11 October 2023
How to approach the digital strategy of your e-commerce
As in most technological projects, this process consists of two phases. First, there is the development of the project itself, which is divided into conceptualization and implementation. Then there is the implementation of the platform and its impact on the organization. In this article, the main suggestions for the first phase are presented.
The project conceptualization of the digital strategy
The beginning of a project begins with the idea, that is, the conceptualization. Although in times of crisis companies feel the urgency to start selling, this does not eliminate the need to establish a long-term digital strategy. In other words, the company must first decide what approach it will take to the project, regardless of the external agents that push it to make the change.
These are some issues that need to be resolved at the starting point:
- Are you looking for a long-term omnichannel model by which e-commerce is integrated with the rest of the channels, for aspects such as cross-selling, promotions or loyalty, among others?
- What is the value proposition that will be presented to the end customer? Will this end customer be able to start an online process and finish it in the traditional channel, or vice versa?
- How does it affect the sales force in a B2B scenario?
- How does it affect my points of sale and in-store staff in a B2C scenario?
The long-term strategy will guide short-term planning in two key areas: the choice of technological tools and solutions, and the organizational implications. However, before exploring options, it is important to understand where the technical effort is focused on a digitization project. Simply put, this effort is divided into four parts. They are these:
- Creation of the front-end. That is, the web pages adaptable to different devices that reflect the identity of the brand and the product, and accompany the customer's journey.
- Digital catalog. This involves defining products, variants, the data model, attributes and images, as well as managing the stock and prices.
- Processes of electronic commerce. We talk about aspects such as promotions to be applied or suggestions based on customer activity, integrations with payment methods and the handling of orders and their different statuses.
- Connections are internal systems of the company. This link allows the flow of diverse information, such as the updating of product data, prices, stock, changes in customer data, orders or logistical follow-up, among others.
If the company is committed to digitization, despite seeking short-term objectives, the solutions chosen should not limit subsequent growth. In this approach, it is essential to carefully choose the tools that best adapt to the current and future technological context of the company. Each company is unique in this sense, due to its technological situation and its internal teams and capabilities.
There are no universal solutions for a digital strategy
Therefore, you have to invest time in choosing well. Although it may seem contradictory, spending at least two weeks considering different options can save time and costs in the future. It is the way to avoid decisions that are not beneficial to the company. To break the digital divide, it is necessary to have the solutions that best suit our needs.
On the other hand, the strategy could focus only on the short term. This means that the intention is to establish a new online sales channel, either for short-term objectives or to control investment costs while learning in the process. It is assumed that there will be a second phase after testing the operation and better understanding the implications for the company. In these cases, it is important to consider the opposite in technological terms.
Solutions that integrate with current systems, that maintain multi-channel processes or that lay the foundations for long-term evolution are not prioritized. Rather, low-cost and fast-implementing solutions are sought. This will significantly reduce the effort needed to develop the e-commerce solution by approximately 50 or 75%, since integrations are eliminated and data models are reused in the catalog and web design templates.
In this situation, there are two recommended alternatives:
- Stand-alone tools. Stand-alone tools are e-commerce solutions configured in advance for the sector or industry of the company. These solutions do not integrate with corporate systems due to cost prioritization, although they involve more manual work. However, they are suitable for companies with a not very extensive online catalog or with little price variability or constant stock. It is important to consider that the volume of orders could determine a future second phase with more integrated tools. In the initial phase, the number of orders will be low and can be processed by files by the logistics team.
- Outsourcing. This is a similar approach to the previous one. Here, you can use platforms offered by integrators or digital agencies, or use third-party platforms such as marketplaces to learn about the channel. In general, the less ownership you have on the platform, the lower the cost, but it will also take longer until the online channel is significant in terms of results. The less ownership you have on the e-commerce platform, the more difficult it will be to carry out effective marketing strategies that generate fast conversions in the channel.
The development of the project arrives
Regardless of the digital strategy, platform or organizational model, it is a good practice to use a minimum viable product (MVP). This refers to the launch of those functionalities and processes that are essential to be able to start the sale to the customer, without going any further. This is common in lean approaches (minimum cost maximum value) of business management and in the innovation of fail fast (if we are wrong that it is fast and cheap).
Even in long-term projects, it is useful to launch the product early, usually three to six months from the start. Some companies doubt this because they want the most complete solution for customers, but this often delays the real valuation of customers or employees. Solutions that wait for a long time rarely meet customer expectations due to the constant evolution of expectations on e-commerce platforms.
When it comes to the development of the project, planning a year in advance can be problematic, since the needs and technologies change. Implementing features that are then useless and having to add new unplanned integrations can be expensive. Therefore, it is better to adopt an MVP strategy and use agile development methodologies.
The approach of the agile development methodology
To implement an MVP strategy, it is essential to follow an agile development methodology. Under this approach, the project begins with a list of features that must be included in the platform. The company then prioritizes these characteristics and divides the project into complete deliveries, which are parts of the platform developed and tested for acceptance by users. These deliveries are made at fixed intervals, which usually last from two to four weeks and are established from the beginning.
Thus, before reaching the milestone of the MVP, there would have been three to six previous deliveries (called sprints) corresponding to the four development blocks mentioned: frontend, catalog, processes and integrations. This methodology follows the same underlying principle of the MVP, since it allows you to adjust the final solution while testing, in this case internally in each delivery (sprint). At the same time, it facilitates the understanding of the processes, the implications for internal teams and provides training in the early stages of the project.
SEIDOR, a reliable partner for your business
It is important to point out that technology influences the choice of the technology partner and the implementer. The decision on the strategy and the final solution to be adopted determines whether an implementer with internal, sectoral or technological knowledge is chosen for integrations with corporate systems and future updates; or whether the possibility of outsourcing the operation, management and communication processes is more valued.
At SEIDOR we have a team that covers different situations mentioned in this article and have experience in various sectors at the national and international level. We have the capacity both to quickly implement structural solutions and to adopt more independent tools.
In addition, we offer operation services for your own tools, marketplaces and all the consequent digital strategy. This applies both to long-term operations and to more specific approaches. We work with your organization until it develops its own skills and resources to carry out operations internally. Contact us now and let us advise you!
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