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8 Factors to Win in Retail ecommerce
What are the factors to win in retail ecommerce?
Retail ecommerce management (REM) is the practice of brands driving profitable growth for their portfolio on retail marketplaces. It encompasses the full set of activities from assortment and content setup through retail media, supply chain, finance, measurement, and optimization. In other words, it’s about making sure that your products are visible and available when customers search for them on popular retailer websites like Amazon and Walmart
It can be difficult to really understand the success of your retail ecommerce business, given all the factors and metrics that go into it. What are the most important measurements? How do they affect your success? There are eight key metrics to consider when evaluating your performance in the world of retail ecommerce.
1. Brand Strength
Brand Strength measures how often customers search for your brand specifically versus searching for competitor products when shopping in a category.
2. Share of Voice
This represents your brand’s share on the digital aisle across all the different ways consumers are looking for your products. It is a leading indicator of market share.
3. Price Leadership
Price Leadership represents which price range is within the category your brand is leading, challenging, or lagging in. Knowing where you stand compared to competitors can help inform pricing decisions and ensure that you remain competitive in the marketplace without sacrificing profit margins.
4. Assortment Strength
Assortment strength measures a brand’s presence within different subcategories and helps identify potential areas that you can grow your catalog by introducing new products or services into new markets or categories.
5. Availability Score
This reflects how often your products are available on the digital shelf compared to your competition. If a customer searches for a product, and yours is not available, it could be that you’re missing out on potential sales. Keeping an eye on this number will help you ensure that you’re staying competitive on the digital shelf.
6. Content Score
This is an indicator of the quality of content on product display pages and is a key factor that drives conversion of your products.
7. Ad Incrementally
This measures how efficient your advertising spend is in driving incremental sales. In other words, it’s a measure of your media spend efficiency.
8. Consumer Sentiment
This is a measure of post-purchase brand sentiment and is an indicator of product quality relative to the expectations set on the product display page.
Understanding these eight metrics has become increasingly important for retail ecommerce leaders, but is increasingly difficult to do without the help of technology to digest and monitor the data required to make this evaluation.
If you’re interested in seeing how your brand is performing relative to the competition, CommerceIQ’s Category Leaderboard will show you not only your scores across these 8 metrics, but also offer recommendations on areas for improvement.
Reach out to CommerceIQ to get a free Category Leaderboard produced for your brand.