March 18, 2013
What Will Drive the Next E-Commerce Growth Wave?
Forrester expects e-commerce in the U.S. will see another string of double-digit gains over the next five years, albeit barely at a 10 percent compound annual growth rate (CAGR). The underlying drivers, however, will be somewhat different than online’s earlier days.
One notable change, according to the analyst Sucharita Mulpuru, is that growth won’t be fueled by consumers first discovering online shopping. Forrester expects only four million Americans will shop online for the first time in 2013. Rather, growth will largely come from existing online shoppers spending greater amounts due to their "increased comfort with web shopping." The report notes how online shoppers typically start with "low-consideration" products like MP3s and books before building up to buying "high-touch, high-consideration goods" like furniture or appliances.
Many of the other e-commerce growth drivers in the years to come not surprisingly add to the comfort level for these more-practiced online buyers. These include:
Online loyalty programs: With Amazon’s Prime program — offering free shipping for a subscription fee — standing out as the prime example, other online rewards programs are expected to arrive or be amplified to provide greater incentives to buy online.
Smartphones/tablets: The rise of portable mobile devices is increasing the amount of time consumers spend online to research, price-match, and buy at many hours of the day. Forrester notes in the report, "It’s not just phones that drive retail web traffic; virtually all retailers report that traffic to their sites from tablets spikes during evening prime-time hours, when consumers are in a leisure state of mind. This also suggests incremental web sessions and conversions, because web retail traditionally spikes not in the evening, but during business hours."
Retailers’ multi-channel investments: Aggressive cross-channel investments have enhanced online/offline buying synergies. For some stores, goods can be bought online and picked up within hours for free at a nearby store. Stores are being used as warehouses for online inventory to help speed home delivery. Many stores are also pushing "endless-aisle initiatives," whereby store associates "save a sale" by ordering an out-of-stock item for a shopper through a web-enabled POS system. Ms. Mulpuru notes that few have executed multi-channel well, but that’s bound to improve.
By 2017, U.S. e-commerce is projected to account for 10 percent of all U.S. retail sales, up from 8 percent in both 2012 and 2013.
- US Online Retail Forecast, 2012 To 2017 – Forrester
- U.S. e-commerce to grow 13% in 2013 – Internet Retailer
- Forrester Forecasts 13% Gain In Online Sales – MediaPost
- Forrester: U.S. Online Retail Sales to Hit $370 Billion by 2017 – Mashable
- Online sales expected to add 10 percent a year thanks to mobile adoption, according to forecast – Reuters/San Jose Mercury News
BrainTrust
Recent Discussions
Discussion Questions
How will e-commerce approaches have to change with much of the growth now coming from more seasoned online shoppers? How will driving loyalty from existing web shoppers differ from driving loyalty in store?
Poll
We know that stores will continue to exist and have purpose. There will be just fewer of them. But our data continues to show that retailers no longer view eCommerce as an island. Instead it’s part of a holistic brand vision. And that holistic vision is going to shake up the supply chain, and shake up the notion of the stores’ purpose.
Terry Lundgren really is on the front end of this curve by observing he has 1500 “local distribution centers” which are his stores.
Amazon Prime is awesome, and I don’t really think it’s replicable. No one has the breadth of assortment Amazon does. It’s like the old Sears catalog, but in the sky and with a promise of immediate delivery. So, just like retailers had to find a way to “beat” terrestrial force Walmart, they will have to do the same with Amazon. That’s why stores are so important and why the multi-channel experience is the key to success.
The time has come to stop thinking of online as a separate channel. With Amazon planning to open retail stores and many brick and mortar retailers offering products online, the lines have completely blurred, especially for consumers.
Consumers expect a seamless shopping experience. Retailers need to make this possible if they want continued growth and customer satisfaction. This includes loyalty programs, online purchase with in-store returns, price matching, etc.
When retailers stop looking at online as being a separate entity and meld it with existing operations, they will be giving consumers what they want. And in a era where multiple competitors are only a click away, this is important.
E-commerce, or ANY of the customer brand touchpoints cannot be perceived as unique channels or disciplines—all of these touchpoints need to be woven into a single system that serves the customer, not the brand.
Brick & mortar stores will not disappear, but it is the retailer’s challenge to bring relevance to those locations for the shopper on the shopper’s terms to meet their expectations. Retailers should be driving relevancy and experience for their shoppers, not ‘driving loyalty’.
