Orla Power, marketing director, Luzern Ecommerce:
As eCommerce brands and retailers look forward to 2024, here are three trends that will be influencing approaches and decision-making processes for businesses and consumers alike:
1. AI/Appropriate Technology
The real change we will see is the application of AI, as it transitions from discussion to practical implementation. Appreciation of its potential will become more widespread, and people will work through how to effectively utilise it in action.
AI is the biggest thing to happen to eCommerce. From predicting consumer behaviours, managing the operational technology, optimising how your products are presented, making searches more relevant and advertising more productive, AI is literally everywhere.
However, it is important for brands to not just jump on new technology trends without considering their tangible benefit. Using appropriate technology involves identifying innovations that genuinely enhance the business and improve the customer experience, aligning with the organisation’s growth strategy to prevent wasting time and money on inappropriate investments.
2. Personalisation at Scale
In the ever-evolving world of eCommerce, a standout theme is the power of understanding customers and utilising AI for a personalised experience at scale. Platforms like Amazon are rolling out AI tools to enhance content, product listings, and analysing reviews, making it easier for shoppers to grasp sentiment without drowning in endless comments. Digital transformation is a pressing need for companies, emphasising the challenge of marrying technology with the human touch, an area where the US is thriving compared to Europe and the UK.
The crucial shift lies in aligning your tech stack with operational needs, focusing on agility and flexibility. Within this, the conversation shifts to multi-local commerce, highlighting the essential role of personalisation at scale. Brands aiming to sell cross-border must pin down the relevant local experience, considering diverse payment methods and shopper expectations. The aim is to deliver ease and speed in buying locally from the brand your consumers prefer.
As we look toward 2024, a seamless domestic experience from country to country, whether on marketplaces or direct-to-consumer stores, is central for retaining customer loyalty and staying ahead in eCommerce.
3. From warehouse to their house
Moving into 2024, a crucial trend that continues from 2023 revolves around ensuring a swift and seamless experience ‘from the warehouse to their house’. The post-purchase journey, spanning from the buy to the moment the purchase arrives on their doorstep, must be faultless. You can have the best digital experience in the world, best payments, best imagery of your product and representation of your product online, but if it doesn’t get into your buyer’s hands quickly and easily that will cause unrest in the customer experience. The emphasis on efficient fulfilment from the warehouse to the customer’s house has grown significantly with the last mile of delivery becoming a make-or-break factor in customer satisfaction.
Choosing the right partners for every aspect of the customer journey is essential, especially as customers expect Amazon-level delivery speed and convenience from all online stores. In the realm of advertising, maintaining control over owned assets and optimising brand presence becomes paramount. Personalisation, extending beyond the purchase to packaging and other aspects, emerges as a key strategy to engage and retain customers at scale. As the number of online shoppers continues to surge, flawless fulfilment and last-mile delivery services are becoming critical table stakes, offering flexibility in deliveries, pick-ups, and returns for both customers and brands alike. Happy New Year!
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