ON TREND Ecommerce trends to take you to number one in 2021
Welcome ON BOARD When I sat down to write this introduction, my head was filled with messages around “new year new you” and “the unprecedented year that was 2020”. But I think we’ve heard enough of that to last a lifetime. Don’t you? 2021 is about much more. It’s about keeping your foot on the gas as we build on the incredible ecommerce growth that we saw in 2020. It’s about continuing to tell the world about your amazing and unique brand story. And it’s about ensuring that your existing customers put you in pole position for the next twelve months. Customer loyalty was not a casualty of 2020. In fact,
68% of shoppers said they preferred to
return to the comfort of brands they knew and trusted. Plus over the BFCM weekend, many customers chose rewards over discounts, with
48% more rewards being redeemed than on a normal weekend.
From changes to Facebook and Instagram advertising to the continuing unknowns of COVID, I have no doubt that there will be bumps in the road in 2021. However, your existing customers will remain your constant. The following twelve trends will help you give those customers the best possible experiences. They also serve to remind us what an exciting world ecommerce is, and how much opportunity there is to grow and innovate. Let’s lean into the challenges, prepare ourselves for a pit stop or two but, most importantly, look forward to driving another year of accelerated ecommerce growth.
Fiona Stevens, Head of Marketing, LoyaltyLion
Contents Chapter 1 LoyaltyLion – The inside story: owning your narrative
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Shopify Plus – How brands will leverage technology ecosystems
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Klaviyo – A balancing act between in-store and online shopping
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ReCharge – Non-traditional subscription models
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Chapter 2 Nosto – Personalization becomes communalization
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Zaius – The year to unlock growth by turning to predictions
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Skubana – Be direct-to-everywhere
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Justuno – You don’t have to manualize
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Chapter 3 REVIEWS.io – It’s time for more authenticity Rewind – The Data Protection Boom 2021 Attentive – Prepare for the move to mcommerce Shoelace – Why creatives will define your advertising strategy
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Ecommerce trends brought to you in partnership with
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Chapter 1 LoyaltyLion – The inside story: owning your narrative Shopify Plus – How brands will leverage technology ecosystems Klaviyo – A balancing act between in-store and online shopping ReCharge – Non-traditional subscription models
Chapter 2
Chapter 3
ON YOUR TERMS The inside story: owning your narrative and keeping the customers that matter
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Let us tell you a story… Once upon a time, we thought we were living in a digital world. But we were kidding ourselves. In the past twelve months, we have found more inventive ways to use technology to connect with each other and bridge divides. Ecommerce has accelerated at a pace no one expected. It has experienced
ten years’ growth in
three months. And digital trends that were well underway have slipped into the fast lane and overtaken outdated ways of doing retail. The brands that have won in the past year are those that have put retention in the driver’s seat. This is because consumers re-evaluated the kinds of brands they were willing to commit to. Meanwhile, personal values snuck above low prices on the leaderboard.
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In the first half of 2020,
68% of shoppers preferred to return and shop
with brands they already knew and trusted ●
44% of consumers said they preferred to shop with brands that shared their values
These winners understood the importance of their existing customers and knew they had to connect with them in ways that mattered – particularly at a time when everything else was so off-balance.
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How did they do it? Through clear and purposeful brand storytelling With a clear narrative, they showed shoppers how they were aligned, why they should be a part of their daily lives and welcomed them into something bigger. This all points to more brand loyalty:
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For 54% of customers feeling part of a community of like-minded individuals is important in securing their loyalty 70% of shoppers say they would be loyal to a brand if they know it aligns with their values
These brands became magnetic. Existing customers stuck by them as they knew they got value for shopping with them. They also drew in new customers with the promise of being part of a brand’s community. The top-line result? Increased customer lifetime value, more advocacy, and a secure source of long-term revenue. In the rest of this chapter, we will explain how to tell and sell your story in 2021. All so you can foster your customer community and keep the shoppers that matter most next year. Ready to take your place in the pole position?
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Sharing is caring In 2021, show customers that the values they hold highly are part of your brand story. Maybe you’re a cruelty-free beauty brand. Consider supporting an animal care charity. Or, potentially, you import your products from crafters all around the world. Show you support every part of your supply chain with fair working conditions and wages. Whatever you’re doing, make sure you’re telling your customers. Why? Because 70% of shoppers say they would be loyal to a brand if they know it aligns with their values. Philanthropy increases brand loyalty and engagement when it is genuine and authentic. To ensure that every part of your Marketing – including your loyalty program – is telling your story, set up
custom rewards that reflect your brand values.
This feature allows you to reward customers points when they complete purpose-driven actions (such as sending back packaging to be recycled).
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On the nose Pet brand,
Edgard & Cooper, have executed custom rewards well. They embrace their
customers’ caring attitude towards their pets and the planet. Through their program, customers exchange points (or “belly rubs”) to feed a shelter dog or to plant a tree. This matches their company-wide pledge to donate 1% of all sales to helping pets in need. Their latest offering was a Green Friday deal which gave 15% off to the customer and the pledge to plant a tree for every order.
The added benefit? If you give your loyal customers the tools to give back, they’ll want to tell your story to more like-minded shoppers. In time, they'll become the spokespeople for your brand and recommend you to others.
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Be a pillar of your own community With a clear and relatable narrative at the heart of your brand, you’ll unite your existing customers around a common cause. They’ll use your brand for self-expression and form a community of like-minded individuals. Communities created this way appeal to the human desire of wanting to be part of something bigger. And with this pull, more shoppers will return to your brand regularly, engaging and spending more along the way. ●. For 54% of customers, feeling that they are part of a community of
like-minded people is important in securing their loyalty 55% of customers say they’ll be loyal to a brand if they have an emotional connection to it (this is up 7% from when we asked the same question last year) In 2021, keep fuelling community growth by shining the light on your member network. Loyalty emails are a great help here. Alongside your monthly point update emails, include a story about a program member.
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On the same page Astrid and Miyu have used loyalty emails to tell the story of two customers who met through a shopping experience at their store. Putting customers at the heart of a story like this, shows their brand fans how important their community is to them. To enhance this feeling, offer your most valuable customers exclusive rewards. Annmarie Skincare gives members access to a private Facebook group where individuals swap tips, share advice, and unite on the brand's mission.
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Pass the mic According to one study, personal stories and gossip make up a staggering 65% of our conversations. We learn from each other through the tales we tell. The opportunity for you is that often these stories are brand-centric. Think about the last time someone complimented your outfit. Did you tell them more about the brand? Did you tell them to check the company out? Your customers are natural storytellers on your brand’s behalf. And a brand community amplifies that story as they tell others about you in an honest way. In 2021, set up a referral program to reward shoppers for telling your story and welcoming others into your community.
Customers acquired this way are between 16-24% more loyal.
They also spend 200% more than customers acquired through other channels. This is because they trust the recommendation has come from someone they know. You can also reward customers for creating user-generated content (UGC) on your behalf. This content is gold. Your existing customers get perks and points for sharing images of your products IRL. New shoppers see how your products work and who your community is. You can then reward new shoppers for reviews or for posting about you on social media. And so the cycle continues.
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On the gram
Never Fully Dressed encourages their community to amplify their brand story by giving them 50 points for an Instagram follow. On their feed, they share UGC of their shoppers and employees styling their products. Followers then comment on the posts and share the love between each other, amplifying the community that’s so important to the brand’s narrative.
