Rob Weaver, chief revenue officer at Vertebrae, explains why retailers must focus on engaging shoppers and boosting purchase confidence in recovering from COVID-19.
May 18, 2020 by Rob Weaver
Amidst the economic chaos triggered by the global pandemic, e-commerce is a potential bright spot. With a focus on key tactics that engage shoppers and overcome online purchase hurdles, retailers can make the most of the opportunity for growth and win new customers in the process.
Seven in 10 of the Internet's largest retail brands that operate physical outlets have shuttered their stores, according to Internet Retailer. By the beginning of April, 28% of retailers reported increasing their Internet presence in an effort to reach consumers sheltering in place, Forbes reported.
Months-long site overhauls and costly replatforming initiatives are impractical in crisis mode. With time of the essence, retailers should focus on the quick wins that engage shoppers and put them at ease about purchasing online. The top changes to undertake:
Google has just eliminated fees for basic listings in its dominant Shopping search service, so brands should plump up product feeds and reallocate spend toward recent best sellers and trending items. While Amazon is now the top starting destination for product searches, Google Shopping remains retail's most popular search ad format, according to eMarketer — and the move to "free" may help the search giant wrest back critical-mass dominance. While they're adjusting feeds, retailers should also move spend away from location-based placements intended to drive store traffic, and instead allocate those dollars to click-to-call, click-to-chat, and other calls to action oriented toward driving online sales.
Retailers should re-engage their existing audiences by enhancing automated email series triggered by specific events, such as shopping cart abandonment or subscription signup. Email content showcasing in-depth online content, ways to stay connected on social media, and offering shortcuts to customer support can all encourage shoppers to revisit the e-commerce site. In addition, retailers can reconnect with buyers and entice them to become repeat customers using tailored replenishment offers and content about loyalty club rewards. Such automated, triggered, personalized email campaigns can earn open and conversion rates twice or even three times as high as standardized “batch and blast” messages, according to Listrak.
Immersive commerce features that use 3D and AR can boost shoppers' purchase confidence even when they can't physically touch or try items. With 3D, shoppers can rotate and flip product images and zoom in to examine details, while AR enables shoppers to view items in real-world context, giving them an accurate sense of scale. Furthermore, 3D and AR shopping experiences are designed for the devices shoppers are using now. Mobile traffic in March was up 34% year-over-year, according to comScore, compared with a decline of 4% for desktop or laptop machines. Immersive commerce tools solve small-screen shopping challenges: nearly 1 in 5 consumers told comScore the inability to see and compare product details on small screens stopped them from ordering. These hurdles can be easily overcome by allowing shoppers to experience products from the safety of their own homes through 3D and AR placement. In return, merchants will achieve increased mobile sales gains.
To engage house-bound consumers looking for diversion, retailers can offer in-depth content offerings that align with their product niche — whether through video replays of prior brand events, live virtual style consultations, or classes taught by staff experts or other authorities in the field. Such substantive content can also earn brands a word-of-mouth boost, as more than a third of consumers in an Adobe survey they'd be likely to share informative material. The same percentage said content supporting a good cause was likely to be shared, suggesting brands should also spotlight charitable initiatives they've undertaken to support their employees and/or local communities during the pandemic.
Anywhere from 20 to 40% of online purchases are sent back, and in the U.S., four in 10 shoppers prefer to bring items bought online to stores for return, according to UPS. With that option currently unavailable, retailers should reassure customers that they'll still be able to bring items back once doors reopen by pausing the clock on return policy timelines until the lockdown ends. Close to one in five retailers have temporarily suspended processing of returns altogether in a nod to employee safety and the realities of reduced staffing, Internet Retailer reported.
The global pandemic is a challenge like no other for retailers. Those that can nimbly adapt their e-commerce offerings to maximize engagement and overcome key purchase hurdles can emerge from the crisis with enduring improvements to the online experience and new customer relationships that last.
Rob Weaver is chief revenue officer at Vertebrae.