WHAT DO WE MEAN BY “DIGITAL COMMERCE”?
Before starting to discuss this topic, a premise is needed: digital commerce is not a synonym and should not be confused with e-commerce. We’ll better explain why later.
We can define digital commerce as the process that gives customers the possibility of making purchases in complete autonomy, with no human intervention. It means that all the tools and technologies used to create and manage the online offering contribute to the broader definition of digital commerce. The combination of these elements gives birth to the customer journey that determines both the purchases’ decisions and the customer experience. Thus, the main aspects of digital commerce include offer’s development, marketing actions, promotional campaigns, communication activities, customer support and data management.
DIGITAL COMMERCE VS E-COMMERCE : WHAT IS THE DIFFERENCE?
Associating digital commerce simply with the online products’ sales means downplaying the many activities that contribute to its formation. The positive outcome of online sales is not only the creation of an online window or the processing of transactions, but also and above all the result of actions and strategies that contribute to the brand’s success. Therefore, e-commerce is just a part of digital commerce. A part which can be applied on multiple platforms (not necessarily websites): applications, augmented reality, virtual reality, social media.
The main e-commerce goal is to sell. The success of a company is then measured on the basis of its revenues.
However, in digital commerce the value lies in engaging the customer into the purchase process. In this case, the success of a firm is closely connected to the life cycle of its customers. So the main goal becomes the optimization of the user experience in every touchpoint.
SOME INTERESTING TRENDS
86% of business leaders say that digital commerce will be the guideline to allow new companies to enter the market in the next two years. – Gartner, The state of digital commerce
Therefore, it is necessary to keep up with the new tools and technologies that allow companies to embark on a new path. Companies have to not only put their focus on e-commerce strategies, but also invest on all the parts that make up the broader concept of digital commerce:
Collecting customers’ data is a key activity that allows you to study customer behaviour and gather information. The goal is to identify weaknesses that prevent customers from completing the purchase process. Analysis, therefore, helps companies to be more efficient in implementing targeted marketing and communication strategies.
It results from the merger of e-commerce and social media. We are talking about the possibility of selling your offer on Facebook, Instagram, Whatsapp. The entire customer experience moves from the website to the brand’s social profiles. This not only results in greater availability and speed in purchases, but also in a more in-depth knowledge of the offer thanks to feedback and comments.
Between 2012 and 2020,subscription-based digital trade grew by over 100%. It is an increasingly frequent and popular option in a wide range of sectors: food and drinks, health and wellness, telco and utilities. Just think about Netflix and Spotify, whose success comes from a monthly subscription based offer, that allows users to enjoy a product with greater flexibility.
Augmented reality is a technology that overlaps digital images to the real world and stimulates people’ senses. Many companies are applying this technology to expand their offer and promote a new customer experience. Their aim is to establish an emotional connection that leads customers to buy specific products.
WHY YOU NEED DIGITAL COMMERCE FOR YOUR BUSINESS
The world of online shopping is increasingly dynamic and evolves at a very fast pace. We know how tough it could be to keep up in this context and it is perfectly normal to feel a little bit lost when choosing among alternative roads to take. Then, let’s make digital commerce clearer. We’ll try to understand together why this is the right time to take this path.
Customers’ purchasing habits are evolving, in line with changes in technology. Digital commerce is necessary because companies need to stand out in the market and offer customers exactly what they are looking for: a simple and complete shopping experience on digital channels.
In addition, users are now used to search for information obtaining satisfactory results in a short time. With digital commerce companies are more visible to potential customers, on social media, on websites, on applications.
We must not forget, then, that the most important information searched by almost 70% of online customers is the so-called “social proof“. Users who are about to buy a product want to be sure of their choice and they increasingly rely on other customers’ reviews. Thanks to digital commerce, it is possible to gain authenticity, providing users with relevant contents and encouraging contact between customers.
WHAT OTHER BENEFITS CAN YOU GET ?
In addition to the ones listed above, there are at least three other reasons why digital commerce is exactly the solution that many companies are looking for to revolutionize their business. Let’s discover these benefits together:
Despite the great need to adapt businesses to digital commerce, we know that companies could link some limitations to this approach. With digital commerce, for example, firms can lose human contact with customers. However, this should not frighten them. Leaders simply need a strategic approach. Before taking any business decision, they must listen to their community’s preferences and constantly monitor the new applied solutions, making changes and adaptations where needed.
