from Analytics Insight
July 2, 2021
In this next normal, it is no longer enough to just rely on a basic eCommerce storefront. To engage shoppers and drive loyalty, retailers need to invest in a rich, intuitive, multi-channel customer experience based on data-driven but actionable insights.
“It’s frustrating,” said Sangeeta. âHalf the time my favorite color is not available and sometimes the product itself is sold out. Why do they capture me with good looking pictures when I can’t buy anything? “
“Well, don’t trust everyone who sells on WhatsApp or Instagram,” said Deepak.
This is very often the state of online trading today. A row of broken window panes in your shop window.
94% of online shoppers say that a negative review from someone like Sangeeta or Deepak convinces them to avoid a store. However, only 2% of retailers actually invest in building a centrally networked online shop with multiple channels that avoids such pitfalls.
Rising acquisition costs & buy flywheel
In the early days of eCommerce, paid marketing alone was a viable and economical channel for customer acquisition. But that soon changed. The cost of acquiring customers has never been higher. Even before the pandemic, the organic reach on FB and Instagram had dropped to just 5%, which led to more advertising spending, which in turn drove up the marketing costs paid. In fact, from 2015 to 2019, marketing costs paid rose a whopping 50%.
That shift is now compounded by the fact that online retailing grew 36% in India in the fourth quarter of 2020 alone. By 2024, India is well on its way to going from just $ 30 billion in 2019 to a $ 100 billion giant – and surpassing the US by 2026 to become the world’s second largest e-commerce industry .
On the other hand, customers are now buying online not only for the price, but also for the experience and convenience. According to McKinsey, consumers were more likely to switch brands in 2020 due to the rapidly growing choice on the internet. Combine this with the massive adoption of digital shopping in all age groups and income segments. If a buyer doesn’t have a good experience today, they quickly lose confidence and move on to the next seller who immediately fulfills their need.
And then, she tells her network about her bad experiences.
In this next normality, the customer’s buying journey is more than ever not a funnel, but a flywheel. As a dealer, if you do Attract a buyer’s attention, but it can’t Engage and joyConverting them into a purchase you have to pay a pretty hefty fine by losing not only them but their network of trusted followers as well.
Most brands and retailers rely on large operations teams to speed up the flywheel. Service providers also promise relief – but often leave them behind with bulky patchwork systems that require a high level of maintenance. Both approaches are not scalable and very expensive.
So how can retailers achieve great customer loyalty and satisfaction without breaking the bank?
Actionable data and automations without code
The foundation of a high-growth company that scales its customer experience flawlessly is actionable to Data.
When retailers go online, the plethora of data often turns into a bewildering mass of spreadsheets that require specialists. Every channel, every part of the flywheel is silo, which adds complexity.
A central backend that is connected to all channels is ground zero. Without software know-how, this may seem like a Herculean task – today, self-service SaaS platforms such as Shopify integrate channels from WhatsApp to Amazon with just a few clicks.
The next step is to constantly monitor these multi-channel data streams to catch every buyer drop-off point. There are several eCommerce SaaS apps out there these days that convert raw data into actionable workflows. Such data-driven workflows only require a one-time setup and no programming knowledge.
For example, Privy helps sellers automatically send the right messages to shoppers who have browsed but not yet purchased, or who have added products to their carts but not checked out. Yotpo helps sellers automatically collect and share the latest UGC from Instagram as social evidence as soon as shoppers interact with their products. Other apps like ModeMagic enable dynamic highlights on bestseller products based on data from top sellers or mark products that are sold out as “only x left” etc.
Next Normal is connected, omni-channel, real-time
Creating data-driven, intuitive shopping experiences is critical to online success. Big brands and retailers are setting up huge operational teams and implementing expensive on-premise technology, often through service providers, to try and achieve this today.
However, as more and more consumers shop around the clock from the comfort of their homes, operator-guided workflows and dependency on service providers will no longer work.
The answer to shopping anytime, anywhere is SaaS solutions connected to real-time data streams and NoCode Automations have made this accessible to everyone.
The next time Sangeeta sees her 5-year-old’s favorite red dress on Instagram, she can be sure that the retailer will only show her real-time information across all channels. Sangeeta and Deepak will be able to buy the exact dress their daughter wants so badly for her birthday without being disappointed while pulling out PhonePe.
About the author
Kausambi Manjita, Founder and CEO, Mason
Kausambi Manjita is the co-founder and CEO of Mason, a no-code SaaS platform that helps small businesses transform their e-retail businesses. She is an award-winning venture capitalist with over 12 years of experience in the Enterprise, People & Product sectors.
With a decade of experience, Kausambi brings unique insights into several segments of the industry such as product analysis and management. Growing up in small towns across India, Kausambi firmly believes in the importance of having access to technology in order to thrive in the online world.
Kausambi holds an MBA from the Indian School of Business Hyderabad, one of the most prestigious B schools in the country. In the early years of her career, Kausambi worked with some well-known companies such as Yantra (acquired by IBM Labs, then IBM Labs, NCR Corporation), Paytm and Myntra. She won the Gracehopper Foundation & DST (Govt of India) WEQ 2017 Award for Top Emerging Tech Entrepreneurs.
Her love for stories, media, products and community manifested itself in her first startup called Storeo.io – the first community-led podcasting platform of its kind for South Asia. In 2018, she also founded Kubric, a video and banner automation platform that helps designers limit their creativity and innovate.