Today's retail landscape is a far cry from what it was even a decade ago, back when brick-and-mortar stores were dominant. As the world becomes increasingly digital, the strength and prevalence of e-commerce continues to grow. Retailers of all types and sizes are putting their businesses on the web and investing in their online presence. The emergence of additional advanced technologies — and the challenges they bring — will continue to shape the e-commerce world and move it forward. Below are just a few of the trends that I expect will impact e-commerce this year.
The Year of Omnichannel
It's no secret that tablets and smartphones are becoming key shopping tools in today's digital age. This past holiday shopping season, Deloitte reported that 53 percent of the mobile users who researched products via their smartphones or tablets made a purchase. With consumers using multiple platforms in the same purchase cycle, an omnichannel strategy is an imperative for retailers who are looking to increase sales revenue and keep their customers’ loyalty.
Achieving success in today's e-commerce world expands well beyond building an engaging website. Effective online sites also support various mobile platforms and enable easy access from whatever mobile device the customer prefers (e.g., tablet or smartphone). Moreover, effective online retailers must work to tie together those different platforms to ensure that the customer experience is seamless, even if it involves interacting on multiple touchpoints.
As mobile continues to expand, having the ability to provide a synched, seamless customer experience will emerge as a key differentiator for retailers. A study from the Aberdeen Group found that retailers with the strongest omnichannel customer engagement strategies retain an average of 89 percent of their customers, compared to 33 percent for brands that place no emphasis on omnichannel whatsoever. Whether a mom-and-pop shop or a multibillion dollar retail giant, successful online retailers will need to focus on creating quality, unified experiences across all digital channels and touchpoints in the coming year, no matter if the consumer is shopping in New York or San Francisco, from a desktop or a mobile device.
Personalizing the Online Shopping Experience
In today's content-driven economy, personalization is becoming more valued than ever before. The digitally savvy shopper has increased expectations for personalized online content. Shoppers now expect a tailored experience based on previous purchases and established interests and needs. They're not interested in sorting through irrelevant offers; they demand customized content that's been selected and adapted specifically for them.
Technology already exists to help retailers deliver a high-level customized experience for their customers, but in 2014 we will see these tools mature even further, as well as become easier to implement and more cost effective.
Next-Gen Retail Technology
Retail technology has come a long way in recent years. The advent of rich media, responsive design, interactive video merchandising and online lookbooks have revolutionized the way we shop online. The emergence of additional next-generation retail technology in 2014 will only further shape the industry.
One area to watch is t-commerce, an exciting, new retail concept that involves repurposing interactive and digital media for television. T-commerce enables viewers to purchase directly from their smart TVs. Unlike traditional TV advertisements, consumers can purchase products with just a click on a television remote. T-commerce made its mainstream debut during the Super Bowl, when H&M launched a series of ads that included purchasing options for smart TV owners.
While t-commerce is still in its infancy, if H&M finds success with these advertisements, we could see it become a new engagement channel that additional retailers move to embrace. The technology certainly carries the promise of becoming another effective avenue for online shopping, social activity, interactive contests and overall brand engagement. How well it delivers remains to be seen.
As consumers’ shopping expectations grow ever higher, e-commerce will continue to be a key driver for success. While the specifics of the year to come remain unknown, one thing is certain: 2014 is shaping up to be an exciting year for the industry.
Rory Dennis is the GM at Amplience, North America, a rich media marketing and merchandising platform.
Rory Dennis, Co-Founder & GM, North America, Amplience
Rory co-founded Amplience and is GM of Amplience in the United States, developing Amplience's presence in North America. Rory previously worked as Business Development Manager for O2 Telefonica's Interactive Media Team.