Commerce Strategy: E-commerce is dead, e-commerce is forever

In today’s dynamic and uncertain environment, commerce strategies, previously called e-commerce strategies, have become more important than ever. Commerce is a complex journey where moments of truth, or transitions, occur. This reality means that every brand, in every industry, with every business model, must optimize their commerce experience and customer experience to increase conversion rates and revenue. When done correctly, this process also includes important activities that can significantly reduce costs and help your business meet key metrics for success.

The first step is to build a strategy that focuses on commerce as a channelless experience rather than e-commerce, a rigid and outdated concept that does not meet the needs of modern consumers.

“It’s about experiential buying in a seamless omnichannel journey, which is so rich that it’s essentially channelless.” Rich Berkman, Vice President and Senior Partner, IBM iX Digital Commerce

A successful commerce strategy is a holistic effort across the organization that focuses on personalization and fostering customer loyalty even during highly uncertain times.

e-commerce is dead

The concept of an “e-commerce business” is anachronistic, a holdover from the days when we invaded the digital realm that involved replicating product descriptions on web pages and calling them e-commerce stores. In the early days of online shopping, ecommerce brands were categorized as online stores or “multi-channel” businesses that operated both an ecommerce site and brick-and-mortar stores. This era was defined by consumer-to-consumer transactions conducted on large online marketplaces like Amazon, e-commerce platforms like eBay, and social media platforms like Facebook Marketplace.

Initially, e-commerce marketing strategies promoted the novelty of duty-free online-only retail, encouraging consumers to choose online channels for convenience and better pricing options. These marketing campaigns focus on search engine optimization (SEO) and similar search-related tactics to drive interest and sales. Personalization on an e-commerce website may involve a retailer remembering your previous orders or your name.

In this kind of world where ecommerce sales and touchpoints dictate, an effective ecommerce strategy might prioritize launching new products through an initial iteration of social media or retargeting consumers across marketing channels through email marketing campaigns. there is. Later in the journey, tactics such as influencer marketing and social media marketing encouraged channel-specific messaging, still separating retailers’ digital operations from their in-person activities.

But the paradigm has changed. Tired of endless options and haunted by the perception of bad actors, today’s consumers expect more. Modern shoppers expect an integrated, seamless buying journey that includes multiple channels. The idea of ​​individual sales channels has been broken down into a necessity for creating fluid, dynamic experiences that meet customers exactly where they are.

This means that every business, regardless of industry or organizational plan, should prioritize the three pillars of a great commerce experience strategy. Trust, Relevance and Convenience. Experience is the North Star of conversion. By nurturing these key elements, every retailer, from small businesses to multinationals, can improve their experience to remain relevant and competitive.

Building trust in an uncertain world

Research shows that today’s customers are anxious and uncertain. Most consumers believe that the world is changing too quickly. More than half believe business leaders are lying to them. They intentionally try to mislead people by excessively exaggerating or providing information they know. And in 2024, brand awareness means little without trust. The integrity of a company’s reputation is one of the most important criteria when consumers consider where their money goes.

Customer acquisition and retention depend on consistently great experiences that reward consumer trust. To prioritize trust, you need to build relationships through transparent commerce experiences. This means implementing a system that treats prospects like valued partners rather than a series of data points and markets to leverage. The need for trust in relationship-driven commerce strategies is perhaps most evident in terms of how companies handle data obtained from their customer base.

But trust is gained or lost at every interaction in the customer journey.

• Advance Purchase
  • Can customers trust a company to maintain competitive prices and create digital marketing campaigns that are more useful than intrusive?
  • Can customers trust a company that makes it easy for them to control their data?
  • Is the user experience intuitive and cohesive regardless of whether the customer shops at an online retailer or in-store?

• purchase
  • When a new customer views their shopping cart and prepares to complete payment, does your business automatically sign them up for services they don’t want?
  • Does the checkout process make your customers so frustrated that they abandon their shopping carts?

• After purchase
  • If a package is set to be delivered during a certain period of time, can your customers trust it to arrive at that time?
  • Does the brand facilitate post-purchase transactions?

By addressing consumer trust at all levels, organizations can build long-lasting relationships by eliminating fiction and consumer pain points.

Exploring ethical personalization

Personalization in commerce is no longer optional.. Just as search engine optimization is a common practice essential to getting your company’s web pages in front of people online, personalization is essential to meeting consumer expectations. Today’s consumers expect highly personalized service. channelless Experience anticipating their needs.

But those same consumers are also wary of the potential costs of personalization. According to a recent article in Forbes, data security is a “non-negotiable” for baby boomers, with 90% of them citing personal data protection as their first consideration when choosing a brand. For Gen X, data protection is a top priority. 87% say this is the main factor influencing their purchasing behavior. This puts brands in a delicate position.

“You can’t create trustworthy, relevant and convenient experiences that resonate with consumers without understanding the emotions and motivations of the population you serve.” Shantha Farris, Global Digital Commerce Strategy and Offerings Leader, IBM iX

The vast amounts of data that companies collect can be combined with external data sources and used to present truly compelling cross-sell and upsell opportunities to customers. Automation allows companies to quickly create buyer personas and use them to improve customer journeys and create engaging content across channels. however channelless In a world where data should be used to inform more than FAQ pages, content marketing strategies, and email campaigns.

To create accurate, positive experiences, brands must integrate proprietary customer data, such as purchase history and preferences, with third-party sources such as data collected from social media scraping, user-generated content, and demographic market research. By using these sources, companies can gain both real-time insights into the sentiment of their target audience and a broader macro view of their industry as a whole. Using advanced analytics and machine learning algorithms, you can transform these data streams into deep insights that predict the needs of your target customers.

To ensure the success of this approach, it is important to focus on data quality, security, and ethical considerations. Brands must ensure that they are collecting and using data in a way that is transparent, compliant, and respects customer privacy. This helps you create positive, personalized experiences that build trust with your customers and drive long-term growth and loyalty throughout the commerce journey.

Creating a fun and convenient experience

As mentioned earlier, experience is the North Star of transformation, and building convenient experiences with consistent functionality remains a key driver for sustainable growth for companies. In a channelless world, successful brands deliver a holistic customer journey where touchpoints meet customers exactly where they are: on product pages, SMS messages, social platforms like TikTok, and in-store visits.

The future of commerce, powered by automation and AI, will deliver increasingly packaged customer experiences. This could include a series of products, such as personalized subscriptions or travel plans that are purchased together using natural language and taking into account the preferences of specific customers.

“Once you’ve laid the foundation for a trusted, relevant, and convenient experience, building on that foundation with the power of generative AI will help companies deepen customer relationships and ultimately drive more profitable brand growth.” Rich Berkman, Vice President and Senior Partner, IBM iX Digital Commerce

Moments of transition can take many forms. With careful planning, modern retailers have the potential to create powerful shopping experiences that win customer loyalty and build meaningful brand relationships. And new technologies, such as generative AI, offer opportunities for sustainable and strategic growth when used correctly.

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