September 29th, 2014 by Elma Jane
If your retail business products sells only in-store, then you’re falling behind. Consumers in the digital age expect options when they shop, and if you’re not offering those choices, your customers may pass you by for a more tech-savvy competitor. Consumers go into stores, evaluate products and buy online, or research online and go into the store for purchase. The two worlds have merged, if you’re not covering both spectrums, you’re missing out.
Recent research by UPS showing 40 percent of today’s shoppers use a combination of online and in-store interactions to complete their purchases. The days of physical stores being separated from online shopping are over. They’re no longer channels that are happening on their own. The UPS survey found that a large chunk of online shoppers cross channels during their shopping path. Be present on both channels and take advantage of that.
It’s not always possible or economic for an online-only retailer to open up a physical storefront, but existing brick-and-mortar stores or wholesalers can easily introduce an e-commerce component to their sales to expand their customer reach. Online sales help reach consumers that may not otherwise be able to purchase your products. Even if your company’s main focus is creating a personalized in-store experience, there are still ways to capture the online shopper market. In addition to giving consumers a way to research your products before coming in-store to purchase your offerings, you can offer people a way to conveniently buy items they already know they want.
For all the advantages a multi-channel sales strategy can give a retailer, there are still some challenges to this approach. Managing inventory versus cash flow and ensuring even demand on both channels have been company’s two greatest challenges in balancing in-store and online sales. Creating demand is how companies set themselves apart from competition. The secret sauce. The challenge is making sure that retail operations have a turnover ratio that works for the shipping schedules from the main warehouse. This isn’t a problem for e-commerce businesses, because product can be packaged and shipped as fast as it gets produced. But an omnichannel company has to take retail and e-commerce into account when stocking a warehouse.
There are a few different strategies retailers can use to help keep their sales operations well-balanced. Offering different items online versus in-store, to avoid inventory competition (i.e., selling seasonal or discontinued items online and current items in-store). Requiring a minimum order for online purchases or grouping products together rather than selling them individually to make e-commerce more worth your while.
The best way to balance a multi-channel sales strategy is to take a unified view of consumers online and offline by connecting their on- and offline behaviors via technology. Some of the retailers questions have is how to connect a person offline with what they buy online, how to recognize who they are in the store and know what they look at on your website, because people are switching back and forth. Link behaviors online with a unique ID through email or a mobile app, since 66% of customers use smartphones in-store.
Even if your business can’t actually sell and ship products via e-commerce,it’s still important to be in tune and up-to-date with the way customers want to interact with you on the Web. People are on the go, researching on phones and tablets. If you’re not savvy to what’s happening out there and don’t have the best-in-class SEO, you’ll miss out. You still need to engage in the digital world, even if it’s not always obvious.
Posted in Best Practices for Merchants, e-commerce & m-commerce Tagged with: brick and mortar, business products, consumers, customers, digital world, e-commerce, email, mobile app, multi-channel sales, online and in-store, online shoppers, online shopping, phones, products, retail business, SEO, shoppers, Smartphones, tablets, web
February 10th, 2014 by Elma Jane
Impact on 2013 Holiday Sales’s Big Data
Holiday season has ended and the analysis has begun to understand what worked and what did not for ecommerce merchants. Cyber Monday became the biggest online shopping day in history with a 20.6 percent increase in sales over 2012, according to the IBM 2013 Holiday Benchmark Report. Retailers are increasingly tapping into the avalanche of data from their own sites and from third-party sites to drive sales and better serve their customers. This article will address five key ways Big Data impacted the 2013 holiday shopping season.
Contextual Promotions
The use of Big Data has enabled contextual promotions – mostly real-time push notifications based on consumers’ social media activity, tracking their locations, or capturing their interactions on the web and mobile devices. This holiday season contextual promotions were heavily used. IBM’s Cyber Monday Report states, “On average, retailers sent 77 percent more push notifications during the five day holiday shopping period when compared to daily averages over the past two months.” Retailers invested in social media sites like Facebook, Pinterest, and Instagram (among others) during the November and December holiday season. This led to higher referral sales from these sources.
Several physical retailers, including Best Buy and Kohl’s, also deployed location-based promotions to push notifications while the consumer is in or near the store. Some retailers tracked consumers’ locations without their knowledge, raising privacy concerns. Other retailers required an opt in by consumers to receive these promotions.
Additionally, some retailers used mobile apps to send contextual promotions based on tracking shoppers’ activities on the app and their physical locations with using it. Macy’s and J.C. Penney, for example, partnered with Shopkick (a shopping app provider) during this holiday season to reward brick-and-mortar shoppers with discounts or song downloads for trying on clothes, scanning barcodes, or making purchases.
Gift Selection
Holidays are all about gift giving. Some retailers used their Big Data recommendation algorithms to make it simpler to select gifts. These retailers built predictive models that process data from multiple sources like social media, wish lists, gift registries, and past purchases to predict the right gift for an individual.
Improved Customer Service
The holiday season results in more traffic for ecommerce merchants, which naturally leads to an increase in the volume of customer service issues. To keep customers happy during this time and manage customer service costs, some retailers implemented Big Data solutions to monitor customer activity and proactively respond to negative social media posts or issues. After all, one negative tweet can significantly impact business during this time of the year.
Real-time data feeds inform retailers in advance if customers will experience issues like a slow site, out of stock products, or delayed delivery. Retailers can either proactively correct the issue or notify the customers afterwards. Fab.com, for example, automatically credits a customer the difference if a price of an item drops immediately after purchase. T-Mobile USA has integrated Big Data across multiple IT systems to combine customer transaction and interactions data to better predict customer defections. By monitoring social media interactions with transaction data and billing systems, T-Mobile USA has reportedly reduced customer defections in half in a single quarter. Dell uses Big Data solutions to analyze real-time feeds from weather reports, delivery trucks, and orders to proactively resolve delivery problems before customers are aware of them.
Integrated Analytics
Most large retailers serve customers across multiple channels and devices. This makes it critical for those retailers to have a single view of all customer and product activity using data from all sources. Some retailers are already using such solutions and several more deployed such solutions before the holiday season. This one capability is crucial to track other Big Data uses, such as contextual promotions, gift selection, personalized customer experience, and improved customer service.
Personalized Customer Experience
Retailers have used Big Data to personalize their site content for several years. This was a competitive differentiator during this holiday season, however, as indicated by pre-holiday survey by Baynote, a personalized customer experience solution provider. The survey noted that eighty-one percent of retailers planned to upgrade ecommerce platforms to focus on customer experience, and to increase engagement, revenue, and ultimately lifetime value from improved relationships with shoppers. Retailers can categorize each shopper into a segment of one with its own customized landing pages, product catalog, campaigns, and even content. The result is an enhanced customer experience and an improved conversion rate.
Amazon.com continued to maintain its dominance in this space by using its extremely rich data set to personalize the shopping experience for its millions of shoppers. Another benefit from personalizing the customer experience is increased impulse buys, which become more important during the holidays as shoppers are in the right frame of mind to spend money.
Posted in e-commerce & m-commerce, Electronic Payments, Internet Payment Gateway, Merchant Account Services News Articles, Small Business Improvement Tagged with: analysis, analyze real-time feeds, barcode, benchmark, big data, brick and mortar, credits a customer the difference, customer service issues, customer transaction and interactions data, ecommerce merchants, large retailers, location based promotions, making purchases, online shopping, physical retailers, real-time data feeds, retailers, rich data set, shopping season, social media activity, transaction data and billing systems
