Ecommerce in 2020 + Beyond
The pandemic has impacted an array of industries both positively and negatively - causing company and consumer behaviors to change. At Setup, we’ve spoken to a number of marketers in a variety of industries including Restaurants, B2B, IT and Services. The rise of reliance on technology and ecommerce during this time led us to ask the following questions to ecommerce industry experts to gauge current and future trends.
How has ecommerce evolved in the last year to meet consumer demand?
What innovative measures have you taken/have seen in the ecommerce space in 2020 and what do you think is in store for 2021?
What consumer behavior trends are you seeing online?
How are B2B companies adapting and growing in the ecommerce space?
#1 - How has ecommerce evolved in the last year to meet consumer demand?
Companies are shifting their focus to digital
People are practicing safe distancing and ordering online. In order to stay ahead, businesses have adapted to online marketing procedures. For some service-based industries like haircuts, companies like Great Clips have adapted digital campaigns to encourage consumers to use the Great Clips app in order to safely and efficiently book an appointment. For many restaurants, companies are relying on online ordering and delivery to keep them alive.
Adam Roe, Managing Partner at ecommerce agency FortyFour, mentioned, “Online customer demand skyrocketed over the last year. Companies with a focus on digital are gaining the benefits while others are making strides to invest. This is particularly evident across restaurants with online ordering and food delivery.”
“COVID has accelerated eCommerce dramatically as people had no other option when stores closed. A decade of change happened in 8 weeks. Having a direct customer relationship is no longer optional.”
Companies are using predictive analytics to understand consumer behavior
Tracking and analyzing online behavior opens up a window of possibilities for brands. Providing online services gives marketers a better understanding of consumer trends and how to reach them best during the consumer journey.
Chief Growth Officer John Sydnor and Chief Marketing Officer Lance Porigow from the data and creative agency The Shipyard shared a collection of thoughts on this topic, “Many packaged goods companies that never sold directly are now getting in the game. Even if only a minority of sales are transacted directly, that connection to your consumer is invaluable to understanding how they actually behave in response to your brand, products, and messages. What people actually do online is much more predictive of future success than what they say they would do in a survey. The ability to react to consumer demand in real time is the best way to meet consumer demand.”
In order to remain relevant in the consumer’s mind, brands need to continue to evaluate consumer priorities and adjust accordingly. The Shipyard continued, “Ultimately, an omni-channel strategy is what is needed to meet consumer demand. Brands need to be available where consumers prefer to shop. If they’re a die-hard Amazon shopper, don’t try to force them to buy on your own website. Getting people to come to your own website, even if not to buy, creates a lot of benefit from both a storytelling and data standpoint. However, the ‘brand.com’ must have a value proposition that makes it worthwhile to visit – offer a unique experience, exclusive products, engaging content, rewards, etc. The opt-in data you can derive from visitors is very valuable and will help to shape the brand experience to be more relevant to consumers’ needs.”
Todd Skidmore, the Director of B2B eCommerce at Mohawk Flooring North America, noticed how brands are changing their behavior based on consumer preferences. He mentioned how retailers are “adding choice in how consumers receive their ecommerce goods.”
Companies have an increased focus on the backend supply chain
In the fast-paced world we live in full of instant delivery and gratification, consumers have high expectations from companies. Now that most purchasing has switched to online, those expectations have not only remained, but they’ve increased. Brands are needing to provide prime service at an accurate and swift pace, or else they could potentially lose to their competitors. This leads to an increased effort to maintain order throughout the supply chain. Skidmore mentioned that “The focus on the backend supply chain need[ing] to keep up with demand, manage costs and scale along with retailers” has become more of a priority.
#2 - We know that voice, AI, and big data use can advance the consumer's experience - what innovative measures have you taken/have seen in the ecommerce space in 2020 and what do you think is in store for 2021?
The evolution of Customer Data Platforms (CDPs)
“It is likely to provide the next big lift in customer experience.”
The customer experience, especially online, is what will distinguish companies from the clutter. Roe shared, “These platforms (CDPs) are able to aggregate data across first and third-party tracking solutions, segment your customers, and ultimately message to them in personal and impact ways. We see these platforms leading the way for marketers to dynamically communicate and market to consumers.”
A truly individualized experience for the consumer
“As technology, data accuracy and privacy governance matures, it will ultimately reach a stage where people interact with brands in a way that adapts to their needs rather than the other way around.”
Collecting first-party data and understanding the consumer’s needs leads to a good relationship with the consumer. The Shipyard mentioned a variety of methods that are currently not widely practiced that enhance the consumer experience, such as:
Headless commerce websites, which “dynamically render based on user level data,” or
dynamic creative optimization
“In the next 5 years, advertising will be universally personalized to individual needs based on their behavioral signals. Thousands of irrelevant messages are already ignored today, but in the future, consumers will punish brands that bother them with messages that are not timely and relevant to their needs,” The Shipyard shared.
