Simon Vielma is the founder and CEO of Praywise, Inc. A media and advertising company based in San Juan, PR; and editor of Surfky Finance.
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Seen through the lens of history, it’s incredibly impressive how quickly e-commerce has exploded in popularity. It’s been less than half a century since the Boston Computer Exchange first online marketplace in 1982. But it wasn’t until the 1990s that big players like Amazon and eBay showed up and started making e-commerce mainstream. According to the US Department of Commerce, e-commerce has been generated 14.6% of all sales in 2022.
Many traditional brick-and-mortar retailers, such as Walmart, Home Depot, and Macy’s, have successfully integrated online retail into their offerings. Let’s take a look at some of the most important lessons traditional retailers can learn from the most successful businesses on the web.
Contents
1. The importance of creating a seamless omnichannel experience
As technology continues to thrive, customers now expect brands to ensure they enjoy the same great online experience no matter what device they use. Ensuring your brand offers customers a solid omnichannel experience online can result in improved loyalty, wider reach, and more sales.
But for traditional retailers, in-store experiences remain an important part of the omnichannel approach. Walmart is an example of a traditional retailer that has done a great job of seamlessly integrating online and in-store sales. a recent research (registration required) shows that these efforts have helped the company compete with Amazon.
2. Implement personalized marketing and recommendation strategies
Technology has forever changed the way successful retailers approach marketing by making it more personal. For example, Google Ads now offers a remarketing function which allows you to show ads to users with products they recently viewed on your website.
Personalizing marketing can also be as simple as using segmentation on your company’s email list or newsletter. Segmentation is the art of dividing your email list into smaller sublists of customers who share common characteristics. For example, a segment might contain customers born in the same month. By creating such a list, you can then send discounts to customers with upcoming birthdays each month. Or you can target customers who share a gender, age range, or geographic location that makes them more likely to be interested in a product or service.
3. Using data analytics and customer insights
To take advantage of the latest marketing technology, it’s important to understand your target audience. Tools like Google Analytics and Facebook Insights now make it easier than ever to see which audiences are visiting your website and social media pages.
Data analytics tools can also provide valuable metrics and KPIs to help you analyze your progress when it comes to meeting business goals. Almost all successful ecommerce retailers use these tools on a consistent basis, and it’s easy to discover why when you use them on your own company website and social media accounts. Here are some examples of retailers who have successfully implemented these strategies:
• 48% of sales at Home Depot are now made using the “buy online, pick up in store” (BOPIS) model.
• Ikea harnessed the power of virtual and mixed reality to show customers how furniture would look in their home before they checkout.
• E-commerce is now accounting for it 13% of all sales at Walmart.
Strategies traditional retailers can use to succeed in the e-commerce era
a recent study by PWC contained plenty of helpful insights into what today’s customers look for in a shopping experience. Nearly 80% of consumers surveyed “point to speed, convenience, expert assistance and friendly service as the key elements of a positive customer experience.” Rest assured that the human element is still an essential part of a great customer experience, as 82% of US consumers said they would like to see more in the future.
With these metrics in mind, let’s explore several modern strategies that can help grow your traditional business.
1. Invest in customer experience and personalization.
Today, many consumers want technology to feel more human. These can be simple strategies, such as segmenting to send offers that meet the preferences of certain customer groups, or using each customer’s first name in the subject of an email.
2. Focus on niche markets and unique value propositions.
Today, consumers have a wider choice of products than ever before. But this can be a great asset for retailers targeting a particular niche. Niche marketing involves focusing on a specific type of product rather than offering a wide variety of different products. For example, maybe your brand is specifically targeting pet owners, gamers, or e-bike enthusiasts.
3. Apply a data-driven approach to improve profitability.
Many companies already collect a huge amount of data, but you can learn how to analyze it more effectively. Taking the time to familiarize yourself with free tools like Google Analytics will give you valuable insights into what your customers want and how you can provide it. For example, you can find out exactly which pages of your website are performing best and worst, track abandoned cart rates, and track key business goals and metrics.
4. Reduce returns and increase profitability.
According to a recent survey by ReturnPolicy.com, the average return rate for both online and traditional stores is currently around 16.5%. High return rates can quickly hurt your bottom line due to factors such as shipping costs and non-saleable products.
Using analytics technology to track your return rates can go a long way in determining if any of these issues are causing an abnormal rate of returns. You can then increase your sales by targeting solutions such as:
• Offering more detailed product descriptions, size charts and/or photos.
• Identification of any packaging or shipping problems.
• Update your returns policy to indicate which types of products are eligible for returns.
• Identifying any quality problems that certain products may cause.
It comes down to
While the future of retail may no longer come down to merely maintaining a physical presence, there are now plenty of great tools and strategies to help your business thrive in the age of e-commerce.
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Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.