Perspectives | Digital Commerce 360 https://www.digitalcommerce360.com/type/perspectives/ Your source for ecommerce news, analysis and research Mon, 05 Jun 2023 21:23:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://www.digitalcommerce360.com/wp-content/uploads/2022/10/cropped-2022-DC360-favicon-d-32x32.png Perspectives | Digital Commerce 360 https://www.digitalcommerce360.com/type/perspectives/ 32 32 The Shopper Speaks: Online marketplaces are in growth mode https://www.digitalcommerce360.com/2023/06/05/the-shopper-speaks-online-marketplaces-growth/ Mon, 05 Jun 2023 21:23:35 +0000 https://www.digitalcommerce360.com/?p=1045695 Shopper buying frequency on online marketplaces is strong, as 44% of online shoppers buy from marketplaces at least weekly. Of this group, 8% acknowledge making purchases on a daily basis. Beyond this active segment, 43% buy monthly with the remaining 13% making a yearly purchase. When asked about their experiences with marketplaces over the past […]

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Shopper buying frequency on online marketplaces is strong, as 44% of online shoppers buy from marketplaces at least weekly. Of this group, 8% acknowledge making purchases on a daily basis. Beyond this active segment, 43% buy monthly with the remaining 13% making a yearly purchase.

When asked about their experiences with marketplaces over the past year, online shoppers remain passionate about purchasing via Amazon’s marketplace. That was in play for 76% of survey respondents. As there is a lot of clutter on marketplaces from advertising and sponsorship, we wondered if shoppers understood the complexity of marketplaces. As it turns out, close to half (46%) admitted they didn’t know if a product was being offered by Amazon or another marketplace seller.

Who’s selling what? And where?

An array of U.S. marketplaces beyond Amazon, eBay and Walmart, including specialty marketplaces, are also capturing shopper attention. Some 35% purchased from Walmart’s marketplace and 39% ventured out, also buying from marketplaces beyond eBay, Amazon and Walmart. 31% of participants bought from specialty marketplaces. Chinese marketplaces saw 18% penetration, and 6% of respondents purchased from other non-listed marketplaces.

Shoppers are active in the community, leaving product reviews at Amazon and other marketplaces. Amazon was the biggest recipient (46%), while 31% took the time to leave reviews beyond Amazon.

Interest in same-day delivery is seen and will likely grow in the coming year as 20% of those surveyed make those “need it now” purchases. Though marketplace sellers strive for in-stock status, 18% encountered out-of-stocks, which seems somewhat reasonable coming off post-COVID supply chain woes.

A topic we wanted to cover in-depth this year was counterfeit products. Just 9% of respondents felt they received such merchandise.

With assortments on marketplaces perceived to be greater, shoppers may find marketplaces more attractive. Half of marketplace visitors believe they are finding larger assortments with 43% about the same and just 7% less.

Higher prices, longer delivery lead times and out-of-stock products were the biggest marketplace challenges shoppers faced

Marketplaces need to monitor everything from product pricing to shipping fees as customers are savvy and shop around. This is especially true as 39% felt that marketplace prices were higher than they remembered. Additionally, 26% believed shipping fees were higher as well.

Logistics can be challenging for online shoppers with heightened interest in fast delivery. Yet, longer delivery lead times were found among 26% of survey respondents.

Out-of-stocks were sometimes a factor for shoppers (22%) and may have driven them to explore alternative marketplaces. Customer service-wise, just 15% said that limited or longer wait times were seen as problematic.

For 24%, it was difficult to distinguish between going to sellers versus the main marketplace, which was seen as challenging. Marketplaces should assess awareness of where products are made and their authenticity, though. Only 18% discerned if products were made in the USA, and just 17% if products were counterfeit.

Shopper buying frequency: Social marketplaces get increased attention

Social marketplaces like Facebook or Instagram are attractive to online shoppers. Sellers should test them to see if audience fit makes sense. One in four online buyers shops these social marketplaces. It’s also a positive that 19% of survey respondents indicate being more comfortable with the online marketplace model. And 18% are conducting more online purchases via marketplaces.

Sellers must be aware of the clutter factor. Some 20% of survey respondents suggested they dislike it when retailers such as  Target and Walmart add marketplaces because the retailers’ sites become cluttered.

More online behavior changes include shopping directly on sellers’ websites instead of marketplaces (19%), increased purchasing on marketplaces (18%), trying new online marketplaces (17%), and shopping exclusively on marketplaces (6%).

The same number of respondents (20%) find the broader marketplace assortment appealing and believe marketplaces tend to have more inventory.

From a dollars and cents point of view, perceptions from 23% were that prices were often lower than other retailer sites. Meanwhile, 16% felt fees were often less than other retailer sites. Yet 14% found prices including shipping fees in line with other retailer sites.

And when it came to customer service, 13% suggested marketplace customer service is on par with the retail sites they shop (13%).

Marketplace adoption expands

Marketplace purchasing will likely be steady in the coming year as two in three online shoppers plan to purchase about the same from marketplaces. Comfort with the model sees one in four shoppers indicating they will be buying more or exclusively from marketplaces. Positively, only 10% will buy less, and 5% said they don’t buy on marketplaces.

Many shoppers will experiment when smartly tempted by marketplace sellers. The majority of shoppers (52%) are willing to buy from unfamiliar marketplace brands or sellers. The biggest opportunity is convincing those that are on the fence that a site or brand is a viable option and to gain their comfort among the 29% of participants on the fence.

Online marketplace exposure and purchasing often leads to direct purchasing, which is likely to be more profitable for the merchant. Over half of online shoppers surveyed indicate that they have ultimately purchased directly with that merchant. This added product visibility via marketplaces can serve as a strong customer acquisition vehicle, making it one of the reasons retailers are participating more on marketplaces.

The role of ratings/reviews in helping shoppers make smart selections has bottom-line impact for sellers. 96% of online shoppers read and make purchases based on ratings and reviews. Reviews always influence the majority (55%) when making purchases. Meanwhile, 41% occasionally see such an impact.

Thus, online marketplaces must make sure reviews are robust. Smartly positioning reviews within the shopping experience ensure strong viewership.

Marketplace shopping starts with better prices and free shipping, along with in-stock products that can be delivered fast

Online shoppers seek the fundamentals when choosing to shop at marketplaces over going directly to retail sites. Price is the driving factor, selection appreciated, and convenience a given. Topping the list of influences in driving online shoppers to marketplaces is better prices (52%) and free and discounted shipping (51%).

Delivery speed is also an important influence in selecting marketplaces. 41% of survey respondents refer to it in choosing a marketplace. Shipping efficiencies, at 25%, also were a factor.

34% of survey respondents see marketplaces, at their core, as more convenient ways to shop. For 25%, it may be the broader selection in a category and for 20% the influencing factor in a wider range of categories in one location. Meanwhile, 17% found they were ideal for repeat purchasing (17%). But more interesting to me is that they have a unique opportunity to help online shoppers find very specific items (34%) while also trying unique products (24%) that sways shoppers toward marketplaces.

Past experience is an important indicator of future purchasing. It served as an influence for 20% of those surveyed as well.

From a tactical perspective, ratings and reviews — and more comprehensive product information (14%) — power purchasing. Higher seller feedback and ratings were influencers for 25% of participants.

Shoppers have a preference for in-stock products, and 34% found it influenced their behavior.

