eCommerce: Anticipating Where Customers Will Be Is Key
Whenever I first look through new data from a survey, sports analogies pop into my mind left and right. I’ll spare you some of the ones that happen most often, but by the time we get to writing, I try to make sure they’re all but removed from the final report.
So naturally the first title I wanted to call our latest eCom report was “Trying To Anticipate The Puck. ” Cooler heads prevailed, and the final title “Getting Real About Shopper Journeys ” probably translates better in most places where pond hockey isn’t a local pastime.
But check out this data and tell me it doesn’t work: when it comes to external pressures pushing in on retailers’ online operations, the better the retailer (by sales performance) – the more they are trying to do that very thing.
Figure: Two Starkly Different Realities
Source: RSR Research, August 2017
For the best performers, it’s all about trying to be where the consumer is already headed. Aiming for where they are right now just won’t work. They recognize that the cultural shift in buying patterns is real: customers don’t care about what a retailer wants to sell, or more to the point, in many cases: about the retailer at all. Instead, they have fully embraced a shopping behavior where every whim they have must be fulfilled immediately – and that is incredibly difficult to prepare for. As a result, 1 out of every 2 Retail Winners says it’s what keeps them up at night, and if you read the full report, you’ll see that this directly affects the type of technologies they are buying.
Lesser performing retailers continue to be consumed by a never-ending price war. Laggards perennially hone in on price as the one lever they can pull – at all times, regardless of the scenario – to try and win over consumers. But at what cost? Consider this: Amazon continues to grow its empire, but often times is not the lowest cost provider. Why? Because there remain things customers care about more than price, and capabilities like convenience, free shipping, ease of purchase, and the ability to read recommendations and reviews are chief among them.
We invite you to give it a read. Fascinating stuff. And almost no sports references.