For RSR’s purposes, we’ve practically stopped calling it ‘eCommerce’ and focus instead on ‘digital commerce’—we recognize that any commerce that happens in a virtual realm will probably be ultimately funneled through some kind of eCommerce capability, whether it comes through tablets or mobile or social—or the site itself. But everything we hear about in the evolution of digital commerce comes down to personalization—that’s where the big driver lies for the next wave of eCom growth. Personalization to prove that you know and love those seasoned online shoppers.
But I don’t think the things you do to drive loyalty in digital channels are any different than in store—provide responsive service, help shoppers solve problems and meet needs, and delight them every once in awhile. So simple to say, so difficult to execute.
With wide acceptance of the reality of the Convergence of Online, Mobile and Bricks (COMB) retailing, the game changer will be MOBILE, playing a larger role at both home/office/transit/bricks, but especially IN the bricks retailers. In some ways, this is really an I/O issue—how to make the small screen/small keyboard function more efficiently in the real, interactive world of bricks?
Google Glass may be too aggressive in this regard. I know this may sound counter intuitive, but leaving the camera out of a Google Glass-like device might lower costs as well as speed social acceptance of the device. The point is that virtual projection of content, and using voice input may be a more logical evolutionary approach. Siri et al may be the right input instead of dancing fingers, or a camera.
The relationship between HQ, physical stores, consumers, and online activity needs to be totally integrated and repositioned. Terry Lundgren’s idea go 1500 distribution points has great merit, but they are more than warehouses. The question is, what else are they? Why do customers come to the local stores? Why would they want to? What else could the local stores be?
Consumers easily transition between using their smartphones, iPads or tablets, laptop computers, and desktop computers when shopping online. Are retailers ready to interact with one consumer on all devices with equal ease? If not they need to be. This is what stores need to do to be current with consumers today.
In terms of tomorrow, retailers will have to continue to think about how to differentiate themselves by providing more convenience and/or service to consumers.
With a growing amount of seasoned online shoppers, the greater focus of e-commerce becomes price competitiveness as opposed to the convenience. This does not necessarily mean companies would have to lower their price to match that of their competitors; it can also include offering loyalty programs, or even just seasonal discounts or coupons.
The article gives a great example of Amazon offering a loyalty program. Many airlines also have loyalty programs that effectively entice people to repetitively use a particular airline. For example, Virgin Airlines has a tier system, in which a member would be inducted into the Club Red tier first, and then be promoted to a Silver, and eventually a Gold tier as they use the airline more. A different scale of rewards would be offered for each tier, which attracts the members to keep using Virgin as opposed to the other airlines. Therefore, it is crucial for e-commerce to focus more strongly on the price value.
The main difference between web shoppers and store shoppers is the speediness and convenience; web shoppers want to find a product and purchase it quickly, as opposed to store shoppers who want to see a product with their own eyes and spend some more time contemplating the purchase of the product. Therefore, I strongly feel that driving loyalty from web shoppers would be highly reliant on the ease of navigating the website, so it is crucial for companies to create a solid online store.
It’s not really about ecommerce approaches changing; it’s about giving the customer what they want.
Today’s consumer couldn’t care less about channels. It’s just the like TV networks/channels who still think we care. They pit their most popular shows against each other on Thursday night, as if that means anything to us. We simply record whatever we want and watch it whenever we please. The most interesting thing to me…I have no idea which network is the host of what shows. And I don’t care to! The network itself means nothing for me.
This is why retail needs to it get right and remain relevant. Retailers don’t want their brands to go the way of the networks.
Retailers need to get with the program and merge channels to meet customer expectations.They need to interact with and understand their best customers. They need to provide the best customer experience possible and I don’t just mean customer service, either.
It’s about the whole experience. What is the customers journey through your brand? Have you addressed all the touchpoints? Exit points? Have you identified all the personas and their expectations? If not, it’s time to get started! NOW!
Cross-channel commerce is key. Retailers must be cost effective yet creatively engage customers. Here are some examples. The Kate Spade flagship store opening in Japan will use iPads for retailing and product information and transactions will be cloud based. It will be a paperless store and expects a quick ROI. Bonobos Guideshops are showrooms to try on product, get “sized up” and make color selections, then order online. Fashion trucks take product direct to customers and offer exclusive select services onboard. And, Pop Up Retail is evolving from the old flash sale days to an engaging retail model that crosses back and forth from e-commerce to brick and mortar.
Loyalty will follow creativity.
