Sanpo-yoshi Communication
Sanpo-yoshi Communication
After Corona Savior TARUKA Mail Order
—What Is Mail-Order Shopping?—
▲Based on statistical data regarding transactions made with credit cards and other products issued by Sumitomo Mitsui Card
Japan has been thrown into unprecedented chaos due to the COVID-19 pandemic.
The restaurant and event industries, along with many other sectors of the economy, have been hit hard, and the outlook remains uncertain.
Even so, the online retail sector remained relatively robust; according to a survey by Sumitomo Mitsui Card, there was a sharp increase in online shopping among older consumers, particularly those in their 60s, and there were numerous instances of significant sales growth in certain segments.
I believe the main reason for this is the convenience of being able to shop easily online while avoiding physical contact, especially given the current calls to stay home.
The trend toward online shopping is likely to continue accelerating. While many companies are expected to strengthen their online sales efforts, it is also true that many of them naively assume that simply launching a website will be enough to get by.
If people don’t know you exist, it’s as if you don’t exist at all
Simply launching a website is like opening a store on a deserted island.
It’s only when customers visit that a website truly comes into its own. If no one knows about it, it might as well not exist. That’s what a website is all about.
Therefore, advertising is necessary to attract customers. As a low-cost method for raising brand awareness, press releases that generate media coverage are definitely worth trying.
However, these methods are merely offshoots.
The core strategy is to acquire new customers through advertising, then turn them into fans—and ultimately loyal customers—through ongoing customer engagement.
These existing customers, bound by a strong bond, are our valued repeat customers who account for 80% of our sales.
Advertising is an investment, but it is also a scientific discipline based on statistics. It is very different from taking a gamble by betting everything on a single outcome. By carefully crafting the three key elements of advertising, you can systematically increase your customer base.
Revenue is calculated by multiplying the number of customers by the average transaction value on that website. Profit is calculated by subtracting the cost of goods sold from revenue.
Since online retailers generally don’t have physical stores, they must allocate funds for advertising to stay top-of-mind with customers.
To do this, we must take into account the cost ratio specific to online retail, rather than the standard wholesale markup rate.
Even if the cost ratio seems quite low at first glance, if you get this ratio wrong from the start, no amount of effort will ever generate a profit.
Finally, the strategies and methods used in advertising to promote product appeal and brand awareness are constantly evolving to keep pace with the times.
However, the fundamentals remain unchanged. It is crucial to constantly reflect on and strive to find ways to deliver truly high-quality products, created with the utmost sincerity, to those who need them through online retail—following the lead of successful companies and best practices.
(Terashima, Creative Director, Planning Department)