Get Ahead in Ecommerce by Staying Ahead of Digital Trends

Posted on by Caitlin Gebhard
BORN Views
Get Ahead in Ecommerce by Staying Ahead of Digital Trends

In the fickle world of online commerce, the only thing you can ever truly rely on is change:

Change in how online brands are expected to interact with consumers, change in the technologies and trends that digital experiences are built on, change in how consumers behave, change in what customers want, and change in the expectations for businesses to react to these changes more and more quickly.

With the never-ending stream of new digital trends, services, and user needs and wants, today’s online retailers are almost expected to innovate their site’s technology in ‘real time’ to meet the demands of their users. In fact, one of the biggest challenges for online retailers today has nothing to do with driving sales or finding customers— it’s keeping up with new technology and industry standards.

2023 brought with it a slew of new technologies that are designed to help online businesses stay ahead of consumer demands and the competition. Smart businesses are regularly taking all these trends and technologies into account and continuously updating their digital presence.

To keep up, ask yourself these key questions:

  • When was the last time you updated your ecommerce experience?
  • Have you implemented any new technologies in the CX space (e.g., AI)?
  • Do you offer a personalized / tailored experience?
  • What are your competitors doing?

Reflecting on where you are today is the first step towards creating the innovative ecommerce experience that your consumers expect tomorrow.

Customer Experience and Human Experience

A recent PWC survey showed that 73% of consumers ranked customer experiences (CX) and digital ‘human experiences’ (HX) as two of the most important factors in their purchasing decisions – only price and product quality were ranked higher. CX and HX work together to engage with consumers at every touchpoint with the brand or service. Today, consumers expect the best of both worlds: a human-centered experience that makes every interaction seamless, enjoyable, and meaningful. Meeting this demand can drive up business. According to a recent Forbes study,

  • 43% of consumers would pay more for better convenience.
  • 42% would pay more for a friendly, welcoming online experience.
  • 40% of consumers would likely pay a 16% price premium for a great customer experience.

Excellent CX and HX helps foster not only a better relationship between company and consumer, but also encourages more engagement and higher sales.

Artificial Intelligence (AI) and Machine Learning (ML)

To stay on top of CX and HX expectations in 2023, top brands are focusing on personalization, customization, and analytic-driven digital experiences – often supported by Artificial Intelligence (AI). According to Forbes research, 83% of surveyed businesses said implementing AI solutions is a strategic priority for their business. AI-driven tools, such as chatbots, content creators, natural language processors, robotic process automations, and rule-based expert systems, are being implemented to deliver the very best and latest in the user experiences consumers have come to expect.

While we know that AI machine learning is the next ‘big thing’ to change the digital world, this technology requires very high-quality data and analytics to work. Reworking your ecommerce platform’s data points to better serve AI/ML search engines will help your site get ahead in the next level of SEO. ‘Data labeling’ and ‘ranking algorithms’ needs to be a key focus in your digital strategy to get the very most from AI/ML.

Conversational UI & Chatbots

Conversational UI, such as voice interfaces and chatbots, is a fast and convenient way to fill the human interaction gap common to many online experiences. With the advent of AI-powered language processing, today’s chatbots can seamlessly emulate natural human conversation. From purchasing to technical assistance, dedicated plugins for your website give customers more personal, intimate and “human” support throughout their eCommerce experience.

Dynamic Pricing and Price Negotiation

Research showed that in 2021, 17% of US and European ecommerce companies planned on implementing dynamic pricing — while 21% of ecommerce businesses surveyed were already using dynamic pricing. Dynamic pricing lets vendors adjust their product and service pricing to better meet consumer demand and market needs in ‘real time’.

Augmented Reality (AR)

Augmented reality (AR) is one manifestation of visual commerce that’s becoming increasingly popular; global retailer AR spending is expected to surpass $4B in 2023. Integrating AR functionality into ecommerce websites can create some of the most immersive shopping experiences available to online customers.

Social Commerce

It should come as no surprise that social media plays a huge role in driving today’s ecommerce sales. Social media platforms are rapidly becoming the preferred search tool for younger generations. According to ‘The Future of Commerce’ Gen Z consumers use TikTok more than Google to find products. Top companies are reevaluating their social media strategies and the platforms they use to reach and engage with new customers.

Many of the best-in-class ecommerce platforms, such as Adobe and Shopify’s new ‘Commerce Components’, are taking their cues from this rapidly changing ecosystem of digital experiences. In developing bespoke, headless, composable tech-stacks, they are helping digital enterprise retail shops stay ahead of consumer expectations and demands. If you’re not already ahead of these trends— you’re already behind.  

Tell Your Story: Sustainability, Social Responsibility, and Authenticity

Posted on by Caitlin Gebhard
BORN Views
Tell Your Story: Sustainability, Social Responsibility, and Authenticity

“Going green” is not a new trend. In today’s market, sustainability is table stakes.

Consumers can choose from a myriad of sustainable, competitively priced, quality products – which often viewed as more desirable. In this post-pandemic world, a growing consumer base, especially Gen Z, expect businesses to participate in the world even more actively and responsibly. In a recent Nielsen study, three-quarters of Gen Z consumers stated that sustainability is more important to them than brand names and 75% of Millennials are eco-conscious to the point of changing their buying habits to favor environmentally-friendly products.

For businesses, this means adopting policies and practices that benefit not only the environment, but society as well.

