Tag: E-commerce

Against the backdrop of the post-pandemic recovery, consumers across the Asia Pacific region have been adapting to many challenges: inflation, a cost-of-living crisis, and supply-chain-related instability of product availability, to name a few.

The pandemic has disrupted traditional in-store shopping patterns for three long years, but a recent return to a more ‘normal’ shopping environment has put into focus how much consumers driven online over that time would return to stores.

Amid the current saturated e-commerce landscape, as well as the current climate of economic uncertainty, there is therefore an even greater need for retailers to know how to better engage consumers to gain market share, particularly as consumers recalibrate their spending.

KPMG and GS1’s latest research of 7,000 consumers across 14 markets in the region reflects multiple patterns and expectations among consumer groups, but one over-riding conclusion is clear: The era of seamless commerce has arrived and while both online and offline channels remain popular throughout the region, traditional retail business models are unlikely to meet the expectations of many consumers today. Retailers and brands will have to adapt or face potential consequences of not moving with the market.

From omnichannel to seamless retail

We’re witnessing a third wave of digital disruption in the ever-evolving retail landscape. Previously, multichannel approaches—such as online and brick-and-mortar stores—operated independently within the same retail umbrella. However, the omnichannel era, fuelled by data analytics and AI, has prompted retailers to build bridges across these silos, encouraging collaboration.

Now, with seamless commerce, we’re entering a new evolutionary phase. The seamless commerce approach recognises that consumer interactions span multiple channels, blurring the lines between online and offline. To deliver a truly seamless experience, retailers must adopt an end-to-end perspective, making decisions through a fundamentally different lens. If they don’t deliver a truly seamless experience and don’t adapt their businesses to meet the expectations of the next generation of consumers, they will struggle to survive.

Innovative retailers are striving towards seamless commerce – which recognises a brand’s customer journey across multiple platforms and services, encompassing social media, delivery innovations, apps, websites, automated messaging, and other digital interactions, all seamlessly integrated within traditional physical stores.

The concept of seamless retail was fuelled by the pandemic, where consumers across all generations were driven to shop online, unable to visit physical stores due to movement restrictions. Not only did they head online to purchase food, groceries, and other essential goods, but the migration from working in offices to working from home saw demand in categories such as apparel and home furnishing.

With this shift, seamless commerce – once a differentiator – is now a baseline expectation from consumers; retailers and brands will have to adapt or face potential consequences of not moving with the market.

It’s never a one-size-fits-all in Asia-Pacific

In recent decades, the Asia-Pacific region has been at the forefront of retail transformation, notably in its early and extensive adoption of online platforms which have played a much larger role compared to the rest of the world.

Although COVID has accelerated online shopping across the region, results tell us that consumer habits in terms of how, where, and when they shop remain highly varied. On average, 45% of respondents preferred the ‘omnichannel’ approach, while in a boost for physical-first retailers, relatively few respondents said they could live with only shopping online.

In fact, the e-commerce landscape in the region is marked by a lack of a dominant platform – although various solutions and marketplaces are prevalent in individual markets. There is intense competition among platforms to capture the consumer’s dollar, and these figures identify a wide variety of products and fast, reliable delivery as two of the top three priorities for consumers when choosing a platform.

In terms of desired improvements, competitive pricing ranked as the foremost expectation in Asia-Pacific, cited by 38% of respondents, while promotions and discounts ranked third at 25%, highlighting the need for retailers to implement price strategies that ensure they remain competitive in the market.

Despite these aggregated results, the study reveals that although online is now more important than ever as a retail shopping channel, others such as livestreaming and social shopping are growing at differing rates in many locations. Marketplaces, once at the vanguard of retail transformation, are now coming under attack from new players, including department stores and other multi-brand retailers developing sophisticated, personalised platforms to recover market share they may have lost online.

More notably, a one-size-fits-all retail strategy – if ever it made sense – is becoming less and less meaningful.

How AI is shaping customer experiences and driving sales

With consumer preferences in Asia-Pacific being ever-varied, retailers are embracing AI at an unprecedented speed, resulting in improved customer experiences and increased sales.

In fact, our interviews with senior executives suggest that the adoption of AI by retail enterprises is faster than any previous technology – both at customer-facing points and behind the scenes. Analysis from Stocklytics predicts the generative AI market will hit US$1 trillion in value by 2031, representing a cumulative annual growth rate of 48.05%.

Front-of-house, AI is being used to refine customer experiences in automated chat platforms by developing a better understanding of consumer experiences and behaviour to provide more accurate responses and information.

Responses to customer enquiries can be based on relevant help centre content – directly provided within the conversation, rather than just sharing relevant FAQ responses as is typically done.

Back-of-house, AI has become an indispensable tool in functions such as demand forecasting, supply chain management, and developing marketing content. We have seen how ChatGPT has taken the world by storm, with a user base of more than 180 million people in November 2023.

There is a huge opportunity for AI to help companies understand purchasing trends – sudden spikes or drops in volume, for example – to maintain optimum inventory levels. It can contribute to significant efficiencies in sourcing, shipping, and inventory optimisation by predicting product demand, thereby mitigating issues like out-of-stock inventory or overordering. Currently, such decision-making processes may be delayed or predominantly manual, but the leverage and scalability that AI brings can greatly amplify the output traditionally managed solely by human personnel.

