E-commerce sales are growing continously since years. The most recent figures from bevh for 2018 confirm this: they show an increase of 11.4 % to 65.10 billion euros in revenue. This means that about every eighth euro is already spent online in German retail. Worldwide e-commerce revenue is expected to rise to over 4,000 US dollar.
In such a market environment retailers should be able to grow relatively easily. But the competition is strong and clever: the improvement of the shopping experience became a real competition. But don't worry: We show you ways out of the existing competitive struggle with the help of situationalization.
Large platforms such as “Amazon” (US & EU) and “Otto” (EU) dominate e-commerce. But also emerging companies such as the Chinese mobile shopping platform “Wish” win market shares in Europe. Also, smaller companies and manufacturers with special niche portals increasingly rely on their own online sales in order get closer to their customers. For example, some brands circumvent retailers and platforms through successful digital direct sales and thus enter into direct competition with their previous partners. As a result, the battle for customer access is becoming increasingly fierce!
This situation is further aggravated by lower customer loyalty in e-commerce. According to a survey of over 1100 customers in Deutschland, 80% buy predominantly from 1-5 online shops. In addition to that, they don't feel bound to them. As many as 83% of respondents stated, that they would switch to another online shop if they were find better service there.
These findings coincide with a customer experience study conducted by PwC, in which 15,000 users were surveyed. They said that factors such as efficiency, comfort and service are especially important for an excellent customer experience . Many would even be ready, to pay more for these factors. But how can e-commerce companies ensure efficiency and convenience in the customer experience?
Your customers prefer to shop with you when they see products in your online shop that are relevant to them.
Improving the individual shopping experience
Efficiency and convenience are therefore particularly important to users of online shops. But also from the company's point of view an improvement of these factors offers additional value. Because those who find what they are looking for faster in the online shop also buy faster. Those who additionally find interesting and more relevant products in product lists often buy more - because this way spontaneous purchases can be stimulated.
If the list of displayed products is based on situational data about the individual shop visitor, this effect is clearly measurable. We know from the experience with our customers that conversion and revenue uplifts of 20% and more can be achieved. The experts in our survey on personalization in online retail also agree: personalization measures can improve the customer experience, increase sales, increase the conversion rate and improve customer satisfaction.
Tailor-made product offers offer both companies and users real added value. With the right technology, the shopping experience can also be constantly optimized.
The increase in comfort convinces many customers. As the results of a GfK study show, more than a third (35%) of respondents worldwide are willing to be tracked by websites just to get suitable product offers during online shopping.
Besides 42% of these respondents were more loyal towards a n online shop, if they had the opportunity to participate in product development. Including customer feedback as well as the individualization of product recommendations not only enables a genuine win-win situation, but also rather is a way out for the market dynamics described above!
Advantages of data-based situationalization
But for a truly outstanding shopping experience, conventional personalization is no longer enough. The GDPR has pushed many conventional personalization solutions to their limits. In order to really inspire shop users and at the same time comply with data protection regulations, online merchants should focus on the situation-aware optimization of their shop. This is based on situational data and is called situationalization.
Product lists are sorted individually using situational data and optimized on the basis of interactions in the online shop in real time. Situational information can also be used to customize many other shop elements. Attributes as such as time of day, weekday, source of visit (Instagram, search engine, etc.) and weather conditions at the user’s location, give hints about his current shopping situation. If this information flows into the optimization of the user experience, product recommendations, article feeds, promotion pages, landing pages and much more can also be adapted on this basis.
You can learn more about our approach in this video:
This tailor-made approach to the shop visitor also works for first-time visitors or guest users, because they also provide some information such as location, operating system or referrer (visit source e.g. social media). By analyzing the totality of all customer histories, statistical siblings (peer groups) can be determined for the unknown user. The products with the highest conversion probability are then automatically offered to the customer in real time.
In addition, analytics or intelligence teams can save a lot of time through such automation. A Gartner survey found that in most companies, data scientists spend most of their time visualizing data, preparing data for analysis, charting, dashboards and statistics. Through our situationalization platform, data scientists have more time for analysis and knowledge gains.
With a situation-aware personalization, each visitor receives an individually equipped online shop with what is relevant to him/her in a particular situation. This improves his shopping experience, which make users happy to come back and keep them as customers in the long term. Companies win additional customers and users can shop more efficiently and comfortably - a real win-win situation!
With ODOSCOPE's platform for situationalization, you can sustainably improve the user experience of your shop visitors. We would be happy to show you the potential of our technology in a free and individual live demo!