Brands can stand out from the sea of “green” by becoming leaders in social impact, whether that is sustainability, equity, or fair employment practices. But for their accountability practices to resonate with consumers, brands need to talk the talk and walk the walk. They must take meaningful action to back up their messaging, or else the perception of “greenwashing” or “virtue-signaling” can drive significant backlash from consumers. At the same time, companies who are making great strides in their purpose-driven work won’t benefit from consumer engagement if they don’t tell their story.

Help the world, and your bottom line

There are financial incentives to adopting sustainable and socially responsible practices. Studies show that sustainable practices:

  • lower the cost of capital,
  • result in better operational performance, and
  • drive positive stock price performance

Purpose-driven practices can also drive innovation. Redesigning products or services to meet environmental standards or social needs creates new business opportunities. In addition, greater corporate responsibility improves morale and loyalty among employees. According to a study cited in Harvard Business Review, average turnover rates at purpose-driven businesses may be reduced by 25%-50%.

A major positive outcome of adopting sustainable and socially responsible practices is the competitive edge that comes with it. Studies show that, when cost and quality are equal, consumers prefer companies with clear purpose and ethical values. According to a global survey by Accenture Strategy, 62% of consumers are more attracted to brands with high ethical values and who are authentic in their purpose-driven work. This attraction translates into sales. A study conducted by Porter Novelli revealed that, holding cost and quality equal, 71% of consumers would rather purchase from a purpose-drive company.

Engage with responsibility

Consumer preference for brands with sustainable and ethical practices may be driven by an increased sense of responsibility. Studies show that nearly two-thirds of consumers across six international markets believe they “have a responsibility to purchase products that are good for the environment and society.”

But consumers feel that businesses have some responsibility, too. A 2020 ICF study found that 85% of consumers “want businesses to leverage their influence to raise awareness of sustainability issues.”A similar study from Accenture Strategy found this desire to be more generalized. 62% of consumers want businesses to “take a stand” on current issues, ranging from sustainability to transparency and fair employment practices. 

Consumers’ interest in businesses taking a stand is showing up in their actions, from commentary on social media to participating in boycotts. Younger generations are increasingly more invested, more likely to praise socially responsible and sustainable brands, and critique brands that are not. As time goes on, these interactions will accelerate.

Tell your story

Social activism is a key part of building an effective brand story. Brand storytelling is the thread that ties every touchpoint in the consumer experience together. Through storytelling, brand values become more deeply embedded in consumer minds, attitudes, and ultimately, their decisions. In other words, purpose-driven brand stories are attractive and engaging.

For example, TATA Consumer, one of India’s leading food & beverage companies, tells their story through a lens of environmental and social activism. Their mission is clear: “At TATA Consumer, we stand For Better products, nutrition, communities, and planet.” TATA approached BORN to strengthen their online presence across multiple markets. BORN worked with TATA to refresh their brand identity. To do this, they amplified brand storytelling throughout the newly developed site, re-aligning it with TATA’s “For Better” philosophy. TATA’s successes – from ranking as the number one food brand in India’s Brand Equity Survey, to becoming the first industrial township to meet international environmental standards – are highlighted on the homepage and in a primary section of the site. Their brand story integrates not only the importance of their mission, but the tangible impact TATA has on the world.

Be honest

Brand storytelling is more than the brand’s voice, heritage, and narrative. It must be a transparent conversation about your brand’s efforts to put their values into practice. Above all, consumers want companies to be honest. Studies show that corporate transparency may be even more important than corporate actions. Two-thirds of consumers think transparency is one of a brand’s most attractive qualities and strongly influences where they buy.

An authentic story helps consumers understand where your company has come from and where you’re going. This means being open about successes as well as failures. Consumers understand that implementing sustainable and socially responsible practices is difficult, complex, and an ongoing journey.  An honest conversation about that journey, with its ups and downs, is not only relatable, but also fosters a more authentic relationship with consumers.

Acknowledging the ways in which a company isn’t perfect builds trust. Studies show that, when a company leads with purpose, consumers are 72% more likely to forgive that company if it makes a misstep.

A strong, purpose-driven brand story can be found threaded throughout the digital presence of Reformation, an American clothing retailer. This retailer has a strong following of loyal consumers who believe in their mission statement: “We have big goals, like reducing more emissions than we make, making all our stuff from recyclable materials and trying to save the Earth while looking damn good doing it.” Reformation proves that the latest trends in fashion can go hand-in-hand with sustainability and green initiatives. They design stylish, vintage-inspired women’s clothes using only recycled, regenerative, or renewable materials in their clothes. Reformation also carefully tracks consumer data and feedback to produce only what they know they can sell in order to prevent “textile” waste. During their manufacturing they also take into account their energy consumption, water waste, greenhouse emissions and human and eco toxicity.

We’re all in this together

Sustainability and social responsibility cannot be accomplished in a vacuum. Built on honesty and trust, the relationship between brands and their consumers can help drive greater impact. Consumers are an important part of a brand’s ecosystem.

As consumers push brands to be more responsible and transparent, brands can work with their consumers to better understand how they can do so. Brands should be asking questions like:

  • What do our consumers care about?
  • What resonates with our consumers?
  • How can our brand work with consumers to innovate, educate, and make an impact?

Collaboration between stakeholders, employees and consumers can help companies discover shared values across the ecosystem and identify where the company can make a difference.

Combining research, service design, and brand storytelling, XDS design agencies BORN and  Mad*Pow work together to help organizations have meaningful conversations with their audiences, drive change within their organizations, and share their stories with the world.

Being sustainable, socially responsible, and authentic is an ongoing journey. Changing the world is hard. We’re here to support the work at every step of the way.

