How to Increase Profit Margin Using Content Marketing for eCommerce

Enticing customers to do business with you is the key to running a successful business. So, whether you're trying to entice customers back after the global pandemic or expanding your markets during "normal" business hours, the question is, "How do you do it?" What are the most effective methods for attracting customers to your online store, website, office, restaurant, etc.?

We all know what the answer is: marketing. However, marketing is not an easy process. An overall marketing plan includes a variety of strategies, practices, and tactics that are constantly evolving. It can make developing a marketing strategy for your eCommerce business seem overwhelming.

To help simplify the process, one marketing method has maintained its claim to fame— content marketing. Content marketing still promises to deliver the highest ROI of all marketing channels available.

Defining Content Marketing

Content marketing involves producing and distributing relevant, helpful content to current and future customers. You can convey the information to your audience through blogs, white papers, newsletters, emails, online posts, videos, etc.

When enterprise brands with online stores invest in digital marketing campaigns, they typically prioritize paid advertising and social media for quick results.

However, when you look at the scales that drive true marketing ROI throughout the sales funnel, they all point to content marketing. In fact, according to research done by the Content Marketing Institute, organizations that use content marketing see an average ROI of 13X.

That's because content marketing is not about selling products or services. It's about developing a relationship with your audience by providing valuable information that solves their problems. When done correctly, this type of marketing will:

·        Increase web traffic

·        Generate new customers

·        Boost brand awareness and loyalty

·        Position your brand as the leader in your industry

Content marketing is an incredibly effective way to connect with your audience by providing immense value throughout the customer lifecycle. Consumers actively seek out the best content marketing efforts instead of intrusive ads that range from invisible to infuriating.

Ecommerce content marketing gives you the edge over your competitors in this age of digital customer experiences. It's one of the influential ways to increase profit margins while building brand loyalty.

How Does Content Marketing Work?

Content marketing works by feeding your audience valuable content that solves their problems.

Content marketing satisfies curiosity, arouses emotions, and fuels purchasing decisions in ways that other forms of marketing simply cannot.

For practical use, you need to deliver the right content at every sales cycle stage - from awareness through consideration to purchase. Here's how eCommerce companies use content marketing to engage and sell at each sales cycle stage.

• Awareness- At the beginning of the sales process, your content should address your audience's top concerns. So, writing about their problems, difficulties, and concerns gives you the best chance of engaging with them. The content should be educational at the awareness stage and provide how-to advice. Articles, blog posts, videos, e-books, and newsletters are perfect for this stage of the sales cycle
• Consideration- Now that you have the prospect's attention, it's time to get more specific about your product or service. During the consideration stage, your content should provide helpful information and marketing. It should brief the reader about the features or functions to look for and how different features address their needs. Note that your content should be geared toward what your company offers. The best types of content to use during this stage are case studies, how-to articles, how-to videos, and checklists/worksheets
• Closing/Purchasing- Content marketing is critical when a prospect is on the verge of making a purchase. At this point, you can focus on sales as long as you continue to emphasize why you're the best option rather than just how good your services or products are. At this point, you must highlight your expertise, your knowledge, and the unique benefits of what you offer. Case studies, user-generated content, buyer's guides, product videos, and research reports are the best content for this stage.

Don't think of lead generation when you think of compelling content. Consider your content as a way to add value to customers who are simply looking for information. Remember, prospects will learn more about your brand and whether or not it can solve their problems in the future.

How Do You Increase Profit Margin Using eCommerce Content Marketing?

Let's boil down to how you can increase your profit margin using eCommerce content marketing.

We can all agree that most people prefer to buy from a company they trust. Content marketing helps you build trust with your audience by providing valuable information that solves their problems. But then, how can you increase profit margin using content marketing for eCommerce?

Here are a few tips on how to use it to increase your profit margin:

Develop a Buyer Persona

Knowing your audience is important to any marketing strategy. But it's imperative when using content marketing for eCommerce. A buyer persona is a definite description of your ideal customer. It includes their demographics, interests, needs, and pain points.

For instance, you can't connect with and build a relationship with your customers if you don't know who they are. This is comparable to purchasing a birthday present for your friends. How can you expect to surprise your friends with a lovely gift if you don't know their likes, needs, hobbies, and interests?

Creating buyer personas is an integral part of a content marketing strategy because it helps you define your target audience and tailor your advertising to that audience. Consistently referring back to the attributes of the buyer persona when developing content will help ensure that the content resonates with your target customers.

So, how do you design the right buyer persona?

With LOTS of research. You cannot create a buyer persona solely based on assumptions; it needs a solid research foundation. You can conduct research with the help of your current and loyal customers. You can also use surveys, social media listening, and other research tools.

