E-commerce: lack of innovation drives away customers

Commercetools, one of the leading headless commerce providers, has just released a report on business innovation and its impact.

This report shows that customers are ready to avoid brands that are slow to innovate and whose shopping experiences struggle to live up to the expectations of millennials and Gen Z…

A deep mismatch between buyer expectations and business investment

According to the survey, of 300 retail business leaders around the world, 73% shoppers may switch sites if a brand’s shopping experience doesn’t meet their expectations.

More than half would opt for modern commerce experiences, defined by changing customer preferences, payment options and digital devices.

Nonetheless, 45% of respondents say they spend only a minimal amount of their budget to improve or expand commerce solutions.

According to the study, 74% of people recognize that failure to adopt emerging business solutions will have a negative impact on certain areas of business activity. For 41%, customer experience can be impacted and customer loyalty for 28%.

40% of respondents say their company’s current commerce solutions make it difficult to sell their products or services.

they recognize the growing gap between your old solutions and the expectations of young buyers.

49% of this group believe this problem has existed for more than a year. More than half of respondents (52%) said they decided not to implement a new trade solution due to budget constraints.

With regard to the purchase of digital features, the cost for 39% of respondents, the lack of knowledge of use for 32% and the difficulty of integration (for 29%) are the main obstacles encountered in its implementation.

“With endless choices and the power of the Internet at their fingertips, consumers are continually redefining what the ideal customer experience looks like.

Brands that have a certain longevity are those that take this change into account from a technological and cultural point of view, and evolve to meet customer demands.

Change is constant in the modern commerce ecosystem. Brands need to be agile and reach customers where they are.

That means tracking your customers’ buying behaviors and adopting the commerce experiences that resonate best with them.

Anyone who thinks they can sit idly by and not evolve in the face of changing demands will soon be bankrupt. »

notes Jen Jones, director of marketing at commercetools

Intentions in terms of innovation? Metaverse? NFT? Web3?

This lack of innovation is not surprising, as many companies are currently falling behind in implementing trade-based solutions.

For example, 55% of respondents do not currently offer various payment methods for their customers: less than 20% of respondents offer one-click payment, only 16% offer immediate purchase and deferred payment, and only 14% the refund.

Only 25% of the companies surveyed offer next day deliveryand 21% of loyalty programs.

Regarding even more recent and cutting-edge innovations, less than 10% of respondents say they offer virtual reality/augmented reality purchase, purchase in a digital game, creation of their own SKU (stock keeping unit) codes, or purchase enabled by voice.

And only 11% offer purchases in the metaverse…

However, companies expect to adopt new solutions in the next 12 months.

The top five trends that decision makers interviewed reflect on are: cryptocurrency (to 26%), the metaverse (to 25%), the NFT (to 23%), thevoice activated shopping (to 21%) and finally the web3 (to 20%).

However, companies’ ambitions for their commerce solutions go far beyond their current needs. Investing in cryptocurrency seems rushed when the company does not offer multiple payment methods.

Companies are starting to realize that unless they embrace trends and embrace technology that allows them to deliver these next-generation experiences across every touchpoint, it will be impossible for them to remain competitive in today’s market.

Respondents are most concerned about losing customer loyalty from Millennials (72%) and Gen Z (54%).

“Sephora pioneered premium omnichannel commerce and we know that continued investment in commerce innovation is critical to our continued growth.

comments Sree Sreedhararaj, CTO at Sephora

Now is the time to reflect, reconsider and change the course of business.

They need to identify missing features in terms of commerce solutions and think about the digital challenges ahead…


Methodology

300 non-technical business decision makers were surveyed worldwide in March 2022.

All respondents occupy leadership positions and are part of the formal decision-making process on the implementation of e-commerce solutions in their company.

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