How to Master the Art of Predictable Long-Term Success in Ecommerce
Looking to turn your growing ecommerce business into a future proof company? You’ve come to the right place. Creating long-term success is the true mark of a valuable company, so thinking ahead isn’t just wise— it’s necessary.
It’s easy to be a flash in the pan. In fact, over and over, we see brands take off like a rocket only to fall quickly. Avoiding this and building a future proof company really requires a mindset shift for how you go about running your business, as well as employing certain tactics.
In today’s post we will discuss the top four ways to increase the future consistency and probability of long-term success for your ecommerce business.
The Key Differentiator of a Future Proof Company
Before we get started, you need to understand the mindset shift at play. Increasing revenue and reducing costs in order to increase profit is good. But doing that today is not a predictor of long-term success if you’re not also simultaneously planning for the future. You must be trying to increase the consistency and growth of that profit, stacking the odds in your favor.
Think about this way: Most ecommerce business owners run their companies like they’re playing checkers, one move at a time. But the masters are more like chess players. They think strategically, several moves ahead.
Let’s get into 4 practical ways to do that in your business.
4 Important Strategies for Long-Term Ecommerce Success
1. Be a solution brand, not a product brand
Products come and go, but customers’ problems don’t. In fact, problems rarely go away entirely. They just change over time. And those evolving problems are what keep customers coming back to keep purchasing— if you’ve planned your brand and product line accordingly.
As an ecommerce brand, you must be committed to the problem that you’re solving. Focusing only on products (not solutions) can become dangerous, because it will likely make you a fad. Being a solution brand means that your brand’s mission and purpose is all about your customer’s problem and your unique solution for solving them.
One example of a successful solution brand is Warby Parker. There are several companies out there who sell affordable eyewear, but you don’t always know what you’re getting, if the glasses will work for your face shape, or if they’ll break right away. Warby Parker stands out by addressing the problem of expensive prescription glasses with affordable yet high-quality and stylish options online. They also have a great home try-on program, solving another problem for those who want to try frames on before purchasing online.
In contrast, Toys “R” Us is an example of a product brand that unfortunately was not future-proof. They focused heavily on selling products rather than addressing the evolving needs and behaviors of their customers. This lack of adaptation to online shopping and other modern preferences eventually led to their bankruptcy.
If you want a future proof company that stands the test of time and to be a brand with raving fans, start with ensuring your brand is oriented around your philosophy for the best solution for what your customers need.
2. Run two businesses at the same time
Master ecommerce business owners — the chess players — know that they run two businesses at one time: today’s business, and tomorrow’s. Those who realize this and spend their time and resources accordingly are the ones truly set up for a more profitable, longer-lasting ecommerce business.
To do this well, you must be a student of your environment and develop a gut feeling of your market. You’ll also need to learn how to adapt your business over time without pivoting constantly.
So many ecommerce companies are stuck staring at their past analytics. Looking back can and should inform decisions for moving forward, but it doesn’t paint the whole picture. Since the market is always changing, you can’t rely on the rinse and repeat method with what has worked before.
The goal is to become a master of your market, so you can take calculated, wise risks to adapt with the future. This skill will become a huge asset for building a future proof company. For more on this, be sure to check out our healthy decision-making framework for business leaders.
3. Diversify core sales and marketing channels
It goes without saying that where you sell your product and where you do your marketing are critical to your business. The frightening thing is, most ecommerce brands have 80% of their sales and marketing coming through just one channel.
This is a very dangerous place to be. We’ve worked with many ecommerce brands who saw viral success years ago thanks to a sky-high Facebook ROAS (return on ad spend), only to have that efficiency drop as algorithms inevitably changed and the channel became more crowded. This is a classic example of needing to be prepared with traffic coming from more than one place. If these brands had not relied so heavily on Facebook and invested in other areas like organic traffic and SEO, email marketing, YouTube video, or other up-and-coming social channels, they might have been better prepared.
What would happen if your Facebook ad account got shut down, your Instagram account got hacked, or new algorithms affected your site’s traffic? What about Amazon account restrictions affecting your sales, or platform policy updates impacting advertising? If these kinds of events could significantly impact a day, week, or month’s revenue for your business, you are vulnerable to disruption. It’s time to future-proof your business by diversifying your sales channels and diversifying your marketing channels before it’s too late.
4. Learn how to forecast
Forecasting for your ecommerce brand’s future is both an art and a science. It goes back to the understanding that you’re running two businesses at the same time— today’s, and tomorrow’s. More specifically with forecasting comes the ability to:
- Develop new products
- Order inventory in advance
- Manage financing for current initiatives as well as future
Groove Life is a great example of a brand who used forecasting and R&D to their advantage. They saw viral success from the creation of their original product, the silicone ring. But they did not stop there. While building their brand recognition and selling that product, they were also innovating on the ring to create new varieties that catered to more types of people. They were also hard at work behind the scenes to create additional products that went on to be a huge success: the Groove Belt, and the Groove Wallet.
Predicting what’s ahead and innovating for it now is mission-critical to becoming a future proof company. To dive deeper into forecasting and how to invest in research and development for your business, check out our guide to R&D for ecommerce.
Your Path to Long-Term Success as a Future Proof Company
Increasing future success is the most difficult, ambiguous part of increasing the value of your business. It requires awareness, mindset, and a commitment to planning for the future while also securing today’s revenue. Taking the time to develop this expertise is valuable, and it’s the key differentiator between the amateurs and masters.
If you’re a 6-9 figure brand looking to implement these types of strategies to grow your revenue in healthy, profitable ways, as well as prepare for the future, contact us today.