Other marketplace tactics that came into play from an influence point of view included loyalty programs (19%) and mobile apps (18%). I’m surprised only 13% cited superior service. It should go without saying.

Top concerns related to online marketplace purchasing are logistics, fees, product authenticity and return limitations

Online shoppers want the products they purchase to be of top quality and as represented on the site. Encountering counterfeit products was top of mind for 35% of participants. At the same time, 30% cited issues around subpar product quality.

Because long shipping times can cause buyers to worry (39%), inventory and delivery transparency are welcome. 22% of these online shoppers expressed concerns that an online order would never ship.

Shoppers expect marketplace goods to come from trusted sellers. Some 30% had trepidation about non-U.S. sellers. Simultaneously, 29% worried about whether the seller was not reputable or certified.

Shoppers like to have flexibility in their return choices. Some 33% of surveyed online shoppers found a lack of return options a challenge. Having customer service and support available is a given. 28% of respondents cited it.

A lack of product or seller reviews concerned 27%. The validity and authenticity of product reviews also was an issue for 29%.

From the money and savings vantage point, 38% found shipping costs too high, while fraudulent business practices including counterfeit goods were on the concern list at 35%. Unexpected additional expenses such as sales tax (22%), finding U.S. products at lower prices (16%) and financing options not available (11%) also were on the minds of these shoppers.

Online marketplaces continue to have an opportunity to grow. Broad assortments and attention to the fundamentals — from price to selection — set the tone for success. I advise vigilance when it comes to them. Sellers must monitor the quality and authenticity of their products. Product reviews and information will continue to drive confidence, along with an uncluttered, search-friendly and efficient experience. Monitoring consumer behavior will ensure marketplaces are on track for success in 2023 and beyond.

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Generative AI will change the B2B customer experience as we know it https://www.digitalcommerce360.com/2023/06/01/generative-ai-will-change-the-b2b-customer-experience-as-we-know-it/ Thu, 01 Jun 2023 18:20:53 +0000 https://www.digitalcommerce360.com/?p=1045709 There was the world before ChatGPT, and there is the world after ChatGPT. In fact, ChatGPT’s emergence is being hailed as the next Industrial Revolution. With over a billion visitors per month, this generative AI tool is being rapidly adopted in fields ranging from creative industries like graphic design and content writing to more technical […]

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MaeveCondell-Ultimate-ai

Maeve Condell

There was the world before ChatGPT, and there is the world after ChatGPT.

In fact, ChatGPT’s emergence is being hailed as the next Industrial Revolution. With over a billion visitors per month, this generative AI tool is being rapidly adopted in fields ranging from creative industries like graphic design and content writing to more technical roles such as software development. Its potential has continued expanding into other arenas, including customer support.

A virtual agent that uses generative AI can seamlessly mimic your brand tone of voice.

No doubt, generative AI is the future of CX. And with 88% of business leaders reporting that their customers’ attitudes towards automation have improved over the past year — it’s no longer a matter of if you should look to automate your support but when.

The benefits for B2B ecommerce brands are clear. Since 80% of customers identify CX as a key differentiator and think it is just as important as products or services, gen AI is a crucial way to improve your customer support offering and get a leg up on your competitors. Yet, because this technology is relatively new, and many B2B companies have more complex product packages and setups, you may still be wondering how, in practice, generative AI can enhance your customer support.

First, let’s take a look at what makes generative AI tools like ChatGPT so much better than their predecessors in simulating human-like conversations. From there, we can better understand how this technology can optimize your customer support.

Generative AI’s technology and how it works

Before we explore some of the best use cases for generative AI in the B2B ecommerce support context, it’s a good idea to understand what the technology is and how it works. Gen AI refers to the particular iteration of artificial intelligence that powers tools like ChatGPT — as well as a growing host of other bots like DALL-E, Google’s Bard, and MidJourney. Gen AI is distinct from previous forms of automation because it enables bots to hold impressively natural conversations. This is because generative AI draws on large language models (LLMs) that, in the case of ChatGPT, have even passed the Turing test, a method of proving machine intelligence.

But what exactly is an LLM and why is it so revolutionary in the AI space? What sets these models apart is the use of “transformers” (as if there wasn’t already something so sci-fi and “Marvel-esque” about this technology). Transformers effectively in mimic human conversational style because they can process all inputs simultaneously rather than needing to be fed data sequentially. This means that, in the case of ChatGPT, the bot can process all of the written content on the internet (up until 2022) to generate the answer to a given prompt. This holistic processing capability allows it to produce responses with the context and tone you expect when talking with a regular person.

As you might have guessed by now, this can be especially useful for customer support automation. This is because a virtual agent that uses generative AI can seamlessly mimic your brand tone of voice as well as the conversational style of your human agents. As a result, you can offer an improved conversational experience for customers, make your support agents’ lives easier, and provide your customers with more than ever before.

The top 3 generative AI use cases revolutionizing CX in the B2B space:

1 – A more advanced conversational experience for customers

With generative AI offering such natural and human-like conversations, you don’t have to worry about automation damaging the customer experience with your brand. With the help of generative AI, the virtual agent can instantly pull info from your FAQ pages, knowledge base, help center, or any other company page — and serve this to customers in a natural, conversational way. There’s no training required, and you can get started in minutes.

As long as a topic is covered in your help center, the bot can process all of the articles available to answer customer queries. So, if a customer asks, ‘Where can I find and download my last invoice?’ the bot can instantly provide instructions.

In this scenario, your customers can have their cake and eat it too — by getting the information they need much more quickly through self-service, without losing the conversational format of speaking with a human agent. This will boost your automation rate, while ensuring that your customers still feel supported with high quality customer service.

2 – Assisting support agents

While a virtual agent powered by generative AI may be able to effectively do the work of several human agents, it doesn’t mean that they will be replacing them anytime soon. Rather, automation serves as a tool that can help agents to do their jobs better. For instance, a virtual agent that uses generative AI can offer a more seamless transition from bot to human agent by helping to structure, summarize, and automatically populate tickets so agents don’t have to. This will lead to much faster response times and a cleaner handover to agents in cases the bot can’t fully resolve. In addition, agents can prompt generative AI to offer suggested replies that help them to draft responses more efficiently.

These things can be a major game-changer in the event of an uptick in queries, unexpected or otherwise. This makes automation useful for answering simple questions like order status or requesting a password change. It also helps to free up agents’ time to deal with more complicated issues. For B2B ecommerce brands where queries can be complex and technical, having a primer from the bot allows agents to hit the ground running when addressing customer issues. With the help of generative AI, the bot assists your agents in having better and faster insights into customers’ needs and helps your team work more efficiently.

3 – Understanding your customers and what they’re asking

Lastly, generative AI will help you to educate your customers and offer them even more value than they were expecting from interactions with your support team. Businesses often shop around between different suppliers before making a purchase, so you want them to discover the unique selling point of your product offerings as quickly as possible. This discovery process is where generative AI comes in. It can comb your existing content to offer useful, educational suggestions to answer any pre-purchase questions. It can also provide such content to busy support agents when prompted. Through the transformer model that powers it, generative AI can instantly serve up this information without needing to be manually updated as you publish new content on your site.

Conclusion

Generative AI is the latest and most sophisticated edition of automation technology, and it has real potential to optimize the B2B customer experience. In particular, it has the capacity to mimic natural conversations, assist your agents in structuring support tickets, and provide customers with an enriched support experience — all without hiring any extra agents. It’s a time-efficient, affordable, and scalable solution to mitigating long wait times, depersonalized CX, and clunky self-service offerings. While the technology may be new, the sky is hardly the limit on its potential for supercharging your CX as the number of applicable use cases only continues to grow.

