10 Key Factors that Assure Retailers Higher Sales Growth
A total of $12.8 billion is being spent online by consumers in the US from Thanksgiving Day through Cyber Monday. Retailers have experienced a higher growth of sales compared to last year.
1. Cyber Monday 2016 was the biggest day in the history of U.S. e-commerce, with consumers spending $3.45 billion in online sales that saw a 12.1% jump over Cyber Monday last year.
2. On Black Friday, per Adobe Digital, US e-commerce sales registered a substantial 21.6% Y-O-Y growth compared to last year. It was the first day to generate more than a billion dollars in online sales from mobile devices with $1.2 billion i.e. a 33% increase over last year.
3. In the US, on Thanksgiving Day, consumers spent $1.93 billion in online shopping., a 11.5% increase over last year.
If you think the above figures are exorbitant for a holiday season sales, then you are wrong and are in for a surprise. Alibaba alone on China’s Singles’ Day has raked in $20 billion (a 40% Y-O-Y surge, according to New York-based research firm Fung Global Retail & Technology) in just a day and turned it as “World’s biggest shopping bonanza”. With over 10,000 brands selling to millions of shoppers in China and promising delivery at lightening speeds (less than 2 hours), it is touted to be the biggest 24 hours shopping extravaganza.
Alibaba’s single day success
It is evident from the stats, modern retailers have developed best practices and strategies around consumer engagement, seamless omni channel presence across all interventions to deliver better service to meet their needs. The consumers are willing to spend but only when delightful consumer experience is delivered with robust omnichannel presence.
eMarketer estimates that ecommerce sales during the 2016 holiday season will increase 13% over last year, accounting for 20% of the industry’s annual sales revenue. It is also estimated that more than half of those purchases will happen via mobile devices.
There are few key considerations which retailers should bear in mind to witness higher sales all-round the year and greater success.
Here are Top 10 key Factors for Retailers to Follow during the Holiday Season:
#1 Compelling Mobile Experiences
Experience driven, mobile first and intelligent content helps retailers a great deal in delivering lifetime customer value. Ensure that your mobile site and application have rich, interactive UI and provides compelling user experience and loads at a blazing speed. According to Google, 30% of online shopping purchases now happen on mobile phone and 40% of consumers leave a page with load time of more than 3 seconds.
Source – L’Oreal
#2 Personalized Consumer experiences
Leverage data generated on various touch points and apply analytics to build seamless commerce experiences, customer value and transform customer buying journeys. Personalized consumer experiences engage customers by building a 1:1 relationship and thus results in brand loyalty. The goal should be to create a differentiated experience across all touchpoints.
Source – Macy’s
#3 Cloud Integration and Migration
Boost business performance by migrating to cloud from on premise to build agile, scalable Infrastructure thus improving supply chain and customer experience. A slow, unresponsive ecommerce site during peak sales days can cause disaster in terms of business disruption, lost sales, unhappy customers, and maligned brand damage.
#4 Search by Location Sensing (Store locator)
Load applications with must have search features like local or near-me. Google says 50% of consumers who conduct a local search on their smartphone visit a store within a day, and 18% of those searches lead to a purchase.
Source – Sephora
#5 Authentication at ease
Make password authentication a smooth experience without irritating the users with loads of verification questions.
#6 Optimizing e-commerce platform architecture
Optimize hygiene attributes of your platform such as performance, security and manageability, and make it cloud-ready by designing the application as a collection of services. Shoppers prefer to browse and shop using multiple channels, so cloud-ready approach is mandatory while optimizing your websites and mobile presences. According to Google, 6 in 10 Internet users start shopping on one device but continue or finish on a different one.
#7 On-shelf Availability
Leverage multidimensional analytics (advanced analytics, operational reporting, personalized dashboards, Trend analysis, Storyboards, omni channel) and efficiently harness the wealth of data across the dispersed supply chain to improve the on-shelf availability and thus reduce customer walkouts due to unavailability, be it online or in-store
#8 Hassle-free Search
Use effective search indexing by making it easy for Google to crawl your entire site. Shoppers are demanding improved search results; and, when it comes to relevancy, a semantic-friendly site search will beat plain text competitors every time. In addition, customers who land on an autocomplete page suggestion are six times more likely to convert than those who don’t.
Source – Kohl’s
#9 Shoppable Marketing content
Adopt a holistic digital marketing strategy encompassing targeted product ads and campaigns, Content to handhold the consumer in the shopping journey (AWARENESS, EVALUATION and PURCHASE) through quick help tips and education E.g.: Pinterest’s buyable pins, shoppable videos on YouTube, Instagram’s shoppable photo tags, Net-A-Porter’s shoppable content, Snapchat’s shoppable ads, and call-to-action buttons on Facebook for ordering food or booking tickets)
#10 Speedy Checkout
Empower the shopper with ability to purchase instantaneously with a simplified and fast checkout process. Easier checkout has been identified as a key factor/key requirement for increased mobile buying.
Today’s empowered online consumers are very demanding when it comes to pre, post-sales support/services and failure to meet this will result in higher customer churn out, lost sales etc. Modern day retailers/e-commerce companies should get their records straight and homework done carefully as there is hardly any room for errors. It is imperative that to be successful in this holiday season, retailers and e-commerce companies should engage and support customers in the best possible way to earn their loyalty, advocacy, and wallet share.
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