The Future of
Feb 25, 2017 by Jesse Ness,
E-commerce: New Data from Ovum
Ever wondered what
Consulting firm Ovum is giving us a peek into the future with their
Take a look at some of the key takeaways of this research to better understand where
The Customer of the Future
What does this mean for the future?
High expectations & unique experiences
Ovum predicts that by 2026, the bar will be even higher for
Complex shopping journeys
As technology adds more touchpoints to the shopping journey (think mobile, desktop,
The sharing economy
Buyers of the future will also likely expect online merchants to tap into the sharing economy as well. Smart retailers will need to learn to leverage partnerships and sharing opportunities, such as retailers like H&M are already doing with their donations of returned products to charities. This presents an opportunity for greater sustainability efforts, less waste, and more moments of giving — all of which is a positive message for consumers to hear.
Blurred Boundaries Between Online and Offline
Let’s look at some of the key ways this may manifest itself.
Rather than an
Manufacturers gain power
As manufacturers seek more control over how their products are displayed and sold, they may be able to exercise their power more in the future — especially in the electrical devices marketplace — by favoriting only sites that meet their requirements.
From omnichannel to omnibrand
Retails who approach the experience from a
Increased Mobile Sales
As smartphones with larger screens become the norm, we can continue to see more and more shoppers using mobile devices for
What else does this mean for mobile commerce?
Looking ahead, it’s likely that geolocation will be leveraged by retailers looking to deliver contextual marketing to customers. The adaptation period for hyperlocal commerce may be slow, and retailers must use this data responsibly without overstepping the bounds of privacy. However, used conservatively, this type of data can help shoppers get the best possible deals nearby — and creates opportunities for customer engagement on a whole new level.
More mobile payments
Mobile payment will most likely be mainstream by 2026 but will have evolved thanks to improvements in tech. This means most payment formats across the board may shift to be more
Mobile loyalty programs
Mobile advertising will continue on an upward trajectory — and spending will most certainly increase within this medium. However, native applications will likely be replaced by more intuitive approaches that help retailers select the most relevant channel to accomplish advertising goals.
By 2026, we’ll likely live in a
Here are some specific ways technology may impact
The Internet of Things (IoT)
If IoT payment and commerce applications don’t have a
Wearables may be a solid source of detailed data — which enables more accurate advertising through mobile mediums. However, privacy infringement will be a major concern for shoppers — so retailers will have to walk a fine line when targeting consumers via wearable tech.
Augmented reality (AR) will likely have the most impact on the
Preparing for the Future of
E-Commerce: Final Tips
With all of these insights for the future of
- Be flexible, train often.
E-commerceretailers will have to be flexible and accommodate the many changes ahead. This process is made easier through constant learning, training, and innovation — so it’s essential to embrace a bit of a learning curve.
- Leverage segmentation. By 2026, segmentation may no longer be appropriate for consumers who move seamlessly between segments. Instead, more advanced, creative models will be needed that embrace this fluidity while still delivering relevant, personalized experiences.
- Know the limits of personalization. Go too far with personalization in the future, and you might ruin your profit margins. Keep in mind that
cost-efficiencyand scalability can be destroyed when you try to create a product that’s too personalized. Retailers will need to strike a balance between personalization and mass production.
- Study your shoppers. Online retailers that will succeed in the future are the ones who know and understand their customers — from marketing preferences to buying habits and beyond. Use analytics to study and deeply understand what your shoppers need and want from you.
- Refine your brand. Finally, there’s the element of branding. Knowing who you are and what you represent as a brand will help you establish a unique, memorable angle within this evolving marketplace. Strive to constantly refine your branding elements, and you’ll maintain a lasting, relevant impression in a hectic online market.
2026 is a long time from now, but that’s no reason to put off your preparation. Get a head start with your plans for the future, and think about what you’ll do to stand out against your competition.
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