We can see today how customer behavior is changing. 86% of consumers will use at least 2 different channels (and 70% will use at least 3) when making a single purchase. As more customers shift towards multiple shopping channels, brands need to adopt new digital commerce strategies to cater to this growing segment of customers. According to RetailNext, 84% of consumers believe retailers should be doing more to integrate their online and offline channels.
The e-commerce market is becoming increasingly crowded, and brands need to differentiate themselves from their competitors to stand out.
For example, if your business is shifting from a focus on customer acquisition to customer retention, you may need to refresh your strategy to prioritize loyalty programs and personalized experiences.
A refreshed digital commerce strategy can help brands create unique customer experiences and increase their competitive edge.
[Also Read:- Why Is M-Commerce The Future Of E-Commerce?]
Brands that successfully refreshed their digital commerce strategies
Nike: One brand that has successfully refreshed its digital commerce strategy and achieved excellent results i s Nike. In the past, Nike announced its “Consumer Direct Offense” strategy to increase its online sales to 30% of its total revenue.
To achieve this, Nike made significant investments in its digital infrastructure, including a new website and mobile app, improved supply chain and inventory management, and enhanced customer personalization and customization options. Nike also partnered with Amazon to sell its products directly on the e-commerce giant’s platform, expanding its reach to new customers.
The results of Nike’s strategy have been impressive. The company’s digital sales grew by 42%, with online sales accounting for over 30% of Nike’s total revenue.
Additionally, Nike’s investment in supply chain and inventory management helped the company reduce costs and improve efficiency, leading to a 3% increase in gross margins.
Overall, Nike’s success in refreshing its digital commerce strategy demonstrates the importance of investing in robust digital infrastructure and leveraging partnerships to expand its reach and drive revenue growth. By prioritizing the customer experience and focusing on digital channels, brands can achieve significant results and position themselves for long-term success.
Walmart: Walmart’s digital commerce refresh involved a significant overhaul of its website and mobile app. The brand redesigned its online presence to make it more user-friendly and personalized. This included adding more product images, improving search functionality, and creating curated collections based on customer preferences. Walmart also introduced new payment options, such as Walmart Pay, allowing customers to pay using mobile phones.
Beardbrand: Beardbrand is a men’s grooming company that sells beard oils, balms, and other grooming products. The company saw an opportunity to improve its digital commerce strategy by investing in a new website that would enhance the user experience for customers. The new website included features such as a custom quiz that helps customers find the best products for their needs and a subscription service that offers recurring deliveries of their favorite products.
As a result of these improvements, Beardbrand’s revenue increased by 120% in just six months. The company also reduced its advertising costs by 30%, as the new website helped attract more organic traffic and repeat customers.
Colgate-Palmolive: Colgate-Palmolive is a global consumer goods company that sells oral care, personal care, and household cleaning products. The company realized that it needed to improve its digital commerce strategy to compete in the digital age.
To achieve this, Colgate-Palmolive invested in a new e-commerce platform that integrated with its existing digital marketing channels. This allowed the company to offer customers a seamless online shopping experience while also improving its ability to measure the effectiveness of its marketing campaigns.
As a result of these improvements, Colgate-Palmolive’s e-commerce revenue increased by 23% in just one year. The company also saw a reduction in operational costs, as the new platform allowed for better inventory management and reduced the need for manual processes.
Small size brands
Nomatic: Nomatic is a small brand that sells travel gear and accessories, including backpacks, wallets, and travel bags. The company realized that its website needed to be optimized for mobile devices, which was a significant obstacle to online sales.
To address this issue, Nomatic made some quick fixes to its digital commerce strategy, including:
- Redesigning its website to be mobile-responsive
- Optimizing product images and descriptions for mobile devices
- Offering a clear call-to-action to encourage mobile purchases
As a result of these quick fixes, Nomatic saw a 30% increase in mobile sales within the first month. In addition, the company’s overall online sales also increased by 15% in the same period.
