{"id":1627,"date":"2022-10-20T02:40:06","date_gmt":"2022-10-19T18:40:06","guid":{"rendered":"https:\/\/digitspark.co\/blog\/growth-strategy-e-commerce-lecture-69\/"},"modified":"2025-12-16T08:37:54","modified_gmt":"2025-12-16T00:37:54","slug":"growth-strategy-e-commerce-lecture-69","status":"publish","type":"blog","link":"https:\/\/digitspark.co\/en\/blog\/growth-strategy-e-commerce-lecture-69\/","title":{"rendered":"E-commerce mastery training! Growth Strategy’s performance strategies will help you become a top player right from the start."},"content":{"rendered":"

Shopping from home is the most comfortable! Online shopping has become an integral part of people’s daily consumption habits in Taiwan and around the world. The sales volume of e-commerce channels in Taiwan has grown significantly over the past decade and is now the third largest sales model in Taiwan. This has led more and more companies and brands to shift their market focus to e-commerce.<\/span><\/p>\n

As a brand sales and performance operations consultant,\u00a0<\/span>Growth Strategy (GS)<\/span><\/a>\u00a0frequently collaborates with e-commerce brand owners\u00a0<\/span>to help them build a robust corporate structure, analyze the market for their products, and plan effective sales strategies<\/span><\/strong>\u00a0. Today’s e-commerce information seminar, jointly presented by GS and Cyberbiz, a master of one-stop e-commerce marketing platform planning, will share our market observations on e-commerce with the participants. Drawing on\u00a0<\/span>Angeline’s own experience in operating e-commerce and her over ten years of experience coaching brands behind the scenes<\/span><\/strong>\u00a0, we will discuss how to establish a sound operational structure and successfully attract and retain brand members through e-commerce platforms.<\/span><\/p><\/blockquote>\n

Before entering the e-commerce market, key points of internal self-assessment for companies:<\/span><\/h2>\n

This involves helping all brand stakeholders, from top to bottom\u2014including the owner, decision-makers, implementers, and frontline consumers\u2014\u00a0<\/span>clarify their company’s current situation. This includes existing product plans, future product development and its feasibility, available capital, and feasible sales plans<\/span><\/strong>\u00a0. The team must first understand, “What do we want to achieve by entering the e-commerce field?” and “Objectively speaking, where does our brand position itself in the market? What are our strengths and weaknesses?”<\/span><\/p>\n

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For these four different corporate structures,\u00a0<\/span>Angeline and her GS performance consultants can help clients anchor their brands<\/span><\/strong>\u00a0; analyze which state they belong to, and plan corresponding operational strategies to improve the maturity of the enterprise and brand, explore effective new marketing models, and, as we will focus on next:\u00a0<\/span>how to improve the effectiveness of e-commerce operations.<\/span><\/strong><\/p>\n

Key observations regarding the e-commerce ecosystem when formulating marketing strategies:<\/span><\/h2>\n

Firstly, e-commerce brands now typically set up data analytics platforms like Google Analytics (GA) or Google Search Console when operating their official websites to analyze consumer profiles, product or campaign page responses, and so on. We’ve discussed the use of this data in many articles; Angeline focuses on the “market” aspect, highlighting key observation points that e-commerce companies should always be aware of in order to develop short- and long-term marketing plans.<\/p>\n

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I. Activities<\/span><\/h3>\n

What marketing activities are available for my product?<\/span><\/strong><\/p>\n

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All promotional activities are packaged with various slogans, but beneath the surface, they all boil down to a few key elements: “discounts,” “members’ day,” “buy A, get B free,” “spend X amount, get Y free,” and so on. However, price wars aren’t something to be fought haphazardly! Before planning an activity, the brand must first define its objectives: What am I aiming for this activity? High conversion rates, new member numbers, or high profit margins? Only after establishing the activity’s goals can the following analysis proceed: How much profit should I expect to make this time? How much should I invest? How long should the promotion period be? How should I set the discount cap for maximum cost-effectiveness? Should I use a “spend X amount, get Y free” offer or a direct discount? And so on.<\/span><\/p>\n

The activity isn’t simply about “making as much money as possible.” It involves a systematic planning of “how much to make” and “how to make it.” The profits aren’t just gross profit; they also include intangible benefits such as exposure, membership growth, and the partnership’s image<\/span><\/strong>\u00a0. Each activity is designed after a cost-benefit analysis, stop-loss point setting, and operational method testing.<\/span><\/p>\n

