Wednesday, June 19, 2024

Data crucial to capture shopper’s wallets post-Covid

Salesforce, the global leader in CRM, has released the second edition of its State of Commerce report, which reveals 90% of retailers in ANZ have reported impacts from third-party cookie depreciation as commerce moves online.

The report, which analysed buying data from over one billion customers and surveyed 4000 commerce practitioners across 25 countries, including 200 from across ANZ, seeks to uncover how B2B and B2C companies are adapting to a digital-first customer engagement landscape.

The research found that while today’s retailers prioritise a data-driven approach, with 90% of sellers effectively using customer data to inform their marketing or business plans and 89% agreeing they’re effectively using data to personalise the commerce experience, they will need to prioritise first-party data strategies over the next two years.

Other key findings:

  • Digital channel expansion is in full swing: Globally, website sales grew 44% between Q1 2020 and Q1 2022 at B2C companies, and 95% at B2B companies. But e-commerce sites are the tip of the iceberg as sellers race to meet customer expectations for new buying options. Across ANZ, respondents expect an average of 60% of their revenue to come from digital channels within two years including third-party marketplaces, websites, mobile apps, and social media.
  • Alternative payment options are becoming table stakes: The rise of cryptocurrency as a payment option is forecasted to soar in the coming years with 47% planning to accept it globally within the next two years. In the meantime, mobile wallets and instalment plans are seeing a big boost. 67% of respondents in ANZ accept at least one mobile wallet option, including ApplePay and PayPal, at checkout.
  • Investment in automation is putting data to work: With bottom lines stretched by inflation — and third-party cookies being deprecated — commerce organisations are focused on putting customer data to work in order to drive efficiency and profitability. In ANZ, 46% of those surveyed say automation will be a priority over the next two years.

Salesforce Area Vice President for Retail and Consumer Goods Jo Gaines says: “Amidst rising interest rates and inflation, customers are increasingly cutting back on their spending and scrutinising which brands they shop with. Today’s retailers need to reimagine their commerce strategies to win customer hearts and wallets.

“While retailers are increasingly data-rich, it’s not enough to just have the data. What retailers do with it is just as, if not, more important to create thoughtful, personalised and human experiences,” Ms Gaines said.

“By creating a unified view of all of your customer data, whether it’s from sales, service, commerce or marketing, retailers can deliver seamless and connected experiences. When they do, they’re better prepared to weather macroeconomic changes like inflation and changed consumer behaviour.

“The stakes for not doing so are high. If retailers fail to prioritise a data-led customer experience they’ll be left behind,” she said.

“Take beauty-retailer, MECCA. It’s building the digital foundations to better harness customer data to deliver connected and personalised journeys. For example, inspiring customers with personalised product recommendations. This is helping it to create more meaningful interactions with its customers and ultimately drive stronger loyalty.”

For more information, download the full State of Commerce report and explore and segment key data points in Tableau.

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