Opportunities And Challenges Facing Retailers In 2015 And Beyond

Over the last few years, many brands have begun using social media to market their products, to talk to their customers and even to make decisions about their merchandising. Some have also found growing ROI in selling and advertising products/services on social media sites.

     As more and more big businesses join the social marketing revolution social media sites have answered the call and have started to provide viable sales funnels built into their platforms. With the  recent launch of shopping functionality across multiple social media platforms we are seeing a major shift in the way traditional businesses are viewing and using marketing systems. Examples of this include Twitter and Facebook adding buy buttons and the inclusion of Curalate’s Like2Buy platform for Instagram. What all of this points to is an increase in the "shoppability" of social media.

     Some of the major retailers already getting involved in the trend of social shopping include some notable names like Target and Nordstrom , both of which have made the decision to utilize the Like2Buy platform on Instagram. Whilst brands such as Burberry and Home Depot have been actively testing performance on Twitter using the buy button system.

     By allowing businesses to not only advertise more openly but also to provide a sales funnel on their sites, many social media platforms are gaining an even more varied functionality by increasing traffic and reducing the traffic which leaves the site to buy items directly on a company's webpage.

     Another change ushered in by the socialization of online marketing is that companies must be more aware of their Corporate Social Responsibilities. As consumers become more capable of promoting or punishing brands directly where their sales pitches are made mistakes made on social media in terms of customer service, environmental protection and moral/ethical business practices become more costly and far more open to public scrutiny. To prove that consumers faced with a wider global choice of goods suppliers have begun to make this change we only need to look at things such as a  survey done by Cone Communications and Echo Research which showed that 87% of global consumers take such factors into consideration when thinking about making a purchase.

     To meet this need it is only to be expected that more businesses will launch ethical and good deed initiatives. Some retailers have managed to pull off social media coups by providing further value or by limiting themselves to more open and honest practices. By doing so they gain instant and lasting draw on social media sites where moral, social, economic and environmental issues are now a daily topic of conversation for many users.

     With so many consumers taking a more active interest in global and moral issues it makes sense for businesses to begin to engage those users with solutions or at the very least some movement towards easing these issues. As buyers these users find value being added to any product they choose to purchase in being able to feel good about making some sort of difference. This is a marked difference from companies trying to introduce value by providing loyalty points or free gifts with purchases.

     Another large change in the way businesses think about technology is the growing awareness that usage and experimentation in new technology is a must to ensure their continued survival and growth. To this end more and more businesses are beginning to experiment with and adopt new advancements in technology and new market opportunities presented by the growth of online shopping. The main aims here for businesses are not only to gain a larger following and a more loyal customer base but also to provide easier and more attractive methods for their customers to engage with them and to purchase products from them. By increasing the ease with which purchasers can buy a product and have it delivered to them businesses are taking a huge leap forward into the domain of products on demand. 

     To achieve this end many companies are pushing ahead with a range of technologies designed to  remove the need for a physical cash register. With cloud based point of sale systems proving that they can outperform physical registers in performance, functionality and looks as well as increasing speed and availability of customer support an increasing number sellers are beginning to recognize their value.

     Another boon for businesses big and small from working with online sales is the increased availability and reduced costs of accurate consumer data. With a wider range of information available and easier ways to condense and examine this information retailers can be far more targeted than ever before. Not only does this data provide accurate and timely information about customers it can also show businesses where their marketing efforts are having the most, or least effect. By using this information wisely companies can provide a more customized and effective service to their targeted audience.

     An obvious down side to all of this data collection is that sifting through it to find relevant trends and information can be time consuming and difficult. There are however many systems continuously being developed specifically to assist with identifying key data points and understanding the relevance and usability of ongoing or emerging trends. Being able to assess the interests and online habits of consumers gives businesses a decided advantage when designing new campaigns and products.

     Some of the advantages offered by gathering and assessing big data are the ability to know when customers are most likely to be online and when they are most likely to be open to buying a product.  Tying this in with information on what products they have previously bought or viewed allows retailers to be highly targeted in their marketing and follow up.

     One of the end goals that seems closer than ever is for retailers to be able to provide completely individualized shopping experiences in real time across multiple platforms for every potential client. At the moment this is beyond the ability of even the best big data analysis systems but we are most definitely moving very quickly into an era where this is a possibility.

     Even greater in recent growth than other sectors of the online market are those engaging their audience through mobile devices. With the staggering growth in mobile technology over the last few years going hand in hand with the availability of wireless networks almost everywhere mobile data has become a real game changer. This means that tech savvy companies are more and more delving into apps and web delivery systems that are targeted at or constructed for mobile device users.

     Another key move in mobile marketing is the ability for customers to shop, pay and collect loyalty or store bonuses with mobile apps. Even physical stores can provide a platform for mobile interactivity. With physical point of sale technology merging seamlessly into the general level of big data being obtained by the company in question.

     Many of the businesses that will prove to be most effective going forward will be those who are capable of embracing omnichannel strategies. Being able to reach customers across multiple platforms both physical and digital as well as being able to target them on social media and through highly targeted ad systems will provide huge value to brands who are able to diversify and embrace new technologies as they arise.

     So what are the real takeaways from all of this? Companies who wish to thrive in modern markets need to be supremely adaptive and capable of working fluidly across multiple platforms. Combining this with effective use of big data and a strong social media presence will provide the best success rate moving forward. Last but certainly not least is the rising importance of good customer service and experience across all platforms and a drive to provide environmental, ethical and social value to transactions over traditional incentives.