What are the Key Benefits Retailers Expecting from Ecommerce Platform Migration?
According to the latest data obtained by US Department of Census for the 2nd quarter in August 17, 2017 the ecommerce retailers has witnessed 16.2% sales growth as compared to the 2nd quarter in 2016. Whereas, the overall retail sales have achieved only 4.1% of growth in the same period. This increase in sales clearly conveys that there is a huge demand in the market. To address the increasing demand, several ecommerce retailers have emerged and the ecommerce giants like Amazon.com are setting new trends to attract customers. To maintain the demand-supply equilibrium along with handling the shift in consumer behaviors, it is time for retailers to carefully evaluate their existing ecommerce platform vendor. In my previous blog: 4 factors forcing retailers for ecommerce platform migration, I have discussed about the factors that must be taken under consideration while strategizing for ecommerce platform migration. Now it is high time to get into the nitty-gritty of the matter. Keeping in mind the ever-changing customer requirements and the long-term business goals, this blog deals with the factors the retailers ought to explore from both business and technical perspective prior to evaluate and selecting a new platform. While evaluating the prerequisites for platform migration the retailers should be focusing more on the aspects such as scalability, cost of ownership, personalization and seamless integration of different modules that enable them to deliver compelling user experience. So, here let us shed some light on the retailer’s short-term and long-term goals from both business and technical standpoint.
From business standpoint with ecommerce platform migration:
The key benefits retailers are looking at from business standpoint with ecommerce platform migration are:
#1 Increase in conversion rate
Conversion rate is the desired action taken by the percentage of the user. In the fast-changing competitive world, retailers’ main objective is to look up for higher conversion rate. The existing system might become an obstacle for reaching the desired conversion rate. While exploring the options for new platform the retailers should carefully evaluate the options and calculate which platform is more capable for handling the traffics at peak hours, capability to convert them into their potential customers.
#2 Increase in average order
Average Order Value is a metrics used by the Ecommerce Retailers, enabling them to measure the average total of every order placed by a merchant over a period. Average Order Value(AOV) is one of the key parameters which the retailers should be aware of, it also helps the retailers to drive the key business decisions. The platform may act as a hindrance to increase the average order value. With ecommerce platform migration, the retailers might be able to get the flexibility which enables them to introduce multiple features like building personalization through cross selling, product recommendation, loyalty programs, price anchoring, which in turn increases the average order value.
#3 Reduce the cost of ownership
Total cost of ownership in this aspect would be the direct and indirect cost involved in day to day operations of the ecommerce platform. With emergence of cloud technologies and the pricing models leaning towards the policy of “pay as you go”, there is a significant reduction in the total cost of ownership. It is high time for retailers to take this into account prior to the reevaluation of the ecommerce platform vendors.
#4 Increase in new customer acquisition
Constantly acquiring new customers is one of the key aspects for the growth of business. During ecommerce platform migration, the retailers should carefully evaluate the platform’s capability to support and integrate the plug-ins, ensuring seamless user experience for the customers. With successful ecommerce platform migration, retailers can achieve the flexibility that is required for the customer acquisition. This flexibility is provided in terms of simplified user interface, smooth transaction process, personalized recommendation engine, resulting in rich user experience.
#5 Retain the existing customers
With the increase in competition, it is becoming harder to retain the existing customer. The moment they experience a slight lag, they switch to the site that provides them the better user experience in terms of better load time. From the business point of view, the existing customer base can be retained if the retailer would adapt to newer trends by incorporating new features on to their ecommerce site, providing richer experience with increased efficiency.
From technical standpoint with ecommerce platform migration:
The key benefits retailers are looking at from technology standpoint with ecommerce platform migration are:
Scalability is an important feature to consider while re-platforming the ecommerce store. Migrating to a faster platform enables the ecommerce store to optimize the load time, accommodating the traffic in the web page during peak hours as well as maximizing site up-time.
#2 Cross-channel integration
One of the key attributes that ecommerce sites must checkout while ecommerce platform migration is the cross-channel integration capability. With efficient cross-channel integration, retailers would be able to serve customers across multiple form factors while in-store or online, thereby bridging the gap between online and offline. The option to add the plug-ins of various social media platform gives the retailer option to send the promotional offers through various social media platform which in turn increases the customer base and loyalty.
#3 Seamless backend integration
Keeping the possibility of ecommerce platform migration, it is necessary that the back-end modules of the ecommerce operates smoothly. To do that, the mapping process for the migration should be done very carefully so that the consumers don’t have to experience any hiccups during the transaction. Also, retailers can experience efficient inventory management, streamlined fulfillment services and real-time analytics as key benefits.
#4 Enhanced user experiences
The key to success for any ecommerce retailer is to provide the customers an ultimate user experience. To deliver a captivating user experience the newly migrated ecommerce platform should be able to deliver contents that are relevant, refined search functionality and streamlined checkout process. Hence, providing the users with a richer and smoother experience.
Let’s start this one with Macy’s customer service motto- “Be everywhere, do everything, and never fail to astonish the customer”. One of the main feature to look out while retailers are thinking of ecommerce platform migration is to provide the 1:1 personalization. To differentiate their services from that of their competitors, the retailers should be providing personalization at the individual level. What was once a nice to have features is slowly becoming the mandate. If the existing platform service provider doesn’t provide the options for personalization, while moving to the new platform the retailers should observe closely which platform is providing the most option when it comes to personalization.
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