The pandemic has enhanced diversity and dynamism within the retail industry, as it has expanded the scope of e-commerce. This is mainly due to new customer segments, new companies and products that have arisen during this time. For example, e-commerce transactions have shifted from luxury items and services to everyday essentials. As businesses were forced to close during lockdowns, they have adapted by investing more in digital. The global share of e-commerce retail trade rose to 17% in 2020 compared to 14% in 2019.
With new digital business models, competition in the e-commerce industry is high. Everyone from startups to big e-commerce companies are creating new models that focus on online customer experience. Whether it be around personalisation, additional offers, monthly subscriptions, value chain extensions and more. In fact, McKinsey published a report titled “The Quickening” stating that e-commerce has seen a 10 year growth in 3 months.
Online revenue is likely to grow in the post-pandemic world. As consumers adopt new shopping habits mainly influenced by digital, it will change the way retailers present their products and services.
How can retailers adapt?
Consumers are changing what they buy, who they buy from and how they buy. They expect more from their online and offline experiences. To engage with their customers in real time, retailers need to embrace omni channel communication strategies. This allows the retailer to connect with their customers and send personalized messages at every stage of the customer journey. Companies that implement omnichannel marketing retain 89% of their customers, whereas companies that don’t, retain only 33% of customers.
Consumers want experiences that go beyond their shopping experience. They expect tailored digital and in-store retail experiences tailored to their wants and needs. Data is the key to becoming more customer centric and it will aid retailers in understanding consumer behaviours and preferences. Having a unified perspective on each customer and the interactions they have with you involves integrating customer relationship management tools (CRM) with current operations.
With new business models in place for retailers in the post covid environment, they must ensure their workforce is aligned with the new changes. Retailers need to transform their workers by retraining them to understand new customer requirements. Enriching the customers experience post pandemic includes building personalised relationships but also ensuring safety, trust and security.
Retailers need to be agile while moving forward. Making sure that the IT infrastructure is well-orchestrated, making it a strong foundation focussed on being adaptable to rapidly changing demands. Using technology to streamline operations, control costs and improve customer experience is vital in this fast growing industry.
If you want to build a dynamic, result oriented E-commerce or D2C platform, Luxeveda can help. We have strong domain expertise and a bring in valuable insights for make your business a success. Contact us [email protected]com or look up www.luxeveda.com