According to a survey in 2017 conducted by e-commerce websites, 51% of Americans are using the Internet when shopping. The success of e-commerce is attracting more businesses to do their selling, online. However, to survive this cut-throat competition and be successful in this business, marketers have to offer an enjoyable and memorable experience for their customers. As the Internet progresses, technology has also changed the way customers, and retailers interact with each other. It enables the marketers to build an online brand equity and image. Here are ways how retail technology changes the future of online shopping.
Mobile phone shopping
ComScore Incorporated researched how Americans use their smartphones, and according to their survey, 86 million uses it for online shopping. Four out of five cell phone users are either studying the products they want to buy or use their smartphones to make a purchase. Smartphone users have been the primary target market of businesses today. Marketing companies and business owners are making sure that they maintain a good reputation online and offers the lowest price possible. To make their businesses relevant, they need to provide their customers with the memorable and enjoyable shopping experience, at the same time, be informative and convenient for the users.
(Find out more here how you can use mobile phones to get product discounts and coupon codes)
Mobile phone users are now comfortable with online shopping, and it is crucial for sellers to know that they need web analytics and behavioral analytics for customers to be successful in this field. The customer prefers to research the product they are interested in via the Internet. However, they also need retailers and online sellers to offer them different options concerning their buying behaviors and preferences. Business analytics can provide sellers and buyers, plenty of data on how customers behave, the trends, and it helps sellers improve their products, marketing strategies, supply chains and advertising plans. Behavioral analytics track every buyer’s purchase and search history and how they interact with customer care professionals. It offers tons of information to online marketers. It enables retailers and manufacturers to predict how their target market behaves when shopping.
Dynamic Pricing Strategies
The online market is highly volatile and price-sensitive, not to mention, competitive. Dynamic pricing is a strategy that marketers used where the products and services that are offered are changed depending on the supply and demand. It is a flexible pricing strategy that allows retailers to change the product prices depending on factors like inventory, sales target, and competition. When sellers and manufacturers notice a fast-selling product, they will temporarily increase the price of that product to avoid depletion of the stocks. When the sales target is high, they will push sales by offering a lower price on their products. This strategy will also help companies monitor the competition’s pricing strategies and make a proper decision to counter them. For example, if the competition has a low supply of specific products, the company with high supply can dictate how much they will sell that their product. They can increase their prices and boost their sales. Customers will have no choice but to buy their products because other companies don’t have enough supply to cater to everyone.
AI or Artificial Intelligence
According to research conducted by Gartner, by 2020, two-thirds of customer interaction will be managed by computers using artificial intelligence. Because of the positive feedback from customers in regards to AI, retailers are investing heavily in artificial intelligence to keep up with the rising of demand. The AI is also used to handle customer data, influence and analyze customer behaviors and prevent fraudulent transactions. Not only that, companies can save money regarding employment. If you are paying one person to handle data, another person to analyze the behavior of your customers, and another person to process a fraudulent transaction, you are paying three people that a computer can do. Instead of paying monthly salaries for those three, you can buy the software, and you can now use the AI to your heart’s content and only pay one expert for maintenance. And computers can work 24/7, without complaining and they work faster.
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According to UPS Pulse of the Online Shopper 2016, at least 30% of all purchases is made using multiple channels. The Internet, specifically the social media are the center of the omnichannel shopping. Customers use their social media account to the product research, read comments and reviews, and purchase products. People use multiple channels to decide when selecting products and services that they want. To attract customers and ensure consistent sales, e-commerce retailers need to improve their online presence across different channels. Retail technology is improving how the online shopping business is running. They are making innovative ways to engage with their clients and customers.