The rate of change in e-commerce has always been fast. Yes, Covid-19 put everything into overdrive, but many external factors were already in play before then.
While some online businesses are tackling the changes head on, ready and willing to adapt and stay agile in their approach, others are simply getting left behind. For these laggard retailers, the message is clear: customers are no longer in your stores, but instead your store is their world, regardless of channel.
But even if that channel is online, ongoing growth in this area doesn’t necessarily translate to a rise in conversions. It’s evident these businesses need to adapt — and fast.
Before answering that, let’s first take a look at how we got here by identifying five big changes brands and retailers face today:
1. The Fun Is Moving Online
While more and more shoppers are heading online, typically it has been in-store where brands and retailers could have fun with customers and provide the “surprise and delight” moments where they could set themselves apart from competitors.
Online experiences have historically remained quite functional. Focus has justifiably been on a smooth customer journey right through to checkout. But this hasn’t left any room to add value to customers in a fun or exciting way. Standing out has been hard.
Given the decrease of in-store visits, the onus is now on brands and retailers to move those experiences online, giving customers something they wouldn’t necessarily expect and to keep the businesses top of mind.
2. Social Media Has Moved Us Away From the Home Page
Social media has been a game-changer when it comes to how people are buying online. Whether within the platform itself — like Instagram — or directing people to other channels, customers are interacting with brands at all different points along the “typical” funnel.
Whereas brands and retailers would often spend their time and efforts on their homepages — because that was frequently the point of entry for shoppers — now customers are coming direct to product detail and landing pages. This means that brands must redefine their customer experiences, pivot their efforts, and direct resources to deliver more content to suit different situations.
3. Internet of Things Devices Are Here To Stay
Nowadays, nearly everything is an IoT device. We have wearables with health and fitness applications, fridges that can order groceries, and even grills where users can control their barbecues via Wi-Fi.
This connected world and the proliferation of IoT devices is opening a stream of possibilities for customers to connect and purchase from brands and retailers. But with all these touchpoints comes increasing pressure on businesses, both technologically and in how they present themselves to customers across so many different channels.
4. The Explosion of Choice Is Real
Shoppers can literally buy from anywhere. With international shipping now making overseas retailers more accessible more than ever, and large-scale marketplaces (cue Amazon) saturating the market, brands and retailers are clawing for attention, looking for ways to stand out in any way possible.
Consumers have more choices, which means winning their attention, their business, and their loyalty is an ongoing challenge. The digital experience they receive is a key differentiator.
5. Everything Starts With a Smartphone
The rise in mobile has been well documented, with customers indisputably now browsing mobile first. In the U.S. alone, mobile sales hit $359 billion in 2021, according to one eMarketer study, a 15% increase from 2020. And that figure is expected to more than double by 2025.
One thing to note, however, is that customers aren’t always converting on mobile. Often, they’re using multiple devices to research and interact with a brand before purchase. With customers expecting consistency across all those touchpoints and the risk of them dropping off if those needs aren’t met, this is placing added pressure on sellers.
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