There is plenty of room for growth left in online shopping. As the article alludes to, traditional retailers like Nordstrom and Macy’s getting serious about (or even good at) omni-channel will be a significant driver. Also new categories are becoming viable online every day, like eyeglasses with Warby Parker, lingerie, shaving supplies, etc.
Convenience, convenience, convenience. The more intuitive and ‘one-click’ merchants make their sites—especially via mobile—the more adoption and loyalty they will receive. Don’t make this complicated.
Same day shipping, or even faster (beat you home delivery) would be a virtual death knell, or at least a very formidable obstacle for physical retail. If I can order something at lunch and have it at my house by the time I get home, there’s very little reason for me to ever want to go to stores…unless of course, stores massively change for the better (hint hint).
“By 2017, U.S. e-commerce is projected to account for 10 percent of all U.S. retail sales, up from 8 percent in both 2012 and 2013”
This isn’t, of course, the ceiling—by any means—but to hear many people talk, you’d think the number was already approaching 100%.
The first thing that MUST change for the retailer is the mindset. The retailer MUST understand that it does not make any difference if something is sold online or in the store. The retailer should only care that it is sold.
Online is all about ease and convenience. The easier to find and buy, the more the retailer sells. Every retailer should study how Amazon interfaces with their customers.
Retailers must watch the demographic trends. Where are pre-driving teens getting their shopping habits? Online! Those habits won’t go away. And as they grow to become super consumers, they will consume online. Meanwhile, those who are uncomfortable with online and are loyal to brick and mortar stores will be dying.
It is a dream to suggest that young people will adopt the shopping habits of older generations. It is foolish for a retailer to think tomorrow is going to be a projection of yesterday. The only future strategy that makes sense is for every retailer to make online their primary selling venue and the brick and mortar store a venue to support it.
E-commerce needs to be viewed as part of a total customer experience management approach. People who shop E-commerce are also on mobile devices, and can roam in/out/near store locations. The key would be to drive total loyalty across the brand over e-commerce and store, rather than driving channel-specific loyalty.
E-commerce will thrive because of the relative low cost of entry, which will insure that the consumer is presented with the choices they want. E-commerce, like all commerce, is basically about customer satisfaction based on the consumer’s needs at the moment.
The area that will see the most growth is entertainment. Almost all consumers indicate only a moderate (if that) level of satisfaction with their current cable/satellite entertainment provider. The gripe universally mentions having to pay for channels/services that are not wanted. E-commerce will soon (next 5 years) allow consumers to stream what they want. Power is shifting rapidly. Look for Apple and Amazon to drive this. Look at the space, it is growing very, very fast.
Loyalty will be derived by delivering what the consumer wants and if you are smart enough to bundle it with another valuable service like Amazon, you will be a winner. The biggest difference between retail and e-commerce is the breadth and flexibility of what can be offered.
The needs and wants of the present day e-commerce consumer are in fact restrained due to technologies that mimic fast food and convenience store merchandising. The opportunities are adrenalin infused now and then with free shipping, low prices and payment spiffs but remain largely the same for many years now. Expanded sales results are seeing more participants than same consumer sales even with incentives like the ones disclosed here.
I am in agreement that present day e-commerce offers are limiting growth of this industry to a small 10% – 15% of the action. The cost for this business has not been successfully measured, but real revenue loses for the retail industry are being realized and tallied as we speak.
The future of e-commerce will be be expanded when three things occur to revolutionize the range of consumer input and observation allowing for exploitation of the real money makers in retail. That is special order sales, up-selling, and add on/impulse sales. The retailers that first develop their sites to successfully manage, support and thus exploit these markets will cash in large.
Most retailers are limiting their investigation in these vastly unexplored efforts simply because they see these opportunities as an overwhelming or insurmountable IT building task(s). These markets are collectively far larger in both sales and profit doubloons than the e-commerce markets that thrive today. The better news if you didn’t hear it is that this great big pond is now showing few explorers, making it it a good time to give it a go. But that’s just what I think.
The strategy for ecommerce varies by categories. For instance, a low touch item like an mp3 player will compete on price versus women’s apparel; a high touch item would compete on trendiness and uniqueness. Based on the product categories, the depth and the breadth of assortment online has to be defined. Every online retailer cannot compete on price and hence it is essential to find our niche and strategize accordingly.
Understanding the shopper across channels becomes crucial for growth. Seasoned online shoppers are usually comfortable with a category. It is essential to understand the scale of involvement with other categories of that customer to offer products or services that could transition them from a one category buyer to a full-line buyer.