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We are now more digital than ever With most businesses shifting to online sales only, it can be easy to get swallowed in the white noise of the internet. Which is why it’s so important that you harness the power of storytelling to get heard and grow. To build up a loyal following in 2021, you need to tell your story at every opportunity. Do this well and you’ll establish a community that amplifies your brand, spends more and becomes loyal, long-term.
About the author Mollie Woolnough-Rai Senior Content Marketing Executive, LoyaltyLion Mollie is a Senior Content Marketing Executive at LoyaltyLion. After graduating from UCL in 2016, she has worked both in-house and at marketing agencies providing expertise in content for both B2B and B2C clients. At LoyaltyLion, Mollie manages our content, making sure our readers get the best quality resources about customer loyalty and retention.
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About LoyaltyLion LoyaltyLion is a data-driven loyalty and engagement platform that powers ecommerce growth. A loyalty program is about more than points and rewards. It is about unlocking real insights to increase customer lifetime value. With LoyaltyLion, you can build a better understanding of what drives longer-lasting customer relationships, and use those insights to connect and accelerate your existing marketing efforts. Proven to increase retention and spend, LoyaltyLion is trusted by thousands of fast-growth ecommerce merchants worldwide.
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ON YOUR MARKS How brands will leverage technology ecosystems to build high-performing commerce experiences in 2021
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At the height of the COVID-19 pandemic, ten years of ecommerce growth happened in just 90 days A study by Shopify reports that
52% of buyers say they’ve shifted more of their spending to
online compared to earlier this year. This is driving record ecommerce competition, fueled by legacy wholesalers, for global retail brands as consumers buy from product categories that were not historically purchased online. This makes a more crowded space and drives up customer acquisition costs. Innovative retailers have accelerated their commerce offerings, enabling Buy-Online-Pickup-In-Store (BOPIS), trialing augmented reality for pre-sale, launching payment installment plans and loyalty programs.
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Build compelling experiences with technology You need to compete in new ways, delivering immersive omnichannel experiences. A fast, flexible and powerful platform is a critical foundation. But you must also select, integrate and manage technology from partners in the commerce ecosystem.
“The most interesting dynamic we are seeing in the fastest-growing segment of ecommerce is really this mid-sized Shopify Plus merchant that is doing single-digit millions to a hundred million in revenue. But, it probably doesn’t have much of a team behind it — there might be maybe one, if any, dedicated engineers. The whole third-party partner ecosystem that exists within Shopify allows this segment to effectively outsource a lot of the work to apps or agencies. So everything around that I think is an investable opportunity.” Mike Duboe, general partner at venture capital firm, Greylock
The technology partners in Shopify’s ecosystem are helping brands like Gymshark, Allbirds, Lindt, Jack Rogers, Jenny Craig and more deliver unique experiences. So what are some key areas brands should focus on in 2021? Let’s take a look at the categories that help power unique experiences before, during and after a sale
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Optimize stores for personalization and conversion To better compete with marketplaces and retail giants, take inspiration from the brands that are investing in richer, more personalized experiences. This should take place through the buying journey, from discovery through consideration to decision. Providing information that is relevant, succinct, accessible and, of course, personalized helps customers feel confident in their buying decision. It also helps brands build a direct relationship.
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Case in point Pura Vida Bracelets used Technology Partner Justuno to implement pop-up messages and offers to site visitors. The experience presented customers with compelling offers that increased email capture rates by more than 15% and sales conversions increased over 23% within one month.
Case in point Skinnydip, a British seller of fun and quirky accessories, clothes and more, designed a fully-customized loyalty program with LoyaltyLion and named it “Skinnydip Airlines�. This helped their Shopify Plus powered store generate an 84% increase in member spend and a 69% increase in repeat purchases.
Turn first-time shoppers into loyal buyers With the impact of COVID re-shaping retail, this year we saw more people buying online for the first time. This provides an outstanding opportunity to turn a transactional experience into a loyal relationship as you head into 2021. Though reaching new customers is important, the rising competition for online attention has reinforced the value of keeping existing customers. Retention has overtaken acquisition and conversion as a top priority for many businesses. And
78% of consumers in the US say a loyalty program encourages them to buy more
from brands.
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Improve margins with trust and security technology A recent report highlighted that fraudulent attempts are up 55% since the COVID-19 pandemic began, with retailers spending as much as 10% of their annual budget on fraud prevention. Stopping bots and fraudsters is important, as there’s a risk of upsetting legitimate shoppers. As your store grows in 2021, you may need additional team members and external partners to help manage increasingly complex operations. But this can introduce the risk of over-writing work, making accidental changes or keeping access open after a team member has left.
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Case in point CurrentBody sells a range of beauty electronics, and as they expanded into new territories they found instances of false positives with fraud, with decline rates of 7%. Working with Signifyed, their order approval rate surged to over 98% and their chargeback rate fell from 0.5% to just 0.04%.
Case in point 100% Pure produces a range of beauty products and has a strong commitment to sustainability. Working with Returnly, 100% Pure developed a program where customers meeting a certain loyalty score, could keep unwanted items instead of needing to ship them back for an exchange. This reduced environmental impact and also saw a 30% return to repurchase conversion rate and a 75% conversion uplift on repurchase orders.
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Build post-sales delight with shipping and returns Shopper expectations have never been higher. They want to receive their products quickly, securely, and for minimal cost. And, if there’s an issue, they want an easy way to get a replacement or a refund. In particular, first-time shoppers may have questions or want more assurance about how they can receive (and if necessary, return) their purchases. You need to find new ways to keep customers happy throughout the entire purchase cycle in 2021. Implementing cost-effective and customer-centric shipping practices, and providing flexibility and assurance over returns will help you unlock new markets, increase conversion, grow AOV, build customer loyalty and repeat purchases.
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Navigating the future of ecommerce technology The transformational changes to commerce in 2020 will accelerate in 2021 and beyond. As more retailers prioritize customer experience, you need to navigate the growing ecosystem of technologies to identify, select and implement the most meaningful tools for your specific needs.
“The Shopify Plus Certified Apps help businesses run more efficiently, adding functionality without having to develop or build anything custom.” David Wagoner, Co-Founder & CMO, P3 Media
Platforms can bring clarity by curating and showcasing how selected technologies are being applied successfully. Learn more about the Shopify Plus Certified App Program, and how these curated technology partners are helping Fast-Growing-DTC brands and Fortune 500 companies scale.
About the author Paul Gray Partner Marketing Lead, Shopify Plus Paul heads marketing efforts for Shopify Plus’ ecosystem of 250+ agency and technology partners, leading initiatives, resources, thought leadership and services to help high-volume and Fortune 500 merchants launch, grow and scale their businesses.
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About Shopify Plus Shopify Plus is the enterprise ecommerce platform chosen by high-volume businesses and Fortune 500s.
ON BALANCE A balancing act between in-store and online shopping
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A balancing act between in-store and online shopping It’s no secret that Covid-19 has accelerated the growth of online shopping. The market has matured faster than we ever could have predicted in 2020, reaching levels not previously expected until 2022, which means you have a much greater opportunity to attract new customers this year than ever before. And it won’t slow down any time soon. More and more consumers have gotten used to the ease and convenience of shopping from home and they now expect all brands to be online. “Couch Commerce” is very much here to stay.