These quick fixes allowed Nomatic to improve its online sales and better serve its mobile customers without the need for significant investment or resources.
Molly’s Suds: Molly’s Suds is a small brand that sells natural laundry detergent and cleaning products. The company realized that its website was not optimized for search engines, which was a significant obstacle to online visibility and sales.
To address this issue, Molly’s Suds made some quick fixes to its digital commerce strategy, including:
- Optimizing product descriptions and images for search engines
- Conducting keyword research to identify high-volume, relevant search terms
- Building high-quality backlinks to its website
As a result of these quick fixes, Molly’s Suds saw a 20% increase in organic search traffic within the first month. The company’s overall online sales also increased by 10% in the same period.
These quick fixes allowed Molly’s Suds to improve its online visibility and attract more organic traffic without significant investment or resources.
Factors to Consider While Refreshing Your Digital Commerce Strategy
Conduct a thorough analysis: Brands need to analyze their digital commerce strategies and identify areas where they can improve. They need to understand the strengths and weaknesses of their existing digital commerce platform and identify opportunities for growth.
Improve product discovery and adjust product offerings: Brands need to make sure that their digital commerce platforms are easily navigable and the products are well-organized. By implementing filters, search bars, and categories, brands can help customers find products quickly. For example, Amazon’s personalized recommendation engine uses machine learning to suggest products to customers based on their browsing and purchase history.
Make better product recommendations: Brands can improve their digital commerce platforms by implementing advanced recommendation algorithms that suggest products to customers based on their preferences and past purchase history. For example, Netflix uses machine learning to recommend movies and TV shows to its customers based on their viewing history.
Give real-time status on product availability & delivery time: Brands need to ensure that their digital commerce platforms show real-time product availability and delivery time to customers. This can help customers make informed purchase decisions. For example, Walmart’s website offers real-time product availability at nearby stores.
Build the functionality of guided selling: Brands can use guided selling techniques to help customers find the right product based on their needs and preferences. For example, Apple has a “Compare iPhone models” tool that allows customers to choose the suitable iPhone model based on their needs.
Optimize UI: Brands need to optimize their digital commerce platform’s UI to make it more user-friendly and easy to navigate. This can help increase customer engagement and reduce bounce rates. For example, Airbnb has a simple and easy-to-use UI that makes it easy for customers to find and book accommodations.
Modulate market reach: Brands can adjust their market reach by expanding their digital commerce platforms to reach new markets. For example, Amazon expanded its digital commerce platform to India and now has a significant market share in the country.
Use Virtual try-on: AR/VR can be used to provide customers with a virtual try-on experience for clothing, cosmetics, eyewear, and other products. This allows customers to see how products will look and fit before making a purchase, increasing confidence and reducing the risk of returns.
Reuse commerce capabilities: Brands can reuse their digital commerce capabilities to reduce development costs and increase efficiency. For example, Walmart’s digital commerce platform is based on a reusable platform that can be used for other online brands.
Implement BNPL: Brands can implement Buy Now Pay Later (BNPL) options to attract customers who may not have the financial means to make an upfront purchase. ‘curbside pickup” or “buy online, pickup in-store” options are pretty popular. 67% of US shoppers have utilized this feature as of 2022 and by 2025, it is expected that 10% of all sales will be fulfilled this way. For example, Klarna and Afterpay are popular BNPL services that many online retailers have started offering.
Add alternative payment options: Brands need to add alternative payment options to their digital commerce platforms to cater to customers’ diverse needs. For example, PayPal, Apple Pay, and Google Pay are popular alternative payment options that many online retailers offer.
Reduce returns and shipping costs: Brands must reduce returns and shipping costs to increase profitability. By offering free shipping and returns, brands can attract more customers and reduce the cost of returns. For example, Zappos offers free shipping and returns to all its customers.
In summary, brands need new digital commerce strategies to keep up with changing customer behaviors, remain competitive, leverage emerging technologies, comply with changing regulations, and demonstrate their commitment to sustainability.