The digital commerce landscape is an unstoppable force in hyperdrive. From headless commerce to ghost kitchens and BOPIS options, CEQUENS explains how the way we shop is transforming at breakneck speed. Gone are the days of waiting in line for tickets or lugging groceries home – today’s consumers expect a seamless, personalized experience at every touchpoint.
So, what is digital commerce?
Digital commerce is the buying and selling of goods and services online. Contrary to common belief, the roots of digital commerce stretch back further than the online shopping experiences we know today – all the way to 1982, in fact, when the online marketplace The Boston Computer Exchange (BCE) launched an online marketplace for people to buy and sell used computers. While early online commerce laid the groundwork, today’s digital commerce thrives on mobility, personalization, and a blend of physical and online experiences. It provides a holistic customer buying journey with multiple touchpoints offering an omnichannel customer experience. These experiences take place through websites, mobile apps, social media platforms, chatbots, AI assistants, and any digital channel, making the buying and selling transactions easier than ever.
A common misconception is that digital commerce and e-commerce can be used interchangeably. Despite their similarities, e-commerce represents one pillar of the digital commerce realm. While e-commerce is limited to online storefronts, digital commerce is inclusive of all the digital touchpoints such as promotional advertising, post-purchase support, and data-driven analysis.
Digital commerce trends & practices in 2024
As 2024 unfolds, a wave of innovative trends is reshaping the way we shop online. From the rise of headless commerce and voice-activated assistants to the explosion of immersive AR experiences, the customer journey is becoming increasingly personalized, convenient, and engaging. Here are some of them:
- AR/VR-supported products: With this technology, users can virtually try on any product without having to go to the store, bringing the product closer to the consumer, making it as real as possible for an immersive CX.
- Self-service CX: This essentially entails providing tools and resources that allow customers to get what they need without directly contacting a customer service representative, reducing the dreaded lag time often associated with customer support agents and empowering customers with the autonomy they prefer. Self-service also positively impacts ROI; reducing costs by 80 to 100 times compared to high-effort interactions as highlighted by a recent report by Gartner.
- Ghost kitchens: Also known as virtual restaurants, cloud kitchens, or dark kitchens, are restaurants that operate without a physical storefront for dine-in customers. They focus solely on fulfilling online orders for delivery or takeout. These operations are widely popular on both a regional and global front. Take for example Kitopi, a regional cloud kitchen operation currently valued at USD1 billion, which was launched in the UAE in 2018. Today, the company is present in 8 countries and boasts more than 200 locations.
- BOPIS: It stands for buy online, pick up in-store a hybrid shopping experience with significant cost and time reducing advantages. Additional perks include online-exclusive discounts, comparison shopping, and avoiding impulse buys.
• Flexible payments: BNPL or buy now pay later, are online installments without complicated requirements and with zero interest for shorter installment plans. Many businesses now provide this service like Tabby, Tamara, and Valu.
• Headless commerce: This emerging type of commerce provides great flexibility for e-commerce businesses as it separates the front end from the back end while keeping both operating seamlessly. Its main edge is the increased flexibility and control in creating a customized and engaging customer experience. - Voice commerce: Is the act of using voice commands to buy things online. This can be done simply through virtual assistants on smart speakers or smartphones, like Amazon Alexa or Google Assistant.
- Smart carts: This one is more of an emerging concept that is not quite mainstream trend yet. They are essentially shopping carts equipped with technology to enhance the shopping experience with features such as self-checkout.
What makes a modern consumer buy, and buy again?
Today’s consumers are bombarded with choices. To win their loyalty, businesses need to go beyond simply having a good product. The key lies in creating a frictionless and engaging customer experience that builds trust and keeps them coming back for more. Here’s how focusing on engagement, personalization, and convenience can turn a one-time buyer into a loyal brand advocate:
Engagement: Modern customers crave more than just a transaction. They want to be informed, entertained, and connected with the brands they support from the very first touchpoint. Utilizing live chat features to answer questions in real-time or offering post-purchase tutorials and guides can go a long way. Talabat is one of the businesses that provide an engaging customer experience with a user-friendly app offering real-time tracking and support. The app also provides games while customers are waiting for their orders, allowing them to be entertained, in addition to other benefits like vouchers, loyalty points, and a free month subscription on entertainment apps such as Shahid.
Personalization: A one-size-fits-all approach just doesn’t cut it anymore. Customers expect a shopping experience tailored to their individual needs and preferences. Leverage data and analytics to recommend relevant products, offer personalized discounts, and deliver targeted content that resonates with each customer.
Convenience: Time is a precious commodity, and today’s consumers want a seamless, quick, and hassle-free shopping experience. Multiple payment options, fast and transparent checkout processes, and convenient delivery or BOPIS options all contribute to a customer-centric approach.
In a nutshell, to thrive amid the constantly evolving commerce landscape, businesses should leverage dynamic, intelligent solutions that place them on the right track towards exceptional customer experience. Remember, the future of shopping is all about the customer. By meeting their needs for engagement, personalization, and convenience at every touchpoint, businesses will be well on their way to thriving in the exciting new world of digital commerce.
