The Covid-19 drove attention to digital commerce, involving B2B and B2C buyers who have shown new demands and buying behaviors. Therefore, companies must adapt to new digital trends as this will determine their success in the target market, as well as the possibility of standing out from competitors.
WHAT IS DIGITAL COMMERCE?
When we say digital commerce we mean the selling of goods and services using digital channels such as social media, apps and commercial infrastructure without forgetting the importance of physical stores. So digital commerce actually creates a connection between all the sales channels used by a company.
The organizations that decide to invest in digital commerce must take into account all the elements that affect the purchasing decisions and the journey that customers make. So, digital commerce includes several activities such as:
- Communication of products
- Promotional campaigns
- Monitoring and analysis of the activities carried out
- Mapping of the route taken by customers
- Customer Support
- Product catalog management
- Processing of orders
WHY IS DIGITAL COMMERCE SO IMPORTANT?
According to the State Of Commerce Experience Report, in 2020 83% of companies reported revenue growth through digital channels. Before the pandemic, the growth level was only 9%. The same study showed that 65% of customers look for a product online before going to the physical store.
Automation is the main feature of digital commerce, supported by good data management. Why? The answer is simple. Digital commerce is omnichannel, so consumers can shop wherever they are. This constant presence is only possible if there are roadmaps for every possible scenario, supported by automation tools that control all stages of the purchase process: from product catalog to customer satisfaction.
6 DIGITAL COMMERCE TRENDS
Today, people are not just looking for products or services to buy, but they want companies to understand them and anticipate their needs with a personalized offer. Obviously, with the pandemic, expectations of digital experiences have increased and this has led companies to focus on new strategies and tools to put the customer at the center of the purchase process. In this article we will go deeper into the main trends of digital commerce, understanding how they allow to improve the customer experience while speeding up sales.
HEADLESS (API-BASED) COMMERCE
Headless commerce arises from the need to create an online shopping experience consistent with companies’ marketing strategies. The goal is to ensure the correct display of content across multiple digital channels. Specifically, headless commerce separates the user interface (where the consumer lives their online shopping experience) from the commercial component of the back office. This is all possible thanks to the APIs or Apps’ programming interfaces. With this solution, front-end developers can determine the best way to present the offer to customers and allow back-end developers to work on delivering content through digital channels.
CUSTOMER ANALYTICS
Companies generate and obtain huge amounts of data from online interactions. How can they use and benefit from this data? They have the opportunity of improving their strategies by analyzing customer data. This information helps retailers understand consumer behavior and provide them with what they’re really looking for. Therefore, data becomes a very valuable resource for organizations and experts can use different tools to collect them: surveys, mailing lists, contact forms, social accounts, CRM systems.
ARTIFICIAL INTELLIGENCE
Some research shows that investments in Artificial Intelligence in eCommerce are going to reach $7.3 billion in 2022. Why? Because the majority of companies and customers realized that AI can actually make life easy, optimizing business processes and everyday activities. Sure, it is still not flawless, but it is clearly making its way to conquer all sectors and applications.
The use of AI is increasing in online shopping too, literally transforming the e-commerce industry. How? First of all, it allows companies to predict shopping patterns based on the products that customers buy and when and how they buy them. This helps sellers to personalize their offer and product recommendations, something that really has an impact on sales. It looks like this kind of feature increases the conversion rate by 915% and average order values by 3%.
But there’s more! AI’s predictive analytics means a great deal in the area of inventory management too. Companies can’t always manage to keep everything in stock and have to do an inventory to prioritize the products they need at the right time. How can AI help in this? Predicting and making estimates about future customer demand thanks to machine learning. In this way companies can anticipate quick changes in demand and avoid useless inefficiencies.
IMMERSIVE COMMERCE
What does immersive commerce mean? As the word “immersive” suggests, the name refers to all the activities and tools that a customer can experiment and use to be more engaged while shopping. Immersive or Visual commerce emphasizes the use of Augmented Reality (AR) and Virtual Reality (VR) in digital commerce, letting the customer feel as a real part of the purchase experience and the brand.
Customers seem to actually like this kind of experience, especially when they are considering high-end purchases and need to look properly at what they are buying. Just think about a sofa or a table: thanks to immersive commerce, customers can see the product’s details up close, they can rotate a 3D image of it and even try to place it in their living room or kitchen to see how it would fit there.
But this kind of trend is not important to implement just for its actual utility. Companies should give it a try because it is really good in attracting new generations and in making businesses stand out in the market.
PERSONALIZATION
It seems obvious to talk about the importance of personalization when it comes to communicating with customers or shaping an offer. But it is something that needs our attention, since most companies still don’t understand how crucial it is to listen to their clients’ needs and preferences. Almost 74% of online customers feel frustrated when navigating into websites that display ads and promotions they are absolutely not interested in.
But when it comes to digital commerce, what does personalization exactly mean? It relates to all those activities that a business does to display dynamic and tailored content on websites and google pages. These content are based on customer data such as demographics, intent, preferences, browsing history and previous purchases. But why is it so important? Because ensures that what you are offering to different customers is relevant for them: 80% of customers say that they would prefer purchasing from a brand that provides personalized experiences. So, they would probably choose you over your competitors if you are able to offer them exactly what they expect and search for.
CONVERSATIONAL COMMERCE
Conversational commerce harnesses the power of one-to-one conversations to increase sales and make brand-customer communication more easy and direct. Customers nowadays ask for brands that are able to offer personalized shopping experiences and want companies to be always available for continuous assistance and communication. With conversational commerce they can actually buy and ask for help through interactive interfaces such as live chat, voice assistants, or messaging apps in real time. Instead of searching around for information, they can simply open a messaging app and ask for the product they want or even place their order.
Conversational commerce then becomes a way of interacting with customers that companies can incorporate into any digital channel. We are not just talking about chatbots or SMS, but also and above all about platforms such as Instagram, Messenger, Telegram and Whatsapp. Here brands can use different human operators to communicate with customers, both for in-bound and out-bound marketing activities.
Moreover, it is important to understand that conversational commerce can help customers through their entire journey and not just when they are searching for a product. Brands can use it for marketing communication, to send personalized offers or as a direct channel for post-sales assistance.
Digital commerce surely represents a vast world full of different tools and strategies to make the digital experience really unique and complete. As we talked about the top 6 trends in digital commerce, we can’t fail to mention the latest innovative paradigm in this digital field which is Unified Commerce. Why? Because it is the one trend that allows companies to manage all the other tools, channels and touchpoints to offer customers a unified brand experience.