Incorporating seamless commerce strategies for sustainable business growth

Across Asia-Pacific, retailers who limit themselves to one channel face significant risks. Online-only retailers may lack the personal touch and might encounter difficulties in establishing reliable delivery systems, while traditional brick-and-mortar stores are not only missing out on reaching a broader audience but also on leveraging their physical presence for innovative solutions like ‘click and collect’ services or using their locations as local distribution hubs.

To meaningfully address these dynamics, focusing on a frictionless customer experience as the ultimate benchmark for measuring success is crucial. Insight-driven retailers need to utilise data and analytics to predict, strategise, and tailor their product offerings and service delivery, backed by a deeper understanding of their customers’ needs.
Technologies such as AI and Gen AI are increasingly helping retailers to yield actionable insights and interventions that improve customer experiences – from enhanced demand forecasting and customer service to optimising product availability and fine-tuning pricing and promotions.

Indeed, a seamless online-offline customer experience has now become a baseline expectation. Only by excelling in this domain can retailers expect to lead the market.

This thought leadership is written by Anson Bailey, Head of Consumer & Retail, for KPMG in Asia Pacific

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in Malaysia 2024 conference on July 25, 2024 at Sheraton Petaling Jaya and the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

In Asia-Pacific retail, everything is a storefront and the door sign is never turned ‘closed’. This is the reality of commerce and marketing today whereby consumers can shop for over 24 hours without leaving their homes. However, this is not to say the brick-and-mortar experience is dead; far from it in fact, but is ripe for significant transformation. 

Despite the mass explosion of digital and social media commerce, APAC consumers still enjoy the physical shopping experience. Indeed, the majority of consumers prefer to mix both online and offline shopping. Indeed, many consumers no longer even see them as separate pillars. Brick-and-mortar, e-commerce and social commerce are, in fact, just commerce. The question is, however, how do brands and marketers merge them to provide a seamless omnichannel experience to consumers?

Over the past decade, e-commerce and social commerce have exploded, with many traditional stores pivoting rapidly to meet online demand. However, the COVID-19 pandemic laid bare humans’ fundamental need for sensory experiences, especially touch. Indeed, according to a report from IBM, touch and product interaction influence the purchase decisions of over half of consumers. As a result, retailers are now increasingly re-embracing the physical shopping experience – albeit with a digital twist.

Notably, RPG Commerce Group, a direct-to-consumer (DTC) startup home to drinkware and cookware brands Montigo and Cosmic Cookware, began purely online business at the height of the pandemic lockdowns but has since ventured into physical retail. Today, it has physical stores in Malaysia and Singapore that feature interactive displays, demonstrations, personalised customer service and customised products such as engravings and hand-drawn limited editions by Malaysian artist Fawwaz Sukri.

Bistro Bytes, meanwhile, has perfected the omnichannel experience by allowing customers to mix and match orders from either in-person at various kiosks in the mall or through a single mobile application – KLIK by Keppel. 

Any retail vertical can benefit from these kinds of hybrid experiences. The trick is to find the right model that fits both the needs and interests of your target demographic and meets them at their convenience. 

The rise of ‘retailtainment’

Traditionally, storefronts have aimed to entice visitors through lavish, eye-catching window displays. But anyone who has gone and bought a bag of cookies after passing a Famous Amos store knows that humans are a highly multisensory species. Gone are the days when visual merchandising was enough to stimulate shoppers. Now, according to recent research, almost two-thirds of consumers want brands to immerse them in experiences that hit all senses.

 However, for many consumers, the physical shopping experience largely falls flat. As many as 70% of shoppers admit that they can’t recall the last time a brand excited them. That is not to say consumers no longer want to shop physically — they just want more from these spaces.

Marketers should not be surprised by these sentiments. Nobel Prize-winning economist and philosopher Daniel Kahneman famously researched that 95% of human decisions are made emotionally. A brand cannot expect to have an emotional impact on a customer without appealing to their senses.

There are multiple ways to achieve this, whether through music, decoration or signature scent. Brands like Nike notably took this to another level with the creation of its Air Max Listening Room, an immersive listening experience designed to capture the music that inspired the product.

Temporary pop-up shops are a hugely powerful tool for digital-only brands or for retailers looking to experiment with new concepts or create a buzz. Pop-up shops and augmented reality experiences can be used to deliver product information, reviews and virtual try-ons.

Marketers can achieve this by creating AR window displays in busy areas where passersby can use their smartphones to interact with products displayed, get detailed information and make purchases without entering the store. To drive conversions, marketers can pair these with an RFID tag for customers to scan to add products to their online cart and buy within a matter of clicks.

Experimenting with this type of experience can have significant brand benefits. Around 80% of retailers that set up a popup said it was a success and nearly 60% intend to do it again.

The AI revolution

Generative AI exploded into our lives less than two years ago and today it remains a top talking point for marketing leaders. Yet, most are still figuring out exactly how to use it. Marketers, technology and business leaders are still to create tangible business cases for building effective GenAI models. Moreover, many are still grappling with its safety implications. 

Nevertheless, 67% of marketers feel positive about the possibilities of GenAI and more than half of marketers are looking to invest heavily in developing A and machine learning capabilities in their business verticals.

Although still in its infancy, retail marketers can still begin exploring genAI and machine learning technology for product discovery and personalisation for consumers based on user history and first-party data. 

