Our friends at WooCommerce held a phenomenal session on the future (and present) of e-commerce and the digital marketplace. The State of E-Commerce in North America: Cracking the Code of the Modern Consumer featured key insights about the industry, as well as an expert panel of marketing managers from Victoria Secret, Klaviyo, Smirnoff, JD North America, and Woo. Collectively, this panel brings in billions of digital sales dollars. They shared empowering wisdom about how to succeed in the future of the industry.
It’s impossible to gather absolutely everything that was shared (I was too engrossed in the conversation to note it all), but let’s briefly recap some of my key takeaways from the event.
Shoppers are Buying with More Intention
Not to be an alarmist, but the American economy feels a lot less stable than advertised. I think most citizens would agree. Experts are a little all over the place about it (plus, some reports feel a little untrustworthy). A recent article from Fortune actually reports that a third of the U.S economy appears to already be in a recession and another third is declining. Others say that the economy is rebounding “strongly”. They all include some fine-print, no matter which side of the truth you’re on.
It’s hard to decipher what’s really happening in our country (and world) right now.
That shaky ground is the same ground that your customers are standing on. Just like you’re trying to navigate the murky economy, your customers are trying to do the same. Today’s confidence in the dollar is strained. Transactions and purchases weigh more for everyone (even the ones who are trying to pretend that the house is not on fire). In a study conducted by Woo, only 24% of shoppers feel financially secure today. Because of that, shoppers are being more intentional about their purchases.
Customers are doing their research more than ever. 64% of customers say reviews are a key influence on their purchases. 43% will completely abandon a purchase if it feels ‘uncertain’.
Takeaway: Be intentional about developing relationships with your customers. Go beyond the transaction. Meet them where their inhibitions reside and work to make them more comfortable. Get reviews. Personalize the experience. Work with your consumer.
Free Shipping & Discount Codes
This wasn’t too shocking to me, but it was good to see it in writing. It reminded me that I wasn’t going crazy and how beyond selling in the marketplace, I’m a consumer too.
Consumers are clamoring over free shipping and discount codes. Woo reports indicate that 59% of customers abandon purchases once they see high shipping costs. Free shipping and discount codes drive 55% of customer’s online shopping experiences, according to Woo data. They were the two most impactful purchase-influencers of the study. Rewards and Loyalty programs are performing extremely well.
There’s something there.
Takeaway: Think about yourself as a consumer. How do you respond when you hear/read “free shipping”? What about when you receive a discount code? You’re a consumer too. Put those discount codes in your store and take care of your customers. Throw some free shipping in there too (if you can).
Use Today’s Tools to Target Your Audience
There is a lot to celebrate about today’s technology. Some are fearful of it (change makes people uneasy). Most of technology’s advancements in the online shopping experience are about targeting shoppers. It’s about making your store feel like it’s all about each customer, and only them. We’re now able to build systems that tailor the buying experience to specific consumers.
Personalized shopping experiences are beginning to matter more as the next generation of shoppers dominate the market. 30% of Gen-Z shoppers find personalized shopping experiences helpful. 25% of millennials (Woot! Woot!) agreed.
Takeaway: Focus on understanding the technology at your (and your team’s) fingertips to make each customer feel like their shopping experience is only about them. See what you can add to the marketing campaign as well. What can you build to speak to this?
AI is Beginning to Shop For People
It’s happening (and I love it). Artificial Intelligence is beginning to shop for consumers by suggesting products (and services) based on algorithms. 66% of high earners are using AI for product recommendations. Moreover, 32% of consumers earning under $99K a year are beginning to do the same. It’s a statistic that is trending upward as the technology becomes more common.
Takeaway: Affirm the algorithms by intentionally being a reputable brand. Serve the marketplace with your very best products, services, and branding. Everyone is watching (even the robots).
Yes, You’re Correct: Younger Shoppers Find Products on Social Media
I could be misguided, but I think this is pretty much commonsense for most of us. Younger shoppers begin their shopping experiences on social media. Can you guess which platform is leading with Gen-Z? Yep! Tiktok.
55% of Gen-Z shoppers use Tiktok to discover new products. Millennials aren’t too far behind as 29% of us (Woot! Woot!) also use the popular short-form app. Instagram and YouTube are the second and third most popular platforms to find new products for both age groups. Older demographics rely on Facebook, Google, and various online marketplaces (Amazon, Etsy, etc.) to find their products.
Takeaway: It’s simple, really… If you’re looking to reach younger audiences, focus on Tiktok and Instagram. Use Facebook for older audiences. No matter what, take Google and other search engines serious.
…But, the Transactions are Made After Google Searches & Product Reviews
No matter where the transactions start, they end on Google or through product reviews. Over 80% of those surveyed say they rely on Amazon Reviews, Product Listings, Google Searches, or Google Shopping to affirm their purchases before they’re made. That’s why I said take them seriously.
Takeaway: Take Google and your branding seriously. Be intentional about gathering reviews and showcasing the best your brand has to offer.
Influencer Marketing Still Matters (Contrary to popular belief)
It’s not as hot as it once was but it still is a reliable way to affirm customers: influencer marketing.
Personally, I think it’s still relevant to connect with specific creators to share your products with their audiences. 27% of those surveyed say they’re somewhat likely to purchase a product based on an influencer recommendation. 23% are neutral. The skepticism is still a thing, however. 24% say they don’t trust influencers at all.
And, that’s fair. I don’t trust a lot of them either (just being honest… no shade). I still think (and recommend to CTZNS clients and the village) that it’s 1000% worth it to connect with reputable influencers who align with your brand to help sell your products. Think of it more as a partnership with a brand (and person) you support, instead of just a business move.
Takeaway: Influencer marketing isn’t going anywhere (it’s been around for decades, we just never called it that). Find some good people to champion your brands. Develop partnerships, not just business deals.
A Bright Time for the Digital Marketplace
My biggest takeaway from my experience at Woo’s The State of E-Commerce seminar is that it is a phenomenal time to get online and do some selling. Is it easy? Of course not. Is it linear? Well, what is nowadays?
The biggest (and brightest) question to ask is “how rewarding is today’s digital marketplace?”
It is very rewarding. According to Sellers Commerce, e-commerce is now a $6 billion industry. The door is wide open, too. It’s just about getting that store open on your website and going for gold.
I believe in you. There’s no time like the present. Get active and start selling. Good luck and shine bright.
