A Guide to Maximizing Sales, Improving Efficiency and Optimizing Your Customer Journey
Time to switch from classic front foot drive to 360-degree play – The world of eCommerce is changing being proactive about trends and evolving customer experience is key to edge ahead of your competitors.
The post-pandemic world is riding on a new high to elevate eCommerce business around the world. The massive rate of high-speed internet penetration has led to incredible rise in new shoppers. The tier- 1 and tier-2 cities are riding the wave of online shopping over the bustling market rush. The new narrative of optimizing customer journey will enlighten pathway for eCommerce ecosystem in 2023 and beyond.
Here is your complete guide to maximizing sales, improving efficiency, and optimizing customer journey by hopping on to the trends.
Speed up on the right path
As per the Brain & Co. report, online shoppers in India have crossed well beyond 180 million and all set to surpass the United States to become second-largest shopper base in coming years. The brands need to latch on the opportunity step up their game to cater the new potential customers, understand their need and stay ahead among the stiff competition in eCommerce ecosystem.
This profane growth is backed by strong underlying rudiments:
- A large consumer base with growing affluence
- Low data prices prompting – growing Internet and smartphone penetration
- Low shipment costs to back swift order delivery
Brands need to align themselves with consumer need and work towards enhancing customer experience for sustained growth in sales.
Indian e-retail market is estimated to grow at more than 25% per annum to scale to $150–$170B by 2027 Source: Statista
Make it a smooth ride – Optimize your Customer Journey
The Evolution of eCommerce retail in India:
Phase 1 (Before 2015) – An Era of cautious early adoption.
Limited to typically affluent at metro and tier-1 cities with major categories being mobile and fashion.
Phase 2 (2015-2020) – An Era of growth & massification.
The expansion of eCommerce retail touched the masses engaging new shoppers across tier-2 cities and a wide new range of categories flooded the eCommerce retail landscape.
Phase 3 (2020 and beyond) – An Era of eCommerce Customer Journey Optimization
An era of innovation – Time to address the needs of distinct micro-segments, innovate with new business models making business decisions based on data, and differentiate on customer experience.
The covid induced lockdown has led to multi-fold expansion of eCommerce industry juxtaposed with innovative affordability constructs like low-cost equated monthly instalments (EMIs), Buy Now Pay Later (BNPL), and the scale-up of third-party logistics.
In last couple of years, three distinct hallmarks of Phase 3.0 have emerged which mark the advent of new era of change where optimization on every step of customer journey is the way towards the future.
- Emergence of shopper micro-segments
- The use of technology to deliver a bespoke product
- Effort to enhance customer experience
In this phase of sustained growth, brands need to cater distinct shopper micro-segments across geographies, incomes, and age groups. Specially during the time when 1 in 3 shoppers is Gen Z, 3 out of 5 shoppers belong to tier-2 or smaller cities, and 1 in 3 shoppers belong to low-to-middle income segments. Every innovation in eCommerce ecosystem caters to distinct customer micro-segments. The current phase is led by tech innovation – data driven AI & ML guiding business decisions and enhancing customer experience.
E-Retail market projections | Source: Bain Analysis
eCommerce Trends for 2023 – What future hold?
The new post pandemic world has set the new world order for eCommerce. The rising inflation around the world, Ukraine-Russia crisis is talking a toll on the global scenario. But still things are looking bright for India and neighbouring South-East Asian region as the eCommerce ecosystem is soaring high on massive internet penetration and influx of new generation shoppers. Let’s cherish the last two-plus years of astronomical eCommerce growth and wonder what 2023 could transpire for online retails and brands in future.
The eCommerce habits of the shoppers are set now with higher preference to eCommerce marketplace as compared to brick & mortar stores. The change in shopping habits has prompted expert to predict sales to soar above US$ 8 trillion from now existing US$ 5 trillion by 2026.
Keep an eye on changing consumer expectations and preferences to latch on this growth trend.
Sustainable growth to be key. Share of new ecommerce to continue growth especially in key categories like beauty, fashion, and grocery as they continue to effectively serve a key need for specific consumer cohorts.
Trends that will shape the future in 2023
1. Don’t overlook your shoppers’ experience and omnichannel avenues
The fluid omnichannel shopping experiences is way to the future. A major chunk of buyers around 75% use multiple channels before making a purchase and during their customer journey 73% of e-commerce consumers report using various channels. This highlights the desperate need to eliminate friction in customer journey.
The shopping is no longer limited to eCommerce marketplace or brand website – social commerce is rising as a new avenue for shoppers where they can buy product as when and where they see it. Brands offering omnichannel shopping experiences will continue to thrive in 2023.2. Can you hear me now? Customer sentiments will drive sales for e-commerce in 2023
Listen to what your customers have to say. The customer sentiments do matter. The right measure will not just ensure customer retention but also build brand trust and help cater to customer needs. Brands need to make rating, reviews, and Q&A assessments their top priority.
The record amount of time spent online not only increases shopping spend but also engages customers to provide feedback. Unsurprisingly most customers do especially when their product experience is not satisfactory provide feedback.
Switch to Rating & Review Tracker with Time Trend Analysis and Brand-Wise Analysis for your own vis-à-vis competition to ensure the voice of your customer is heard and acted upon. Take the help of tools like mScanIt feedback analysis for Insights unravelling what sentiment themes are working for the brand and where need to improve in terms of price, quality, quantity, packaging, and delivery etc.
3. Stay in tune with ever-evolving customer needs – Gen Z shoppers
The massive internet penetration across geographies and demographics has led to a major influx of new customers. Generation Alpha and Gen Z: The next generation of shoppers form a major chunk of new shoppers while large-sum spenders are still the millennials.
In 2023 and beyond customer behaviour changes will reshape consumer decision journeys. Brands and retails need to adapt fast. Retailers & brands need to adapt to the new powerhouse generations and their buying preferences.
The Final Thought on the Changing Landscape
The eCommerce ecosystem is rapidly evolving irrespective of the industry. A growing number of consumers are adopting online shopping habits that will continue as the experience becomes more and more convenient. This shift has created new opportunities for a business to build connections with consumers and reach more people. It’s a space that’s quickly evolving, as new technology and services make online shopping easier for your business and your customers. Keep pace with the changing landscape and optimize your customer journey with mScanIt ecommerce intelligence solution. The path to the future leads towards providing a better customer experience.
The raging competition on quick commerce and e-commerce marketplaces keeps brands on their toes. The marketing strategies needed to evolve as well for 2023 and beyond with predictive actionable competitive intelligence. Streamlined Data Insights that could help brands edge ahead of their competitors.