The Language of Luxury

Posted on by Fitz
BORN Views
The Language of Luxury

Steeped in tradition, true luxury brands are admired for their dedication to incomparable quality and craftsmanship. They are leaders in white-glove customer service and bespoke shopping experiences. But to rise above the noise of today’s digital marketplace, they need to pair their rich heritage with the latest in digital innovation.      

According to Statista, an estimated 25% of global luxury goods sales will be made online by 2025. Today’s brands must keep up with the technologies and trends that customers have come to expect, from mobile-first web design to a frictionless checkout process. For high-quality – and high-priced – luxury goods, customers expect even more. Luxury brands must differentiate themselves by transforming the highly curated, ‘white-glove’ experience of their brick-and-mortar stores into immersive high-tech online brand experiences. 

Stewards of luxury brands need to understand the three core levels of ecommerce: user experience-driven eCommerce features, end-to-end bespoke customer experience, and brand storytelling.

These levels build on each other to create recognition, drive online sales, and provide the premium experience customers come back for again and again. By taking advantage of the three levels, innovative luxury brands can become leaders in the digital marketplace. The brands that rise above will be the ones that understand that the digital experience is part of the luxury. 

User experience-driven ecommerce features

Robust technology and user-friendly interfaces are the foundation of excellent ecommerce. For customers exploring and purchasing luxury goods, the experience must be seamless. Slow site speed and loading times, disjointed checkout flows, and awkward personalization can frustrate customers. Trust plummets and so do conversion rates. When implemented well, ecommerce platforms create an effortless and meaningful shopping experience. 

The best platforms include flexible and robust features. They enable seamless integration with analytics, data management, and the latest third-party tools – including future-forward technologies such as metaverse connectivity and virtual reality experiences. Coupled with highly customizable personalization features, a carefully designed ecommerce platform can provide the end-to-end white-glove service that complements the in-store luxury experience while seamlessly scaling to support growing product lines and global audiences.

The creation of high-quality online luxury experiences has helped to refine and advance the luxury brand industry online. For example, Fraser Hart is one of the UK’s leading jewelers, specializing in bespoke jewelry and unique, individualized ring customization services since 1936. They needed to reimagine their online digital presence, and in doing so, address several technical challenges: improving site speed and reporting processes; supporting their growing global audience; and capturing their unique product catalog across all devices.

Fraser Hart worked with BORN Group to determine the best digital solution and deliver a world-class customer experience across all Fraser Hart’s products and services. The new site enables a high-quality, unified digital experience across devices. It includes best-of-breed localization features that empower shoppers regardless of their region. Strengthening the connection between their digital and physical presence, the new platform also helps to centralize stock-level management between stores and improve internal merchandising. The design overhaul integrated many unique features of the platform to bring Fraser Hart’s mission of tailoring jewelry to the individual to life. The new design and underlying technology empower a level of personalization and merchandising that the brand had not seen before. Coupling BORN’s design prowess with an upgraded eCommerce platform, Fraser Hart’s new digital presence enabled its audience to experience the luxury of the brand outside of the store, converting and delighting more customers in this new digital space.

End-to-end bespoke customer experience

A strong digital platform enables a strong customer experience. For luxury brands, the customer experience is part of the luxury. Customers who expect white-glove, individualized customer service in physical stores expect the same in the digital space. From the customer’s first glance at the website to the post-purchase emails they receive, every interaction must delight and resonate with them. Customers expect that the messaging and services will cater to their needs and wants. 

A customer-centric, high-quality, end-to-end customer experience relies on a deep understanding of the audience. User data, research, and emotional intelligence — leveraged to evaluate, understand, and influence emotions — can help. This consumer knowledge helps brands deliver the right message, at the right time, through the appropriate channel. Brands can approach their audience in a way that resonates on a deeper level. This is particularly important for luxury brands, where emotions play a key role in purchasing high-quality, high-cost, or bespoke luxury goods. 

Engaging with an emotionally intelligent brand tailored to fit the customer’s needs makes them feel like they’re part of the experience, not just part of a transaction. For generations, the oldest clothing retailer in the United States, Brooks Brothers has been a timeless choice for shirting, suiting, and more. As the breadth and depth of their offerings evolved, they sought out ways for customers to see them as “far more than a store.” BORN overhauled Brooks Brothers’ ecommerce site, redesigning and customizing content to educate, guide, and engage users in the right place at the right time in the customer journey. Part of this work involved customizing the product detail page with “buy online, pick-up in-store” capabilities. This helped to create a more seamless experience between the digital and physical paths in the customer journey. For the shirt-buying experience, the team redesigned the product listing page with filters to direct customers to “their” perfect shirt, amplifying the individualized touchpoints throughout that purchasing flow. In addition, the team also focused on the loyalty rewards and redemption pages. The redesign aimed to inspire excitement, loyalty and repurchasing. BORN’s redesign of key touchpoints in the end-to-end customer experience helped to strengthen customer relationships with the brand and to encourage their return to the Brooks Brothers experience.  

Brand storytelling

Storytelling is the thread that ties the customer experience together. Marketing through storytelling is a powerful strategy to help luxury brands stand out in the flood of online retailers. With their heritage, history, and strong values, luxury brands have strong stories to tell. The key is to tell the brand story throughout the customer’s digital journey, by infusing every touchpoint with the brand’s voice. Successful brand storytelling can be used to build a community of customers who share similar values. Brand storytelling is a way to demonstrate values in an authentic way. Today, people prefer companies that have strong values that align with their own. Studies show that, if cost and quality are equal, more than 70% of customers prefer to buy from a purpose-driven company. The social issues that a luxury brand supports (such as sustainability and ethical resourcing) amplifies its values and brand story. While product and service quality are paramount to a luxury goods brand, it is their story that resonates with its audiences— it builds deep connections, encourages loyalty, and ultimately drives ongoing engagement.

