Product marketing management is a broad term that many companies are still grappling with. In the E-commerce industry, it can be tough to know what your customer experience should be or how you should react to their feedback.
This article discusses Product Marketing Management challenges that E-commerce companies face and solutions they have found to overcome them.
Why Is Product Marketing Management Important In E-Commerce?
Product marketing is critical in E-commerce, as it helps shoppers find the products they are looking for and ultimately buy them. Product marketing managers must create a strategy that aligns with the overall business goals and objectives and consider different customer needs and wants.
In addition, product marketing managers must have a good understanding of the market, competitor activity, and trends.
There are several challenges product marketers face when working in E-commerce. One is that there is often high demand for new products but not always enough supply. This can lead to price wars and increased prices for consumers.
Additionally, product marketers must be mindful of how consumers perceive their products, which can impact their sales. Lastly, product marketers need to constantly be up-to-date with changes in the marketplace so they can make informed decisions about which products to develop and promote.
What Are The Product Marketing Challenges Of E-Commerce?
Product marketing is creating value for a product by appealing to the needs and wants of customers. It encompasses everything from ideation to execution and can be applied to any product category.
Regarding E-commerce, product marketing is a critical part of the success equation. Without a well-thought-out and executed product marketing strategy, businesses can quickly lose customers and revenue. Here are key product marketing challenges faced by companies in the E-commerce space.
Keeping Up With Rapidly Changing Consumer Trends: With so many new e-commerce platforms and products being launched daily, it’s difficult for marketers to keep up with the latest changes in customer behavior. They must constantly innovate their marketing strategies, products, and sales processes.
Facing Stiff Competition: In an era with thousands of e-commerce platforms, it’s difficult for any company to gain a dominant market share. This means that companies must be creative when it comes to how they market their products, as well as how they price them.
Creating Value For Customers: One of the critical challenges for product marketers is figuring out ways to create value for customers, especially when there are so many options for them to choose from.
Conducting Research: When a company is launching a new product, it’s not enough to know the new product. In most cases, it requires extensive research and data analysis to determine the feasibility of launching a new product.
Understanding Customer Needs: If a company wants to offer an innovative product in the market, one of its key challenges is figuring out how to reach out to consumers, especially when they don’t know about it. So, it’s essential to understand customer needs.
Managing Expectations: A company must be able to afford to conduct studies and research to develop the product to keep up with the latest trends.
A business is not simply buying a new product because it’s “cool.” It should be able to justify the benefits of the latest technology in terms of the return on investment or expected sales of that particular product.
Meeting Market Needs: A company can create an innovative product only if it understands why people need its services and products, what they expect from them, and where they are in their life cycle.
Developing Targeting Messaging: Your product marketing messages must align with your target audience. This means understanding your customer’s needs and wants and mapping out how you can fulfill them through your products and services is vital.
Crafting An Effective Sales Funnel: Your sales funnel to convert leads into paying customers. It should be designed to provide a smooth and easy experience for your customers, from lead acquisition to purchase.
Generating Consistent Traffic Growth: You need consistent traffic growth if you want your business to be successful online. Creating lots of organic traffic requires valuable and engaging content for your target audience. You can also use paid advertising and other promotional strategies to boost traffic.
Maintaining Customer Loyalty: If you focus on providing excellent and helpful content, you can create loyal customers. Provide your customers additional value, and they will likely buy from you again. Your customers will trust you more and will be far more likely to return.
Keeping Up With Technology Changes: Technology has changed significantly since 2012 and continues to change rapidly. If your website is not fully optimized, competitive, or mobile-friendly it could cost you sales and market share over time.
Improving Customer Service: Customer service is critical to any E-commerce site. If you have a terrible customer experience, customers will not return to visit or purchase from you again.
Businesses can use different ways to improve customer service, including hiring more staff or outsourcing tasks (such as shipping) to third parties. Either way makes it easier for you to provide better customer service.
Key Success Metrics To Successfully Manage a Product
Product marketing management is vital in any company, but it’s especially crucial for e-commerce businesses. Here are four critical success metrics to help measure the effectiveness of your product marketing strategy:
Total Revenue: This metric shows how successful your product marketing efforts have generated revenue for your business.
Customer Acquisition Cost (CAC): This metric measures how much it costs to acquire a new customer compared to how much revenue that customer generates for you over the long term.
Net Promoter Score (NPS): This metric determines how satisfied customers are with your product and service. Higher NPS scores mean more satisfied customers and more potential sales leads.
Lead Conversion Rate (LCR): This metric shows how many leads convert into customer acquisitions. A high LCR means your product marketing efforts are paying off.
Churn Rate: Churn rates represent the rate customers leave your company or how many are going each month. A high churn rate is a problem you must address to retain and grow your customer base.
It can be challenging for a product marketer to keep up with all the changes in E-commerce. With so many new shopping channels and devices, it can be challenging to ensure that your products reach the right customers in the right way.
In this article, we outlined some key product marketing management challenges you’ll face when working on E-commerce products and suggested ways to overcome them.