About the author:

Maeve Condell is a solution architect at Ultimate, a customer service automation company. Her focus is on combining AI and conversation design to build personalized virtual agents.

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My Ikea shopping dream turns into a nightmare https://www.digitalcommerce360.com/2023/05/19/ikea-shopping-dream-turns-into-nightmare/ Fri, 19 May 2023 20:02:05 +0000 https://www.digitalcommerce360.com/?p=1044846 I have many jobs in life, and the most important is being a mother. As such, I headed to Brooklyn to move my daughter from her dorm to her first apartment. While it was physically exhausting at best, the biggest fiasco was my shopping experience at Ikea. Coincidentally, Ikea recently announced that it’s investing more […]

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I have many jobs in life, and the most important is being a mother. As such, I headed to Brooklyn to move my daughter from her dorm to her first apartment. While it was physically exhausting at best, the biggest fiasco was my shopping experience at Ikea.

Coincidentally, Ikea recently announced that it’s investing more than $2 billion in the U.S. for growth over the next three years. The furniture retailer says the money will go toward opening new stores and creating new fulfillment networks. It marks the largest ever U.S. investment from Ikea, and the company’s largest investment in a single country.

All of this is well and good. Ikea has a lot of work to do to optimize that opportunity. Product design and sharp prices are mere starting points. Logistics and customer service are the real growth drivers for customer retention.

When Digital Commerce 360 and Bizrate Insights asked 1,060 online shoppers in a conversion survey about which retailer policies and initiatives are most likely to lead to an order, fast shipping was No. 1 at 61% and past experience with the retailer came in No. 3 at 45%. I have found over the years that trust is the foundation of the customer-retailer relationship and that was sorely lacking as shared in my story below.

Chicago retail lessons

Maybe I’m spoiled. Perhaps they could take a lesson from a retailer who did right by the customer, Crate & Barrel. Its CEO, Gordon Segal had an expression, “retail is in the details,” which has real meaning in this scenario. A second Chicagoland area retailer, Abt, has a motto on every truck that frequents every neighborhood it serves, and it upholds it. “Our Goal: Complete Satisfaction, Serving Customers Since 1936.” Lastly, I can’t help but invoke the age-old adage that defined Marshall Fields, a store where I spent some of my formative years as a buyer, “Give the Lady What She Wants.”

Now I’m going to tell my story. Although it may be a familiar one, it bears repeating to suggest what it takes to do retail right. No one ever said it would be easy, but this type of retail torture has got to end if we are to maintain ecommerce and retail momentum. As part of this discussion, I’m going to integrate some of our Digital Commerce 360 and Bizrate Insights findings that illustrate how my story aligns with the 1,070 online shoppers surveyed in another story on home goods from April 2023.

I hope Ikea and all retailers will be paying attention to three pieces of advice:

  1. Timely and accurate delivery is always critical but has a higher meaning when it comes to furniture.
  2. Omnichannel choices and execution impact shopper decision-making.
  3. Customer service counts across all channels and should be foolproof.

One shopper journey

A month in advance of needing the apartment furniture, like 44% of our surveyed shoppers, I made selections online at Ikea ensuring that products were available in Brooklyn and that delivery would be an option. And yes, like 31% of surveyed shoppers, I encountered out of stocks. No issues.

I then shared my choices with my daughter, and we added a few items to round out our order. My first order of business after arriving at LaGuardia Airport was visiting the Red Hook Brooklyn store. As our survey indicated, 60% of online shoppers still wanted to see their home goods selections in person, and we too made the trip. We needed our furniture quickly, as did 41%. And while we didn’t want to pay for shipping like 40%, I knew it was likely I’d be paying for delivery. We road tested the chairs and mattresses like 31% of respondents. We were ready — or so we thought. To say no one was working at the store feels like an understatement. I saw fewer than five employees in that store visit, plus there were two individuals at checkout when we hand-carried a few items. This is where the nightmare began.

That night, after six hours of moving, I went back to my hotel to place the order, and Ikea appeared to be delivery-challenged. Upon clicking into potential delivery options, each time it said no delivery available or that one of the items in the cart was unavailable to deliver and needed to be removed. Angry would be an understatement. I could barely sleep thinking I would have to start all over again making selections from another retailer as time was my most precious commodity.

So, I went the old-fashioned route and my only positive experience came with the customer service representative who took my order and scheduled delivery for Saturday to the new apartment.

We picked up the desk the next day at click and collect, which was fairly easy — and comparable to 21% of survey participants.

Delivery misses the mark

Come Saturday, when I had already returned to Chicago, I received an email saying, “your order was not delivered.” They suggested the customer didn’t answer the phone and wasn’t home. The truth was there was no missed call and she was home. My favorite part was their message that said, “things don’t always go as planned.” Nothing like a little marketing spin on a bad situation.

I fretted and my daughter called to reschedule for Thursday. An hour later, I received another email that made me think she was not really rescheduled. I had no confidence in this delivery, and more importantly, I had lost all confidence and respect for Ikea.

I then spent an hour on the phone with a gentleman from the logistics company who was both competent and honest. He said I wasn’t alone, that supervisors don’t answer the phone on weekends and that they have a lot of problems with this company. He gave me the names of the supervisors and suggested I send an email with the sordid details and call at 8 a.m. the following day. I did both and was ensured my order was to be delivered on Thursday.

Of course, I felt I deserved some compensation and Ikea did remove the delivery fees, which was a no-brainer. I also felt more was due but the customer service representative reminded me of the limitations that constrained her. She couldn’t offer a credit but could give me a $100 gift card, which I could convert at a store. I, of course, had no intention of ever purchasing from Ikea again, but I took it anyway. It was basically sheer torture at this point.

When participants were asked how important the following features and functionalities were when shopping for everything home-related online and had the ability to give five answers, the top five were as follows.

  • Customer ratings and reviews: 52%
  • Access to pricing: 51%
  • Ability to compare products: 35%
  • Ability to zoom or see many product details: 35%
  • Accurate delivery windows that indicate when items are actually going to arrive: 30%

I agree with their selections, but to me, accurate delivery windows would rise to the top of the list. Perhaps these shoppers have never had a poor experience.

When a transaction goes smoothly with a retailer, it’s a given. When an order goes wrong, it is a challenge and an opportunity for a retailer to reconsider what it takes to make it right. It is also a chance to reinvest and reestablish the trust that was lost and to move toward a real customer relationship.

Ikea ranks No. 3 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region.

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5 OEM strategies beyond order-taking to build customer loyalty https://www.digitalcommerce360.com/2023/05/18/5-oem-strategies-beyond-order-taking-to-build-customer-loyalty/ Thu, 18 May 2023 16:50:05 +0000 https://www.digitalcommerce360.com/?p=1044888 In today’s dynamic business environment, staying competitive requires a more dynamic approach to utilizing your organization’s valuable resources. As an original equipment manufacturer or after-sales leader, your teams should be focused on delivering exceptional products, enriching customer experiences, and driving revenue growth. However, some companies still rely on outdated practices, operating as mere ‘order-takers’ and […]

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Kristina Harrington, CEO, GenAlpha Technologies

Kris Harrington

In today’s dynamic business environment, staying competitive requires a more dynamic approach to utilizing your organization’s valuable resources. As an original equipment manufacturer or after-sales leader, your teams should be focused on delivering exceptional products, enriching customer experiences, and driving revenue growth.