Marketers can begin exploring using AI-driven content creation tools to automate product descriptions and marketing copy, but at this stage, will still require a significant degree of human oversight.

Other uses include introducing AI-powered visual search functionality that allows customers to upload images and find similar products on your platform. These can sit alongside voice-activated ads for smart speakers where users can ask questions, hear detailed product descriptions and make purchases through simple voice commands.

Last, but by no means least, marketers can combine AI with AR to provide an immersive shopping experience such as using AR to try on clothes and AI to suggest other recommendations.

Culturally purposeful

Due to the proliferation of information available today, people are hyper-aware of the world around them. As such, brands and companies are held to higher standards and consumers want brands to be purposeful within their cultural context. Globally, 80% of consumers say they make an effort to buy from companies that support causes important to them. However, consumers are also discerning whether a brand is showing genuine support or is simply capitalising on a cause.

Brands are now walking a tightrope of being called out for staying silent on issues and for speaking out and appearing disingenuous. Learning how to navigate this tightrope is still a work in progress.

However, these are some tactics that can help brands take a genuine stand on social causes that matter to them. One is to create dedicated sections for products that support social causes, such as Australian retailer The Iconic’s ‘Consider’ clothing section. Marketers can track these sections with real-time impact tracking to show customers the direct results of their purchases.

Brands can also create transparency reports on sustainability efforts and social impact directly on e-commerce platforms. They can also partner with artists and community leaders to create exclusive product lines that reflect cultural heritage, offering unique stories behind each product.

Staying ahead of the competition is challenging for retailers in 2024 as new retail providers emerge regularly and attempt to undercut the market. Marketers indeed may find themselves in a heated battle between rivals, e-commerce players and even social media influencers. 

However, it is evident that consumers no longer want to simply scroll and click when they shop. The demand for physical experiences is real and marketers are now in a position to use technology to take these to the next level.

This thought leadership is written by Keith Ho, Strategy Lead at NP Digital Malaysia

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in Malaysia 2024 conference on July 25, 2024 at Sheraton Petaling Jaya and the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

Today’s digital commerce landscape is evolving rapidly, presenting a challenging, complex and competitive landscape for business leaders to navigate. A combination of a deep understanding of market dynamics, upcoming trends, and strategic partnerships is key for businesses to truly thrive. By leveraging advanced technology, data-driven strategies, and comprehensive market intelligence solutions, businesses can equip themselves with the tools adequate for success.

The essential elements required to win in today’s complex digital commerce landscape 

Winning today’s digital commerce landscape depends on several essential elements. First, data-driven decision-making. The ability to consolidate and analyse data provides a significant edge to businesses. By leveraging market intelligence to understand marketplace and category movements, identify competitor best practices and boost overall operational efficiency. With this data-driven approach, business leaders can make more informed decisions that will optimise online store presence and enhance product visibility.

Next, operational excellence. Operational excellence includes ensuring product availability, enhancing visibility, and optimising conversion rates. Businesses need to maintain seamless fulfilment processes, dominate search results for high-volume keywords and ensure product pages are optimised for conversion. Investing in tools that can monitor stock levels, analyse Share of Search, and track content compliance, pricing, promotions and customer reviews are important. Many businesses have benefited from leveraging a digital shelf solution which automates the tracking of these essential metrics and provides alerts for timely actions when key changes are detected.

Additionally, a seamless omni-channel strategy is key to providing a unified customer experience across multiple touchpoints. Businesses need to identify ways to integrate their online and offline channels, enabling consumers to move seamlessly and effortlessly between them. Intelligence that connects data from these touchpoints can significantly enhance customer engagement and marketing strategies, enabling businesses to meet customers’ needs wherever they are in their journey.

Last but not least, understanding and adapting strategies to regional and local market nuances in the digital commerce market. Every market has its distinctive marketplace characteristics, category preferences and cultural nuances. Adjusting these approaches to fit these local elements while leveraging insights from more mature markets can help provide businesses with the competitive advantage needed to thrive.

The future of digital commerce data analytics

Digital commerce data analytics empowers all of the topics mentioned above while itself is being shaped by several emerging trends and technological advancements. One significant development is the shift towards actionable insights derived from comprehensive data analysis. Future digital commerce strategies will increasingly rely on analytics that not only identify trends but also provide clear, actionable recommendations. This approach ensures that businesses can swiftly and effectively respond to market changes.

AI-powered analysis is another critical trend shaping the future of digital commerce. The integration of AI and machine learning offers sophisticated tools for sentiment analysis, customer behaviour prediction, and personalised marketing. Large Language Models (LLMs) are transforming how businesses understand and engage with customers, uncovering hidden patterns and opportunities within vast datasets. This technology allows businesses to deliver more personalised and relevant experiences.

Enhanced integration and automation will also play a significant role in the future of digital commerce. The focus will be on integrating data points collected from the front end with those available in the back end to provide a holistic view of the business. Automation will streamline operations, from inventory management to customer service, enabling businesses to respond more swiftly and accurately to market demands. This level of integration and automation will help businesses maintain a competitive edge in a rapidly evolving market.