Storytelling is a valuable part of a luxury brand’s digital presence – and the foundation of BORN’s approach to luxury brand design. Since 1860, Frette has produced linens and home furnishings of unparalleled quality, and this rich heritage forms the base of their story. Frette recently approached BORN for a complete site redesign and re-platform. BORN worked with Frette to gain a deep understanding of the nuances of the brand and its product offerings. Leveraging this knowledge with their expertise in the luxury space, BORN infused Frette’s brand essence and heritage throughout the site re-design. The new design integrated content-rich stories featuring designers and inspiring interiors, highlighting the brand’s values alongside customer-centric messaging. Updated content was designed to educate consumers on Frette’s craftmanship, product quality, ongoing innovations, and time-tested partnerships. The finished web design was a Platinum Winner at the dotCOMM Awards. Integrating brand storytelling throughout the end-to-end customer experience, BORN helped to position Frette as the global authority in fine handcrafted linens.

In the digital world of luxury brands, every digital experience touchpoint should bring surprise, delight, and a reaffirmation of the renowned and timeless quality of the brand. BORN’s digital-first approach combined with the richness of luxury brand storytelling helps bring the in-store experience online, seamlessly. With customized ecommerce implementations, end-to-end customer experience design, and brand storytelling, BORN helps luxury brands deliver luxurious digital experiences.  

The Role of Emotional Intelligence in e-commerce

Posted on by Jennifer Ryan
BORN Views
The Role of Emotional Intelligence in e-commerce

Shopping is a highly emotional experience. Studies reveal that emotional impulses drive up to 95% of purchasing decisions.1 The products and services we buy influence how we feel. As society emerges from the pandemic and online shopping continues to flourish, consumers desire a personalized shopping experience where they feel understood. In response, retailers must develop emotional intelligence to attract and retain customers. 

Emotional Intelligence Drives Sales

Emotional intelligence refers to evaluating, understanding, and controlling emotions. There is an immense payoff when companies connect with customers’ emotions. Customers who like the companies they do business with are more likely to continue to buy. Additionally, 78% of loyal customers recommend favorite brands and products to friends and family.2 Therefore, retailers must develop emotional intelligence to create a retail experience that is in tune with the feelings of their customers. Harnessing the power of emotional intelligence gives retailers the ability to target customers at the right time, through the appropriate channel, and approach them in a way that resonates on a deeper level. 

Customer Experience is the New Battlefield

In today’s highly competitive market, conventional business wisdom is not enough to succeed. With countless online retail sites, it is increasingly difficult for brands to differentiate themselves. Creating an emotionally intelligent brand with an optimized website makes customers feel like part of the experience, not just part of a transaction. 

For customers, it is critical to feel prioritized by the brands they consume. Research shows that 86% of buyers will pay more for a great customer experience.3 This sentiment has increased the need for brands to take their marketing and websites to a new level by incorporating empathy and emotional intelligence into digital experiences and customer communications. 

Emotional Motivators

As eCommerce companies craft their websites, they must remember that customer purchases are inherently driven by emotional responses. A study by the Harvard Business Review studied customers’ interactions with hundreds of brands across all categories. It concluded that more than three hundred “emotional motivators” influence consumer behavior.4 Learning which emotional motivators lead to sales help brands strategically target the feelings that motivate customers to make purchases. These motivators provide retailers with valuable insights that can be applied when designing and improving a company’s products, services, and retail site. 

Broaden Customer Reach through Digital Channels

Brands must be accessible to their customers on the internet and through their smart devices in this digital age. Tech companies like Amazon, which offer a hassle-free experience and expedited shipping, have encouraged some consumers to skip in-person shopping altogether. To compete with the convenience of retail giants like Amazon, Retailers must focus their attention on developing emotionally intelligent websites to win over shoppers and drive sales. Data shows that 86% of customers with high emotional engagement want access to a brand through numerous channels.5 Brands must become both emotionally and digitally intelligent so customers return for the experience as well as the product. 

Multiple Payment Options Increase Sales

For a business to succeed, it is critical to offer easy and convenient ways for customers to pay. Providing customers with multiple payment options encourages sales. While credit cards are still the dominant online payment form, accepting alternative payment methods such as PayPal, debit cards, and cryptocurrencies maximizes sales. According to a study by PPRO 42% of consumers in the U.S. say they would not follow through with a purchase if their preferred payment method is not available.6 Retailers can also offer deferred payment through Buy now, pay later platforms that make purchases more achievable for some customers. Providing as many choices as possible allows customers to choose the way that works best for their needs at the time. 

Building Trust

There is a significant connection between trust and closing a sale. To build trust, retailers should include extensive contact information on their website, provide chatbots, FAQs, and call center phone numbers to answer customer questions, and display customer reviews prominently. Online consumers rely on reviews when making purchasing decisions. Studies show that 93% of customers read reviews before buying a product.7 Additionally, retailers should promise shoppers a safe and secure checkout that protects them from fraud. 

Incentive Programs

Customer loyalty is essential to growing a business. Repeat customers are extremely valuable to brands. Research shows that 70% of emotionally connected customers spend twice the amount when they are loyal to a brand.6 Retailers operating in markets with multiple competitors can set themselves apart from the competition by developing loyalty programs. Creating a customer loyalty program helps incentivize customers to become repeat customers by providing rewards for making repeated purchases. Discounts, rebates, rewards, free merchandise, and coupons motivate customers to spend more with brands and reinforce the consumer/brand connection. Focusing on loyalty programs helps brands align themselves with the segment of their customer base spending the most and deepens the relationship. 

