How to market digital vs. physical products

Photo credit: Styled Stock Society

If you’ve entered the e-commerce space, you’ve likely experienced a shift in how consumers make buying decisions and the type of information potential buyers want. And, if you’re selling both physical and digital products, there is no one-size-fits-all marketing strategy for every product you have. 

Understanding the commonalities and differences between physical and digital products is critical to developing your marketing strategy. Once you can establish a plan for each product type, converting visitors to customers becomes more manageable. 

Common tactics for both digital and physical products

Social proof

Regardless of the product type, giving social proof is an essential part of your marketing strategy. As consumers, we are much more likely to trust the word of a verified buyer versus the company’s marketing language.

And, it doesn’t have to be someone we know. Using a social proof service like ProveSource can help boost your conversion rates and is easily integrated into almost any website platform. If you cannot use a similar digital tool, adding testimonials to your site will also help potential buyers.

Testimonials should be short, include at least the first name, and be relevant to the product use. For example, when selling my Executive Director Board Report template, I use testimonials from nonprofit directors who purchased it and used it for at least one board meeting. Their feedback helps others in similar situations understand how it works. 

Customer service

Whether you’re selling physical or digital products online, your audience expects a smooth, personalized shopping experience. Customer service begins the minute someone lands on your website and ends when the customer is satisfied. 

For example, if I’m shopping for a physical product online and have a question, your automated chat assistant might be the key to getting my questions answered and placing my order. Or, an identifiable contact email address in your website footer may be enough to help me contact you before I order. 

For more complex and specialty items like the Self Colour Key Clamp offered by Pipe Dream Fittings or other industrial products, this level of customer service is key to attracting new customers in an online environment. 

For digital products, a comprehensive FAQ section is perfect for covering the most frequently asked questions and address any potential buyer questions before the sale. 

Once someone purchases the product, automated email confirmations and shipping information are crucial in increasing buyer satisfaction. 

How buyer expectations differ in digital and physical products

With a physical product, a buyer typically understands what they are purchasing, how they will use it, and how it will work. They may have even used the product before or have seen a similar item. 

With digital products, the experience is a bit more unconventional. There may be anxiety around the format of the product, for example. Will I receive a digital file I can open? How will I access my digital product? What if the product doesn’t meet my expectations? 

When selling digital products, the more information you can give a potential customer upfront, the higher the conversion rates. For example, if you’re selling templates like those offered in the Nonprofit Template Shop, clearly identifying the use of the template is essential. 

It’s also helpful to explain how the buying process works. For example, “when completing your order, you’ll receive an email with a link to log into your account and access your files.” Last but not least, consider if or how you’ll offer refunds. With a physical item, this process is typically easy to navigate with a return shipping label. With a digital product, basing refund policies on the nature and price of the item is a common practice. 

For lower-priced items or files that buyers can use immediately, refunds are not always necessary. However, for higher-priced items like courses and bundles, offering conditional refunds may be an excellent way to ease buyer anxiety.

There are no rules when it comes to selling physical or digital items online. However, using customer and user feedback, excellent business practices, and transparency are wonderful ways to start and build your sales, one product at a time.

Until next time,

Andrea

One Nine Design is a digital marketing company helping small businesses and nonprofits learn how to use their website and email list to grow their reach and make a bigger impact!