Furthermore, understanding and adapting to regional differences will continue to be crucial. As digital commerce expands globally, successful businesses will need to tailor their strategies to local market conditions and consumer behaviours. For instance, the Asia Pacific region, characterised by diverse markets with varying infrastructure and consumer behaviour, requires a nuanced approach. Leveraging insights from more mature markets like China can inform strategies in emerging markets, ensuring that businesses remain competitive and relevant.

The solution? Invest in the right strategic partnerships

Selecting the right analytics partner is essential for digital commerce success. A solid combination of expertise and experience are crucial. Businesses need to look for partners with a proven track record in digital commerce success, extensive experience across multiple marketplaces and categories and a comprehensive understanding of market dynamics. Collaborating with seasoned experts ensures a business’ digital commerce strategies are grounded in a solid understanding of the industry and its distinct challenges.

Next, businesses should ensure their partners are equipped with the advanced technology capabilities needed to support the business requirements. This entails robust data analytics tools, AI-driven insights, and seamless integration capabilities. Partners should be able to provide actionable intelligence and help businesses leverage it effectively to optimise operations and strategies. Advanced technological support ensures that businesses can adapt to the fast-changing digital commerce landscape with agility.

Local and regional expertise is another crucial consideration. Factoring the unique landscape, especially in Southeast Asia, it is essential to collaborate with partners who have a strong local presence and understanding of the regional nuances. This ensures that strategies are both effective and customised to the local market conditions and consumer preferences.A partner with deep regional insights can help businesses navigate the complexities of different markets and capitalise on local opportunities.

Finally, a commitment to innovation is essential. The digital commerce industry is constantly evolving, with new trends and technologies emerging regularly. Businesses should select partners who are committed to staying ahead of the curve and can help them adapt to these changes. The chosen partner should be proactive in incorporating new tools and techniques that can give businesses a competitive edge. A partner that prioritises innovation will ensure that the business strategies remain cutting-edge and effective in the long term.

What’s next for digital commerce leaders?

In a nutshell, today’s business leaders need a combination of the right knowledge and tools to thrive in the fast-paced digital commerce world. The winning recipe requires a data-driven approach, operational efficiency and the seamless integration of omni-channel strategies. Businesses will need to select the right partners with these capabilities – advanced and innovative technology and regional expertise to navigate the digital commerce world’s complexities and excel in a dynamic environment.

This thought leadership is written by Annie Yao, Head of Growth, Market Intelligence at Flywheel

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in Malaysia 2024 conference on July 25, 2024 at Sheraton Petaling Jaya and the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

With the prevalence of online shopping in the current business landscape, businesses are now starting to catch on by creating an online presence that demands advanced payment solutions and sophisticated e-commerce marketing strategies to stay ahead of the curve.

Keeping these strategies in mind, there is more to e-commerce marketing besides just simply having a digital space to sell products online. Businesses and brands still have to properly interact and cater to the needs of their consumers behind their screens.

As part of our E-Commerce Marketing Series interviews, we spoke with Emmanuel Cruz, e-commerce lead at Mondelēz Philippines, to learn more about his insights on how e-commerce marketing strategies should be based on consumer behaviour, as well as how e-commerce affects businesses and brands, and the trends that dictate what’s next to come for it. 

E-commerce pros and cons within F&B

The e-commerce marketing landscape is significantly dynamic, which is matched by the agility of brands and businesses to become agile to catch on what is currently relevant.

For Cruz, this is a challenge because strategies and plans are constantly pivoting, especially for multinational corporations such as Mondelez, wherein these shifts require a lot of internal alignments and approvals which can take up quite some time.

Additionally, he mentioned that there are also other challenges, such as finding the right mix of assortment to differentiate a brand across different platforms, the rising costs on operations to fulfil orders on new platforms, and the investment on traffic, media and even promos.

These challenges may seem as an obstacle for many, but Cruz says that it can present itself as an opportunity in the online space if brands and businesses act quickly to reap its rewards within a new platform.

“ This can be seen as an opportunity because most brands usually benefit from a first-mover advantage when it comes to new platforms. Less competition means more saliency and even less investments needed,” he said.

Adapting to evolving e-commerce 

As consumer behaviour moves alongside the dynamic landscape of e-commerce marketing, Cruz mentions that e-commerce marketing strategies should always be based on consumer and shopper behaviour.

“From platform availability, assortment, pricing, content and promos, all these should always be based on the consumer,” stated Cruz.

In order to achieve this, Cruz shared that a robust end-to-end omnichannel approach should be present to understand the interplay of offline and online consumer behaviour.

Talking about how this should be applied, Cruz mentioned, “Online and offline strategies should be integrated, never on silo. The occurrence of browsing online and checking out offline (and vice-versa) is more and more apparent post-pandemic.”

This approach leads to an easier understanding of customer behaviour, wants and interests, which means that brands can seamlessly pivot and tailor-fit messaging, communication, promos and recommendations. To enhance this, Cruz said that customer data should be maximised to increase basket size or assortment, improve repeat purchases and overall build loyalty with customers.

“AI makes it even easier for brands to do so, and even if we’re not yet that deep into utilising advanced AI, we still use data to get insights and refine our activities to optimise our investments,” he added. 

The future of e-commerce in F&B

When asked about his insights for the future of e-commerce marketing in the F&B industry, Cruz commented on the prominence of social commerce as one of the biggest trends in F&B at the moment. 

As a rapidly growing branch of e-commerce that uses social networks and digital media to facilitate transactions, social commerce allows for businesses and brands to increase their reach even further, and reach out more to younger or emerging consumers.

