What retailers need to know about the omnichannel revolution
Merchandising and marketing concepts such as shoppable videos, digitized stores and social campaigns on Instagram and Twitter were alien ideas to retailers just a few years ago. Not anymore, according to Tom Ebling, CEO of cloud-based e-commerce solutions provider Demandware, who has a unique perspective on what it means to be a “connected brand.”
The company recently held its fifth annual XChange Conference where Ebling, other top Demandware executives and more than 1,300 attendees shared ideas and strategies to achieve success in a retail industry where rapid advancement in technology are driving a breakneck pace of change.
“What retailers need to do is not compete on price. You can’t out-Amazon Amazon,” said Demandware CEO Tom Ebling, whose opening session at the conference began with an enthusiastic performance by street artists portraying how consumers shop via Instagram. “The consumer is in control. So you need to connect with the consumer. You need to become a connected brand.”
Ebling said that consumers are more likely to buy if they are engaged socially with a retailer or brand. He cited data indicating that “social spend” was up 144% in 2014. He also said that Instagram is the No. 1 social shopping tool now, having overtaken Twitter and other social sites.
Ebling cited examples of the "connected" retailers and brands:
Ugg, which is using personalization to generate sales
Coach, a social media pioneer
And Loreal, its Makeup Genius app may revolutionize shopping
"Some of the things retailers should be doing include: launching social campaigns, digitizing their stores, creating shoppable videos, and embracing customization,” Ebling said.
When it comes to digitization, though, not all of it is created equal.
"It has to have a value proposition for the consumer,” said Adam Forrest, senior director of Americas marketing at Demandware. “For beacons to work, for example, you need an app. But you can’t just have an app. You have to give shoppers a good reason to download the app.”
Demandware is in a unique position to share its insights, as it provides cloud-based e-commerce solutions for retailers, allowing them to develop and manage custom digital commerce and mobile commerce sites. The technology includes an open, cloud-based platform with applications for e-commerce merchants, developers and administrators. The platform enables worldwide consumer engagement across devices, including laptop, desktop, tablet and mobile computers.
Attendees were given the chance to learn how the fundamental changes in consumer behavior must influence the corporate vision and strategy of retailers. Some of the top takeaways included:
Not your mother’s brick-and-mortar. Physical stores are now more like service centers for the consumer, a place where they can either pick up their “click and collect” items, or where they can expect or receive extra customer service.
E-commerce is more than just shopping. A website is a vehicle for selling products, but it is also an opportunity for retailers to establish meaningful connections with customers.One of the ways retailers can do that is with video or apps, as in the case of Loreal, which launched its Makeup Genius app in 2014.
It’s all about the user journey. Shoppers are buying using multiple devices, and retailers must ensure that the customer experience is consistently good across all of those devices.
A new omnichannel strategy. Today’s omnichannel strategy should include the ability of a retailer to cater to customer needs. The goal is to be a consumer-centric organization that puts the customer first and maintains brand consistency so that customers are customers for life and drive growth for the company.
“With seemingly unlimited knowledge, power and expectations, today’s connected consumers dictate and control the terms of engagement with retailers,” Ebling added. “In this disruptive and complex operating environment, retailers must effectively extend their value proposition and brand experience beyond the physical and virtual four walls to wherever and whenever consumers demand."