While the names of iconic bricks and mortar stores like Hamleys, Harrods and Selfridges roll off the tongue, it is often more difficult for digital retailers to stand out from the crowd.
In a congested market, where brands are not only battling a cost-of-living-crisis, but competitors and dominant online marketplaces such as Amazon, it is crucial to get the customer experience right.
This means ensuring every step of the customer journey, from digital payment options and check out to delivery and social media, are working in tandem for a truly seamless experience across all shopping channels. A happy customer is likely to be a loyal one.
But what could digital retailers be doing differently to get this right? Here are five of the latest trends shaping digital shopping today.
Augmented reality
A criticism often aimed at online shopping is that customers don’t get to try before they buy. Augmented reality turns this problem on its head – and now many digital retailers are incorporating it into their strategies.
What will that sofa you love look like in your living room or watch look like on your wrist? Not only are businesses using AR to create immersive shopping experiences to help drive engagement, but brands including IKEA and Nike are giving customers the chance to test out exactly how products would look in real-life through their mobile phones.
Not only does this generally translate to more sales and a higher number of satisfied customers, it can also help cut down on returns, with fewer surprises when products are delivered.
Composable architecture
There’s a big buzz around composable architecture in the digital retail industry.
Up until now, many online stores have been built using customised out-of-the-box solutions, giving retailers a faster and more cost-effective route to market.
However, brands like Lego and IKEA have started turning to composable architecture, which allows complex systems to be built with loosely coupled components – almost like building blocks. Retailers can quickly swap segments in and out with ease – like a site’s search engine or content system – without having to spend money developing the whole platform.
This gives businesses more flexibility to choose the ‘blocks’ they want at will, allowing brands to constantly evolve the user experience.
Social commerce
Shoppers, especially Gen Z, want to be able to buy what they want, when they want. With more time spent on social media than ever before, it makes perfect sense to use platforms like Instagram, Facebook and TikTok to sell products directly to consumers, which can bring about more interactive experiences and quicker sales.
It’s estimated that global social commerce sales will reach $1.298 billion this year. Retailers must ask whether these platforms might be used for more than just content.
Virtual reality
Like augmented reality, virtual reality is becoming a major channel for digital retailers to explore. Next month (May), Meta Platforms, the parent company of Facebook, is launching MENA’s first Metaverse Academy in Riyadh, Saudi Arabia, showing its huge potential.
Based on Web3 – an updated version of the World Wide Web – the Metaverse allows people and businesses to connect virtually, with PwC predicting its potential contribution to GCC economies could be around £12 billion by 2030.
Brands including Gucci have already experimented with virtual clothing for user’s avatars to wear, but it’s merely the tip of the iceberg.
Live chat
From generating new leads to helping customers find what they need faster, live chat has quickly become a must-have for online retailers.
In 2020, the global live chat software market was valued at $755.23 million but with its popularity soaring, this is projected to reach $1.7 billion by 2030.
Having someone on hand, fulfilling the same functions as a shop floor assistant to quickly answer questions and clear any doubts can keep customers happy and help make those all-important sales.
Despite a booming online shopping industry, with so much competition, it’s vital to understand what your audience wants and expects and act on it. Businesses should consider tapping into some of these trends to stand out from the crowd and attract and retain new customers – and as importantly, keep them engaged and happy.