“However, as more and more brands get onboarded on this platform, competition will become even tighter, with brands fighting neck and neck on live platforms and on their promos,” he added.

Furthermore, Cruz also mentioned that there will be a more seamless omnichannel approach that brands and businesses need to employ as e-commerce platforms provide not just online sales but influence offline decisions and pre-purchase.

“Brands within the F&B industry need to be in-tune for what’s next to come in terms of e-commerce marketing strategies, as e-commerce platforms are becoming not just a point-of-sale but more so a channel for brand and product discovery that affects purchase decisions offline,” Cruz concluded.

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in Malaysia 2024 conference on July 25, 2024 at Sheraton Petaling Jaya and the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

Organisations across Southeast Asia are risking US$144b in revenue because of poor customer service, with consumers across the region increasingly cutting spending after receiving a poor experience.

This finding from Qualtrics XM Institute highlights the significant business value of great customer experience (CX). At a time when brands find themselves under pressure to drive greater business impact in challenging market environments, delivering a superior CX is one of the most impactful, sustainable, and efficient ways to achieve this. And within this context, the role and value of digital channels and e-commerce platforms cannot be overstated.

Consumers are ever more digital

Consumers continue to conduct more brand interactions through digital channels. For example, in the last year 56% of consumers in Singapore opened a bank account on their mobile phone – up from 48% a year previously; in healthcare 42% of people used a telemedicine service in the last 12 months, up from 35%; and 26% of superapp users say they use one every day, up from 22%.

Great digital support also has an outsized impact on consumer loyalty, with consumers more likely to return when they get great digital support compared to in-person. The challenge for brands, however, is consumers are less likely to be satisfied by their digital customer support experience compared to human support.

As brands, consumers, marketing and CX teams increasingly adopt and mature their e-commerce platforms and digital capabilities, organisations that invest in improving the services, support, and experiences delivered through them are well placed to pull ahead of the competition, unlocking greater customer retention, satisfaction, brand awareness, and ultimately revenue.

5 steps to e-commerce success and impact

Forge partnerships with digital stakeholders

For marketing and CX teams looking to drive improvements across e-commerce platforms, a critical step is identifying and getting to know potential partners across the business – such as web and app development teams, digital marketing, UX/UI, data analysts, product managers, and IT. Understanding the internal digital landscape highlights collaboration opportunities, generates organisational alignment and support, helps define roles and responsibilities, and enables faster-decision making to accelerate progress and business impact.

One of the most successful ways we see CX and marketing teams partner with digital teams to improve the performance of e-commerce platforms is when they begin their collaboration with a focused use case, such as high cart abandonment. As part of this collaboration, the teams combine CX insights from surveys, reviews, and support conversations with operational data, such as web analytics, and customer segmentation, to understand the issue, outline recommended next best steps to resolve it, and demonstrate the business impact to garner greater support in broadening the project scope.

Map the customer journey and understand their behaviours

To improve CX across digital channels and e-commerce platforms, brands need to understand consumer behaviours for these types of offerings, and their preferences when using them. For example, research shows the majority of consumers in Singapore prefer to speak with a representative directly when purchasing a TV compared to online or mobile. In contrast, when booking a flight the preference is to self-serve using a digital channel.

Most customer engagements span multiple channels and departments; for e-commerce these often include account management, purchasing a product, resolving an issue, research, and getting a status update. Taking the time to understand the customer journey and behaviours for specific use cases ensures teams prioritise their investments and efforts in areas where they will have the greatest impact. Looking at digital CX in the context of a complete journey helps teams remove siloes that might otherwise hinder progress and impact, cultivate strategic alignment, and uncover unmet needs and opportunities.

Capture customer feedback in the moment

Early in the partnership between CX and marketing teams with digital, it’s important to establish a set of passive listening posts across all digital channels and e-commerce platforms – these should supplement the existing customer feedback programs CX and marketing teams traditionally manage, such as surveys. Common examples of passive listening posts include having a visible and easy-to-use always-on feedback button, or using modern AI-powered experience management technologies to analyse feedback shared by customers across social channels, online reviews, and through calls to the contact centre.

Giving customers the ability to share feedback in the moment helps uncover authentic, targeted, actionable insights and enables teams with real-time, focused insights to drive improvements when and where it matters most.

Use digital analytics to understand online consumer behaviours

Digital analytics help teams capture behavioural data from all site visitors, such as rage-clicking, mouse thrashing, and click-paths. This data is more objective and accurate than traditional feedback data – it reflects what people actually did rather than what they think they might do – and it can be captured continuously and in real time. All these benefits make digital behavioural insights critical for helping develop a dynamic understanding of digital journeys and pain points. 

Take action on feedback when and where it matters

Using AI, CX and marketing teams can benefit from workflows that automatically route feedback to the right stakeholders to take action on. These automated workflows should integrate with the systems and processes stakeholders already use as part of their everyday role, such as Jira, Slack, or Salesforce, to ensure swift adoption. AI will also empower teams to instantly identify and support customers encountering difficulties online, such as using digital analytics data to flag customers that might not be able to find what they’re looking for, or advanced conversational analytics to escalate online chat conversations. 

