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E-Commerce - small and medium-sized enterprises 

'Ohr am Markt' – E-Commerce – Small and Medium-sized Enterprises

The medium-sized sector is the engine of the German economy. Small and medium-sized trading companies (SMEs) with up to 250 employees and/or 50 million euros in revenue generate around a third of the turnover and employ well over half of the social security-insured employees in Germany.*

In an increasingly complex world (e.g., digitalization), competition is even stronger, as these players need to compete with overpowering “global players” in a competitive market environment.

Especially during and after the COVID-19 pandemic, these companies with long traditions in city centers have faced challenges and had to adapt quickly to the changed circumstances. A clear focus had to be on online commerce, which until then had mostly led to a shadowy existence for these business models. Some managed this transformation with more success, some with less, but most with great efforts and high investments in systems, processes, marketing, and personnel. 

Now that the effects of the COVID-19 pandemic on e-commerce are diminishing, many SMEs are faced with the challenge that the structures built during the pandemic to sustain and grow their businesses, as e-commerce was more or less the only sales channel, represent a significant burden on the income statement. In addition, the return of customers to city centers and shopping malls, as well as the changed expectations of customers regarding a seamless “omnichannel” consumer experience, require a new, cross-channel, and customer-centric view. This has often been neglected in the rush to adapt to the COVID-19 pandemic, with a sole focus on e-commerce. 

So, how can SMEs compete against the giants? What “tools” do they need to continue to be successful in the arena of online generalists and pure players? Perhaps they can even take advantage of their traffic? How can they sustainably keep or maintain their e-commerce/online business profitable in a market situation where prices for online marketing, systems, processes, and logistic services are constantly rising? What role can and should long-term and loyal customers play in online CRM? How can they be rewarded for their loyalty? Or: What services, tailored to a company, are suitable for binding inclined clientele and their families to a company in the long term? How must SMEs develop their organization and technology to remain future-proof? 

At Ohr Consulting, we provide answers to all these questions based on many years of practical experience. From our perspective, the following five core topics are essential for SMEs in the current market situation: 

   

  • #1 Digital Strategy: Clarifying the question of the current and/or future role of online business considering the economic status quo and the current market situation, and deriving strategic options from it 

   

  • #2 E-commerce Audit: A real-life-oriented 360-degree analysis of the e-commerce or (potential) marketplace business and a candid assessment of the status quo

   

  • #3 Omnichannel: Precisely defining the core levers and opportunities regarding customer-oriented and meaningful channel connections for the business model in terms of e-commerce focus and attention to profitability 
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  • #4 CRM Quick-Check: How do we sustainably make expensively acquired customers more loyal in a digital world. For which customers is expensive performance marketing worthwhile, how do we connect online and offline CRM, and how do we encourage “non-hardcore customers” to interact in a revenue-increasing way via newsletters 

   

  • #5 Digital Readiness Analysis: A complete analysis of all elements of the value chain, including business model, leadership, and change management  

   

If you are interested in an informal exchange on these topics, we would appreciate hearing from you (Tilman.Galler@ohr-consulting.com).