By empowering your customer service teams to add value, you can differentiate your organization from competitors and build a loyal customer base.

However, some companies still rely on outdated practices, operating as mere ‘order-takers’ and spending a significant amount of time on administrative tasks, rather than adding value to their customers. And adding value can make a massive impact for OEMs.

If your organization is more focused on order-taking tasks than creating value for your customers, you may be at risk of falling behind. Here are three telltale signs that your organization operates as an “order-processing center”:

● Customer service teams are spending most of their time responding to customer inquiries for parts identification, price, availability, and order-related tasks.

● The organization is relying heavily on manual workflows and paperwork to manage orders, returns, and warranty claims.

● The organization is not leveraging technology or automation to streamline processes, reduce errors, and improve customer experiences.

So, what can you do to move away from an order-taking culture and start focusing on value-adding activities? Here are five things that OEM and after-sales leaders should consider:

1Implement a digital self-service platform. One of the most effective ways to reduce the burden of order-taking on your customer service teams is to provide customers with self-service options. This can include customer or dealer portals that allow customers to access product information, place orders, track shipments, and request support without having to engage with customer service representatives every step of the way. By enabling users to self-serve, you can reduce the volume of calls and emails your customer service teams receive and free up their time to focus on more strategic activities.

2Automate order processing and fulfillment. By integrating EDI and ERP systems, businesses can streamline operations, reduce errors, and improve customer satisfaction. For example, automated order processing and fulfillment allow companies to allocate inventory, generate pick lists, and create shipping labels automatically. This automation helps reduce the burden on customer service teams and will let them focus on more strategic initiatives. Additionally, automation provides real-time visibility into inventory levels, order status, and delivery tracking, which enables businesses to manage their operations and improve customer service proactively.

3Use data analytics to anticipate customer needs. Rather than waiting for customers to contact you with their needs, you can use data analytics to anticipate their needs proactively. By analyzing customer behavior and buying patterns, you can identify which products or services they are likely to need next and offer them personalized recommendations or promotions that encourage repeat business. This use of analytics can help you build stronger customer relationships, increase revenue, and reduce the need for reactive order-taking.

4Invest in training and development for customer service teams. While digital self-service and automation can help reduce the burden of order-taking on your customer service teams, they still play a critical role in ensuring customer satisfaction. That’s why it’s important to invest in training and development programs that equip your customer service teams with the skills and knowledge they need to handle complex inquiries, resolve customer issues, and provide exceptional service. By empowering your customer service teams to add value, you can differentiate your organization from competitors and build a loyal customer base.

5Create a culture of continuous improvement. Finally, it’s important to create a culture of continuous improvement that encourages experimentation, innovation, and collaboration across your organization. This can include regularly reviewing and analyzing customer feedback, identifying areas for improvement, and testing new processes and technologies to drive efficiency and customer satisfaction. By embracing a culture of continuous improvement, you can position your organization for long-term success and move away from a culture of order-takers to a culture of value-creators.

The pressure to deliver more value to your dealers and customers is greater than ever, and organizations that fail to prioritize this customer service strategy risk losing market share. By implementing the steps outlined in this blog, OEM and after-sales leaders can optimize their operations, improve customer experiences, and set themselves up for success in the years to come.

About the author

Kristina Harrington is the co-founder and CEO of GenAlpha Technologies, which provides digital commerce technology for manufacturers. Prior to GenAlpha, Kris worked for more than 10 years in leadership positions at two large multinational original equipment manufacturers, Bucyrus International and Caterpillar, supporting the mining industry. In her various positions, she worked with internal stakeholders, dealers, and customers to deliver business results both in aftermarket and equipment sales. She can be reached at kharrington@genalpha.com.

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6 ways ChatGPT can enhance supply chains https://www.digitalcommerce360.com/2023/05/11/6-ways-chatgpt-can-enhance-supply-chains/ Thu, 11 May 2023 14:14:41 +0000 https://www.digitalcommerce360.com/?p=1044496 Many new ChatGPT supply chain applications are emerging as generative AI becomes more advanced. So how can industry professionals utilize this technology effectively? They can use ChatGPT in several critical ways, primarily communication and automation. 1. Supply Chain Customer Service Customer service is one of the most promising applications for ChatGPT in the supply chain. […]

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EmilyNewton

Emily Newton

Many new ChatGPT supply chain applications are emerging as generative AI becomes more advanced. So how can industry professionals utilize this technology effectively? They can use ChatGPT in several critical ways, primarily communication and automation.

1. Supply Chain Customer Service

Customer service is one of the most promising applications for ChatGPT in the supply chain. The natural language processing capabilities of ChatGPT are among the most advanced ever developed for popular use. This makes it an ideal tool for navigating the complex communication required in customer service tasks.

Any developer can integrate ChatGPT into their apps today using OpenAI’s official API for the algorithm. ChatGPT’s language processing skills can be applied to any customer-facing application in the supply chain, whether B2B or B2C. For example, a supplier could create a ChatGPT app for its manufacturing customers to track shipments of materials and resources.

2. Translation and International Relations

Succeeding in today’s supply chain requires working closely with partners worldwide. Unfortunately, language barriers make this challenging, potentially hindering organization and efficiency. Luckily, translation is a great way to use ChatGPT in the supply chain.

Research shows that users don’t need to specify the source language of a text passage for ChatGPT to translate it successfully. The algorithm can autonomously detect the source language and translate it in seconds.

ChatGPT’s performance is also on par or better than most digital translation tools available today. The fact that it can process natural language, including advanced technical terminology, gives it a major advantage over competitors. Its accessibility makes it ideal for supply chain applications, which rely on quick turnaround times and clear communication.

Using ChatGPT for translation can strengthen collaboration with international supply chain partners, improving efficiency and organization for everyone involved.

3. Automating Business Tasks

Businesses can use ChatGPT in the supply chain to automate various everyday tasks. For example, it can summarize a sales report, extract the highlights from a spreadsheet or draft an email. These tasks might seem small, but they help supply chain professionals work more efficiently.

ChatGPT can even be helpful for complex logistics tasks. AI is already making advances in logistics. For example, algorithms can automate order processing and help managers identify important insights in their data. This could include tasks like analyzing a list of suppliers to find those with the best rates or assessing various packaging options for the most cost-effective solution.

ChatGPT takes existing applications for AI in robotic process automation a step further. Advanced natural language processing helps it handle more complex content and user requests. Even integrating it into a larger automated system could improve performance.

4. Personalized Employee Training

ChatGPT is a great tool for improving employee training. This is especially helpful today since many supply chain businesses are adapting to new technologies and grappling with labor shortages. Surveys show 57% of supply chain leaders report hiring and retaining employees as their top challenge. Additionally, 41% have issues upskilling or reskilling existing workers.

Supply chain businesses can help alleviate these challenges by integrating ChatGPT into their training programs. It can serve as a multipurpose assistant for trainees by answering questions, explaining complex topics, and creating practice tests and flashcards. Employees can use ChatGPT to get a personalized training experience catered to their needs and learning styles.

Some trainees might quickly grasp a new technology, while others will want more time to explore definitions, technical terminology and other background information. ChatGPT can serve various training approaches, making it a versatile tool for providing more efficient employee training.