AI will help teams deeply understand the emotion, intent, and effort behind every engagement, and become more pro-active and predictive to resolve problems before they arise. The keys to optimising the impact of AI-powered workflows is identifying the initial triggers driving action – which can be metrics including CSAT, effort, satisfaction, digital analytics, or even key words – and ensuring ticketing notifications are routed to the correct teams.

AI accelerates and expands e-commerce impact

As organisations and consumers increasingly adopt and embrace AI, there are significant opportunities to drive improvements across every aspect of the customer experience, including digital and e-commerce. 

Right now, organisations are focusing on where AI can have the greatest impact on their business – be it growth, productivity, or operational efficiencies. From these starting points we will see AI programs scale, and there will be a first-mover advantage for those leading the way. Organisations already using AI in their e-commerce and digital offerings – or about to begin – have a head start on the competition, and will be better positioned to deliver great CX in the moment, across every channel, and across every engagement.

This thought leadership is written by Eleanor O’Dwyer-Duggan, CX Solution Strategist, Southeast Asia at Qualtrics

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in Malaysia 2024 conference on July 25, 2024 at Sheraton Petaling Jaya and the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

With the rapid expansion of online shopping and the increasing number of businesses establishing an online presence, having effective e-commerce marketing strategies has become paramount. These strategies are crucial for attracting, engaging, and retaining customers in a crowded marketplace. 

Effective e-commerce marketing goes beyond simply having a website; it encompasses a variety of tactics including SEO, social media marketing, email campaigns, content marketing, and data analytics.

As part of our E-Commerce Marketing Series interviews, we spoke with Eddie Teng, head of e-commerce for APJ at ASUS to learn more about his insights on how e-commerce marketing strategies play out in the consumer electronics industry, as well as detailing the various e-commerce trends many brands are implementing to supplement their online retail strategy.

First-party data as a cornerstone of e-commerce marketing strategies

While many would mention how first-party data would primarily apply to digital advertising strategies, it is also worth noting that first-party data is now also being utilised by businesses–especially those with online retail components–to personalise the experience to their online shoppers and give them the right choice to buy.

In Teng’s case regarding the use of said consumer data, he notes that in recent years where privacy concerns are amongst the talks of consumers, it has been observed that data collection has been one of the challenges faced by third-party data management platforms. This has then resulted in the increased efforts and cost of leveraging third-party data, making it tough and costly for brands to invest.

“This is one of the reasons why for brands within the consumer electronics are going back to their own users’ data, remarketing to them and drive the demand for repeat purchases. This approach makes great sense for consumer electronics brands given that [one] its product nature is individually driven where the device are usually attached to a single user, [then] its products have a usage period where an upgrade maybe required with the advancement and evolvement of technologies and [lastly] users data are more actively and voluntarily collected as part of the device activation and manufacturers’ warranty,” he explained.

Teng also noted that by enhancing and leveraging first-party data, brands–especially those in the consumer electronics scene–not only engage their users in a cost-effective and efficient manner, but also allow them to personalise their engagement to each of its single users with relevance to their likings, interests and behaviours.

“The other benefit is also the improvement in the consumer-to-brand experience since conversations and engagements are tailored to each individual, directly from the brand. With enhanced first-party data, brand marketers can now suggest and promote the right product or device to their users when its time for an upgrade of their current and old devices,” he further added.

Social commerce and conversational marketing hand-in-hand

In terms of more trends that have become more prominent for e-commerce marketing strategies, Teng notes that usage of social commerce and conversational marketing have also skyrocketed, especially in a post-pandemic age.

He notes that since the pandemic, the idea of purchasing a product within social livestreams has been widely accepted by consumers, hence why e-commerce brands have been actively engaging KOLs and influencers to promote and sell their products on their brands’ social pages in the recent years.

“This idea has evolved and have let marketers to realise that this success is not because of the act of selling across social media, it is the demand from consumers to have a more direct and authentic conversation with the brands and merchants on products they want to purchase. This is especially true for brands within the consumer electronic industry because its products can be complicated and require more education on its usage and its benefits. Which is why a direct conversation with the brands will address this effectively,” Teng stated.

Teng also added that these heightened demands and behaviour have led consumer electronics brands to expand how and where they sell their products. For him, It is no longer enough for a consumer to just visit the brand’s website, add the desired product to the shopping cart and check out. Instead, consumers nowadays want more flexibility and accessibility when making a purchase.

“It can be as straightforward as a consumer firing up a web chat, enquiring more about the desired product, asking for the best offer on it, expressing his or her intention to purchase and making the order and payment directly through the chat. As previously mentioned, personalised communications and engagements from brands to consumers are what drove growth in e-commerce, and with enhanced first-party data, brand can effectively converse with its users and push them to make the purchase socially,” he explained.

Harnessing new technologies with a human touch

Teng also foresees the rise of AI-powered solutions empowering e-commerce marketing strategies while noting that the personal computer (PC) industry has been actively designing and implementing AI solutions into their products and workflows with the understanding these benefits.

“AI technologies have been shaping our industry in the way we work. From empowering data scientists and analysts to tackle big data, to form accurate insights and recommendations for management to make informed decisions, to enhance and fill up knowledge gaps of stakeholders of the marketing strategies – the leverage of AI has driven marketing competency and allow brands and businesses to produce well-thought off plans with the same human resources,” he stated.

