Search portals such as Google are useful, but not for building regular customers. This is one of the bitter revelations of many online retailers who at first relied on Google for (new) customer acquisition and then discovered that almost none of the random customers coming from search stayed long enough to become regulars (case from Tom Tailor, German post).
In the US, CSN Stores has proved that you can indeed go far with SEO/SEM, where they have relied on the concept to build $380 million of revenue with hundreds of no-name sites. With their strategy, CSN Stores reached 51st place amongst the strongest e-commerce players in the US.
All the more notable that even an established online player such as CSN has re-thought their strategy and will be remarketing themselves as Wayfair and will put more focus on branding instead of Google:
"We have been able to grow at a very fast pace because we know what customers want when shopping online for their home," said CSN's Chairman and Co-Founder Steven Conine.
"We knew it was now time to create a name that our customers can remember and to put our full selection together in a single, online destination that offers everything imaginable for nearly any type of home – meeting all style preferences and budgets."
"CSN Stores will focus its brand family on three distinct brands: Wayfair.com, AllModern.com and JossandMain.com. AllModern (www.allmodern.com) is an established brand catering to consumers who enjoy the upper-end modern design aesthetic. Joss & Main (www.jossandmain.com) is CSN's new flash sale site offering high-end items for the home at up to 70 percent off."
No surprise that CSN will be treating themselves to a members-only shopping club, which is one of the only vehicles in recent times which can be a real booster for building up regular customers.
CSN Stores, which recently completed its first financing round at $165 million, addresses three main themes which are also the focus of the upcoming K5 Conference in Munich:
- Which strategies are the strongest e-commerce players using to squeeze out additional growth?
- The new brand-awareness in e-commerce, or: How to convert new customers to loyal regulars?
- What relevance do members-only shopping clubs have for the future of e-commerce?
In principle, companies such as Zalando have shown the difference that a recognizable brand can make to public awareness. And Zalando Lounge is also an effort to follow Amazon (with BuyVIP/MyHabit), eBay (with Brand4Friends) and other established players who are jumping to the members-only sales model for customer retention.
Notable is also the new openness with which Wayfair/CSN Stores is dealing with their growth numbers.
Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.
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