Consumers are looking for digital retail stores to go the extra mile and cater to their needs. Approaching the customer experience with emotional intelligence is necessary to drive sales and win repeat customers. Personalizing sales techniques to fit customer needs, being transparent and helpful, and creating incentives to encourage customers to be part of a digital community will drive sales and lead to future purchases. Building websites that connect with the emotions of their customers will lead to a significant return on investment. 

Footnotes:

1)https://www.idslogic.com/blog/2017/11/using-emotional-intelligence-to-power-your-ecommerce-website.html

2)https://www.semrush.com/blog/word-of-mouth-stats/

3) https://www.forbes.com/sites/danielnewman/2020/06/23/4-actionable-customer-experience-statistics-for-2020/?sh=25c72d391a84

4)https://hbr.org/2015/11/the-new-science-of-customer-emotions

5) https://cxindex.com/company/blog/emotional-intelligence-the-key-ingredient-to-great-customer-experience/

6) https://www.volusion.com/blog/why-accepting-multiple-payment-methods-is-vital-for-ecommerce-success/

7) https://www.shopify.com/blog/15359677-why-online-store-owners-should-embrace-online-reviews

The Future of Retail Part II: Retail as an Experience

Posted on by Jennifer Ryan
BORN Views
The Future of Retail Part II: Retail as an Experience

We continue our exploration of the current and future shape of retail around the globe as brands commence the lengthy road of recovery for some and normality for most.

What will the new retail landscape look like? Now that the wide scale lockdowns are mostly over, supply chain issues and staffing woes still abound, hampering a return to retail as we knew it. How will brands adapt to these new consumer behaviors and are they here to stay? Read on.

Physical Stores Still Have Their Place

Despite the normalization of online shopping and home delivery during lockdown, many consumers were counting the days before they could walk through the doors of physical stores again. Tomorrow’s retailers still need to win hearts and minds in the real world and shouldn’t give up all their store space just yet. 

One of the reasons for this might be just how much people love browsing. Shopping online tends to be goal-based and transactional, but people browse in-person not only because they need something, but because they enjoy it. A study by Michael Guiry,1 Associate Professor of Marketing at West Chester University of Pennsylvania, suggests that for some of us shopping forms part of our self-concept, cementing, and playing back, our ideas of who we are. Although customers appreciate the best efforts of online retailers in creating browsing journeys, they are still only a facsimile, lacking in the excitement and sensory details that are so much part of the experience in real life. 

For all the news headlines on the rise and rise of online shopping, most retail is still taking place in physical spaces. In the US, by February 2021 it had settled at around 15% of sales.2 And although many retailers have closed branches and reduced shoppable space they’re unlikely to get rid of it completely. The digital and physical stores of the future will have a symbiotic relationship, with digital driving footfall to physical stores that support online sales.

A Future Of Experiential Retail

Real-life shopping at its best isn’t just about making a transaction, it’s about entertainment, about entering a different space and socializing with friends, family, and community. Physical retailers can offer many of the things we’ve all missed during the pandemic: the excitement of new discoveries, human connections, personal service, sensory moments. These experiential retail experiences, powered by new technologies, will be center stage in the next couple of years as retailers try to tempt consumers back, and with footfall likely to be reduced, they will be looking to squeeze every drop of value out of the customers who come through the door. 

For example, Nike, always ahead in experiential experiences, have launched Nike Rise in Guangzhou, China and in Seoul, South Korea: technology-driven retail hubs that work with the Nike App to create experiences powered by customer data.3 Dick’s Sporting Goods in the US opened its biggest-ever store in the spring of 2021 in a bid to drive deeper engagement with customers. The ‘House of Sport’ site in Victor, New York includes an indoor rock-climbing wall, golf driving bays and a putting green, as well as a health and wellness shop and a track and turf field.4 

In London, with the pandemic still on everyone’s minds, Lush’s redesign of its Oxford Street store includes tech innovations imported from its Shinjuku store, with QR codes and video displays creating an interactive experience that doesn’t have to be hands-on – no mean feat for a cosmetics retailer.5 Meanwhile, shopping mall Westfield London is launching Situ Live, a ‘discovery playhouse’ where customers can try out new products.6

In the post-Covid world, retailers will be looking to use technology to examine footfall, drive sales and create new customer experiences. LiDAR technology uses infrared light to sense movement, meaning that retailers can measure footfall and dwell time as well as analyzing the success of visual merchandising and customer engagement, tracking individuals with no loss of privacy as only an outline is ever recorded. Simultaneous Localization and Mapping (SLAM) technology can help anyone with a smartphone navigate around a mall, but it can also be utilized by furniture retailers. IKEA’s newly revamped IKEA Studio app not only enables the user to see a chosen piece of furniture in situ in their home, it allows them to redesign the entire room.7 In-store QR codes can provide product information, special deals or an easy way to buy online in a bid to lessen the practice of ‘showrooming’, i.e. looking at goods in physical stores before buying them at a lower price from an online competitor. 

Local Shopping For Local People

Repeated lockdowns and the shift towards home working has meant a new focus on shopping locally. In the UK the number of independent stores grew in the first half of 2021 for the first time since 2017,8 able to take advantage of government support measures, such as business rates relief and furlough schemes, as well as deals on rent offered by landlords keen to fill spaces vacated by failing chain stores.