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The pressure is on This means brick and mortar retailers must find new ways of delivering their products and creating memorable experiences to drive revenue, improve customer lifetime value (CLV), and keep up with their online counterparts. This pressure will continue to be felt throughout 2021 – and until all retailers have caught up (or fallen at the final hurdle). Take the retail empire, Arcadia, for example, which is an umbrella brand for popular British retailers like Topshop, Burton, and Dorothy Perkins.
Most experts agree that their downfall in
2020 was due to a lack of investment in ecommerce. But there are also more ecommerce businesses now too. Competition to attract new customers is fierce and you have to get it right to succeed. Yet this isn’t an obituary for retail or ecommerce businesses. Far from it. Keep reading for actionable tips and real-life examples to help you survive and thrive in 2021.
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The 2021 balancing act Perfecting the balance between offline and online sales has been touted as one of the most effective ways to propel retail growth for over a decade. And it’s especially vital for a postpandemic world. 2020 saw retailers such as
Home Depot offering services like “Click and Collect” and curbside
pickup to help mitigate delivery challenges while minimizing risks for their customers and staff. 2021 will be the year when these services truly become mainstream Just like the growth in online shopping, more customers have now had a flavor of the conveniences that services like these bring to their lives – and they’ll be hungry for it in 2021.
By offering your customers in-store or curbside pickup services, you can essentially turn part of your physical store into a fulfillment center to help you drive sales – beyond what’s possible if you had just the one channel.
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On the curbside Massachusetts-based clothing store
LIT Boutique was fast to hop on the
curbside pickup trend – even offering same-day pickup with a generous 2 pm cut-off window. The brand’s easy online ordering experience proved popular, prompting them to share client feedback on their Instagram Stories to drive even more hype. So while the “white gloves” might not be needed by the end of 2021 (hopefully!), their curbside pickup option could stay in place to drive sales from busy customers shopping via their phones on the way to work and picking up purchases on their way home. Before you offer a pickup service, make sure you can logistically fulfill these orders or this can easily backfire and damage your brand reputation.
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But don’t stop there! While the threat of store closures due to the pandemic might finally start to slow down in 2021, that doesn’t mean you should slow your efforts in driving sales across channels. Gain information from customers before they leave your store (if you can) – or you’re potentially leaving money on the table. Convince customers to sign up to your email list in-store and you might also persuade them to shop online or come back to your store – whether to pick up their online order or just to browse your wares. LAKRIDS BY BÜLOW, a Denmark-based luxury confectionery does exceptionally well with this. They’ve installed signs with a QR code on them within all their stores, which encourage customers to sign up for their email list. They’ve also added QR codes to their packaging and even incentivize their retail staff to help the brand grow their email list. This focus on growing their online community in-store led to LAKRIDS BY BÜLOW gaining an additional 40,000 email subscribers in 2019, which meant that in 2020 – despite temporary store closures – the brand could still drive sales and excitement for new products.
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Own your marketing Ecommerce businesses are
predicted to spend over $690 billion on media ads in 2021 – an
increase of 16.4% on global digital ad spend. But when only
2% of search engine traffic and less than 1% of social media traffic make a
purchase – compared with 4% of email marketing traffic – it probably makes sense to invest more in your
owned marketing channels this year, such as email, web, and SMS.
These channels enable you to gain control over your data, customer relationships, and ultimately, your business growth, so take the time to consider how they fit within your overall retail strategy.
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On the up Frankie Cooke, who works as a brand coordinator for
Grind – a chain of independent
London-based coffee shops and creators of the UK’s first completely compostable coffee pods – recently shared how leveraging owned marketing channels like email became
a lifeline for their
business when the pandemic threatened in-store sales. Despite only focusing more heavily on email marketing in February 2020, by the end of Q2, Grind was looking at a 675% increase in revenue since Q1 and a 3,142% revenue increase compared with Q2 2019. Businesses needed fast pivots and maneuvers just like this throughout 2020. But with the introduction of a new global vaccine, potential Brexit turbulence in the EU and UK, and yet more changes to consumer shopping habits on the horizon, 2021 might be a more positive year for us all – but strategy changes will still be needed. To keep up with the increased demand and competition that 2020 brought, consider seeking new ways of fulfilling customer orders and new business models to help you reach new customers while creating memorable and highly personalized marketing moments for them.
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But you need data Data enables you to build a profile of your customers and their buying behaviors and patterns, which you won’t get from using social media alone. Ultimately, to survive and thrive this year, albeit perhaps in a slightly different way from what your five-year plan probably predicted, you need to have control over your marketing. Are you ready to own your marketing in 2021? Sign up for a free Klaviyo account now and start taking back control over the customer experience and your growth.
About the author Louise Read
Marketing Lead EMEA, Klaviyo Louise brings with her over a decade of experience executing growth and retention marketing strategies for both enterprise and start-up businesses. Klaviyo is the world’s leading marketing automation platform known for accelerating revenue for online businesses.
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About Klaviyo Klaviyo is the leading owned marketing platform, aimed at helping online businesses grow faster. The only marketing platform that can help a brand launch and scale indefinitely until they are a multi-billion dollar leader of their space, Klaviyo is focused on the ecommerce business sector and used by over 50,000+ innovative companies such as Unilever, Kopari Beauty, and Huckberry.
ON YOUR MARKS Non-traditional subscription models: How to grow recurring revenue in the golden age of ecommerce
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Why subscriptions? Subscriptions have been one of the most important and paradigm-shifting business models of the 21st century. Many of the largest and most successful companies have been built on recurring revenue or shifted their legacy businesses to this model – including Microsoft and Adobe. Consumers have been well-conditioned to purchase subscriptions online thanks to early efforts by digital and media companies such as Netflix and Spotify. The data speaks for itself with nearly 50% of all online shoppers having purchased a subscription of some sort and
15% of those subscriptions being for physical goods.
These figures are set to grow in 2021: both in the absolute number of consumers and the share of total online purchases. At ReCharge, we define subscription models in three different ways that can be adapted to nearly any business: including replenishment, curation and access. We’ll focus on access as a trend we expect to see more of in 2021.
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Choosing a subscription type Generally, the type of products a merchant offers determines the subscription type that fits them best. ReCharge’s annual State of Physical Subscription Commerce report uncovered 87% of subscriptions fall into the replenishment and curation categories. Access makes up the remaining
13% of subscriptions and represents a wide variety of
businesses, from luxury apparel to food. This category is most commonly used to offer member-only products or discounted prices in the case of Netflix and Amazon Prime respectively. The access subscription type is not for all businesses. There are very clear indicators that suggest when this model may work well for particular ecommerce merchants. These include: stores with extremely loyal customers, brands with high repeat purchase rates, non-traditional subscription products or stores that do frequent new releases and sales
Do subscriptions sound like something your business could benefit from? Let’s dive into the benefits of the access subscription type
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Benefits of the membership model In a membership model, a subscriber pays a flat fee monthly or annually, similar to Amazon Prime. Merchants can then customize membership perks, including, but not limited to, benefits like:
Store credit Credit back for additional purchases Exclusive access or early access to member-only products or content Discounts on select products or the entire catalog Free or discounted shipping Special occasion benefits (birthdays, subscriber anniversary, etc.) Free trial or bonus/exclusive items with purchases
All features are optional and can be customized to a specific merchant’s needs. As a best practice, lean into things your subscriber base values to maximize the opportunity.