With that being said, he adds a caveat that with the reliance on technologies to drive productivity, marketers can be complacent and over-rely on technology tools nowadays and this can lead to seeing more cookie-cutter strategies within the e-commerce industry.

“To better strike a balance between efficiency and human centricity, marketing technologies can also play a stronger role in driving marketing competency. These competencies can include data analysis for insights that allow for better decision-making, the enhancement of quality of work and the fillers of knowledge gaps of marketers. While efficiency with technologies is helpful, competency on the other hand will complement,” he added.

E-commerce as a continuing supplement to retail

Speaking on the outlook of e-commerce marketing strategies, Teng says in the near future within the consumer electronics sphere, e-commerce will play an even more complementary role to retail. This means that it will continue to cater the needs of omnichannel shoppers, in which they experience and shop across multiple channels, offline and online, and ultimately providing consumers the ease of access to owning their products.

“Different touchpoints such as offline stores will be an avenue for consumers to experience and purchase the product, online marketplaces will be the point of comparisons and purchases, affiliated websites and media sites will be the source of reviews and referrals, and while brand.com will be the source of information and the point of purchase,” he says.

He added, “In this landscape that I envision, ASUS across APAC will unify sales and information channels to ensure a synergy across them, facilitating the decision-making along the consumer journey while easing the process of purchase with variety options of payments and hassle-free collection or receipt of their orders. With that, this is how ASUS in APAC will play in this transformation.”

The importance of these strategies lies in their ability to create a seamless and personalized shopping experience, build brand loyalty, and drive sales. By leveraging the right mix of marketing techniques, e-commerce businesses can not only increase their visibility and reach but also convert casual browsers into loyal customers. Moreover, in an era where consumer behaviour and technology are constantly evolving, staying ahead with innovative marketing approaches is key to sustaining growth and staying competitive.

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in Malaysia 2024 conference on July 25, 2024 at Sheraton Petaling Jaya and the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

Manila, Philippines – ShopBack, an online shopping and rewards platform in the Asia-Pacific and the Philippines, is kicking off its 10th birthday with a series of activities this June, as well as deals dedicated to its over 6.5 million users and partnerships in the Philippines with more than 900 merchants.

Kicking off the birthday with a money rain 

ShopBack Philippines launched its 10th birthday celebration with a “cashback rain” activation on June 1. In partnership with Ayala Malls Manila Bay, users experienced over ₱50,000 worth of cashback literally raining down on them. Hundreds of mall-goers were rewarded with cashback, which was eventually credited to their accounts.

Month long deals and prizes 

ShopBack’s 10th Birthday campaign runs throughout the entire month, beginning with the 6.6 Mid-Year Sale and leading up to the main birthday celebration from June 14-22. During this period, each category—travel, fashion, food, and marketplaces—will feature special highlight deals.

The top prize for users is a chance to win 24K gold, simply by making three transactions across three different categories. Additionally, a month-long rewards page will feature exclusive vouchers and challenges, enabling users to earn instant cashback through easy actions.

Some of those top deals include exclusive voucher drops from Lazada, as well as deals from Nike, Zalora, Klook, and Puma. Moreover, several partner brands are also on board to give exciting perks to ShopBack users including KFC, Ayala Malls Manila Bay, Havaianas, SEAOIL, and INSPI.

Timothy Tuason, commercial director for Philippines at ShopBack said, “This campaign is our way of thanking our loyal users for their years of support. We’ve worked hard to secure the best deals, making this birthday celebration truly rewarding for them. We hope they are excited!”

10 years of creating a rewarding experience for users 

ShopBack’s vision is to be the most rewarding way to shop. By offering cashback on every transaction, users can enjoy significant savings, allowing them to shop even more.

Justine Victoria discovered ShopBack in 2022, initially creating an account while in Singapore and then another upon returning to the Philippines. “I was able to withdraw ₱500,000 and bought two Vespa motorcycles,” she says.

MJ Aoki, another ShopBack user, utilises the platform for travel bookings. “If you’re going to make a purchase, you might as well get some money back,” she says. MJ has accumulated over ₱58,000 in cashback from her transactions.

Founded in 2014, ShopBack is celebrating its 10th anniversary in 2024, marking a decade of success across the region. With a presence in over 12 countries, ShopBack serves more than 45 million users across three continents.

Singapore – Online retail marketplace AliExpress has a launched a new campaign featuring its latest global brand ambassador David Beckham to help fans score more deals on the e-commerce platform ahead of the upcoming UEFA EURO 2024 sporting event.

It is also worth noting that the campaign follows the news in March this year that AliExpress became the first exclusive global e-commerce partner of said sporting event, which will happen from June 14 to July 14 in 10 host cities across Germany and will see 24 national teams compete.

Through the campaign, AliExpress users will have the chance to take part in a series of interactive games to win exclusive discounts and time-limited prizes, including match tickets. AliExpress is investing millions of Euros in discounts, deals and engagement during the games, as part of its increased investment into global consumer experience. 

In addition, new and eligible AliExpress users will be entered into exclusive lucky draws with prizes to welcome them to the platform.

During the games from June 14 to July 14, AliExpress will run an innovative ‘Shake and Win’ promotion, offering time-limited prizes following each goal of all games. All eligible users just need to log on to the AliExpress app and shake their smartphone once the ball hits the back of the net, for the chance to score great prizes.