5. Data Analysis and Visualization

Data analysis and visualization is a lesser-known application for ChatGPT in the supply chain. Most people think of it as a language-specific AI, but it can also process numerical data.

Rapid and accessible data analysis tools are vital today. Data-driven insights and decisions are a cornerstone of Industry 4.0, which is rapidly reshaping the supply chain. ChatGPT makes basic AI analytics quick and straightforward. Anyone can paste a set of unstructured information into ChatGPT and ask it to summarize or organize it into a table.

Automating this task allows supply chain employees to have a more efficient workflow and leverage data more easily. ChatGPT can’t do complex data analytics yet, but it can handle many basic processes that are helpful for quickly getting an overview of a data set.

6. Idea Generation

Idea generation is a unique application for ChatGPT in the supply chain. Businesses need creative solutions to new challenges as things become more complex. Generative AI platforms like ChatGPT can be surprisingly helpful in the brainstorming process.

An AI might pinpoint unconventional solutions or ideas a human would not have considered. ChatGPT’s suggestions may not always be usable or feasible, but they provide a unique perspective that can spark creativity among team members.

Potential Drawbacks of ChatGPT

ChatGPT may be a powerful tool for certain applications, but it isn’t perfect. Business leaders should know about the drawbacks and challenges of adopting ChatGPT.

For example, ChatGPT has been known to give users inaccurate or completely made-up information. The AI’s language processing skills allow it to convey this false data convincingly, making it challenging to detect accuracy at a glance. Some groups, such as the coding help site Stack Overflow, are even banning ChatGPT due to the spread of misinformation.

This broadcast ofmisinformation is a huge problem in applications where users may be poorly equipped to verify that ChatGPT’s generated text is accurate. For example, using the AI for translating could lead to confusion if ChatGPT misunderstands the input or output language. Similarly, a new employee using ChatGPT for job training might learn incorrect information due to answer errors.

These issues may improve with time. The latest version of ChatGPT, GPT-4, is reportedly 40% more likely to give factual data, according to developer OpenAI. However, it will likely take years for ChatGPT to become a reliable source of information. Even then, there is always a chance the AI could “hallucinate” incorrect conclusions from the given data. ChatGPT’s output should always be fact-checked.

Adopting ChatGPT in the Supply Chain

There are many ways to use ChatGPT in the supply chain today, ranging from translation to employee training to logistics automation. Businesses can improve efficiency and productivity by integrating it into their workflows. OpenAI offers an API any developer can use to build ChatGPT into their app or website. In the years ahead, more supply chain applications will likely emerge as the technology advances.

About the author:

Emily Newton is an industrial writer reporting on how technology disrupts industrial sectors. She’s also the editor-in-chief of Revolutionized, covering innovations in industry, construction, and more.

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Having the checkout page that gets it done  https://www.digitalcommerce360.com/2023/05/10/having-the-checkout-page-that-gets-it-done/ Wed, 10 May 2023 11:00:55 +0000 https://www.digitalcommerce360.com/?p=1042887 The shopper is acquired. The product is in the cart. The consumer is on the checkout page. This is it. Make or break time. Will the shopper click buy or abandon the cart?    This is where online retailers hold their breath to see if they can get this shopper across the finish line.    That means […]

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3 principles for bridging the B2B-B2C marketing chasm https://www.digitalcommerce360.com/2023/05/05/3-principles-for-bridging-the-b2b-b2c-marketing-chasm/ Fri, 05 May 2023 13:19:53 +0000 https://www.digitalcommerce360.com/?p=1044067 Is there really such a thing as a B2B buyer anymore? The knee-jerk response to this question, particularly in B2B circles, might be, “Well, of course.” But in light of the tremendous societal upheaval of the past three years, we would be remiss to dismiss this question outright. The blurring of the line between the […]

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aPodesta McCoy_Resonate

Ericka Podesta McCoy

Is there really such a thing as a B2B buyer anymore? The knee-jerk response to this question, particularly in B2B circles, might be, “Well, of course.” But in light of the tremendous societal upheaval of the past three years, we would be remiss to dismiss this question outright.

The blurring of the line between the B2B and B2C marketing worlds has been greatly accelerated in recent years. B2B organizations that haven’t transformed their marketing approaches accordingly—particularly as it relates to their data practices—are rapidly falling behind. Moreover, they’re missing out on opportunities to unlock deeper, more valuable relationships with their customers and prospects.

So what does it take to bridge the B2B-B2C divide in today’s complex marketing landscape? Let’s take a look at three key concepts that need to be baked into the core of modern B2B marketing organizations.

Reframe the B2B Buyer Through a Consumer Lens

For many B2B marketing organizations, the first step toward addressing the blurring of the B2B-B2C marketing worlds has to do with mindset. It’s easy to get caught up in the mindset of selling to businesses rather than individual people. However, it’s important to remember that businesses are made up of humans, and these humans are ultimately the ones making the buying decisions. That’s the mindset and understanding that B2B marketing teams need to put at the forefront of everything they do.

When we reframe B2B buyers through a consumer lens, we unlock a much deeper appreciation for how they operate. In some cases, we need look no further than our own experiences to appreciate how effective a new approach can be. As our work and personal lives have become increasingly fluid, the devices, platforms and content we interact with are now being employed for both purposes — sometimes simultaneously.

For example, our phones might have our personal chats on them, but they also have our office Slack, and we might be switching back and forth from conversations in each in the same session. For people making purchases on behalf of their companies, this blended way of engaging in work and personal matters has significant implications for when and how they process information that shapes their B2B buying decisions.

Technology (Including AI) and Data Are Your Friends

The modern world of marketing is awash with data and technology, and it’s crucial for businesses to leverage these tools to their advantage. This is especially true when it comes to bridging the B2B-B2C marketing chasm.

Historically, B2B marketers have built customer personas based on what they know about their customers from a professional standpoint. However, such personas have increasingly limited utility in the blended B2B-B2C world. From a data standpoint, there are platforms available to help B2B marketers put a consumer lens on their personas.

B2B marketers should also consider tapping into channels that they’ve traditionally considered to be consumer channels. Today’s consumer is more receptive than ever to business messaging while consuming personal content. B2B marketers who harness best practices for B2C messaging in these channels, but with a business twist, will see the best results.

Make Testing an Always-On Effort

Particularly as B2B marketers begin to shift the way in which they operate, it’s essential to embrace an agile approach and always be testing. Agile methodologies aren’t just for software developers. Marketers need to live and breathe this philosophy. The worst thing you can do in a dynamic market is to not test, try new things and incorporate learnings. That’s how companies get left behind — and that is exactly what B2B marketing organizations are trying to avoid.

Above all, reframing the B2B buyer through a consumer lens also means taking a step back and considering the emotional and personal motivations behind the purchasing decisions of individuals within a business. By focusing on the human side of B2B marketing (i.e., what drives a person’s decisions not just as an employee but also as a person), companies can create more authentic and engaging messaging that resonates with buyers on a deeper level. This can lead to stronger relationships and ultimately greater revenue.

Ericka Podesta McCoy is the chief marketing officer of Resonate, a consumer intelligence company. As a global marketing executive, she has experience in the high-tech, telecom, manufacturing, energy and hospitality sectors across North America, Europe and Asia.