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Freshly Picked is a fashion brand with a flourishing membership model. They charge $10 to join and immediately credit your account for $10 and offer a 20% discount, free shipping, and early access to products. Within the first three months of launching, their program had grown to over 10,000 subscribers with an incredible 3% churn rate. Scaling a membership model in the access category requires a different set of KPIs compared to other models. The key levers merchants need to pull to maximize the customer experience for their customers is simplified to two: lifetime value and average order value. Because of the wide variety of subscription types and verticals, these levers may take some time to perfect. But, there are a few ways to make this easier and more streamlined.
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Increase lifetime value Lifetime value boils down to the dollar amount a customer will bring to the merchant throughout the lifetime of their subscription. Because membership models are an ongoing agreement with the merchant and subscriber, we’ve seen these types of models grow subscriber count by 12.5% month over month. But this relationship isn’t purely about revenue. Membership models are mutually beneficial because of the consistent benefits offered to the subscriber. Everyone wins.
Increase average order value Average order value is the average dollar amount subscribers spend month over month. Each of the benefits that can be offered in a membership model directly translate to subscribers purchasing more from your store, thus increasing AOV.
The most exciting part? ReCharge data shows subscribers spend 20% more than non-subscribers.
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Membership model sample store At ReCharge, we recognize that it’s difficult to blaze a new trail. While it’s exciting to create something from scratch, oftentimes something as simple as a demo to follow makes all the difference in a successful final product. To help you set up your own in 2021, we created a membership model sample store and
associated documentation.
Any visitors will be able to move from page to page to experience how a membership store looks and functions. Be sure to click the login button and compare the features when logged in versus logged out.
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Keep in mind that this build is not for all merchants. We highly recommend following along the step-by-step instructions and using a loyalty tool like LoyaltyLion in addition to an
agency partner for implementation.
The subscription movement has only shown signs of acceleration, even through the pandemic. ReCharge, and the subscription business model in general, has proven to be a stable and trustworthy solution for merchant growth now and into 2021.
About the author Chase Alderton,
Growth Marketing Manager, ReCharge With a background in psychology, Chase’s passion for Marketing is grounded in understanding behavior. His focus on agency and tech partnerships offers the ability to work closely with individuals who can impact growth in ecommerce.
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About ReCharge ReCharge is guided by the mission to connect and empower the world through payments. The Santa Monica-based company has created the leading subscriptions payments platform designed for merchants to set up and manage dynamic recurring billing across web and mobile. ReCharge is used by over 10,000 businesses and is trusted by brands including Native Deodorant, Hubble Contacts, Lola, Soylent and Billie.
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Chapter 2 Nosto – Personalization becomes communalization Zaius – The year to unlock growth by turning to predictions Skubana – Be direct-to-everywhere Justuno – You don’t have to manualize
Chapter 1
Chapter 3
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ON YOUR WATCH Personalization becomes communalization
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Let’s get really personal Leaders in the ecommerce space have been obsessed with personalizing shopping experiences for as long as ecommerce has been a thing. That obsession only grew as technology advanced in the late noughties, and by the mid-2010s ecommerce leaders, analysts, and writers were all discussing “the ‘me’ economy” in an effort to highlight the importance of curating shopping experiences to each consumer’s specific needs. The past three to four years have seen a slight shift in this messaging as consumers’ priorities have changed and personalized experiences have become not enough (as all of the “best” experiences were now assuredly personalized and not that special anymore). The “me” economy quickly became the “we” economy, and personalization began to take on an entirely new meaning. So what does this mean for 2021? Personalization will continue to grow to mean communalization when it comes to ecommerce experiences, and brands who focus on and leverage community will become the clear leaders in their spaces. The experience trends that we’ll see this philosophical trend materialize in include:
Social shopping will continue growing to mean more than social media Brands will lean more into their values as a differentiator than ever before Localization will be used as a tool for community building
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Social shopping will become more than selling on social media Social shopping has been a hot topic for a handful of years now. From dynamic product ads to being able to purchase items directly on social media apps to influencer marketing, ecommerce brands have been leveraging social media to expand their reach and meet shoppers where they’re spending a large amount of their time. Though brands will undoubtedly continue leaning into the more literal sense of social shopping, 2021 will see the solidification of social shopping including more than that core definition. Brands that leverage consumers’ peers (other consumers) and relatable personalities (celebrities and influencers) throughout their customer experience will become more and more common in 2021 and beyond.
User-generated content Highlighting customer reviews, showcasing ratings, and leveraging social media user-generated content throughout the customer lifecycle are already trends seen in the best ecommerce experiences. As this concept of consumer-to-consumer selling continues to mature this year, the brands that find innovative, organic new ways to produce word of mouth buzz for their product will pull ahead of their competitors. Gone are the days of obvious paid sponsorships. Genuine recommendations from individuals with communities are the new organic growth lever.
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FOMO messaging Consumers often trust the buying decisions of other shoppers more than they do their own. By using a variety of FOMO messaging strategies, brands can leverage a shopper’s need for communal validation – and the power of urgency – to build product desirability and increase conversion rate. This will become a key characteristic in leading ecommerce experiences in 2021.
Representation of values will become a key differentiator People are becoming more socially conscious than they have been at any other time in history. Sustainability, representation, and community are key subjects at the forefront of a large majority of shoppers’ heads when they are deciding whether they trust a brand or not. Brands building social responsibility into the way they operate based on their mission, or brand story, that is inherently socially conscious will be key to differentiating as the ecommerce space continues to grow and saturate.
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Here is an example of sportswear brand Champion using a view counter on product detail pages to display interest in products:
Socially conscious operations Brands will continue innovating to make their supply chains more sustainable and their product lines more inclusive throughout 2021. Elevating this into messaging and content that’s in the public sphere will clearly establish what a brand stands for and will help facilitate the natural formation of a community around said brand. By making it easy for consumers to relate to them, brands will create communities of their own that are solely based on a love for them. The brands that go above and beyond by adding a form of donation or contribution to a cause will find even greater success in this sphere. Here’s an example of suntan lotion company Tropic Labs showcasing their contributions to a reef restoration organization as one of their key value propositions.
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Hyper-communalization will become the strongest retention tool The final piece of this personalization to communalization transformation will be the formation of micro-communities as a tool for retention. Everyone (and their mothers) have been talking about how “retention is the new acquisition” due to the rising cost per acquisition. By taking communalization one step further than just building a community around the love for a brand or product, brands will build perfect retention machines based solely on community.
Literally local One of the most apparent forms of this hyper-communalization will be brands creating geographically local communities within their larger, global communities. Some have already begun this, but a leading trend that will become more and more common in 2021 is that ecommerce brands will “re-localize” in a way that makes shopping with them feel like supporting a local small business.
Here is an example of fashion brand Faherty using location to offer curbside pick-up
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Communal segmentation The other way hyper-localization will take the stage front and center is brands will begin segmenting their communities to create sub-communities based on small differences. These segments could be based on things like the channel the customers primarily interact with the brand on, the intention the customers have with the brand, or countless other characteristics that help the brand communicate with customers in highly specific ways. With the shift of consumers’ focus from “me” to “we” personalized shopping experiences will begin to mean experiences that show such dedication to the shopper’s needs that they are in some way benefitting the shopper’s community. In other words, 2021 will see ecommerce brands that desire to be global creating experiences that support, and even benefit, the global community.