There’s an opportunity for local main streets to evolve to serve new needs: a return to the times before out-of-town malls and retail parks. Even before the pandemic, city planners across the world including Paris, Barcelona, Portland, and Melbourne were responding to climate change by encouraging ‘15-minute cities’, creating blocks where people can access all their everyday services within a short walk or bike ride, reducing traffic and pollution and creating more space for trees.9

Larger chain retailers are already responding to new patterns of hybrid working. In the UK Sainsbury’s has recently announced a new partnership with Itsu, Leon and Wasabi, trialling ‘lunch stands’ across 300 stores, aimed at consumers working from home or in the office. Sainsbury’s Food for Later category planner Frances Hughes said: “As a hybrid style of working becomes more normal, we’ve been working hard to analyze customer needs when it comes to their lunchtime meals…the introduction of the in-aisle lunch stand makes it easily accessible for anyone to pick up an affordable and balanced meal, no matter what your daily ritual is.”10

Downtown Areas Need New Purpose

Downtown areas that were once busy with office workers are significantly quieter since the pandemic. In the future they will need to find new reasons to attract visitors and fill space, with shops, grocery stores and restaurants alongside medical centers, community, leisure, housing and workspace. 

There needs to be a greater emphasis on flexibility and sharing, finding purpose for underused spaces, and providing the amenities that communities need, supporting small businesses, creatives and social enterprises who might otherwise find it impossible to have a physical presence. And it’s the perfect time for experimentation, finding out what works as we move into our post-pandemic future. In some ways the lasting effects of Covid could give a new lease of life to physical retail locations that had been declining over the years. 


But it’s not just down to stores and other businesses to create the successful downtown shopping areas and main streets of the future. Governments and landlords will need to work with them to create areas suited to local communities and their changing needs. They also need to relook at rates and rent models that have decimated businesses unable to operate during lockdown. The alternative is yet more businesses going under, boarded-up shops and the hollowing out of retail areas. Some landlords have already offered their retail tenants turnover-based rents in a bid to save main streets. In the UK, the government are under pressure from within their own party to reform business rates, and the opposition Labour party has already announced their wish to scrap them in favor of a new system that increases the digital services tax on tech giants.11

Footnotes

  1. Defining And Measuring Recreational Shopper Identity, SpringerLink, https://link.springer.com/article/10.1177/0092070305282042
  1. State Of Retail, National Retail Federation, https://nrf.com/topics/economy/state-retail
  1. Nike’s Latest Retail Concept Powered By The Pulse Of Sport, Nike News, https://news.nike.com/news/nike-rise-retail-concept
  1. Dick’s Sporting Goods Just Opened A Massive Store With A Virtual Driving Range And Outdoor Track. Here’s A Look Inside, CNBC, https://www.cnbc.com/2021/04/09/dicks-sporting-goods-new-store-has-a-driving-range-and-outdoor-track.html
  1. In Pictures: Lush Oxford Street Reopens With Innovative Global Concepts, The Industry.Fashion, https://www.theindustry.fashion/in-pictures-lush-oxford-street-re-opens-with-innovative-global-concepts/
  1. “It’s Not A Store, It’s A Venue”: How Situ Live is Transforming The Way We Shop, Charged Retail Tech News, https://www.chargedretail.co.uk/2021/05/19/its-not-a-store-its-a-venue-how-situ-live-is-transforming-the-way-we-shop/
  1. IKEA’s Fancy New App Lets You Design Entire Rooms, Wired, https://www.wired.co.uk/article/ikea-studio-ar-app
  1. Independent Retail Sector Returns To Growth, Drapers, https://www.drapersonline.com/news/independent-stores-benefit-from-chain-closures
  1. The 15-Minute City – No Cars Required – Is Urban Planning’s New Utopia, Bloomberg, https://www.bloomberg.com/news/features/2020-11-12/paris-s-15-minute-city-could-be-coming-to-an-urban-area-near-you
  1. Sainsbury’s Launches News In-Aisle Concept With Over 20 Lunch Meals, The Grocer, https://www.thegrocer.co.uk/sainsburys/sainsburys-launches-new-in-aisle-concept-with-over-20-lunch-meals/660142.article
  1. As Macy’s and Sephora Flee the Mall, Will Other Retailers Follow?, The Motley Fool, https://www.fool.com/investing/2020/02/13/as-macys-and-sephora-flee-the-mall-will-other-reta.aspx

The Future of Retail Part I: Navigating Today’s Landscape

Posted on by Jennifer Ryan
BORN Views
The Future of Retail Part I: Navigating Today’s Landscape

Nothing could have prepared retailers for Covid. Since the pandemic forced the first widespread lockdowns in living memory, some have collapsed, the pandemic hastening their demise after a lackluster few years. Others survived but are changing their business models and spaces, looking for new ways to maintain sales and profits. A third set are buoyant, having seen online sales rocket. All have been deeply affected by the events of the last couple of years and are no doubt wondering what the future will bring. 

Whether 2022 sees the last of the lockdowns or not, Covid has changed the way we live and shop for good. The pandemic has not only accelerated digital transformation, it has also necessitated a total rethink of the future of retail in all its aspects: online and in-store, local, downtown or mall, delivered to your door or click-and-collect. Retailers now need to carve out a successful future in this new normal, with agility baked into their operations so they are well placed to respond to changing situations. But what will the new retail landscape look like? Now that the widescale lockdowns are over, what new consumer behaviors are here to stay?