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The Shopper Speaks: Will home goods make a comeback in 2023? https://www.digitalcommerce360.com/2023/05/01/the-shopper-speaks-will-home-goods-make-a-comeback-in-2023/ Mon, 01 May 2023 15:18:17 +0000 https://www.digitalcommerce360.com/?p=1043204 Online retail growth during the pandemic (2020-2022) averaged 21.9%, and home goods growth trailed at 15.5% during this same time frame. That contrasted with hardware and home improvement at 25.1%, sporting goods at 23.4% and apparel and accessories at 16.5%. Each year, Digital Commerce 360 and Bizrate Insights looks at the behavior of home goods […]

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Online retail growth during the pandemic (2020-2022) averaged 21.9%, and home goods growth trailed at 15.5% during this same time frame. That contrasted with hardware and home improvement at 25.1%, sporting goods at 23.4% and apparel and accessories at 16.5%.

Each year, Digital Commerce 360 and Bizrate Insights looks at the behavior of home goods buyers. We begin with their online buying penetration, assess the user experience they seek and address the role of the store in a category where touch and feel may matter more than others.

I’ve been spending significant time on home sites as I help my daughter think about furnishing her first apartment. Thinking back to a decade ago and the impact of the pandemic on the online home goods experiences, online retailers have elevated their online and omnichannel experiences, driving category growth.

6 in 10 online shoppers purchased 26%+ of their home goods online in the past year

Online shoppers remain active with home goods research and cross-category buying as they upgrade homes, seeking savings along the way.

And online shoppers often have home needs that require researching to make the right selection. Part of those home needs included:

  • Upgrades to their homes (47%)
  • DIY projects (38%)
  • Moving to a new home (13%)
  • Kicking off contractor projects (12%)

Gathering information about these activities often meant researching ways to enhance their home online (29%) and perusing social media for ideas (25%). This should suggest to retailers that comprehensive information fosters purchasing for home goods shoppers.

A broad assortment allows for purchasing in many categories and we surveyed online shoppers across 4 particular areas: outdoor (35%), new furniture (33%), appliance/high ticket (26%) and home office (22%).

Remaining competitive with promotions encourages purchasing, and 42% of shoppers showed interest in saving money by taking advantage of promos on interested products.

Price, savings, past experiences and being in stock are the conditions most likely to lead to online purchasing

When online shoppers are asked what drives them to place an order, money talks. That starts with the right price at 68%, along with the always-in-favor free shipping at 61%. Free return shipping continues to see traction with 38%, suggesting it leads to placing an order. 26% cited promotions beyond free shipping, while the ability to finance (at 14%) saw more limited interest.

Past experiences with retailers engender trust for future buying. In fact, 57% suggested that was a reason to buy again. Other factors included trust in the brand (39%), being a member of a loyalty program (29%) and the retailer’s support of causes that resonated with the shopper (among 10%).

Online shoppers have become accustomed to a strong user experience that is efficient and replete with imagery, information and tools. Half of those surveyed cited the overall experience as an important conversion attribute.

Other UX elements focused on speed and included an efficient site search, which 31% cited, fast checkout (21%) and a fast-loading site (18%).

Content that most factored into conversion was the quantity/quality of product reviews at 43%. Others that had more limited impact on conversion were:

  • Ample product information/imagery (16%)
  • A personalized site based on past behavior (15%)
  • Videos (12%)
  • Interactive tools (6%)

Fundamentals such as product selection (at 53%) remain atop the list for online shoppers. There is no substitute for being in stock and having timely delivery, as 45% of survey respondents suggested. Logistics also continue to play a role with guaranteed delivery times (27%), BOPIS (16%) and curbside pickup (10%) a more limited factor.

Customer service had some impact as those surveyed cited easy access to customer service information (19%) and the ability to contact customer service via multiple means (18%).


Home goods shoppers require many details when shopping online and like to compare products along the way

Basic information is most important to guide decision-making, from ratings to price and getting a range of views of the product. Customer ratings/reviews topped the list of features at 52%, while access to pricing (51%) was also critical for the majority of online shoppers. Seeing the details was a must in this category and thus having the ability to zoom in on images at 35%, images in the home setting (23%) and photos from other shoppers (21%) also resonated with shoppers. Videos at 12% and livestreaming (5%) were the least important elements.

Product comparison is important in this feature-rich category. Being able to look at products side by side is invaluable for shoppers, as 35% noted. Category-specific content that enriches the experience seems to have more of a niche following. How-to guides were important to 17%, while room design tools (11%), product configure (10%) and product customization (9%) followed behind. Trailing in the end were augmented reality (8%), fabric swatching (7%) and styling profilers (7%). While tools are abundant, only a small group of shoppers see them as important.

Logistics are critical in this category, as it often lends itself to scheduled delivery with more complexity than a typical standard shipment. 30% said accurate delivery windows are important to them. That may be elevated due to supply chain concerns during the pandemic.

Merchandising is about inspiration, and retailers used it extensively to capture online shoppers’ attention. Topping the list were new products and product recommendations, both at 20%. They are often personalized using both similar and related products, making the shopping experience more efficient as well. Top sellers (at 15%) and trending products (9%) also had roles to play.

Add-on services are valuable for shoppers and can be an important revenue generator for retailers

The majority of online home goods shoppers are likely to take advantage of add-on services, with 23% on the fence and only 26% unlikely. The convenience and confidence that comes with being able to leverage such services is invaluable. Additionally, the likely margin among retailers and the growth of partners to help fulfill these needs appears to have grown in past years.

When buying home goods, shoppers increasingly use mobile devices while also watching video and gathering information. 51% indicate they have used smartphones for research and purchasing so certainly a mobile-first mentality is advised for today’s home goods sellers.

Creating videos in support of the buying experience is desirable to shoppers who take advantage of available content. 37% of survey participants watched video about a product in consideration and 26% watched home and garden TV.

Social media has a role to play in gathering information and inspiration, as 24% peruse social media to get ideas and 17% read blogs for design ideas.

Services are integral, but adoption is not universal

Tool usage including A/R came in at 13% and 3D room planners at 12%. While I have found them valuable personally, they’re not always easy to find on the sites and not all buyers have such sophisticated needs.

The same goes for appointments and services, which are often product dependent. From our survey respondents, just 10% booked in-home services while 9% booked Home Advisor/Task Rabbit services and 8% purchased product assembly.

From a design and appointment point-of-view, 8% used in-store design services, and/or a virtual appointment with an associate/designer, so they are still relatively limited among home goods buyers.

Online home goods shoppers have a heightened awareness of where products are available and enjoy the conveniences of an omnichannel experience

Omnichannel-wise, there was a need to know about availability as 44% checked product availability in-store. But unfortunately, from an inventory perspective, 31% encountered out-of-stocks online.

These shoppers have come to enjoy BOPIS (28%) and curbside pickup at 21%. And many like me visit the store in advance of placing an order (26%) for a variety of reasons.

Expectations around logistics continue to grow as 20% ordered for same-day delivery. Complications arose with late deliveries seen among 16% while 14% had orders canceled. And sadly, 13% said they couldn’t reach customer service in a timely manner.

Services-wise, 12% contracted for haul away as it certainly makes things simple, while just 8% used a retailer’s white glove service.

From a design perspective, just 11% took advantage of design services while 10% used AR or 3D tools. Though small in number, I imagine this customer would be of great interest from a dollar contribution standpoint.


Home goods buyers like to visit the physical store to see products in person when they need items quickly and to save money

There is no substitute for the visit as stores allow shoppers to see and experience products first-hand.

