How do you create a more relevant shopping experience? What type of advertising is the most appealing to customers? Why would someone need to combine social media and ecommerce?
Read this digest to find the answers to these and many other questions. We’ve gathered the most exciting and useful things that happened in the ecommerce world during the last two weeks. Let’s get started!
Microsegmenting boosts B2B conversion rates, Forrester reports
The latest report by Forrester says that breaking B2B customers into smaller segments can help businesses convert more prospects into buyers.
In 2020, customers seek a more relevant shopping experience. To create such an experience, B2B marketers need to use more data and analytics technologies to break segmented audiences into microsegments.
In addition to dividing audiences into large groups according to factors like company size, industry, and location, Forrester suggests adding more narrow criteria such as buying behavior, price sensitivity, aspirations, etc. They suggest that B2B marketers create various types of microsegments:
👉 A “context” microsegment that categorizes audiences based on products they own or their maturity level, for example.
👉 A “behavior” microsegment that categorizes people according to the content they consume, their engagement level, and their stage in the buying process.
👉 A “choice” microsegment that identifies customers who might be sensitive about price, delivery time, or product quality.
This approach will allow businesses to deliver contextually relevant content to customers at every stage of their buying journey, which is important for 68% of buyers, according to the latest research.
The report says that microsegmenting is beneficial for both customer and seller, as the customer gets a convenient shopping experience while the seller increases conversions.
Read the full report→
29% of shoppers are more likely to purchase via ads if it’s personalized – New survey from INNOVID
2020 is turning everything upside down. To better understand the current customer mindset, INNOVID surveyed more than 1,000 U.S. adults to explore customer preferences on personalized advertising. Here are their key findings related to ecommerce:
👉 26% of consumers are most interested in personalized ads in retail, compared to 18% who wanted personalized ads for entertainment, 14% for consumer packaged goods, 11% for hospitality, 10% for quick-service restaurants, 6% for automotive, 2% for telecom and 2% for finance.
👉 40% of shoppers have made a purchase as a direct result of a personalized ad.
👉 31% of shoppers are more loyal to brands that personalize ads.
👉 43% of shoppers say digital advertisements should be personalized.
👉 29% said they would be more likely to buy something if an ad was personalized.
👉 38% of shoppers are likely to click on “offers for products you have shown interest in” if they are personalized.
👉 34% of shoppers are likely to click on “new products or services I may like” if they are personalized.
👉 39% of shoppers say that contextual personalization is most appealing (ads that address the customer context, like what show they’re watching or what website they’re on).
Read the full report→
Mobile video shopping platform – Google launches its latest R&D project
On July 16, Google launched a video shopping platform called Shoploop, which introduces new products to customers in 90-second product demos. The experience on the platform is similar to watching TikTok videos. When a user likes a product, they can save it for later or click and make a purchase right away. Users can also share videos with friends and add to favorites.
The main idea of such interactive shopping was inspired by how consumers today combine social media and ecommerce sites when shopping: most often before the actual purchase, they look for product tutorials on Instagram or YouTube. The platform is a combination of an ecommerce website and social media platform, which allows users to do all those actions in a single place.
Interactive video shopping is gaining traction: for example, Amazon has its Amazon Live, Facebook has live shopping, etc.
Read more about Shooploop→
55% of parents plan to shop online for back-to-school products – 2020 Deloitte survey
Recently, Deloitte published their annual back-to-school (BTS) survey, which shows spending patterns based on responses from 1,200 parents in the US. This time the survey is even more interesting to read because it shows how COVID-19 has affected customer purchasing decisions. Here are some of key findings from this report:
👉 Total BTS spending is expected to reach $28.1B or $529 per student, relatively flat from 2019.
👉 40% of parents expect to buy fewer traditional school supplies since technology is more prevalent in class (vs. 30% in 2019).
👉 Parents expect to spend 37% of their budget online, up from 29% in 2019, as health concerns are foremost.
👉 Parents are seeking contactless shopping, with nearly half of shoppers seeking out BOPIS (buy online, pick up in store) options (from 36% in 2019).
👉 64% plan to shop for BTS from their personal computers (up from 42% in 2019) since reduced mobility slows mobile purchases.
👉14% of shoppers planned to use voice assistants, up from 6% in 2019.
👉 81% of shoppers expect to shop at mass merchants for BTS, a decrease from 88% in 2019.
👉 80% plan to shop during late July–early August.
👉 Children’s influence on computers and hardware purchases has risen to 69% from 54% in 2019 as educational trends become more ingrained with technology.
Read the full survey→
Google brings free product listings to the main Google Search results
This year, Google made an important shift to free product listings instead of paid ads. Developing the idea further, Google is now bringing product listings to the main Google Search results page. Before, it showcased only sponsored links in the “product knowledge panel,” which appears when a user searches for a product that has matching listings on ecommerce websites.
Paid shopping won’t disappear; it will be shown separately at the top of the page and will be marked as ads.
This change will come into effect in the US on mobile, then will be expanded to the rest of the world as well as to desktop versions.
For shoppers, this means that the Shopping tab will include more products and stores. For retailers, this means that they can showcase their products in listings on the main page for free, by putting existing product feeds into the surfaces across Google program.
Google explains this shift as an attempt to help businesses connect to shoppers during the coronavirus pandemic.
“Consumer preference for online shopping has increased dramatically, and it’s crucial that we help people find all the best options available and help merchants more easily connect with consumers online,”
Bill Ready, Google’s President of Commerce.
Read more about free product listings→
Case study: Shogun reduced image delivery costs by 86%
Shogun, a page-building platform for ecommerce agencies, reduced image delivery costs by $300,000 (or 86%) with Uploadcare’s CX suite.
When trying to create the best possible user experience on Shogun-based websites, they faced a challenge. The quality of product photos on ecommerce websites is crucial: studies show that it influences purchasing decisions. At the same time, hundreds or even thousands of high-quality images slow down page load times and harm the user experience. They needed an image handling solution that would combine both compelling image quality and proper loading speeds.
They calculated that in-house development would’ve required at least 3 months and over $200,000 in workforce investment, so they decided to use a ready-made solution: the CX suite by Uploadcare. The solution included:
👉 A responsive and mobile-friendly file uploader
👉 Built-in Uploadcare storage and a smart image CDN that swiftly delivers content across 288K servers in 135+ countries
👉 Smart image compression technologies that automatically compress images depending on what’s in them
👉 Automatic conversion to next-gen image formats when possible to minimize file size without losing quality
👉 Out-of-the-box lazy loading technology that improves initial page load times
👉 Automated responsiveness to make images load fast and look great on every screen
This completely solved their challenge and resulted in faster time-to-market, over $200,000 saved on development, image delivery costs reduced by $300,000, and over 80% drop in image bandwidth.
Read the case study→
Hope you found this digest useful and grabbed some ideas on how to improve your own ecommerce business. Feel free to share your thoughts in the comments below.