eCommerce is dead. I have a habit of killing things off in blog posts and presentations. I remember announcing the demise of social media ten years ago to a shocked and denying room full of social media agencies and acolytes.
It enraged them in the same way that anyone that makes their living from eCommerce will probably be shouting at the screen now, and if you scour the internet you may still find a small flurry of tweets denouncing my controversial statement.
Unlike social media that evolved to become the dominant mechanism that we use to consume news and information making it ‘the media’ for many, curated by taste identifying algorithms, eCommerce became the standard model for retailers and brands to build their businesses.
What in fact we have seen is a rapid evolution towards what is now being referred to as Digital Commerce.
Obviously the two terms will become interchangeable over the next few years, and I’m guessing that eCommerce as an expression will remain for many more years to come, just as social media has. I didn’t do that good a job of killing it off did I?
However, whilst the expression will survive, the processes have changed and will continue to evolve forever more.
So why bother changing the expression if we are talking about evolution? Well, partly because that is what marketers like to do to sound as though they are ahead of the curve, and partly because there is such a departure from the old eCommerce model, which was essentially a transaction led addition to an existing business, to the new world where it is the dominant way to do business.
In today’s world businesses that harness the entire spectrum of technology available to them will ensure that customers build long term loyalty and affinity with their brand.
Gone are the days of metrics purely being about CPCs (cost-per-click) being replaced by CLVs or ‘Customer Lifetime Value’
Businesses are relearning the power of ‘value’ and focusing less on price on a micro level. It’s a two way street. Customers have always been attracted to products and brands that they value rather than purely making purchases based entirely on price.
Undeniably metrics like CPC will still be monitored and to a certain extent scrutinised by the bean counters, but it has always been the case that companies who focus on customer retention and building relationships with their existing clients - compared to those who choose to ship a product, trouser the cash, and forget about the end customer- fare better and grow longer lasting brands and businesses.
Digital Commerce does this by uniting many of the pre-existing elements of the ‘digital world’ into overarching strategies that put the customer journey at the heart of the process. It doesn’t focus on the quick sale, instead it provides a pathway for customers and prospects to enter an eco-system with numerous touch points, personalised relevant content, and brand affinity markers.
Driving all of this revolution is, as you would expect, data and data analytics.
Businesses need to have a seamless integration of back office and CRM solutions with front end platforms such as store fronts, social channels, content networks, online marketplaces, fulfilment, fast delivery solutions, payment gateways and returns and refunds. These platforms working in harmony creates a better user experience, and it is vital that businesses harness their full potential because this isn’t just what the customer demands, it is what the customer expects as a matter of course.
In a way, this method of working harks back to the days where local businesses knew their customers on a personal level.
The days when the store owner knew your name, knew what you liked, let you know when your favourite products were back in stock and even delivered them to your door if needed.
Businesses kept themselves relevant by being part of the community. You would see your local green grocer or baker in town or in the pub and stop for a chat, learning about each other’s likes, dislikes and future desires.
The relationship was personal and customers were loyal. The store owner knew the lifetime value of each and every customer and just how important they were to their business. They assimilated the data and responded accordingly.
In many ways, Digital Commerce is the online world playing catch up with the old ways, but with the added bonus of being able to reach millions of potential customers globally using a laptop and a suite of pre-existing tools to help bring these elements together.
Now, imagine a solution that knows that Customer A has bought a pair of brown boots in the summer, and can go back to that customer a few months later and suggest a great sweater or coat to wear with those brown boots as they head into winter. It could even show a picture of how they could look together and tell them upfront when they could be delivered by or even where, in the physical world they could go to try them on and purchase them in store.
With technology making information and products accessible at the touch of a button, modern day customers are craving personalised experiences in this increasingly connected yet disconnected world.
Businesses that have a great customer experience hard wired into their DNA will harness these elements into their Digital Commerce strategies, focussing less on constant churn and acquisition and more on building relationships and customer retention.
Do that bit right and acquisition will be easy.
If you want to discover more about how your company can utilise Digital Commerce, the Department for International Trade are hosting a free, in-person event on the 4th March on how to scale globally using Digital Commerce to reach a £10m turnover. They will be joined by industry experts who will each provide you with a fresh perspective on the topic. You can register for this event here.
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