Retailers Emphasize Personalization and Enhanced Customer Experiences in Ecommerce
According to a recent survey conducted by Shopify and International Data Corporation (IDC), online retailers are placing a greater focus on personalization and enhanced customer experiences in the ecommerce space. The study, titled SaaS Commerce Platforms: The Future of Simplified Business Operations, aimed to provide insights into how retailers are utilizing software-as-a-service commerce platforms to support their sales strategies. The findings shed light on key priorities for companies in the booming digital commerce landscape.
One of the most significant revelations from the survey is that nearly three-quarters of companies consider enhancing personalized shopping experiences crucial. Retailers are increasingly seeking a better understanding of customers’ preferences and behaviors to provide tailored and individualized shopping experiences. This focus on personalization aims to create a more engaging and customized journey for consumers.
In addition, the study found that companies are prioritizing the breaking down of data silos and fostering better internal communication and collaboration. By streamlining processes and improving efficiency, organizations can enhance the overall customer experience and streamline the path to purchase.
The report also highlighted the importance of expanding market reach and targeting new customer segments. Seventy-two percent of companies identified this as a priority, indicating their intent to explore new horizons and tap into previously untapped markets. Furthermore, retailers are keen on improving targeted promotions and personalized marketing campaigns, with 59% expressing their desire to do so.
When it comes to selecting ecommerce platforms, the survey provided insights into the preferences of retailers. The data revealed that 29% of surveyed companies currently use full-stack commerce platforms, which offer comprehensive and all-in-one solutions. These platforms are cost-effective and easier to operate, making them suitable for companies with basic digital commerce requirements.
However, as digital commerce continues to expand and evolve, the study suggests that companies may require greater scalability. This could potentially render full-stack platforms less suitable for more advanced needs. As a result, 45% of businesses have adopted blended SaaS commerce platforms, which feature a full-stack back end and a composable front end. This blending approach offers increased agility and is well-suited for companies embracing more advanced omnichannel models.
Additionally, 27% of companies have already implemented fully headless and modular SaaS commerce platforms. These platforms provide more advanced commerce architectures necessary for the evolving omnichannel customer journey and the increasing complexity of retail operations.
The survey also revealed the future plans of companies regarding their commerce platforms. It found that 91% of companies currently using full-stack platforms intend to transition to blended SaaS commerce platforms. Furthermore, 74% of companies currently utilizing blended platforms plan to move to a fully headless and modular SaaS commerce platform.
Moreover, a significant number of companies expressed their intention to explore or implement changes to their commerce architectures. While 38% are actively exploring possibilities or planning changes, 29% have already decided to change their commerce architectures or are in the process of implementing changes. However, 28% of companies stated that they have no intention to alter their existing commerce architecture structure.
In terms of system enhancements, the report highlighted the areas that companies plan to invest in. An overwhelming majority (84%) plan to implement or expand payment platforms to improve customer convenience and facilitate seamless transactions. Furthermore, companies are focusing on order and inventory management systems (71%) and social commerce applications (66%) to optimize operational efficiency and enhance the customer experience.
Notably, the report emphasized the role of artificial intelligence (AI) in transforming ecommerce platforms. For instance, the application of AI can help businesses build more personalized customer experiences, streamline customer service operations, and gain a better understanding of consumer preferences and behaviors. The survey found that the majority of companies plan to incorporate AI into their ecommerce platforms, such as implementing conversational AI for customer support (94%), product discovery and visual search capabilities (90%), and generative AI for content generation and customer experience personalization (70%).
As the ecommerce landscape continues to evolve, retailers recognize the need to prioritize personalization, enhance customer experiences, and streamline processes. By leveraging the power of advanced ecommerce platforms and emerging technologies like AI, businesses can better understand their customers and provide tailored shopping experiences. These efforts contribute to an improved customer journey, increased market reach, and ultimately, higher revenue for retailers worldwide.