The biggest reason shoppers visited the store, 60% said, was to see products in person. 31% also wanted to road test the products. There is also a trust factor in play, too. 24% of online shoppers trust the product more when they buy in person. And of course, there is the experience for 22% as they enjoy seeing how products are displayed, while 18% find they get a full sense of the brand experience.

There is the people factor for 16% as they like to get advice from in-store experts. Some 12% find the website experience inadequate and 8% are not satisfied with online customer service.

A unified experience

Stores allow shoppers to avoid shipping and channel-only promotions are seen as appealing. In fact, 40% didn’t want to pay for shipping. 36% took advantage of in-store sales or promotions and 11% feared dealing with counterfeit goods.

Omnichannel options are convenient for shoppers facilitating pickup and returns. That especially comes into play for the 41% who need items quickly. Additionally, there is a desire among some 24% of those surveyed to support local retailers. Another 21% like the convenience of picking up at the store. Similarly, 16% appreciate being able to return to the stores as well.


Looking ahead, the home category has clear growth opportunities that would benefit online shoppers. The majority of online shoppers said they will at least spend the same (37%) or more (25%) in the first half of 2023.

The home goods category is one that requires investment. Retailers often add new products to the mix. The combination of inspiring merchandising, robust product and category content, and tools is just the start. This, coupled with the logistics and services to compete with the best retailers, will move the growth needle higher once again.

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How B2B sales reps can up their game via digital sales rooms https://www.digitalcommerce360.com/2023/04/26/how-b2b-sales-reps-can-up-their-game-via-digital-sales-rooms/ Wed, 26 Apr 2023 20:12:37 +0000 https://www.digitalcommerce360.com/?p=1043396 Having difficulty sharing sales content dispersed across online platforms, email, and chats? Lacking visibility into when prospects read and engage with content? If the answer is yes, this is what traditional B2B ecommerce sales look like. Now consider the typical sales process: It involves sales reps asking prospects questions to determine if they have the […]

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JinalJhaveri-EnableUs

Jinal Jhaveri

Having difficulty sharing sales content dispersed across online platforms, email, and chats? Lacking visibility into when prospects read and engage with content? If the answer is yes, this is what traditional B2B ecommerce sales look like.

Now consider the typical sales process: It involves sales reps asking prospects questions to determine if they have the budget, authority to make decisions, need for a solution, and an appropriate timeline to take action. The conversations aim to get information from the buyer instead of a B2B seller providing information and value to prospects.

Real-time sales room analytics can kick salespeople into gear, as they’ll see who is receiving, opening, and viewing content.

Today, buyers do want to interact with sellers — but only if they follow a more bespoke and consultative sales approach. B2B buyers are skeptical of sales reps that don’t innovate, and they want immersive experiences where they can interact with products in their own time to make more informed purchasing decisions.

Forrester Research also predicts that more than a third of millennial and Gen Z business buyers will purchase through self-guided digital channels in two years. That’s why online microsites, known as digital sales rooms, have taken off in the last few years, offering unified hubs of information, invaluable buyer insights for sellers, and unmatched personalization. They will be essential to help sellers customize sales content for the B2B buying experience in 2023 and beyond.

Digital sales rooms mean centralized communication 

Campaign Monitor reported that 64% of small businesses use email as the primary channel for acquisition and retention. But while email marketing can be effective at driving sales, multiple unorganized attachments and a lack of strategy can cause einformation to get easily lost into the ether of multi-thread email chains.

This doesn’t sound like a buyer-centric solution.

Digital sales rooms provide salespeople with a customer-facing digital portal where they can share relevant marketing content and craft custom buying experiences for prospective buyers, removing buyer friction. It helps B2B sellers centralize customer interactions with their brand and streamline purchasing by keeping all relevant information in one convenient location via a personalized hub.

The idea is that customers can examine content through a single shareable link, which they can access on their phones, desktops, or wherever, as everything is embedded. Plus, it isn’t a one-way experience or conversation; customers can ask questions about content or material through a chat functionality on the portal.

Access to invaluable intelligence with digital portals  

According to G2’s 2022 Buyer Behavior report, 68% of those surveyed indicated that the person responsible for making decisions always or frequently changes during buying processes. And 71% of these respondents reported that other stakeholders are added throughout the buying journey too. This buying behavior is one reason why it is increasingly important to streamline knowledge sharing for prospects and their teams.

For example, with what I call the “email black box,” you wouldn’t know if a prospect sent the presentation to another colleague or how long they spent reading a case study. Despite email software having excelled over the years, it still requires a key ingredient to increase prospect responsiveness: It needs to inform B2B salespeople about what the next action to take should be or when.

However, real-time sales room analytics can kick salespeople into gear, as they’ll see who is receiving, opening, and viewing content — and the moment another person becomes involved in the deal-making. The metrics available include view rates, share rates, and user behavior.

For example, a global SaaS company operating in the civil construction and mining space was able to see if a prospect shared a blog, whitepaper, or even product information with another decision maker. This view enabled them to pinpoint areas for improvement and strengths to efficiently target project managers, engineers, contractors, and suppliers.

The same can be done at the top of the sales funnel: the outbound sales and marketing. Instead of creating a digital sales room for each prospect, B2B sellers could use one duplicated room for a targeted persona. The moment a prospect clicks on the link, the digital portal could notify sales reps and start tracking the user’s activity.

Digital portals have removed the need for one be-all-end-all sales meeting. Now, it’s all about how easily a prospect can access each chunk of information to piece together the puzzle of a B2B company’s offering.

Deeper personalization for the win

Wunderman Thompson’s Future Shopper Report 2021 showed that 92% of B2B buyers expect a B2C experience when making online business purchases. In other words, they want the buying encounter to be asynchronous, delightful, and quick.

For example, suppose a B2C customer wants to purchase a new pair of shoes from Amazon or Nike. They’ll navigate a retailer’s website, browse available styles, select a pair, choose a size and color, add the item to a cart, and complete the purchase with a few clicks.

However, the purchasing process in a B2B setting is always overcomplicated and complex, involving multiple stakeholders. For example, if a business needs to purchase a new piece of software, the process will involve many meetings and negotiations with a vendor, as well as input from various departments within the company. It can take months.

The B2C experience is characterized by faster decision-making and user-friendly design. But today’s B2B buyers also demand a more personalized, self-service journey.

Since companies can grow revenue up to 40% faster with personalization than without, this growth opportunity encourages B2B sellers to adopt customizable digital portals. The sales rooms are shared through a single, evergreen link that enables prospects to easily access, engage, and share content. Companies can choose to include proposals, testimonials, case studies, recorded demos, white papers, and even welcome videos recorded by a sales rep.

With the global B2B ecommerce market predicted to grow by another 20% by 2030, it is time for B2B sellers to be more efficient by leaning on digital sales rooms for more personalized buyer experiences.

Jinal Jhaveri is the CEO and founder of Enable Us, a sales enablement technology provider. He has also been involved in founding and leading such companies as SchoolMint, an online enrollment for schools, and Mismo, a provider of remote engineering and customer success teams in Central America.

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The Shopper Speaks: Surprise findings about the online beauty buyer https://www.digitalcommerce360.com/2023/04/18/the-shopper-speaks-surprise-findings-about-the-online-beauty-buyer/ Tue, 18 Apr 2023 15:31:55 +0000 https://www.digitalcommerce360.com/?p=1042332 Digital Commerce 360 and Bizrate Insights surveyed 1,053 online shoppers in March 2023 to understand the behavior of the beauty buyer by gender and age. We looked beyond the aggregate numbers, and if you are like me, you will be surprised by some of the findings. Others might be in line with your expectations. Below […]

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Digital Commerce 360 and Bizrate Insights surveyed 1,053 online shoppers in March 2023 to understand the behavior of the beauty buyer by gender and age.