Location-based, customized promotions for tablet users seems to be the latest opportunity. The customized promotions can be made context-aware for users of Google glass and help in defining augmented reality.
Though various applications are developing in silos, eventually all of them are likely to take advantage of synergy.
The catalyst for e-commerce is mobile, and the growth will come from existing e-commerce shoppers spending more time and money through smartphones and tablets.
Omnichannel marketing is the umbrella term, but look for growth in mobile interoperability in particular.
Retailers already use SMS and QR codes to bridge in-store and mobile, but only a small segment of shoppers opt in to these programs.
The biggest opportunity comes from email. A basic program begins with email capture for ongoing offers and communications. Something as basic as email receipts draws in more opt-ins more cost effectively than offering discounts.
Two other developments will help brick and mortar harness mobile:
1. Hardware that enables direct communication at checkout. NFC is one, and bar code scanner data transfer is another (see Galaxy S4’s ability to communicate with scanners using light pulses).
2. Big data improvements that connect the siloed identities of in-store, online and mobile shoppers.
Brick and mortar retailers will decreasingly be victims of mobile and increasingly be beneficiaries.
More Discussions
How Timely Is the Planned Lowe’s Website Renovation Focusing on Personalization?
Is Lowe’s being timely with its website reno, and is it right to be placed as…Should Costco Be Opening Members-Only Gas Stations?
Is this the right move for the warehouse club?As Boomers ‘Age Out of Peak Purchasing,’ How Can National Brands Retain Interest With Gen Z?
According to a recent First Insight study titled “Is Gen Z Still Choosing Your Brand,” while…
We know that stores will continue to exist and have purpose. There will be just fewer of them. But our data continues to show that retailers no longer view eCommerce as an island. Instead it’s part of a holistic brand vision. And that holistic vision is going to shake up the supply chain, and shake up the notion of the stores’ purpose.
Terry Lundgren really is on the front end of this curve by observing he has 1500 “local distribution centers” which are his stores.
Amazon Prime is awesome, and I don’t really think it’s replicable. No one has the breadth of assortment Amazon does. It’s like the old Sears catalog, but in the sky and with a promise of immediate delivery. So, just like retailers had to find a way to “beat” terrestrial force Walmart, they will have to do the same with Amazon. That’s why stores are so important and why the multi-channel experience is the key to success.
The time has come to stop thinking of online as a separate channel. With Amazon planning to open retail stores and many brick and mortar retailers offering products online, the lines have completely blurred, especially for consumers.
Consumers expect a seamless shopping experience. Retailers need to make this possible if they want continued growth and customer satisfaction. This includes loyalty programs, online purchase with in-store returns, price matching, etc.
When retailers stop looking at online as being a separate entity and meld it with existing operations, they will be giving consumers what they want. And in a era where multiple competitors are only a click away, this is important.
E-commerce, or ANY of the customer brand touchpoints cannot be perceived as unique channels or disciplines—all of these touchpoints need to be woven into a single system that serves the customer, not the brand.
Brick & mortar stores will not disappear, but it is the retailer’s challenge to bring relevance to those locations for the shopper on the shopper’s terms to meet their expectations. Retailers should be driving relevancy and experience for their shoppers, not ‘driving loyalty’.
For RSR’s purposes, we’ve practically stopped calling it ‘eCommerce’ and focus instead on ‘digital commerce’—we recognize that any commerce that happens in a virtual realm will probably be ultimately funneled through some kind of eCommerce capability, whether it comes through tablets or mobile or social—or the site itself. But everything we hear about in the evolution of digital commerce comes down to personalization—that’s where the big driver lies for the next wave of eCom growth. Personalization to prove that you know and love those seasoned online shoppers.
But I don’t think the things you do to drive loyalty in digital channels are any different than in store—provide responsive service, help shoppers solve problems and meet needs, and delight them every once in awhile. So simple to say, so difficult to execute.
With wide acceptance of the reality of the Convergence of Online, Mobile and Bricks (COMB) retailing, the game changer will be MOBILE, playing a larger role at both home/office/transit/bricks, but especially IN the bricks retailers. In some ways, this is really an I/O issue—how to make the small screen/small keyboard function more efficiently in the real, interactive world of bricks?
Google Glass may be too aggressive in this regard. I know this may sound counter intuitive, but leaving the camera out of a Google Glass-like device might lower costs as well as speed social acceptance of the device. The point is that virtual projection of content, and using voice input may be a more logical evolutionary approach. Siri et al may be the right input instead of dancing fingers, or a camera.
