The eCommerce industry is booming. Estimatedly, there are roughly 12 million to 24 million eCommerce websites globally. With a number that huge, you certainly cannot expect them all to have the same selling products or customer base. This is where buyer persona come into play. Gaining awareness about your potential customers is a necessity for eCommerce businesses to actually generate revenue.
It is widely said that knowledge is power, and this becomes especially true for eCommerce businesses to flourish. When you know who your customers are, you can cater to them better, making it easier for any business to allocate their resources more effectively.
Let us begin by understanding this term in detail.
What Is a Buyer Persona?
A buyer persona is a digital representation of your ideal customer derived from real data, insights, and research based on your existing customers.
With a well-crafted buyers persona, an e-commerce business can build knowledge about their targeted customers. This includes knowing well in detail about your potential target customers’ geolocation, behaviors, profession, and even personal details like age, gender, and interests.
Buyers persona can help brands identify the most specific lot of audience for your brand based on real data. This is a great way to not only boost sales and revenue but also build a brand that can cater to customers efficiently.
However, it is important to understand that there are so many more benefits of buyer personas for e-commerce. Let’s understand some of them:
Why Are Buyer Personas Important for eCommerce?
Knowing your audience has become a non-negotiable in the current times. It allows you to move forward with precision rather than casting a wide net. Moreover, by focusing on your specific target demographic rather than experimenting with your audience, you can conserve valuable resources and enhance your return on investment greatly.
This focused approach also enables you to extract maximum value from the resources at your disposal.
1. Result-Oriented Campaigns
Buyer Personas can be highly advantageous for eCommerce businesses in order to host targeted marketing campaigns. Businesses can get a better understanding of their customers’ likings, dislikes, and interests and assess their behaviors.
This information can help businesses create tailored marketing strategies that can contribute towards increasing the probability of conversions.
2. Improve User Experience
Another brilliant use of buyer personas for eCommerce businesses is their ability to personalize the user experience. Brands can study buyer personas to analyze their potential customers’ behavior and website journey.
By knowing this detail, businesses can give personalized recommendations and offers to customers, leading to improved sales and conversion rates.
3. Enhance Your Product
Many at times buyer personas can be highly useful in helping eCommerce improve product development. By understanding your potential customers’ needs, businesses can improve their offerings.
This can include factors like stock inventory, and packaging. This development can positively affect the customer experience, increasing the chances of sales.
4. Inventory Management
Large-scale eCommerce businesses seldom struggle with pain points like inventory management and stock assessment. With the help of buyer personas, businesses can figure out which products are the best-selling items and can focus on stocking them instead of the products that are less likely to get sold.
This practice can save a lot of time and efforts for businesses, making inventory management more achievable.
5. Pricing Strategies
Buyer personas can also help ecommerce businesses to understand the price sensitivity and expectations of your customers. By understanding what your customers are willing to pay for your products, businesses can come up with pricing strategies that are more suitable for your potential customers.
How to Create Effective Buyer Personas
Now that you know the benefits and significance of having well-curated buyer personas for your e-commerce business, it is important to know how to create effective buyer personas for your brand.
Here are a few specifics through which brands can build their buyers persona:
1. Key Demographics
There are various key demographics that can help eCommerce businesses to create a buyer persona. Some of these factors include permanent elements such as age, gender or nationality. Other elements include factors like geolocation, income level, and profession. All these factors contribute greatly to creating an effective buyers persona.
2. Habits & Interests
Other than key demographics, there are various other factors like hobbies and interests that play a vital role in creating a buyers persona. This can include knowing if the user has specific interests such as fitness, cooking, or painting that can turn the user into your targeted or potential customer. Other factors might include values and beliefs such as if the user follows a vegan diet or has a specific lifestyle that might fit in with your selling products.
3. Spending & Search History
Another important factor while creating a buyer persona is considering your customers’ past expenditures and surf history. This helps in understanding whether or not your customer would fit in with your range of products.
All these and various other factors contribute to creating a buyer persona that would perfectly describe your ideal customer.
How to Measure the Impact of Buyer Persona?
Measuring the impact of your eCommerce’s buyer persona involves knowing how well your marketing and business strategies are performing among your potential customers.
Not just that, this process is an essential part of knowing whether or not your business is moving towards becoming a profit-generating entity.
Here are some key steps to measure the impact of buyer personas:
1. Measure Your Growth
The most ideal way to measure the impact of your buyer persona is to measure your business growth. Find out areas where your business performed well and if there are any specific areas in your buyers persona where customers responded positively. This can be location-specific or even other minor areas like age and profession.
2. Perform A Competitor Analysis
Another great way to find out if your buyer persona is creating a difference is by constantly performing a competitor analysis. By keeping your competitors and your own business side by side and evaluating things like customer acquisition and engagement, you can determine if your growth is upto industry standards.
3. Evaluate Lead Generation
Evaluating the results generated from each of your buyer personas is another excellent strategy to measure the impact of your buyer persona. You can evaluate the quantity and quality of leads being generated from your buyer persona and analyze the results.
4. Measure Your ROI
Measure the return on investment for each buyer persona specifically to understand if your buyer persona is performing well. This can be done by assessing the costs associated with marketing to each persona and the revenue generated in return. Determine which personas provide the highest ROI.
By curating buyers’ persona for your e-commerce business, brand scan not only develop a strong understanding of their customers but also get informed about how to bridge the gap between customer expectations and business offerings.
This strategy is a foundation for effective product marketing and can help businesses save at least 3X the efforts and resources to finally reach their anticipated goals.