II. Advertising<\/span><\/h3>\n

“How do others set up their ads? How should I set up my own ads?”<\/span><\/strong><\/p>\n

Besides the advertising we mentioned earlier for organizing events, e-commerce brands should also conduct regular advertising exposure to avoid being forgotten among a wide variety of similar products. For example, SK-II, a major player in the department store and e-commerce skincare market, still launches new spokespeople and creative advertisements every year. Customers also look forward to seeing “which of my favorite celebrities will be the spokesperson this year?” Advertising plays an indispensable supporting role in various aspects such as “brand exposure,” “driving traffic,” “sales guidance,” “boosting sales,” “membership management,” and “consumer interaction to increase goodwill.”<\/span><\/p>\n

E-commerce businesses that typically struggle with “not knowing how to run ads” fall into two categories:<\/span><\/strong><\/p>\n

1. A new e-commerce brand entering the market; conducted research on many similar products, but could not easily distinguish the differences in their designs.<\/span><\/strong><\/p>\n

In terms of graphic design, different types of advertising will have different focuses. For example, brand image ads emphasize conveying imagery, with warm and poetic text, and multiple ads should have a consistent overall collection. Event ads, on the other hand, are fast, effective, and grab attention at a glance, and the linked event order pages should also be very intuitive. We usually advise e-commerce companies to create a one-page shopping guide website for events and link it to the ads, so that consumers can easily and effortlessly make quick purchases.<\/p>\n

2. Another type is e-commerce brands that have been in the market for a long time and whose performance has moved from the growth stage and maturity stage to the decline stage.<\/span><\/strong><\/p>\n

The competitive landscape changes daily, and old, successful standard operating procedures (SOPs) are no longer effective. At this point, it is necessary to reassess and reallocate marketing resources. For example, if 50% of the advertising budget was previously spent on Google each quarter, but the conversion rate is now declining, then the advertising budget needs to be reallocated. On the one hand, the focus should be shifted to the second and third performing channels and emerging dark horses. On the other hand, costs should be allocated to test new channels\/new advertising plans and find the next dark horse to prepare for future declines in performance.<\/span><\/p>\n

The effectiveness of an advertising strategy inevitably declines after initial growth; we can only adjust and improve ourselves accordingly. For advice on planning advertising content, selecting the most effective channels and time slots, consult GS’s performance consultants. They can use data tools to guide brands step-by-step on how to analyze advertising effectiveness and plan strategies.<\/span><\/p>\n

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III. Members<\/span><\/h3>\n

“The proportion of new customers and regular customers will differ depending on the stage of brand maturity.”<\/span><\/strong><\/p>\n

For a stable brand, the ideal membership ratio is\u00a0<\/span>30% new members and 70% existing members<\/span><\/strong>\u00a0. This is because the effort and cost of cultivating a new member is about three times higher than that of retaining an existing member. However, brand performance cannot rely entirely on repeat customers, as each repeat customer will eventually tire of the brand, just as an advertisement cannot be effective forever.\u00a0<\/span>Striving for a 3:7 ratio of new to existing members each quarter can be seen as “cultivating sustainable operation while maintaining stable existing revenue<\/span><\/strong>\u00a0. “<\/span><\/p>\n

Angeline emphasizes here one point based on her observations and experiences:<\/span><\/strong><\/p>\n

Most e-commerce operators don’t put enough effort into “membership tiers,” simply looking at statistics on “newcomers” and “returning customers.”<\/span><\/strong>\u00a0This crude approach fails to identify who deserves remarketing and also fails to convince consumers of the “differences between different membership levels,” resulting in low member loyalty.<\/span><\/p>\n

We can learn from the membership systems of high-priced items in department stores. By leveraging data accumulated from brand promotional events, we can analyze each member’s purchase frequency, average purchase amount per transaction, click-through rate, and so on. From the consumer’s perspective, the questions are: “If I want to upgrade to a platinum membership, how much do I need to buy? What VIP benefits will I receive? Is it worthwhile to combine the two?”<\/span><\/p>\n

(Reference: GODIVA’s membership tier system)<\/span><\/strong>
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From the brand’s perspective, besides accumulating loyal customers, a segmented membership system allows us\u00a0<\/span>to obtain useful information about different membership levels:<\/span><\/strong><\/p>\n