We looked beyond the aggregate numbers, and if you are like me, you will be surprised by some of the findings. Others might be in line with your expectations. Below are highlights of 9 key survey questions that put it all into perspective.

1. How often do you buy beauty products online?

This includes, for example, cosmetics, skincare, haircare, etc. Men are buying beauty products more frequently.

The male/female split is as follows:

• Weekly or more: 41%/21%
• Monthly: 35%/45%
• Yearly: 24%/34%

Younger shoppers are more frequent buyers

This is a category that lends itself to testing and replenishment, so frequent shoppers have favored status among retailers. When it comes to purchases for those 18-29, buying daily is seen among those 18-29 at 21% and is the highest of all age segments. Conversely, for their older counterparts (55+), only 1% buy daily. Looking at weekly and other patterns, 53% of those 18-29 shop at this rate while only 7% of those 55-64 and 5% of those 65+ have similar activity levels.

2. How would you describe your approach to beauty buying online?

Younger shoppers over-index for online experimentation and learning about new brands. Meanwhile, older shoppers tend to leverage online for replenishment purposes.

It’s likely that in our early years, we want to learn about a plethora of products. The web is well-suited for that as experimentation numbers show. It’s worth noting that younger shoppers buy across online and in-store channels once they make their choices. The convenience and time-savings that come with replenishment is appealing, too. Older shoppers are seasoned and know their needs and favored channels.

3. Which types of retailers have you purchased beauty products from in the past 6 months?

Younger shoppers favor more options, starting with mass merchants, drug stores, social media ads and specialty beauty retailers.

The ease of shopping via mass merchants and drug store chains — and the convenience of both — make them real time-saving opportunities for this audience.

Women gravitate to specialty beauty retailers and brands.

The gender factor is insightful for store selection, as women favor purchasing via brands and those specialty retailers that put an emphasis on a broad assortment of unique brands. The specialty brand stores seem to serve as a playground for the younger audience, so there, too, we see heightened interest. Social media ads are a natural extension of time spent on those sites.

4. Which of the following online features are important when selecting beauty products online?

Younger shoppers focus on the details, from ingredients to imagery.

They also appreciate ample product imagery, with those 18-29 (28%) and 30-39 (31%) favoring it versus those 55-64 (15%) and 14% for those 65+. One place where the older customer expresses greater interest is product availability. Those respective findings by age are: 55-64 (62%) and 65+ (68%) vs. 18-29 (47%) and 30-39 (54%), which all compare with the 57% average.

Lastly, web tools such as the ability to profile one’s beauty needs are almost twice as important to younger segments: 18-29 (24%) and 30-39 (30%) vs. 55-64 (14%) and 65+ (7%). With the state of the environment a great concern among younger audiences, product information assumes a heightened role. One example was vegan and cruelty-free callouts.

Their penetration numbers:

  • 18-29 (31%)
  • 30-39 (29%)
  • 55-64 (15%)
  • 65+ (11%)

5. Which of the following have you taken advantage of when attempting to make the right beauty product selection for you?

Men connect more with retailers and take advantage of tools, our survey data shows. Meanwhile, women enjoy color-matching tools and beauty subscription boxes more.

Connecting comes in many forms. First and foremost, it means sending an image to a retailer, with male/female penetration as follows (22%/8%). And then asking a question of a retailer reveals a 9% gap (23%/13%). Men also were twice as likely to take advantage of augmented reality/virtual reality (14%/7%), though the overall penetration is relatively low. Just as with profiling tools, women also have used color-match tools more (29%/40%). As shoppers experiment and learn about brands, ideally, it helps them make better beauty choices.

Younger shoppers try new tools and communicate more. The younger shopper enjoys trying some of the innovative tools and the latest products from the retailer’s bag of tricks. The age gaps of 20% or more are significant and instructive about the way these groups gather information and learn about products.

6. Which of the following are reasons that you choose to shop directly from a brand rather than purchasing from a retailer that sells multiple brands under one umbrella?

Younger shoppers embrace most of what brands deliver.

They have grown up in a world of belonging, and that is reflected in these numbers. The age gap also suggests their appreciation for being part of the brand community (16%). The feeling of receiving an authentic experience (14% gap) and the belief that this brand experience is more complete online, along with transparency, shines through (16% gap). Of course, it doesn’t hurt that they also believe they can get the products quicker.

7. Which of the following has influenced your selection of beauty products online?

Social media influences resonate with the young.

Males are more influenced by YouTube (41% vs. 24%), Instagram (34% vs. 24%) and Facebook (36% vs. 26%). When looking at those same three influences, the younger shopper reinforces its more significant role.

The one additional influence that young shoppers favored is TikTok, with an age gap of 47%. Younger shoppers can be significantly more influenced by media and online activities.

8. Which of the following are reasons you choose to visit a physical store when shopping for beauty products?

Women visit physical stores more to see and test products, and they hope to save money along the way.

Needing items quicker weighs heavily for women as the biggest gap (17%) against a 47% average. The hands-on nature of buying beauty products for women should not be understated. The gender gap of 14% starts with women seeing the products in person and was 16% for testing products. Money also talks for women, as one important reason for visiting the physical store is in-store sales/promotion (14%). Another is not wanting to pay for shipping (15%). Both buy online, pick up in store (BOPIS) and curbside advances have made that choice even more desirable.


Older shoppers like to see and test products in person while also saving money in the process.

Older shopper behavior is more often about the money savings. Here, in-store sales and promotions had a 13% gap against a 39% average. Not wanting to pay for shipping also was on the minds of older shoppers at a 15% gap versus the 38% average. The in-store visit means getting a full sense of the brand experience (17%) and was consistent with the 16% age gap for seeing the product.

From the younger side of things, one aspect that may be most interesting was the trust of the product more when bought in person (15%). As these shoppers are newer to beauty buying, they just may have more to learn and appreciate doing it in the store.


9. Thinking about how a site presents itself online, which of the following are important to your beauty buying experience?

Men are more focused on the brand’s presentation, particularly those that are value-oriented.

To be honest, this surprised me, as I expected the results to be just the opposite. The findings from a gender gap point-of-view were impressive, starting with the brand’s diversity stance (6%) and extending to its views on social and political issues (10%), along with fair trade and charitable giving (8%).

Women also care more about accurate swatches that aren’t photoshopped. They are in keeping with earlier color match finding and use of tools to guide decision-making. For women, they also took a greater interest when it comes to the look and feel of the site (13%).

The youth numbers came in just as I would expect.

Youth care more about brand presentation. They are passionate in their point-of-view about how the brand behaves from its diversity stance (19% gap). Additionally, a number of brand presentation elements saw a 17% gap including sustainability practices, the brand’s story, charitable giving and its views on social and political issues. The swatches finding was consistent with prior research questions from this study, with this being more important to this younger audience.

Beauty is a category that has distinct behavior by age and by gender. Knowing your audience and the implications for merchandising and marketing are important when the audience style and activity is so different.

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The post The Shopper Speaks: Surprise findings about the online beauty buyer appeared first on Digital Commerce 360.

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