Insights to empower 2023 ecommerce strategies

 

30-second summary:

• Retailers should use a data-driven approach to develop their marketing strategies to succeed in today’s volatile economy
• Current tumultuous economic conditions are disrupting the retail landscape by forcing store closures and forecasting bankruptcies
• Marketing intelligence for pricing, advertising, and promotions is critical in gaining an edge against competitors
• Managing Partner at GrowByData, Prasanna Dhungel, shares ecommerce strategy tips for 2023 to attract, convert and retain customers

The economy in 2020 was in a volatile state, primarily due to the pandemic. In November 2020, despite rising Covid cases, retailers were providing SALE offers on 13% of ads and special promotions on only 7% of ads. On the other hand, consumer spending growth was recorded at 9%.

Fast-forward to 2021 – The economy was recovering from COVID that was evident in consumer spending growth of 13.5%. With a slightly eased supply chain and better economic conditions, November holidays in 2021 saw 14% growth in special offers, which had grown twice as much compared to 2020. Furthermore, SALE offers were seen on 12% of ads which was slightly lower than the previous year.

However, in 2022, the Russia-Ukraine war coupled with unfathomable COVID rise in manufacturing nation like China impacted the economic indicators once again. With rising inflation, consumer spending had fallen drastically to mere growth rate of 6%-8%. For this year’s November Holiday, 60% of consumers mentioned discounts and promotions playing a huge role in their purchasing decisions.

Surprisingly, during November 2022, there was a drop with only 8% focused on special promotion ads.  However, SALE offer was in a rise visible in 15% of ads.