About the author Jake Chat Head of Brand Marketing, Nosto Jake is Head of Brand Marketing at Nosto, overseeing content, creative studio, growth, and product marketing teams. He’s worked in the personalization software space for five years. Prior to this, he started his career in motion picture marketing 10 years ago. Between the two Jake spent a few years working in content for non-profit organizations.
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About Nosto Nosto enables retailers to deliver fully personalized, integrated commerce experiences with fine-tuned control of merchandising rules. An AI-Powered Commerce Experience Platform designed for ease of use, Nosto empowers retailers to build, launch and optimize 1:1 omnichannel marketing campaigns and digital experiences without the need for dedicated IT resources or a lengthy implementation process. Leading commerce brands in over 100 countries use Nosto to grow their business and delight their customers. .
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ON YOUR MARKS 2021 is the year that marketers unlock growth by turning to predictions
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The hardest part of growth? Keeping it up While DTC brands have thrived in recent years – achieving meteoric gains in 2020 – the next phase of growth requires a shift in focus. Customer attraction has spurred the growth of so many terrific brands. To sustain it, marketers must focus on growing customer relationships. The good news is that you’ve undoubtedly already set the foundation with the basic – and massively productive – campaigns that react to customer activity: abandoned cart, abandoned browse, and post-purchase campaigns, for example. So, what’s next? Where will you find comp growth in 2021? To achieve sustained growth, it is time to go beyond simply reacting to what the shopper has done, and to start anticipating what the shopper will do next.
2021 is the year that marketers advance their customer segmentation by incorporating predictions throughout the customer lifecycle.
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The proof that relevance works Behavioral campaigns are the gift that keeps on giving. Those timely and activity-led campaigns have proven to be the most productive messages for DTC marketers, delivering nearly six times the revenue per send when compared to their promotional brethren. The real gift, though, has been the impact behavioral campaigns have had on our approach to the customer lifecycle. The success of behavioral campaigns is the iron-clad proof that relevance works. When we find a critical moment along the shopper journey like a cart that’s been abandoned or when a customer views a particular product, we earn the chance to respond to the shopper. All with using the right message at the right time. But so many marketing programs have stalled out because the clear and obvious moments have been covered. But, there is hope for growth. That hope comes from the fact that there is a string of additional opportunities waiting for us. To unlock these, we need to go beyond reacting to what a shopper did, and consider what they will do next. We need to predict their needs.
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Predictions require a shopper-first mindset While we tout the success of behavioral campaigns, most of these messages take a one-size-fits-all approach. Abandoned a cart? Here’s a cart reminder! Visited a product page? Come back and we’ll take 10% off. The worst offender of all, though, maybe the “win-back” campaign. Most brands have one, and many even A/B tested a couple of options – something like “90 days since last click” or “120 days since last purchase” – to arrive at a winning version that has been automated ever since. Unfortunately, most win-back campaigns offer a rather pitiful level of engagement (and conversions). There is a better way: treating shoppers like the individuals they are, and respecting the unique engagement that each shopper has with your brand. This shopper-first approach allows us to predict more precisely when a shopper’s interest is fading – and breaking their individual cycle of engagement with your brand.
A small number with an outsized impact Our recent shopper analysis found that, on average, 0.26% of your shoppers are fading away each day. While this may seem like a small amount, this is no fractional issue. Compounded daily, brands are losing nearly 2% of their shoppers each week. You must think shopper-first and predict the precise moment when the shopper is starting to fade. By treating shoppers like the individuals they are, and respecting the unique engagement that each shopper has with our brand, you’ll be able to achieve real relevance.
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BUBS Naturals turns to predictions BUBS Naturals helps you feel amazing and live a fuller life through a relentless hunt for the best Collagen and coconuts for you and the environment. Woven into the brand DNA is a commitment to
giving and a focus on the customer.
This customer-centricity is on display with their use of predictions to help re-engage their lapsing customers. In July 2020, BUBS shifted its customer win back approach away from a “one-size-fits-all” model and towards a predictive churn model. The campaign carried the brand ethos – storytelling through testimonials and their strong ties to charitable contributions. Their customer-centric and brand-led efforts have proven to be incredibly effective, increasing open rates by 73%, and boosting click rates by 54%. “The improvements in churn prevention have been a really big win for us. The success hinges on infusing our brand ethos of 'feel great, do good' into our customer engagements while reaching out at just the right time.”
Want to learn more about predicting churn?
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Predicting positive and negative moments Thanks to advances in machine-learning technology, customer data platforms are now capable of surfacing predictions into the hands of DTC marketers. By integrating the “core” go-to-customer engagement data sources – ecommerce, marketing automation, and customer service activity – marketers can now predict both positive and negative moments along the customer lifecycle.
Positive event predictions include order or engagement likelihood. Specifically, how likely is a particular shopper to buy, and when Negative event predictions surface customer disengagement, the point a shopper begins to disengage
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Predictions can provide value in two ways: Helping to surface additional “moments” in the customer lifecycle and augmenting existing campaign segmentation. Here are some specific marketing use cases to get started with predictions:
Predictions at Work
Negative Events
Positive Events
Behavioural use case
Shopper-centric winback
Likely buyer nudge
Segmentation use case
Engage high-value lapsing customers in 1:1 outreach campaigns
Suppress unlikely buyers from channels with higher costs (SMS, retargeting, direct mail)
Want to know more about the data science behind predictions? Here’s a look at how the models are developed.
Predictions deliver relevance To sustain (and accelerate!) growth, marketers must look to truly know each shopper and advance past simply reacting to a shopper’s recent actions in 2021. Predictions provide the power to anticipate both negative and positive moments in the customer lifecycle. Leading digitally-native brands like Mizzen+Main, BUBS Naturals, and Cirkul turn to predictions to enhance segmentation and unlock a new set of productive behavioral moments. Now is the time for marketers to power-charge their quest for relevance with predictions.
About the author Rick Kenney, VP, Industry Strategy, Zaius As VP of Industry Strategy, Rick mines and shares data-driven retail trends. Rick pioneered the Salesforce Shopping Index and Demandware’s benchmarking practice.
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About Zaius Zaius is the Activated Customer Data Platform that assists growing brands to achieve higher CLTV by delivering relevance across the entire customer journey, from anonymous browsers to loyal shoppers.
ON THE MOVE Be direct-to-everywhere: Diversifying your sales and fulfillment operations
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On the go Over the past year, ecommerce saw unprecedented growth in the midst of endless uncertainty. The pandemic has accelerated channel shifts and redefined the way consumers shop. The sudden transition to online-only shopping, global manufacturing shutdowns, and limited air cargo crippled supply-chains. Panic buying set in as carriers were unable to meet higher delivery expectations. The paradoxes continued as the impact on retail remained complex and uncertain. Consumer spending plummeted while an influx of first-time digital shoppers went online for the first time. Ecommerce brands without a clear, holistic view of their operations were bogged down by inefficiencies, stockouts, and missed opportunities. Retailers and brands that thrived were able to use their data to adapt to the fluctuating market. They capitalized on high demand and positioned supply to fulfill strategically and efficiently. Automation, real-time data, and enhanced consumer insights powered their growth. This leads us to our ecommerce lesson for 2021. The need for operational diversification.