Competition Heats Up Among The Giants: Amazon And Walmart 

Apple, Facebook, (Google) Alphabet, Microsoft Amazon and Walmart all saw huge increases in sales and profits since the start of the pandemic. Amazon saw almost every aspect of their business rise, from web services to streaming to home delivery, accounting for 41% of all US online retail sales in 2021.1 The company has opened Amazon Fresh grocery and convenience stores and is now moving into its own branded FMCG products with Aplenty. Expansion is inevitable, but the brand is keeping quiet about its plans. 

Meanwhile Walmart’s ecommerce sales grew 74%, leading them to hire more than 235,000 store associates2. Having largely left the Marketplace part of the business dormant for some years, it spruced up its offering, undercut Amazon for commission on some items and reached 70,000 sellers, projected to increase 146% by the end of 2022.3 Amazon’s marketplace is still far bigger, expected to have more than 3 million sellers in the US by the end of 2022 and 7.5 million globally according to Marketplace Pulse. But Walmart has physical stores, which means successful online vendors could find opportunities to sell offline too. The company also apparently has plans beyond retail and is aiming to develop its services in advertising sales and healthcare, where it will be jostling for position once more with main rival Amazon. 

A Permanent Shift Towards Online Shopping 

Consumers have grown to rely on online shopping, not only for essentials like groceries and toiletries, but also for goods and services to keep them entertained at home. During lockdown the winners were those businesses who, like Amazon and Walmart, were able to meet the surge in demand while maintaining a high level of customer service, as well as those who could quickly pivot their offering in response to changing customer needs. 

All the surveys and statistics agree that the shift towards online shopping is likely to be permanent. According to IBM’s U.S. Retail Index, the pandemic has accelerated the shift away from physical stores to digital shopping by roughly five years.4 A Qubit survey polling 1,500 US and UK customers in July 2021 found that nearly 86% planned to continue shopping as they had over the last 12 months5, despite physical retailers re-opening, and the intent was clear in all age groups. McKinsey reports that ecommerce remains at around 35% above pre-Covid levels.6 But online shopping brings slimmer margins and moving forward retailers will need to find ways of increasing basket spend and keeping warehousing and delivery costs down, as well as creating experiences that keep customers coming back for more.

Creating experiences fit for the future

BORN has worked with several leading retailers to ensure their online customer experiences are optimized for this new environment. Brooks Brothers, America’s oldest retailer needed to become ‘far more than a store’. Now they have reimagined the online experience, removing friction and telling the brand story more effectively. It’s easier for users to discover new products, educate themselves on the options available and become part of the loyalty scheme to reap future benefits. 

Meanwhile, world-leading luxury watch brand Rado needed to create a better experience for mobile. The BORN team redesigned the mobile interface, enhancing the content and navigation to provide a better showcase for products and tackling content management and eCommerce functionality. These retailers are future proofing their online experiences, ensuring that they measure up to customers’ ever-growing expectations. 

Delivering For Customers, And The Environment

Efficient delivery comes at a cost, to customers, the retailer and to the environment. But it’s also key to the convenience of online shopping. What could it look like in the future?

Click-and-collect has solid advantages for retailers, driving footfall to physical stores where customers may make additional purchases as well as being a low-carbon option. Businesses finding themselves with an abundance of space are dedicating an increasing proportion to fulfilling click-and-collect orders. 

Speedy home deliveries are more of an issue. The problem with next-day deliveries is that it means half-empty vans are doing the same trips, sometimes multiple times a day. That ‘last mile’ comes at a high carbon cost. There’s a commonly held view that people will insist on speed, but a study for a major retailer in Mexico found that slower shipping was acceptable to 71% of customers if they were told it meant saving a certain number of trees, calculated to be equivalent to carbon emissions caused by faster shipping.7 The author of the study is hoping that giants like Amazon or Walmart might take note for the future; in the UK ASOS are already offering reduced shipping rates and a discount code for ‘no hurry’ delivery.8  Perhaps consumers who expect super-fast delivery, can be weaned off it in the interests of the environment, at least for the most part. 

Amazon are beginning to invest in electric vehicles for the ‘last mile’, with their robot delivery system Amazon Scout operating in four US states and the business further developing the technology in the UK.9 For an even more futuristic, if rather terrifying option, ANYbotics and Continental’s concept combining driverless shuttle vehicles with robot delivery dogs looks uncomfortably like something from dystopian TV series Black Mirror.10

Footnotes

  1. Amazon Clobbers Competition, Accounting for Over 40% of US Retail Eccomerce Sales In 2021, eMarketer, https://www.emarketer.com/content/amazon-clobbers-competition-us-retail-ecommerce-sales-2021
  1. How Walmart is Responding to Covid-Related Challenges, Forbes, https://www.forbes.com/sites/edwardsegal/2021/09/01/how-covid-repeatedly-put-walmart-to-the-test/?sh=4b190a6617bd
  1. How The Pandemic Helped Walmart Battle Amazon Marketplace For Sellers, Reuters, https://www.reuters.com/business/retail-consumer/how-pandemic-helped-walmart-battle-amazon-marketplace-sellers-2021-04-14/
  1. COVID-19 Pandemic Accelerated Shift To E-commerce By 5 Years, New Report Says, TechCrunch, https://techcrunch.com/2020/08/24/covid-19-pandemic-accelerated-shift-to-e-commerce-by-5-years-new-report-says/
  1. Consumers Plan To Keep Shopping Online, Despite Stores Reopening, Fashionunited, https://fashionunited.uk/news/retail/consumers-plan-to-keep-shopping-online-despite-stores-reopening/2021081257089
  1. US Consumer Sentiment and Behaviors During The Coronavirus Crisis, McKinsey & Company, https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/survey-us-consumer-sentiment-during-the-coronavirus-crisis
  1. How To Shop Online More Sustainably, NY Times Wirecutter, https://www.nytimes.com/wirecutter/blog/shop-online-sustainably/
  1. How Does Your ASOS No Hurry Delivery Service Work?, ASOS, https://www.asos.com/customer-care/delivery/how-does-your-asos-no-hurry-delivery-service-work/
  1. Is Amazon’s Scout Delivery Robot Coming to the UK and Europe Soon?, Pocket-lint, https://www.pocket-lint.com/gadgets/news/amazon/153671-is-amazon-s-scout-delivery-robot-coming-to-the-uk-and-europe-soon
  1. This Robot Delivery Dog Can Bring Your Parcel Right To Your Doorstep, Mashable, https://mashable.com/video/driverless-vehicle-deploys-robot-delivery-dogs

