Digital Commerce Strategic Priorities by Industry
Digital commerce is becoming increasingly strategic. It’s becoming increasingly difficult to connect with customers as their expectations and behaviors change. It is imperative that CMOs master the fundamentals while maintaining their company’s distinct competitive advantage in this environment.
As a result of the rapid increase in digital commerce during 2021, it has become a near-universal priority for 2022. Companies with a high level of digital commerce maturity are better able to sustain long-term growth.
Here is what we think happened
Digital commerce contributes an average of 45.1% of total organizational revenue and it grew during 2020-21 due to Covid’s accelerated online buying. Now more than ever, an exceeding number of people can shop online because merchants’ are doubling their efforts to make products available to everyone, everywhere.
In addition, consumer demands for convenience are continuing to drive the development of new models such as quick commerce – order-to-delivery time of less than a minute – and social commerce – purchasing through platforms like Instagram.
Consumer Products: 41.8%
Current trends in Digital Commerce
Direct digital marketing and social media are two of the most common tools CMOs use to boost client engagement. New data shows that 58% of companies significantly boost their investment in digital commerce methods. For brick and mortar businesses to remain competitive, they must engage in hybrid solutions that bridge the gap between online and in-store retail.
Social Media: 74%
Direct Digital Marketing: 50%
Social Media: 57%
Direct Digital Marketing: 64%
The optimal phygital purchasing experience is provided by a combination of channels. Customers use their smartphones to select, scan, and pay for their purchases while still getting the benefits of in-store shopping, such as the ability to touch, smell, and see the products. This is why most consumer products CMOs are focusing on digital experience to enhance customer engagement and differentiate their brands.
Digital Experience: 54%
Digital Experience: 33%
Sales channel management and you
86 percent of businesses predict that digital commerce will be the essential sales channel in two years. Thus optimizing sales channel execution becomes a critical step toward business growth. This is why companies need SCM to enhance their sales investments and interactions with customers across all channels so that they may achieve long-term growth in sales revenue.
The SCM approach to sales transformations involves how and to whom firms sell their products and services, the channels they utilize, and the back-office operations that support these efforts.
Physical Assets: 53%
Direct Models: 59%
Marketplaces/Online Pure Plays: 72%
Physical Assets: 49%
Direct Models: 50%
Marketplaces/Online Pure Plays: 67%
Strategies to create digital commerce value in 2022 and beyond
Create a roadmap to maturity
A recent survey shows that 89 percent of business leaders acknowledged that they must enhance present digital business capabilities to create more tangible returns, fix deficiencies, boost retail value delivery, and future proof the business, marketing leaders must have a clear strategy.
Develop a strategy for short-and long-term growth
In a recent survey, 9 percent of surveyed leaders agreed to invest in new digital commerce capabilities. Budget cuts mean they must deliver value within constraints. A longer-term strategic vision is required to deliver sustained growth. Building an innovation-focused, risk appetite can help firms adopt a test-and-learn culture that may help accelerate growth.
Solve talent issues
The difficulty for digital commerce leaders is talent retention. Especially when the competition for elite talent is fierce, for this reason, leaders must continue to focus on fostering and developing the best people they can hire.
To create new sources of consumer value, leading firms need to concentrate on digital-first innovation.
Digital-First Innovation: 59%
Digital-First Innovation: 79%
Initiative wise distribution
Percentage of Leaders Aggressively Investing in Each Initiative
New Customer Experiences: 35%
New Physical or “Digital” Products and Services: 47%
New Technology Capabilities to enable Digital Commerce: 35%
Creation of New Digital Business Model: 41%
Recruitment and Development of Digital Commerce Talent: 35%
New Customer Experiences: 52%
New Physical or “Digital” Products and Services: 38%
New Technology Capabilities to enable Digital Commerce: 50%
Creation of New Digital Business Model: 35%
Recruitment and Development of Digital Commerce Talent: 50%
Begin your digital commerce journey with Concord
To meet the demands of today’s new-age digital consumers, analytics solutions can be put to work in your favor. For example, you may learn a lot about your customers’ tastes and activities by using digital software to track their online habits and search trends and determine which of your products are performing the best and worse. These aspects, along with enhanced personalization methods, artificial intelligence (AI), and budget optimization, will make your digital commerce effort a success.
At concord, we are committed to analyzing the latest trends to help you build the best digital commerce platform for your business. If you’d like to learn more, get in touch with us.