynamic between digital marketing and e-commerce is not extremely complicated to figure out. However, as businesses reach wider audiences and go from local to global, the scope and strategic nuance of both these transactional avenues needs to be laid out for a smooth trajectory to business augmentation. E-commerce and digital marketing are a two-way street. They complement and support one another, resulting in increased sales, a better customer experience, and business growth. A strong digital marketing campaign is essential for the success of an e-commerce business in today’s digital-first world, whether it is just getting started or looking to expand.