Speaking on the campaign, Beckham said, “AliExpress is helping fans get even closer to UEFA EURO 2024 this summer, by offering them great prizes as the action takes place on the pitch.”

Meanwhile, Gary Topp, European commercial director at AliExpress, commented, “AliExpress is excited to welcome David Beckham as our global ambassador ahead of the Summer of Sports that is set to kick off in Europe. Whether you’re a football fan or not, I can think of no-one better to show how easy it is to win with AliExpress during UEFA EURO 2024.”

Singapore – LVMH Group, the global creator of high-quality products, and Alibaba Group, China’s e-commerce and technology firm, have announced an expanded partnership to push the frontiers of luxury experiences in China. This collaboration will take advantage of Alibaba’s cloud technologies and AI-powered advancements in retail and online via Tmall. 

The strengthened partnership is a testament to both businesses’ goal of leading retail innovation and providing outstanding, tech-driven luxury experiences. Through this partnership, LVMH will be able to improve its data, omnichannel, and technological footprint in China. 

LVMH has started incorporating Alibaba Cloud’s generative AI capabilities, such as Model Studio (Bailian), an extensive AI model-building platform, and Qwen, Alibaba’s proprietary large language model, as part of its innovation quest. The luxury Maison’s dedication to remaining innovative is highlighted by the innovative apps and services that have been made possible by this integration. LVMH wants to drive innovation-driven growth in its global retail businesses and enhance its premium offers for consumers worldwide by utilising technologies. 

This partnership extension for an additional five years demonstrates a shared commitment to explore new markets, products, and technical frontiers among the more than thirty Maisons and Divisions located within mainland China and Southeast Asia, including Sephora APAC and DFS. In the future, LVMH will have access to a wider range of technology and tested goods from Alibaba Cloud. In order to better serve the Chinese market, this will improve consumer insights, expedite supply chain management procedures, and further optimise corporate operations.

The announcement of the partnership’s global expansion comes after Tmall was first included in Tiffany’s and Chaumet’s premium retail ventures. Up to now, LVMH has unveiled about thirty esteemed Maisons that are presently collaborating with Tmall Luxury Pavilion to make use of Alibaba’s digital capabilities for captivating experiences, including virtual try-ons, 3D product displays, and live streaming. 

Both companies have also increased their cooperation on a number of omni-retail projects, such as membership programs, product launches, digital replicas of famous luxury locations, and one-on-one consultations. Millions of Chinese consumers will now have access to the LVMH luxury experience. 

The strategic partnership between the two companies began in 2019. Since then, LVMH has used Alibaba Cloud’s data management tool, Dataphin, to power “LVMH ATOM” China, a platform built by LVMH to provide individualised services to its growing Chinese consumer base. Furthermore, LVMH has used Alibaba Cloud’s machine learning platform, PAI, to create tailored services that respond to the diverse tastes of Chinese consumers across all of its brands. 

Speaking about the partnership, Stephane Bianchi, group managing director of LVMH, said, “Alibaba is already a key and valuable partner of our Maisons and the Group. The reinforcement of our partnership with Alibaba aims at helping us accelerate omni-channel business growth and enhancing premium luxury experiences driven by the transformative capabilities of cloud and AI technologies, along with its world-leading expertise in e-commerce operations. Our synergetic and forward-looking collaboration will deliver unparalleled experiences to our global customers throughout their premium shopping journey.”

Meanwhile, Eddie Wu, chief executive officer of Alibaba Group, expressed, “Alibaba is pleased to enable a transformation of the high-end consumption experience with retail leaders like LVMH through our world-class technologies in cloud computing and AI. This comprehensive partnership has elevated the retail experience for LVMH’s customers worldwide, including China-based consumers on Tmall. We look forward to continuing to build on the strong partnership and innovation journey with LVMH.”

Singapore – Around 70% of Gen Zs in the region saw e-commerce platforms as important entrance points for their purchasing experiences, and that they use these platforms extensively for researching their purchases. This is according to the latest data from Shopee and Kantar Profiles

The majority of Gen Z respondents (73%) said they conducted their product research and discovery through alternative channels, but they made their purchases on e-commerce platforms. Remarkably, 56% of people who use social commerce platforms for research at first would rather finish their transactions on e-commerce platforms.

A number of important variables contribute to consumers’ choice for e-commerce: a large product selection (79%), high product quality (77%), and easy payment options (59%).

One in three members of Gen Z said in the study that they would spend at least five days researching their purchases. This includes things like viewing product demos and reading reviews (27%), looking over price details (14%), and researching the features and specs of the product (24%). Even with their research methodology, they rank next-day delivery services and a return and refund procedure as their top priorities when making purchases.

Moreover, eight out of ten Gen Z respondents to the survey stated that they are looking for interesting and enjoyable purchasing experiences. This shows how content touchpoints like Shopee Live are to their purchasing experience. 

Ian Ho, vice president of Shopee, stated, “Gen Zs in Southeast Asia highly value using e-commerce platforms for product research and purchases, emphasising their need for a smooth, reliable, and integrated shopping experience. From enhancing service levels to providing new types of shopping entertainment content, our latest initiatives draw on shoppers’ feedback.”

He added, “As the leading e-commerce marketplace in the region, we are fully committed to continuously innovating and enhancing their experience to meet their evolving needs. We look forward to continued support from our valued customers.”