The relationship between HQ, physical stores, consumers, and online activity needs to be totally integrated and repositioned. Terry Lundgren’s idea go 1500 distribution points has great merit, but they are more than warehouses. The question is, what else are they? Why do customers come to the local stores? Why would they want to? What else could the local stores be?
Consumers easily transition between using their smartphones, iPads or tablets, laptop computers, and desktop computers when shopping online. Are retailers ready to interact with one consumer on all devices with equal ease? If not they need to be. This is what stores need to do to be current with consumers today.
In terms of tomorrow, retailers will have to continue to think about how to differentiate themselves by providing more convenience and/or service to consumers.
With a growing amount of seasoned online shoppers, the greater focus of e-commerce becomes price competitiveness as opposed to the convenience. This does not necessarily mean companies would have to lower their price to match that of their competitors; it can also include offering loyalty programs, or even just seasonal discounts or coupons.
The article gives a great example of Amazon offering a loyalty program. Many airlines also have loyalty programs that effectively entice people to repetitively use a particular airline. For example, Virgin Airlines has a tier system, in which a member would be inducted into the Club Red tier first, and then be promoted to a Silver, and eventually a Gold tier as they use the airline more. A different scale of rewards would be offered for each tier, which attracts the members to keep using Virgin as opposed to the other airlines. Therefore, it is crucial for e-commerce to focus more strongly on the price value.
The main difference between web shoppers and store shoppers is the speediness and convenience; web shoppers want to find a product and purchase it quickly, as opposed to store shoppers who want to see a product with their own eyes and spend some more time contemplating the purchase of the product. Therefore, I strongly feel that driving loyalty from web shoppers would be highly reliant on the ease of navigating the website, so it is crucial for companies to create a solid online store.
It’s not really about ecommerce approaches changing; it’s about giving the customer what they want.
Today’s consumer couldn’t care less about channels. It’s just the like TV networks/channels who still think we care. They pit their most popular shows against each other on Thursday night, as if that means anything to us. We simply record whatever we want and watch it whenever we please. The most interesting thing to me…I have no idea which network is the host of what shows. And I don’t care to! The network itself means nothing for me.
This is why retail needs to it get right and remain relevant. Retailers don’t want their brands to go the way of the networks.
Retailers need to get with the program and merge channels to meet customer expectations.They need to interact with and understand their best customers. They need to provide the best customer experience possible and I don’t just mean customer service, either.
It’s about the whole experience. What is the customers journey through your brand? Have you addressed all the touchpoints? Exit points? Have you identified all the personas and their expectations? If not, it’s time to get started! NOW!
Cross-channel commerce is key. Retailers must be cost effective yet creatively engage customers. Here are some examples. The Kate Spade flagship store opening in Japan will use iPads for retailing and product information and transactions will be cloud based. It will be a paperless store and expects a quick ROI. Bonobos Guideshops are showrooms to try on product, get “sized up” and make color selections, then order online. Fashion trucks take product direct to customers and offer exclusive select services onboard. And, Pop Up Retail is evolving from the old flash sale days to an engaging retail model that crosses back and forth from e-commerce to brick and mortar.
Loyalty will follow creativity.
There is plenty of room for growth left in online shopping. As the article alludes to, traditional retailers like Nordstrom and Macy’s getting serious about (or even good at) omni-channel will be a significant driver. Also new categories are becoming viable online every day, like eyeglasses with Warby Parker, lingerie, shaving supplies, etc.
Convenience, convenience, convenience. The more intuitive and ‘one-click’ merchants make their sites—especially via mobile—the more adoption and loyalty they will receive. Don’t make this complicated.
Same day shipping, or even faster (beat you home delivery) would be a virtual death knell, or at least a very formidable obstacle for physical retail. If I can order something at lunch and have it at my house by the time I get home, there’s very little reason for me to ever want to go to stores…unless of course, stores massively change for the better (hint hint).
“By 2017, U.S. e-commerce is projected to account for 10 percent of all U.S. retail sales, up from 8 percent in both 2012 and 2013”
This isn’t, of course, the ceiling—by any means—but to hear many people talk, you’d think the number was already approaching 100%.
The first thing that MUST change for the retailer is the mindset. The retailer MUST understand that it does not make any difference if something is sold online or in the store. The retailer should only care that it is sold.