They continued, “Advertising needs to evolve from an intrusion to a welcomed ‘service’ that anticipates their needs by serving up the most relevant content, products, and experiences.”
“Consumers want it when they want it, how they want it, where they want it.”
Skidmore added, “I think the ability to unify customer experiences and enabling choice is a big opportunity. Consumers want it when they want it, how they want it, where they want it.”
#3 - What consumer behavior trends are you seeing online?
Reallocating resources to online marketing
The increase in online spending by consumers has drastically made an impact on marketing budgets and strategies over the past year. Brands are investing more in online efforts to meet the consumer where they are. Roe shared, “We’re seeing huge shifts as customers move from retail purchase habits to online. We had multiple clients do as much ecommerce revenue in April 2020 as they did in all of 2019.”
“We’re seeing huge shifts as customers move from retail purchase habits to online. We had multiple clients do as much ecommerce revenue in April 2020 as they did in all of 2019.”
He continued, “The traffic and volume spikes these online businesses initially saw during the spring have held up reasonably well throughout the summer, forcing companies to reallocate resources in order to keep pace with the changing tides of customer demand.”
Consumers are digitally adapting
“The result of consumers engaging more online also means there’s more data available that can be used for better experiences and outcomes.”
Just like brands are having to move to digital, consumers are readjusting their lives and behavior to digital. The Shipyard stated, “On-demand services are rising faster than ever. Online ordering apps for restaurant curbside/delivery is a perfect example. Online grocery ordering has peaked. Doctors are shifting from in-person to tele-health services and students from physical to virtual classes. Brands are ramping up their ability to sell directly as people avoid offline retail and are reaping the benefits of the data as well as the higher margins. Consumers are getting more experience with digital services and expectations will rise faster as a result. This is creating a ‘Digital Darwinism’ where only the best digital experiences will survive.”
Consumers have higher expectations
Skidmore added, “I think consumers now expect a great experience and the price and convenience they have grown to expect.”
#4 - How are B2B companies adapting and growing in the ecommerce space?
The evolution is working and assisting in their favor
All of the blog participants stated that B2B was not immune to the recent changes caused by Covid. Roe said, “B2B companies are no exception to the growth of digital commerce. Fortunately, the software and tools have grown dramatically as well to help extend B2B sales online in a manner that enhances the overall process. All major ecommerce platforms have plug-and-play solutions that allow for B2B ecommerce needs like custom pricing, PO tracking, and unique buyer roles. On top of that, we have seen more companies look to create first party vendor relationships with major ecommerce platforms like Amazon and Walmart.”
Investment in digital payments
The more B2B companies adopt and perfect digital practices, the easier it is on the lives of their consumers. The Shipyard mentioned, “B2B digital payment infrastructure investment has accelerated dramatically and improvements in this area have also impacted the increase in availability of goods on digital exchanges. As a result, digital contract enforcement, ease of digital payments, real-time inventory integration, purchase order approval processes and self-service options have all been advanced by B2B industry leaders.”
B2B consumers expect a B2C experience
B2B companies were already, albeit slowly, adapting to more B2C marketing behaviors in order to reach consumers better. Covid has only expedited the process. Skidmore shared, “Expectations have shifted for B2B customers. They are expecting consumer-level ecommerce experiences so it’s key to be able to deliver against those expectations as a B2B seller.”
The Shipyard also commented on B2B’s shift to a more human-centered marketing approach. “More investment is being put into B2B content strategy, demand generation tools, effective messaging and engagement methodologies to measure the effectiveness of marketing spend at various points on the buyer’s journey. This realization is accompanied by understanding that an increased reliance on a cogent B2B digital strategy is mission critical – and one of the most impactful factors on a firm’s success…or failure.”
“B2B purchasers also happen to be human as well, and first party data on these customers is often lacking or minimal at best. Many enterprises are now discovering that their B2B customers’ journey, demand generation process and omni-channel attribution needed an enhanced digital strategy. ”
Consumers won’t wait for a brand to adapt. In order to stay top of mind and gain a competitive advantage, brands need to be nimble on their feet and seek a thorough understanding of their consumer’s needs. The more personalized and efficient a brand’s marketing ecommerce strategy can be, the more the consumer can rely on them, and the brand has a stronger shot at surviving.
According to the 2023 Setup Marketing Relationship Survey, Word-of-mouth and Referrals consistently remain the most frequent methods Clients use to find new Agency Partners.
This has been the case for the last five years of the Marketing Relationship Survey.
What does this mean for Clients + Agencies? How can they optimize their efforts with this knowledge?