Sunday, May 25, 2014

4 Trends Driving E-commerce in 2014

The e-commerce context is changing each moment and the Businesses have to anticipate strategies to manage these changes in their favor. In this context, sharing the 5 Ecommerce trends to watch out in 2014

1-    Growth of Mobile as a key Platform

Mobile has a high potential and is expected to be the key channel in times to come as Mobile makes shopping very convenient. With falling internet data prices, Users find it cheap and convenient to access Internet from any location be it Airports, Traffic Signals, Cafes or waiting in the line etc. This ease of Ordering through Mobile has further fuelled Impulse purchases. 

Businesses are investing more resources for optimization of their mobile sites to enable customers to have seamless shopping experience across platforms.

In first half of 2013, United States citizens spent $10 billion in mobile commerce and could exceed $25 billion by the end of the year, according to a recent study by comScore . IN BRIC countries like Brazil, Russia, India and China, mobile is expected to surpass Desktop and Tablet traffic by 2015. The Telecom Regulatory Authority of India (TRAI) in its recent report stated that mobile users were 89 percent of the total Internet subscriber base in Q2 2013.

2-   Personalization for Customer Engagement

Personalizing customer experience is a key customer engagement tool and is expected to drive e-commerce growth in 2014 .With increase trend towards online shopping , Brands are becoming more sophisticated in their ability to collect information about customers and using this data to deliver personalize recommendations , tailored offers and delivering differentiated experiences each time.

Retailers have realized the importance of personalization. According to recent Aberdeen Group research, 41 percent of surveyed retailers stated that personalization leads to higher levels of customer satisfaction, increased average order values and greater customer loyalty. Also, Cross-selling and up-selling tools benefited with 25 percent sales lift by presenting targeted offers based on both related products and similar products purchased from other.

3-   Big Data

The excitement surrounding Big Data has arguably been generated primarily from Web and E-commerce communities. Significant market transformations have been accomplished by leading e-commerce vendors such as Amazon and E-Bay through innovative and highly scalable e-commerce platforms and product recommender systems. Major internet firms such as Google , Amazon and Facebook continue to lead the development of web analytics ,cloud computing and social media platforms.

Tesco, for instance, is a good example of a retailer making the most of big data to innovatively increase sales. It uses weather records and detailed sales data to help predict demand for certain products based on weather forecasts.

4-   Social Networks as a Key Influencer Channel

In analyzing traffic and sales from nearly 800 retailers, IBM found that only 1 percent of visits to ecommerce sites came from social networks. (IBM’s measurements consisted of sales that could be directly attributed to traffic from social media — a “last click” from the social site to an ecommerce site)

An article from Google Think Insights points out that social media does, indeed, play a role, albeit a supplementary one. The article outlines four different segments where marketing channels fit along the customer path to purchase: Awareness, Consideration, Intent, and Decision



These findings are commensurate with a 2011 survey conducted by Practical Ecommerce, which revealed that 77 percent of responding merchants saw less than 5 percent of sales coming from social media.

Social Networks though not a direct Sales channel for Big Retailers, supports E-commerce in Promoting Brand Awareness, helping in overcoming customer reluctance to purchase, improving customer loyalty, providing marketing insights, supporting search engine optimization.

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