In the ever-evolving world of ecommerce, one that is now more design-led than developer-controlled, knowing what kind of ecommerce brand you are running will give you an edge. Shiny object syndrome is rife and many founders collect apps like they are Pokemon in the vain hope they will make a difference.
Identify Your Archetype
Ask yourself these key questions to find your ecommerce brand type:
- How often do customers buy from you? (Frequently or one-off purchases?)
- What is your average order value and product margin?
- How much storytelling and trust-building does your product require?
- What channels do you sell through? (Direct-to-consumer, wholesale, marketplace, subscriptions)
- How important is customer lifetime value compared to acquisition cost?
- How long and complex is the purchase journey?
Based on your answers, your brand fits naturally into one of these groups:
- The Daily Ritual Brand: Frequent purchases, a sense of loyalty and retention, repeat order and subscription-driven.
- The High-End Craftsperson: High-value, integrity, expensive materials and products, low-frequency, luxury with deep storytelling.
- The Trend Driven Retailer: Volume-centric, trend-led, focused on urgency, fast shipping and ‘newness’.
- The Everyday Essentials Brand: Functional basic products, trusted, with continuous demand.
- The Gift Giving Brand: Seasonal sales peaks, gift giving that is tied to occasions and holidays.
Step 2: Tailor Your Marketing & Homepage for Profit
Once you know your archetype you can tailor your ads, retention and win-back emails, social media strategy and your website content. You can then align with your archetype’s unique purchase frequency, average order value, storytelling needs and customer lifetime value.
For example, Ritual Brands, like skincare brands, must prioritise retention and loyalty programs and subscription offers. High-End Craftsperson brands, like furniture or lighting brands, will need to invest in high-impact storytelling, expect a longer customer journey and offer a more high-end service.
The Key Metrics That Matter
- Purchase frequency and average order value
- Product margins
- Storytelling complexity
- Channel mix
- Customer lifetime value vs acquisition cost
- Purchase journey length and complexity
Remember, ecommerce was once developer-led, focused more on technology than design or knowledge of actual business acumen. Real success comes from understanding your customers’ emotions, reasons for buying and how they perceive your commodity.
Get ready for the series. I will post the next one this time next week...