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What is operational diversification? Operational diversification is the process of opening new channels to offset risk and reach more customers. It is no longer scalable to remain on a single sales channel or fulfill from a single warehouse. During the pandemic, non-essential brick-and-mortar retailers crumbled when shopping went exclusively online. Marketplace sellers and D2C brands who focused on a single sales and fulfillment channel were limited and struggled to keep up with the increase in demand. Suddenly, the hyper-fast growth of 2020 that seemed like the opportunity of a lifetime, became the biggest threat. No single channel was immune to the disruption wrought by Covid-19. Missed sales, overselling, inaccurate forecasting, and inventory and fulfillment nightmares loomed large. Looking forward, brands and retailers need a new approach. Here are some of our recommended tactics.
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Sales diversification The pandemic brought more consumers online than ever before. According to Adobe Digital Insights,
9% of all Cyber Week sales were generated by "net new
customers as traditional brick-and-mortar shoppers turn online to complete transactions". Brands that focused on strengthening awareness and expanding their presence reaped the benefits. New online shoppers were more likely to buy from brands they've interacted with in the past. Retailers with a strong multichannel presence thrived. This year, consider diversifying your presence across new channels. Marketplaces, big-box retailers, and social media channels can all work as an extension of your primary storefront. Walmart marketplace, for example, saw
GMV more than double in 2020. eBay’s GMV grew
26% in the second quarter and 22% in the third quarter, a remarkable acceleration from the 2% average over the past thirteen quarters. Big-box partnerships gained popularity as retailers like BestBuy, Nordstrom, Ulta, and more sought to expand their selection to remain competitive. Sometimes all you need is an can handle the rest.
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EDI connector like
SPS Commerce, and your operations platform
Social commerce — native shopping experiences on a social media platform — is another channel to consider. Instead of clicking through to a third-party website, users can make purchases right from the social media app or site. Those apps already have more demand than most retailers, and their ads have been driving ecommerce sales for years. A great way to support this initiative is to make sure you have informative user-generated content that you can use to attract new shoppers. All of these channels are good places to start building new customer segments. To be successful on any of them, you must have full transparency across your operations. That takes us to our next recommendation.
Fulfillment diversification Fulfillment was a major challenge for retailers in 2020. Brands rushed to
redesign their supply chains to offset shutdowns, carrier disruptions, and
changes in buying behavior. The need for last-mile transparency has never been greater. In the past year, we saw third-party logistics companies flushed with new investments to support greater demand. Brands added order and
inventory management software to manage the influx.
Even global carriers like FedEx rolled out new services to enable cheaper, faster, and more reliable fulfillment. In a recent interview, FedEx's VP of Global Ecommerce Marketing said that the “secret to efficiently
fulfilling next-day US shipping was warehouse placement and diversification.�
In 2021, it is critical to diversify your warehouse footprint. Use
inventory management software to transfer stock, set alerts, automate purchasing, and
effectively allocate available inventory to specific channels.
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Learn how Tushy
pushed through a crisis to transform the American bathroom.
How can I be direct-to-everywhere in 2021? It's easy to be overwhelmed by sales channels, fulfillment providers, and new technology promising to give you an edge in the new year. Remember the most important tool for scalable growth is always your own real-time data. Use it to make informed decisions about growth, fulfillment, and better customer experiences. Hesitant to expand to a new channel?
Test a single product first to see how much it impacts your operations and bottom line. See how many new and existing customers come through that channel. Set up loyalty programs to bring customers back to your primary site. Look at channel-by-channel velocity, customer reviews, & repeat purchases using unified data. Analyze which channel has the highest margins. Never put all your eggs in one basket.
If your initial test is successful, slowly expand your product selection and keep an eye on profitability.
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On the up If you've already moved to a multichannel or multifulfillment model, and you're looking for a way to manage the complexity, consider an operations platform. An operations platform will make it possible to expand your presence and fulfillment footprint while staying organized by seamlessly connecting and synchronizing your warehouses and fulfillment centers. It unifies order and inventory data from across your ecommerce ecosystem and makes it easy to analyze and automate no matter how much you grow. With a few clicks, you can automate order routing, shipping, inventory, and purchasing tasks.
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On the right road If you use a tool like
Skubana, you'll find it easy to integrate with your existing infrastructure via
our native integrations, robust App Store, and open API.
About the author Chad Rubin
Co-founder and CEO, Skubana Chad Rubin is the co-founder and chief executive officer of Skubana, a multichannel ecommerce software the enables brands and marketplace sellers to unlock growth by unifying their back-office operations. Rubin co-founded Skubana in 2015 to address the fragmented operations ecosystem that hinders profitability for many consumer ecommerce brands. Mr. Rubin informs Skubana’s direction to ensure its customer’s needs remain core to the platform.
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About Skubana Skubana is a retail operations platform that thrives on complexity. We are able to handle detailed information on every single SKU, and fulfill multiple orders from multiple warehouse locations, across multiple channels. No other software is specially designed for the complexity of modern retail, only Skubana makes it easy to add layers as you grow.
ON THE BUTTON Still manually personalizing your brand? You don’t have to
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On top of it all We live in an age of Big Data and Big Tech. The digital giants, like Amazon and Facebook, know more about their users than ever before, allowing them to deliver hyper-personalized feeds and experiences from the moment a screen opens. Such a high degree of personalization leads to an incredible rate of use and conversions – or, getting users to do what they want. However, Big Tech doesn’t own Big Data. They may be able to gather and store a lot of it, but it certainly doesn’t mean you, the merchant or agency, can’t own more of your own data. In fact, reliance on outside channels and third parties only means they’re in control of what, if any, insights you’ll have access to. So instead of depending on Facebook or Google for user data, take a look at your own website. It’s actually easier than ever to collect and use data from your users.
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On your terms Your website visitors leave behind a tremendous amount of data, some easily accessible, some not. This means smart companies are taking advantage of this to learn more about their visitors. Tools available today can uncover valuable insights – like who your visitors are, what they’re interested in, individual behaviors, etc. – and use that to deliver the most personalized, individual experience possible. Owned data is the key to being in control of your brand’s growth and long-term success. As we head into 2021, it’s worth examining your data collection practices and how they can be optimized for success. One of the most important trends of 2021 will be the effective use of artificial intelligence (AI) to efficiently collect data and turn it into actionable insights. AI has become more accessible, making it a reality for the everyday marketer – let’s check out how AI can be used to meet customer expectations and personalize experiences.
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The rise of accessible AI Thanks in part to Amazon, hyper-personalization has become the expectation of online shoppers. With every search rendering a seemingly endless amount of products and recommendations everything builds on top of each other to create an almost customized shopping experience. While none of us are Amazon, we can still create these highly personalized experiences by implementing data collection initiatives and using AI to track and produce desirable outcomes. Move beyond simple lead capture (email or SMS) and collect data points that can inform highly detailed segmentation strategies. Everything about a website visitor can be informative, from the CTA they clicked, the URL they landed on to what pop-up they exited, or which recommendation they didn’t click. Once you’ve started collecting this raw data, it’s time to put it to work using AI to uncover opportunities and delight the customer.
AI use cases for better personalization We’ve seen a surge in clients using AI-powered features to infuse their website with personalization. Here are a few of the major trends we’ve seen for AI-powered messaging:
Cart abandonment Window shoppers are always around, especially during the holidays when they’re scouring site after site for the perfect gift for their loved ones (or themselves!). Often, they will add numerous enticing products to their cart, only to bounce off the site, unlikely to return. By using AI to look at both what’s in their cart and other products they’re looking at, you can show products that are expertly tailored to both and add some gravy on the side, like free shipping (with 23% of shoppers frustrated when paying for shipping, this can go a long way) If they do leave and come back, target these window shoppers with a specific welcome back promotion with products you think they’d like or best sellers. This shows that you both remember them and gives them a memory jump to where they last were.