Online is all about ease and convenience. The easier to find and buy, the more the retailer sells. Every retailer should study how Amazon interfaces with their customers.
Retailers must watch the demographic trends. Where are pre-driving teens getting their shopping habits? Online! Those habits won’t go away. And as they grow to become super consumers, they will consume online. Meanwhile, those who are uncomfortable with online and are loyal to brick and mortar stores will be dying.
It is a dream to suggest that young people will adopt the shopping habits of older generations. It is foolish for a retailer to think tomorrow is going to be a projection of yesterday. The only future strategy that makes sense is for every retailer to make online their primary selling venue and the brick and mortar store a venue to support it.
E-commerce needs to be viewed as part of a total customer experience management approach. People who shop E-commerce are also on mobile devices, and can roam in/out/near store locations. The key would be to drive total loyalty across the brand over e-commerce and store, rather than driving channel-specific loyalty.
E-commerce will thrive because of the relative low cost of entry, which will insure that the consumer is presented with the choices they want. E-commerce, like all commerce, is basically about customer satisfaction based on the consumer’s needs at the moment.
The area that will see the most growth is entertainment. Almost all consumers indicate only a moderate (if that) level of satisfaction with their current cable/satellite entertainment provider. The gripe universally mentions having to pay for channels/services that are not wanted. E-commerce will soon (next 5 years) allow consumers to stream what they want. Power is shifting rapidly. Look for Apple and Amazon to drive this. Look at the space, it is growing very, very fast.
Loyalty will be derived by delivering what the consumer wants and if you are smart enough to bundle it with another valuable service like Amazon, you will be a winner. The biggest difference between retail and e-commerce is the breadth and flexibility of what can be offered.
The needs and wants of the present day e-commerce consumer are in fact restrained due to technologies that mimic fast food and convenience store merchandising. The opportunities are adrenalin infused now and then with free shipping, low prices and payment spiffs but remain largely the same for many years now. Expanded sales results are seeing more participants than same consumer sales even with incentives like the ones disclosed here.
I am in agreement that present day e-commerce offers are limiting growth of this industry to a small 10% – 15% of the action. The cost for this business has not been successfully measured, but real revenue loses for the retail industry are being realized and tallied as we speak.
The future of e-commerce will be be expanded when three things occur to revolutionize the range of consumer input and observation allowing for exploitation of the real money makers in retail. That is special order sales, up-selling, and add on/impulse sales. The retailers that first develop their sites to successfully manage, support and thus exploit these markets will cash in large.
Most retailers are limiting their investigation in these vastly unexplored efforts simply because they see these opportunities as an overwhelming or insurmountable IT building task(s). These markets are collectively far larger in both sales and profit doubloons than the e-commerce markets that thrive today. The better news if you didn’t hear it is that this great big pond is now showing few explorers, making it it a good time to give it a go. But that’s just what I think.
The strategy for ecommerce varies by categories. For instance, a low touch item like an mp3 player will compete on price versus women’s apparel; a high touch item would compete on trendiness and uniqueness. Based on the product categories, the depth and the breadth of assortment online has to be defined. Every online retailer cannot compete on price and hence it is essential to find our niche and strategize accordingly.
Understanding the shopper across channels becomes crucial for growth. Seasoned online shoppers are usually comfortable with a category. It is essential to understand the scale of involvement with other categories of that customer to offer products or services that could transition them from a one category buyer to a full-line buyer.
Location-based, customized promotions for tablet users seems to be the latest opportunity. The customized promotions can be made context-aware for users of Google glass and help in defining augmented reality.
Though various applications are developing in silos, eventually all of them are likely to take advantage of synergy.
The catalyst for e-commerce is mobile, and the growth will come from existing e-commerce shoppers spending more time and money through smartphones and tablets.
Omnichannel marketing is the umbrella term, but look for growth in mobile interoperability in particular.
Retailers already use SMS and QR codes to bridge in-store and mobile, but only a small segment of shoppers opt in to these programs.
The biggest opportunity comes from email. A basic program begins with email capture for ongoing offers and communications. Something as basic as email receipts draws in more opt-ins more cost effectively than offering discounts.
Two other developments will help brick and mortar harness mobile:
1. Hardware that enables direct communication at checkout. NFC is one, and bar code scanner data transfer is another (see Galaxy S4’s ability to communicate with scanners using light pulses).
2. Big data improvements that connect the siloed identities of in-store, online and mobile shoppers.
Brick and mortar retailers will decreasingly be victims of mobile and increasingly be beneficiaries.