Determine your Goals

Once you recognize your audience, it's time to set some goals. What do you hope to attain with your content marketing strategy? Do you want to boost your profit margins, brand awareness, or lead generation?

Your goals will dictate the kind of content you produce and how to distribute it. For instance, if your goal is to elevate profit margins, you'll want to create content for the buyer's journey. How do you define your content marketing goals in increasing profit margins? By;

·        Increasing the number of sales generated by blog posts.

·        Increasing the number of people who subscribe to your email list.

·        Increasing the number of repeat transactions with improved product line visibility.

·        Reducing cost per acquired customer with enhanced customer journey

·        Reducing refund rates through product education

·        Pay special attention to customer retention. This will help you lower your overall costs, but it will also increase your chances of being referred by your current buyers.

·        Be mindful of your retargeting efforts. Communicate with those who have previously shown interest in your content. You can encourage them to complete their purchase by displaying the most relevant ads.

Create Compelling and Engaging Content

This is probably the essential part of a content marketing strategy. The content you produce must be compelling and engaging enough to capture the attention of your target audience. It should also be relevant to your customer's needs and interests.

Remember, your goal is to increase profit margins, so the content you produce should be aimed at the closing/purchasing stage of the buyer's journey. If your target audience find your content valuable and effective, they will continue to read it, share it with their friends, and sign up for your email newsletter. Here is a list of various types of content that will undoubtedly increase traffic and sales.

·       How-to content- People are always looking for information on how to do something. When they search for "how-to" content, they typically begin the buyer's journey. If you're an expert in your field – you make the ideal candidate to create a killer "How-To" article that explains or creates a product. Providing your target audience with this type of content will help you build trust and establish your eCommerce company as an authoritative source of information. The "How-To" blog posts often feature guides, tutorials, and other comprehensive resources. The most effective way to move your leads down the sales funnel is to demonstrate that you have a lot to offer.

·        Listicles- Listicles are pieces of content that present information in the form of a list. They've been around for a while and are still going strong. While these lists typically have a fixed number of items (10 or 15, for example), odd numbers such as 7, 11, and 31 are gaining popularity. According to one study, odd-numbered headlines receive 20% more clicks than even-numbered headlines.

·        Infographics- Infographics are becoming increasingly popular, and the reason is simple: they are an easy-to-digest visual representation of complex data. Almost any statistical data can be represented graphically. This saves time because readers do not have to read the entire article or focus for an extended period. Furthermore, studies show that users pay attention to relevant information images. Remember, the text and images MUST match. The same is true for combining different fonts, colors, and visual types.

                - Go for a user-friendly design.

                - Present statistical data primarily through charts, numbers, and graphs.

                - To increase the likelihood of backlinks, always encourage readers to share your infographics by placing social sharing buttons near them.

Walk in the Customer's Journey

The customer journey is the next critical point in your content marketing strategy for increasing profit margins. People don't usually wake up, go out and buy things. They typically go through a lengthy process before purchasing or subscribing to your services. This means you must plan your content for each stage of your customer's journey. What steps does your eCommerce customer take to purchase on your website?

• Research- Customers are not yet aware of their problem or need at this stage. They are just beginning their research and are looking for information on the internet. Your goal at this stage is to provide them with the information they need to help them identify their problem or need.
• Attract- According to statistics, 47 percent of buyers view 3-5 pieces of content before deciding to buy – this is the stage at which you can entice them to stay on your site. If you're selling a product, blog posts that compare your product to others on the market or highlight its unique features will help you attract your target audience.
• Convert- Once you have attracted your target audience, it's time to convert them into customers or subscribers. At this point, you can also collect your customers' email addresses to inform them about upcoming promotions. You can use gated content, such as an e-book or webinar to capture email addresses. You can also use reviews from happy customers to help your prospects decide.

·        Close- Finally, you need to close the sale by leading your prospect to the desired action. For example, you can include a call-to-action (CTA) in your blog post or email to encourage your potential to buy your product or subscribe to your service.

Congratulations! You just made a sale! Are you sure this is the last step in your customer's journey? No, the customer's journey doesn't end there. You need to follow up with your customers after they've purchased to ensure they're satisfied with their purchase.

Remember, retargeting your customer and retaining them are essential for long-term success. It would be fantastic if your customers returned to your site and purchased again or if they told their friends and family about your brand. This is the time to ask your customer to leave a review, and if the review is positive, you can use it to help the next customer who is thinking about purchasing from you.

Conclusion

Increasing profit margin using content marketing for eCommerce is not easy, but it is doable by following the proper steps. Define your customer persona, produce quality content, consider the customer's journey and understand what content to produce at each journey stage.