How Order Management Systems Can Streamline eCommerce

Posted on by Jennifer Ryan
BORN Views
How Order Management Systems Can Streamline eCommerce

The Covid-19 pandemic has irrevocably changed eCommerce. By April 2020, the industry experienced ten years’ worth of growth in three months resulting from a shift in consumer spending habits.1 The unprecedented demand for online goods stressed supply chains and forced retailers to reevaluate their operations. As the online shopping trend continues, competition among online retailers has never been greater.

Brands must be resilient and agile to compete against retail giants like Amazon. To offset the difficulties caused by an online-only ecosystem, retailers must find new sales channels and marketplaces to broaden their reach. However, a larger digital footprint and increased sales channels result in a complexity that can be overwhelming when combined with already steep customer expectations.1 An order management system (OMS) is essential for a business to grow, embrace multi-channel retail, and compete with other online retailers while communicating effectively with customers.

What is an Order Management System?

An OMS is software that enables an eCommerce store to manage the order fulfillment process more effectively. It collects data such as order information, customer data, and inventory levels which allows for the management of critical business areas.2 An OMS streamlines the process by unifying data and making the fulfillment process as cost-effective and automated as possible. OMS systems allow operators to manage orders coming in from multiple sales channels and process them from multiple fulfillment points.2 An effective OMS can help with various processes and tasks to ensure a business stays in sync and fulfills its promises to its customers. 

Key Benefits of Using an OMS

OMS tools are critical because they are more than just a means for shipping orders. Most eCommerce brands cannot grow without an effective OMS in place.3 These tools keep critical business processes organized and running smoothly as a business grows. Having a good OMS in place will also reduce human error, an enormous time and money waster for businesses. Reducing manual tasks will create time for solving complex customer problems, focusing on big picture projects, and optimizing the brand experience.4 An effective OMS is essential for sustainable growth and a smooth customer experience. 

Customer Satisfaction

Customers have grown accustomed to personalized, efficient, and cost-effective order fulfillment. As a brand grows, systems will be tested, and inefficient processes can result in negative customer experiences and potentially lost profits.5 Since order management systems are automated and integrated across every step, brands can ensure a consistent customer experience across every channel. From logging orders to organizing fulfillment to managing invoices and returns, an effective OMS covers each step of the order process.6 The goal of the OMS is to get the product to the consumer as efficiently as possible. This is accomplished by managing the journey of each item in the customer’s order from the moment the product goes into the shopping cart until the product arrives on the customer’s doorstep.7 A good OMS will integrate with fulfillment centers to keep customers updated on the status of their orders.8 By optimizing each step in the process, an OMS reduces shipping and overhead costs and increases the quality of data collected. 

Managing Product Availability and Inventory Insights

Selling products across multiple platforms can make it difficult to unify sales data. An OMS can integrate with each platform, collect all sales data, and bring that information together in one accurate and accessible place. Over time, this can provide insights into customer behavior and identify popular products and SKUs.9 Based on the collected data, inventory management decisions like what to order from suppliers and which fulfillment locations need new stock are simplified. 

Other Considerations

The eCommerce landscape changes rapidly, so a good OMS should provide the flexibility and functionality necessary for a business to grow. It should be intuitive and easy to use by non-technical retail and marketing staff and integrate with existing company technology and infrastructure. Opening new fulfillment options, changing promotions and pricing, and setting up workflows should be straightforward.10 The ideal OMS will fit seamlessly with the eCommerce system to enhance customer experience and meet business sales goals. 

Order Management Systems are the way of the future in the eCommerce world. This innovative software can simplify and streamline every system and process within the supply chain by reducing human error, enhancing delivery speed, simplifying multi-sales management, and forecasting future trends. In the competitive world of online retail, an OMS that optimizes the speed and accuracy of order processing across channels can positively affect the customer experience and give your business an edge over competitors. A seamless order fulfillment process provides an opportunity to enhance brand reputation, provide a positive customer experience, and grow revenue.11 Adopting modern, integrated OMS software is the only way for businesses to keep up with the competition and customer expectations by streamlining the entire virtual business process.

Footnotes

1)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

2)https://richpanel.com/blog/order-management-system/

3)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

4)https://kibocommerce.com/blog/order-management-system/

5)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

6)https://paperform.co/blog/order-management/

7)https://www.bigcommerce.com/blog/order-management/#what-is-ecommerce-order-management

8)https://www.brightpearl.com/ecommerce-order-management

9)https://www.shopify.com/enterprise/order-management-system-oms

10)https://www.smartsheet.com/content/order-management

11)https://paperform.co/blog/order-management/