Ever newer technologies are beginning to dominate the world of e-commerce, so together with Łukasz Abgarowicz, Business Development Director Poland at RTB House, we decided to describe the most important industry trends that we will be dealing with this year, and perhaps even in the coming months.
Last year, industry trends frequently mentioned digital assistants, web applications and the use of machine learning in display advertising. Today these solutions are in common use. Currently, among the upcoming technology trends, it is worth mentioning those that will make the user's shopping journey fully coherent, engaging and satisfying.
Full digital transformation
Full digital transformation
Consumers shopping offline still make up the majority of customers for many brands. According to the Retail Dive Consumer Survey, 62 percent of respondents said they prefer to buy in traditional stores rather than online.
However, retail stores are increasingly undergoing digitalization. Thanks to this, they can offer their visitors highly integrated and personalized services. The best example here is the e-commerce giant, which Amazon undoubtedly is, having bought a chain of grocery stores and opened their locations around the world. Except that it applied personalization techniques, machine learning and data collection capabilities that until now were known only to marketers from the e-commerce industry. As a result, their customers can expect deeper shopping experiences.
Typical sales and discounts are no longer enough. Traditional sellers will have to digitize their infrastructure and begin implementing new store functions and formats based on digital technologies and customer convenience. To keep up with the competition, e-commerce brands that own retail stores will have to combine physical spaces with digital infrastructure.
Almost half of all shoppers would appreciate it if their previous online search results were in some way available in a real store. In their opinion, this would make a shopping visit more efficient. Showrooms and so-called "pop-up stores" without proper digital marketing and customer service may record unpredictable losses. Personalized messages and product recommendations are crucial in today's purchasing process, and retargeting campaigns present only relevant offers to the most promising customers.
Last year, artificial intelligence completely changed the world of digital services, and processes based on machine learning achieved truly exceptional results. With access to these technologies, the future belongs to brands that will be able to use them effectively. The key to meeting customer expectations is therefore not only knowing their search history and needs, but the ability to make them real on any platform, in any space, thanks to a highly personalized solution based on artificial intelligence.
Omnichannel is the only option today
Omnichannel is the only option today
According to Google, 85 percent of online shoppers start shopping on one device and finish on another. For this purpose, consumers use smartphones, tablets and computer screens (and may in the future also use televisions or VR sets). With their help, they search for products and services, compare prices and check reviews.
Browsing information is part of the purchasing process on all platforms with internet access. Marketers know they must be present on all of them. However, dividing the budget per device can be a huge challenge.
Brands must think about users' shopping experiences and investments in omnichannel development. Displaying ads on social media can ensure better visibility of the offer. In turn, additional support in the form of regular RTB campaigns will translate into concrete action. Another trend is the development of beacon technology – devices communicating with smartphone applications via Bluetooth. Installed in a store, they display on the screen of a device belonging to a person passing by an invitation to shop or special information about the offer. Therefore, in retail stores, beacon technology combined with personalized content and integrated retargeting campaigns can bring online customers to shop in a physical store. Since brands maintain an average of nine channels of contact with customers, as is easy to guess, the multichannel approach is more important than ever before.
To fully implement this strategy, brands must monitor every device category. Tracking ad effectiveness in terms of conversions, clicks or other data will help marketers decide where to allocate a specific budget in future activities.
AI, VR, AR and other acronyms
According to Juniper Research forecasts, by 2021 more than 12 billion dollars from the pool of annual advertising spending will be allocated to digital assistants. Already, almost 40 percent of millennials use Siri, Amazon Alexa or Google Assistant every day. Young people are also eager to use video chats or conversations with a chatbot before making a purchase. This shows the change in online shopping behavior and enables marketers to look for new ways to approach target audiences.
Artificial intelligence is already practically present in all industries, but there is still much to improve and achieve in this field. Marketing based on deep learning (currently the most promising field of AI research) can help estimate the value of a user's basket. In turn, virtual reality and augmented reality offer completely new possibilities for reaching people.
This process is not limited only to following the customer. For example, the IKEA app, using an augmented reality tool, allows digital furnishing of a room. Advanced technology used in everyday situations can bring a brand closer to consumers, turning them into loyal customers.
Plenty of room for growth
In the world of e-marketing, we are observing rapid changes. New technologies have already begun to go beyond the digital screen. Since the e-commerce industry is increasingly connected with retail, it can be expected that technologies enabling connectivity between different platforms, and above all between online and offline modes, will soon dominate the market.
Summary
In 2018, e-commerce is moving beyond online shopping. The market is forcing brands to undergo full digital transformation, combining online experiences with physical stores, as Amazon does. Omnichannel will dominate — because 85 percent of customers start shopping on one device and finish on another.
The use of artificial intelligence, deep learning and beacons in brick-and-mortar stores is meant to ensure a coherent and personalized shopping journey. By 2021, spending on digital assistants will reach 12 billion dollars, and already tools such as Siri or Google Assistant serve 40 percent of millennials every day.
