The Role of Product Discovery on E-commerce ROI

Product discovery plays a crucial role in improving eCommerce ROI. It is essential for improving customer satisfaction, driving sales, and building customer loyalty in your eCommerce business. By displaying the most relevant products to the customers, product discovery boosts conversions and impacts the overall eCommerce business ROI. In fact, a powerful site search is 1.8x times more effective at increasing conversions.

Product discovery eliminates the friction between product search and its purchase to craft personalized experiences that not only streamline search but also deliver amazing shopping experiences. In this post, we shall learn more about product discovery and the role it plays in boosting your eCommerce ROI.

What Is Product Discovery?

Product discovery in eCommerce refers to the process of helping customers find products that meet their needs and preferences. It involves using various tools and techniques, such as search filters, recommendations, and personalization, to help customers navigate the vast product catalogs of online stores.

To facilitate better product discovery, you ought to understand your customers' purchase intent and present them with products that match their needs. For example, customers who know exactly what they wish to buy, customers who are unsure of what they wish to purchase, and customers who are just browsing around. Product discovery offers customers tailored shopping experiences across all stages of the buyer’s journey thereby increasing the chances of purchases on your eCommerce store.

Product discovery is crucial in eCommerce because it helps businesses identify customer needs and offer exactly the kind of products they are looking for to increase sales and thereby boost eCommerce revenue. Let us now understand how product discovery helps in increasing eCommerce ROI in detail.

How Product Discovery Improves Ecommerce ROI

Product discovery empowers businesses to develop products that meet customer needs and are in demand thus helping businesses grow and expand their eCommerce operations.

1. Better Understanding of Customers

One of the most important ways how product discovery improves eCommerce ROI is by allowing businesses to identify their customers' needs. It gives businesses deep insights into the customer behavior - what they are looking for, their pain points, and more. These insights can then be leveraged to develop or offer products that meet those needs.

It helps in identifying the customers' pain points or their issues with the current products so that you can redesign or redevelop the products after addressing those issues. It gives detailed insights into customers' search history, queries, purchase history, and more thereby aiding the process of new product development or launch. Besides, it captures data about customers' preferences and product expectations ensuring you introduce a product that the customers would willingly pay for.

2. Identification of Product Gaps

Through product discovery, eCommerce businesses can research the market and identify the emerging trends that are dominating the industry. This will open avenues for understanding the gaps in the market as well as your product offerings. For example, launching new products in the market not only engages existing customers but also helps in attracting new ones.

Similarly, businesses can connect with their existing customers and prospects to share surveys and gather genuine feedback about their products. The results of this survey can then be utilized to identify the areas where the products are falling short. Thus, businesses can develop new products that better meet the customers' expectations and requirements

3. Increased Customer Engagement

As product discovery helps businesses understand their customers better, it plays a crucial role in developing customer-centric products. It allows businesses to customize their products according to the customers' pain points thereby providing them with goods that are tailored to their needs. This increases customer satisfaction and loyalty thereby encouraging repeat purchases and boosting sales. Further, these satisfied customers are more likely to recommend your products to their family and friends and promote your products.

4. Increased Revenue

Product discovery helps in increasing your eCommerce revenue by identifying new products for selling and improving the existing offerings. Further, it helps you analyze your competitors and differentiate yourself from them by offering unique products to your customers. Selling innovative products that simplify the lives of customers will certainly attract more shoppers. Businesses can sell these products at a higher price thereby keeping better margins and boosting revenue. According to Forbes, 1 in 5 customers are willing to pay up to 20% more for an exclusive or personalized product.

Creating an Outstanding Product Discovery Experience for Customers

Businesses must ensure that their customers discover the right products at a given time. Create a better product discovery experience for your customers by following the below-mentioned tips.

• Redesign your website to offer enhanced navigation, better filters, and advanced product search. Present your product inventory in the most organized fashion by dividing products into various categories. Leverage Sparq's Product Search and Filters plugin to improve product discoverability on your eCommerce website.
• Add promotional banners about new launches, bestsellers, and more on your homepage to make it more dynamic. This will not only catch the attention of the customers but also increase product discoverability.
• Leverage AI and machine learning technologies to offer personalized product recommendations to customers. This will transform your eCommerce website into a personal concierge for every customer thereby boosting customer satisfaction. According to Invesp, a customer who clicked on recommended products is two times more likely to buy those products. You will be surprised to know 49% of customers revealed that they purchased products they didn't intend to purchase after receiving a personalized recommendation on the website.
• Advertise the discount coupons and offers that are currently active on your website to lure in more customers. Around 91% of customers admitted that they are more likely to purchase from brands that offer them relevant offers.
• Include multiple images and videos of the products to entice customers and convince them into placing their orders. Publish customer reviews and testimonials on your product pages as it serves as the best social proof.
• Add a review widget on the product pages to capture the feedback of the customers. This will further help you gain insights into what the customers think about your products and improvise them accordingly. In fact, 99.9% of customers read product reviews when they shop online.

By implementing these changes on your eCommerce website, you can help your customers to discover and buy the products of their choice and make a sale.

Conclusion

Product discovery can help businesses increase revenue by identifying new revenue streams, improving customer retention, increasing customer lifetime value, and differentiating from competitors. This can lead to increased customer satisfaction and loyalty, resulting in repeat purchases, increased customer lifetime value, and new revenue streams. By continuously iterating and improving their product offerings, businesses can stay competitive in the ever-changing eCommerce landscape and ultimately drive revenue growth.

Follow the tips we mentioned in this post to revamp product discoverability on your eCommerce website and hop on to the paths of long-term success.