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Make it an omnichannel experience: Email, social and mobile Consumers aren’t just shopping on their desktops anymore. Mobile shopping is higher than ever, especially as social media platforms have begun integrating more shopping tools directly into their apps, like Instagram and Facebook. Consumers may bounce around, but a brand new session will only increase friction. This is a great opportunity for personalization to unite the customer journey. Remember, visitors view your site on mobile and revisit later via desktop. Use on-site promotions to target via UTM or source parameters to ensure consumers are getting the same messaging regardless of where their latest session is from.
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Delight customers with AI Popular products are popular for a reason. Gift guides, popular product pages, “Editor’s Picks”, and more provide a great starting point for visitors just visiting your site. Maybe they only have an idea of what they want and are looking for some inspiration. From there, use AI to give them a mix of both the popular and the personalized. Offer product bundles (e.g. ‘buy the matching set!’) and related products for both average order value (AOV) and customer satisfaction boosts. Use AI to make it easier to navigate and shop your site. By reducing barriers to purchase, you’ll not only help shoppers find what they’re looking for faster but convert them too.
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Wrapping it all up The continuing rise of artificial intelligence and the hyper-personalization of ecommerce provides more opportunities for brands in the new year. With a larger variety of software applications now available, getting in on the action is more than possible regardless of size. Conversion rate optimization is a fast-growing component of digital marketing, and those that are willing to spend the time collecting data, analyzing it, and personalizing their user experience will be far more successful in 2021 and beyond.
About the author Michael Wadsworth,
Partner Marketing Associate, Justuno Michael is a partner marketing associate at Justuno. He is passionate about technology solutions across the ecommerce landscape and helping our partners leverage the Justuno platform to its fullest. When he’s not in the office, you can find him out and about the music scene of Austin.
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About Justuno Justuno is a conversion platform for intelligent lead capture, recommendations and personalized messaging. Justuno merchants, on average, see a 135% lift in revenue in the first year of using our solution. We support brands like Pura Vida, UNTUCKit, Volcom, Rothy’s and more and integrate with more than 95 other top ecommerce technologies. Justuno is also a Shopify Plus Certified app and a Shopify partner since 2017.
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Chapter 3 REVIEWS.io – It’s time for more authenticity Rewind – The Data Protection Boom 2021 Attentive – Prepare for the move to mcommerce Shoelace – Why creatives will define your advertising strategyx
Chapter 2
Chapter 1
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ON YOUR WATCH It’s time for more authenticity, reviews alone are not enough
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Let’s get really personal We all know how important reviews are for building trust, improving customer service and growing brand reputation. But what’s become apparent is that on their own, they no longer hold the same sway over consumer opinion. Whilst they’re still important, an overabundance of text reviews has taken the edge off their power. Going forward in 2021, when the ecommerce space will be more competitive than ever, brands need to focus on authenticity. But what does that actually mean? Essentially, it means more. It’s no longer about who’s got the highest star rating or review count. It’s about a wider brand experience. You need to strike the balance of a review strategy that gives a complete and transparent picture, provides a personal touch to all too often impersonal interactions, and makes use of unique, engaging content that brings your brand to life. To achieve that, let’s start with something you may not have considered.
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Embrace negative reviews – they’re not the enemy
There’s a common myth that negative reviews are bad for business, when in fact, they play a crucial role in creating an authentic brand reputation. Why? Because consumers are wary of implied perfection. In a recent study we conducted that compared the profiles of ten ecommerce companies of varying sizes – and with differing review counts – customers were five times more likely to filter for one-star reviews than five-star ones. What they’re after its validity, proof that your reviews are genuine, and reassurance on how you deal with negative experiences. So how do you build authenticity from a one-star review?
It’s how you respond that counts – never shy away from criticism and don’t take it personally. See negative reviews as a chance to show exceptional customer service
Use it to build greater trust – by responding to negative feedback, you increase consumer confidence in a way 10,000 positive reviews could never achieve
Make a human connection – with little to no contact information available, too many ecommerce brands appear distant and unobtainable. Public response to a negative review that references further contact shows you’re engaged on a personal level
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Collect UGC at the most appropriate time User-generated video content has exploded over the past few years – just look at the launch of Instagram’s IGTV and the phenomenal success of TikTok if you want evidence. But despite its popularity, it’s not easy for brands to get hold of. Thankfully, it’s a trend that’s entered the review space. It provides the opportunity to generate unique, authentic content with a well-timed request. Brands collecting video reviews aren’t seeing scripted pieces to camera. They’re getting a glimpse into a customer’s life and seeing first hand how their products fit into it. This kind of content is priceless. It gives insight into the customer experience that you can use to inform product development. And for your target market, it shows how your brand works in action. Having products positively portrayed, through video content by actual customers, is the single most effective way to boost authenticity and trust with your customers. Combine these with text and photo reviews and you’ll have an engaging body of social proof to leverage brand trust across all your marketing channels.
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Yappy, a pet store for personalized dog gifts, has a unique approach to personal customer reviews, as you write a review on behalf of your trusting companion.
Socially conscious operations REVIEWS.io has seen a huge uptake in the use of tools like Klaviyo, with brands creating unique flows built around personalization. Not just for review requests, but also for incorporating UGC in both pre and post-purchase communication. Loyalty programs are another way to add a personal touch and generate more authentic reviews. Judas Sinned has built a community of brand advocates by offering exclusive deals perks for being loyal customers. These advocates then leave more social proof and reviews that get new customers to covert. One final trend to look out for in terms of personalization is reviewer attributes. These are the finer details that offer greater product insight. By collecting feedback on things like fit, comfort and quality, your reviews become far less generic and more geared around a personal shopping experience.
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Google Seller Ratings are only going to get more relevant It’s a common trend that evolves year on year, and the latest updates around
Google Seller
Ratings are all about promoting authenticity. It means no more incentives for company reviews, a requirement that both positive and negative reviews are shown on a public profile and stricter moderation policies. At the end of the day, this all comes down to ensuring transparency. There are lot of boxes to tick, but your Google Seller Rating is your key to more sales. Stars in both organic search and Ads give you more clout, increasing online visibility, attracting attention, and boosting click-through rates. A strong Seller Rating also reduces your cost per click. Hot tub company Wave Spas has seen a huge decrease in ad spend since driving its review strategy forward, lowering CPC whilst simultaneously boosting conversions. It’s a win-win. And because Google enforces such strict regulations, there’s no questioning that your online reputation is anything but authentic.
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Putting it all into practice If your review strategy for 2021 revolves solely around collection and publication, you’re missing out on a great opportunity. Focusing on true authenticity is the best way to connect with today's savvy audience, drive engagement, and stay competitive. Here’s a recap:
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Make negative reviews a positive asset Request video reviews for greater product insight Keep personalization front and center Share a combination of content for social proof throughout the buyer journey And don’t forget to keep Google happy
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About the author Richard Ball Marketing Manager, REVIEWS.io Rich is the Marketing Manager and UX Developer at REVIEWS.io. He writes to help boost consumer trust and develops to optimize a user experience with the brand or products.
