The advert is launched, the money is debited, but the result is zero. No calls, no orders, no sales. Why is that? In fact, many companies do not have a clear understanding of their audience. Social networks are conducted chaotically, and they remember about analytics only when they are looking for faults. Behind a beautiful and functional website or colourful advertising often hides chaos.
In dropshipping such mistakes are especially painful. Small businesses waste money trying to attract everyone, and large and medium-sized online shops lose profits due to ineffective strategies and unsystematic promotion. Let's find out what mistakes can kill your dropshipping business and what you can do to avoid them.
See another dropshipper advertising a popular product and decide to do the same? It may not work. Perhaps you have a different market, different terms of co-operation with your supplier or you can't afford a large-scale advertising campaign.
Betonlogos s.r.o. experts warned: the methods that worked for your competitor may not work for you. For example, contextual advertising can be effective for a small online electronics shop - customers are looking for equipment by characteristics and are ready to buy immediately. But for promotion in the fashion clothing niche, trends and visual appeal are important. Therefore, it is more effective to use social networks that can create an emotional response and audience engagement.
What to do. Take ideas, but adapt them to your audience and your capabilities. Try them on small budgets, check what works for you. Conduct audience research: age, interests, needs. Use segmentation and personalised offers.
‘Blind’ copying of other people's strategies
Poor Customer Knowledge
Who are your customers? What are their needs, problems and values? Guessing the answers is no way to build a successful marketing strategy.
In 2017, Pepsi, hoping to get in on the trend of youth activism, ran a protest-style advert with Kendall Jenner. The commercial was so divorced from reality that it sparked a storm of protest and criticism, and the company had to remove it, losing millions of dollars. The mistake? Poor audience knowledge.
What to do. Conduct surveys, study feedback. What does your customer care about? How does he make decisions? What are his habits? Where do they spend their time online? Without answers to these questions, advertising will work in vain.
One of the biggest mistakes that beginner dropshippers make is wanting to sell everything to everyone. Very often, all you need to do is narrow your focus. For example, Betonlogos suggested to its partner to refocus the site on the teenage audience, and sales increased by 3%.
What to do. Narrow segment marketing triggers virality and saves on engagement - increasing loyalty and retention. Identify who your customer is. Find out what his problems, interests and desires are. Speak to him in his language.
Lack of a clear target audience
You can't improve what you don't measure. Thinking that ‘advertising doesn't work’ without analysing results and numbers is a mistake. For example, one online retailer switched off adverts because they ‘didn't see the effect’. It later discovered that 70% of sales came specifically from customers who initially interacted with the adverts but bought a few days later. The lack of analytics led to a dramatic drop in revenue.
What to do. Use analytics tools (Google Analytics, Pixel Facebook), monitor key metrics: cost per lead, conversion, ROI. Control advertising costs and test hypotheses.
Working without analysing data