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Online retail industry and smart help

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Remember those days, when buying online had lots of challenges and trust issues, apart from having the technology by human’s side. Now, due to technology transformation, you don’t even need to sit in front of computer and order. Alexa bought a feature for becoming your shopping assistant. But, it is the trust issue again which is concerning about the safety of transaction made through this channel apart from look and feel of the product.

Every year, more than 100 million Americans purchase goods from the online retail marketplace, one of the fastest-growing sales channels in the United States. Since the start of the decade, revenue for the Online Retail & e-Commerce industry has grown at an exceptional rate, outperforming most brick and mortar retail industries. Now a new channel is emerging in the form of smart speakers.

Current Scenario:

Harvard Business Review report investigated, the way people use product these days which have changed – but brands are not keeping up with the change and compared the normal perception of “brands” and “customer experience” which is somehow related to each other.

“Now that change has become the new normal, brands have to evolve from the power of symbolism and the power of narration to the power of reciprocity” – Antonis Kocheilas (MD at ogilvy worldwide)

A recent survey conducted by statista refer to the challenges faced by the new technological innovation and human behaviour.

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Whereas another study reveals the comparison and usage between top 4 smart speaker companies where, its major usage falls into command, navigation, and information.

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What needs to be done:

First of all, need to understand the comparison between online and retail store market and trends influencing them. Retails chains are also embracing the Omnichannel concept to its customer by providing a seamless customer experience irrespective of the fact if they are buying online or in store.

“Showrooms work best for differentiated goods — products that vary significantly from one retailer to the next” -PWC

Comparing industry verticals:

People don’t evaluate their experiences by vertical anymore. It used to be, “I’ll compare CarMax against all other used car dealers,” or “I’ll compare Nordstrom against all other clothing retailers.” Now customers are taking the best experiences from one industry and demanding a similar or better experience in others- Jim Lyski (CEO CarMax)

Marketing mix modeling:

Understand the marketing spendings of the retail and online stores by looking at the historical relationship between market spending and business performance to identify the scope of new markets.

Purchasing power:

Some markets are ready to try new technologies and more risk-averse, this is an important factor in determining which market, which segment and which group to consider as prospective buyers.

Last Minute Thoughts:

The new markets are forming with the new ways of purchasing and marketers are finding new ways to lure the prospective buyers. It is the time to expect the changes happening in the industry and leverage those resources with the calculated understanding of risks. To make it more trustworthy, the big companies are providing so much ease with the trust for money, trust for return, trust for time but still lagging trust for safety and security.

From Buyer: Ease is not the only factor in determining a purchase, but the experience is.

From Seller: “Don’t settle for the best customer experience in your industry, deliver the best one”—period

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Categories: dManagement

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  1. Technological future of retail [location and voice] - dwritings

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