eCommerce News – Amazon
This week our main focus is Amazon. Internet Retailer reported that last month, Amazon Prime’s user base grew by 3 million – and that was in its third week alone. The “$99 a year” service includes free two day shipping on loads of its products, free video streaming and various other little things that you didn’t know you wanted, let alone needed…
The online retailer also noticed a shift in consumer behaviour with the amount of shoppers using its app to make purchases doubling year over year. It’s looking to be a lucrative year for the online giant.
Speaking of giants, a battle is brewing between Amazon and brick and mortar stores. Traditional retailers and e-tailers are facing intense challenges trying to dominate this year due to unusual weather, profitability and prices. This increasing success of Amazon and its Prime perks come as we observe brick and mortar stores making their slow but sure transition online. Online Vs In-store experience isn’t the only complication with retailers – a lack of new fashion trends is seeing customers seek the best deal now more than ever. It’ll be interesting to see if Amazon can keep up their eCommerce takeover this quarter as high street stores start to creep in on their territory.
Data Mining – The Future of Online Retailing
If you’re unfamiliar with the concept of data mining – although pretty self explanatory – it means to search for and accumulate data. It’s not a new concept, but data mining is leveling the playing field for smaller retailers this year. With the choice to manually or automatically mine for data, there are both pros and cons. Manually mining data on your competitors over time is essential for driving business decisions, but automatically mining data can save you valuable resources. Retailers are changing their prices constantly, so automatically mining data is your best option to avoid error.
You can bet that your competitors have already began mining for data, and that includes info such as prices, inventory assortment, customer reviews and stock levels. An inventory assortment review, for example, could help you re-evaluate your inventory and suggest items to stock that could carry a competitive advantage. Mining for data as often as every 15 minutes is a sensible idea considering how often retailers actually alter their pricing. Amazon has even changed the price of the King James Bible over the years as a result of data mining. Data mining allows retailers to provide personalised and unique shopping experiences and this is where your market research should – nay MUST! – be heading.
Consumers Are Becoming More Relaxed About Their Data
That’s right! Consumers are taking off those tinfoil hats and chilling out a bit when it comes to sharing their data with retailers. Econsultancy’s new report “Value Exchange from Data Exchange” shows valuable insight into how you can encourage customers to give up their data more willingly. The behaviour towards data is changing and there’s three types of attitude you should know about:
- 1. Fundamentalists – These are the ones who’re totally opposed to data sharing. This group has decreased from 31% to 24%.
- 2. Pragmatists – These people consider how to manage their data exchange and this group has increased to 54% from 53%.
- 3. Unconcerned – They just don’t care. This group has grown from 16% to 22%.
And another fun fact we’ll leave you with is that only 1% of consumers trust advertisers with their data, but 27% would be willing to sell it. Everyone has a price, right?
The Top 5 Audiences to Target With Remarketing
Remarketing should be a top priority for all retailers, especially with its proven superiority over initial marketing techniques. The main limitation for marketers is that they’re narrowing their reach by automating their remarketing and missing out on key groups. It’s key to get the right message, to the right person at the right time to reap the rewards. So we’ve got the 5 audiences you should be targeting ASAP.
- 1. Remarket to New Visitors with a First-Time Incentive. – Showing a generic remarketing advert to all your first time visitors won’t persuade them to make the jump. The consumer is at the top of your marketing funnel and still warming up your brand, why not offer a bundle or discount?
- 2. Remarket Based on Product Categories – Seems like a no brainer but it’s surprisingly how many retailers aren’t doing it. Don’t just show them something similar to what they looked at either – show them that exact item on their Facebook feed (or elsewhere) to remind them.
- 3. Re-Awaken Abandoned Shoppers – The abandoned shopper is a fundamental facet of modern life. They have very little attention span and need to be re-marketed to as they just, well, abandon stuff. They key to this audience is re-marketing memorably.
- 4. Re-Market to Upsell Active Buyers – Most first time orders are pretty low, so you need to give them a reason to return to you and become loyal. If they first ordered a pair of shoes, re-market some matching trousers to them. Be useful to your consumers, and they’ll use you.
- 5. Re-Sell After a Certain Time Period – Re-market to those who may have run out of your product. This is particularly useful to cosmetic brands, stationary retailers, etc.
Consumer Insight – Most Shoppers have Abandoned a Retailer Because of Poor Service
In an article from eMarketer, Aspect and Conversion Research has revealed that 52% of customers have stopped purchasing from a retailer due to poor customer service. This isn’t just exclusive to retailers however, people stop business with other companies if they have a negative experience also. 23% said they experienced bad service with telecoms companies, 12% no longer buying from travel companies and 11% with financial and credit companies. Retail overwhelmingly takes the lead on this one. The top annoyances of customer service are having to repeat information at every step of the process, not having problems resolved or waiting on hold – not surprising.
It should go without saying, but do your utmost to get your consumers on board!