E-commerce development is well recognized as a less expensive way to build a business than traditional retailing. However, it can also provide a marketing edge at the times it matters most--when the economy is down and customers are few and far between.

Specifically, e-commerce development can be geared toward appealing directly to customers interested in saving money. While thats almost always an effective marketing approach, it is especially timely during a recession. With overall retail growth projected to be flat for 2009 and slow beyond that, it may prove to be a necessary tactic for growth.

E-Commerce Benefits Extend Beyond Cost-Cutting

The marketing angle of e-commerce in a recession must not be overlooked. It is certainly sensible to use e-commerce as a cost-cutting tool when budgets are tight (for example, by substituting e-commerce Web sites for physical locations,) but businesses must also look for ways to stay on offense. That means adjusting marketing tactics to the conditions.

If the essence of marketing is giving people what they want, then in a downturn it is important to redefine what the company is giving people. Instead of focusing on the product, the emphasis should be on cost-saving aspects of those product offerings. At a time when what people want is to save money, the companys marketing approach should be more in line with this desire than focusing on the product itself.

Four Ways to Appeal to Cost-Conscious Consumers

Consider these four examples of how e-commerce development can be focused on appealing to cost-conscious consumers:

1. Providing incentives for customers who use the e-commerce web site: E-commerce can not only save retailers the cost of maintaining physical locations, but direct shipping also reduces warehousing and transportation costs. This gives retailers some room to provide customer incentives, such as special discounts for using the e-commerce web site rather than purchasing items in stores. This is a win-win situation: the customer gets a discount, and the retailer gets customers to convert to a cheaper way of doing business
2. Offering the e-commerce web site as a way to save time and money involved in traditional shopping: Companies should promote the fact that shopping online saves customers the time involved with visiting stores, as well as the fuel and parking costs of driving. Budgets go further when customers spend money on what they buy, not how they buy it
3. Offering content with cost-saving suggestions. Marketers can gear online articles and forums towards content that suggests how their products are less expensive than alternatives, or can otherwise be used to save money
4. Promoting the e-commerce Web site through searches and other content related to saving money: In addition to linking search-driven promotion to topics related to the product, linking to searches on cost-saving topics helps capture an audience from a different angle. It may get people to see applications for certain products that they had never thought of before

With this shift in the economy, peoples needs and interests change. Good marketing should always focus more on benefits than on features, and in a recession the key benefit to highlight is potential cost savings. Fortunately, e-commerce is particularly well suited for offering this benefit.

Source

Progressive Grocer