Shopify is currently home to more than 6.5 million active stores. But unfortunately, 70% of e-commerce businesses fail within their first year. The reasons vary — product-market fit, capital, timing, experience. There is no single thing that determines whether a Shopify brand survives or doesn't. But from our own client work, we know this: having a clearly defined brand positioning strategy increases the chances of making it through the early stage — and once a brand has traction and is ready to scale, it's often the difference between growth that compounds and growth that stalls.
The McKinsey study found that brands with strong reputations generate 31% more return to shareholders than the market average. According to another study
executed by Forrester, the companies that aligned brand experience with customer experience achieve up to 3.5x higher revenue growth and earn higher customer retention and loyalty.
What follows is what we've learned from that work, and what the numbers say.