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About REVIEWS.io REVIEWS.io sources genuine reviews to help its customers make a positive impact on their business by providing the tools to invite, publish and manage review content. With features such as Video Reviews, Influencer and Social Proof Editor, REVIEWS.io users have everything they need to share and respond to feedback to increase trust.
ON GUARD The data protection boom of 2021
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On the up The early results are in for Black Friday/Cyber Monday 2020. And it looks really good. According to Shopify, their merchants sold $5.1 billion in the four-day stretch. That’s a 76% increase over 2019. In a challenging few months, the continued success of ecommerce has been a bright spot for many business owners. At Rewind HQ there was a flurry of activity as well. We protect over 33 billion pieces of data and it was incredible to watch through our view of the ecommerce landscape.
Here is a sneak peek Without getting too technical, a webhook is a log of events or actions performed by an ecommerce store using Rewind. This could be a change to a product description, an edit to a theme, or a sale. Rewind records all of it. Every change is saved and stored. What the graph shows is that during Black Friday, the number of changes or events recorded doubled. Cyber Monday was no different. Here’s why we think that’s important. Ecommerce will not slow down in 2021. Sales will continue to grow, the competition will increase, and small businesses that haven’t embraced online channels will need to adapt or risk getting left behind. This means that more and more data will be created. This means more data that can be lost in a heartbeat.
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If you’re online, your data is at risk There is a common misconception where people think, “but doesn’t XYZ ecommerce platform save everything?” Well, not really. These platforms do store the last change that was made, but it’s not guaranteed the data will be there next time you log in. It all boils down to something called the “Shared Responsibility Model,” a common term in cloud computing but not well known in ecommerce circles.
Here’s what this model looks like The diagram shows sections of an ecommerce store that each party is responsible for protecting. It’s a framework used by most software-as-a-service tools. In addition to Shopify and BigCommerce, other online software tools like QuickBooks Online or Trello follow the same framework. Users are on the hook for understanding how to protect their own data. It’s also a challenge of logistics. All those data sets that Rewind protects up are spread across 70,000 users. But Shopify, BigCommmerce and Quickbooks have millions and millions of users. If you do the math, that’s an unimaginable amount of data. Because of how their software is built, all your data is lumped in with everyone else. So trying to isolate it would be like trying to find a needle in a haystack, in a field of haystacks.
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The impact of ecommerce downtime Every store is different but our 2020 Ecommerce Data Protection survey found that:
91% of merchants spent significant time and money rebuilding their sites 89% said they lost sales with some losing upwards of $5000 per day
In 2015, GymShark, the billion-dollar clothing retailer, lived this nightmare right in the middle of BFCM. Their website went down for eight hours, costing them an estimated $143,000 USD in lost sales. Whisker Seeker, the top cat-fishing manufacturer in North America, had every SKU in their store accidentally deleted days before Black Friday. They spent the next 72 hours redoing all the product images and descriptions. They got the store up and running, but they were behind operationally for the rest of the holiday season. Even this past BFCM we had one customer restore their entire product line, over 23,000 SKUs, at 12:37 AM EST on Black Friday. Imagine the chaos which would have ensued if they had to fix all that manually. Best case scenario you are up and running in a few days. Worst case scenario, one we have heard happen, is you call it a day for your ecommerce store. Merchants have worked too hard and too long to let these worst-case scenarios happen. Luckily there are things you can do heading into 2021 to help protect your business from a data disaster.
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A data protection strategy for everyone We see three common causes of data loss and here are the steps you can take to mitigate them all.
Keeping out cyber criminals Cyber attacks are happening to businesses of all sizes these days. Cybercrime has been on the rise for years and 2020 was no different. Interpol and the FBI saw an increasing number of attacks; specifically in ransomware and phishing. And if criminals get a hold of your data or worse, wipe it clean, it could cost around $200,000 to recover. Your best line of defense is to create complex passwords, use a password manager like 1Password to stay organized, and only provide online access to the employees or contractors who need it. Retail stores often have “keyholders� who are entrusted with access to certain parts of the business. You should bring the same level of accountability for your ecommerce operations.
Audit third-party applications All the additional software and tools you integrate into an ecommerce store can make life so much easier, Yet they can also wreak havoc. Many of them have access to a significant amount of data. Furthermore, if you read the terms and conditions thoroughly, many have the ability to make changes or delete data. We have seen it happen with our customers and it always comes as a shock. We recommend doing a deep dive into all the tools that are connected to your online store every year. Make a list of all the ways they can manipulate and revise your data and decide whether keeping them is worth the risk.
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Put a backup strategy in place If you have one, odds are you are doing it manually. There is nothing wrong with this approach, but it’s time-consuming. Repopulating a store, even for the most organized of teams, can take days, sometimes weeks. And keep in mind, every time you make a change to your store, you need to manually update all associated files. The other option is to use backup software that automatically restores any lost data. There are two approaches to this. The first is to hire a software developer to build you a customized solution, which can be a very expensive proposition. The other solution is to source an off-the-shelf solution that integrates with your online store. But, make sure you do your homework. As we noted before, not all apps play nice with your store environment or lack a high-quality product.
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On your toes These three strategies are very straightforward and ones you could start implementing today. The growth of online shopping won’t be stopping anytime soon, which means more and more vital data to protect. Having a data protection strategy in place will secure your business well into 2021 and for years to come.
About the author Mike Potter CEO, Rewind Mike is the co-founder and CEO of Rewind, the leading cloud data backup provider. Rewind is trusted by over 70,000 businesses to protect their data on a growing list of platforms like Shopify, BigCommerce, QuickBooks, Trello, and Github. He earned his MBA from the University of Ottawa and his B.Eng in Mechanical Engineering from McMaster University. Mike currently resides in Ottawa, Canada.
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About Rewind Since 2015,
Rewind has been on a mission to help
businesses protect their SaaS and cloud data. Today, over 70,000 customers in more than 100 countries use Rewind's top-reviewed apps and support to ensure their software-as-a-service applications run uninterrupted. The Rewind platform enables companies to back up, restore and copy the critical data that drives their business.
ON THE GO Prepare for the move to m-commerce with personalized text message marketing
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On the way up The pivot from brick-and-mortar stores to online retail was well underway before COVID-19, but the pandemic
quickened ecommerce growth by approximately five years, according to IBM’s
U.S. Retail Index. It also solidified the shift to mobile shopping. Data from Business Insider shows that mobile shopping – or m-commerce – accounted for more than 25% of all ecommerce in 2019. Some experts anticipate that number to nearly
triple in 2021.
For brands, the challenge now is bridging the gap between a shopper’s smartphone screen and your checkout page. Text message marketing empowers ecommerce brands to thrive in an increasingly mobile-first world. According to Attentive research, over 90% of consumers are ready to sign up to receive text messages from businesses. By delivering the personalized, 1:1 interactions consumers crave on their preferred channel, your business can boost sales and build long-term loyalty in 2021 and beyond.
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The impact of COVID-19 on m-commerce and buyer behavior According to Adobe’s May 2020 Digital Economy Index, ecommerce shopping levels from April to May of 2020
outpaced the 2019 holiday shopping season from November to December.
Online sales driven by smartphones increased alongside this surge in ecommerce activity, with the share of products purchased via smartphone growing 10% in May 2020 when compared to January 2020. Businesses took notice. A survey from CommerceNext revealed that while retailers were reducing their overall marketing spend in 2020, investment in text-based marketing was on the rise. In June 2020, retailers said they expected their spending on text-based communications to increase by more than 50% over the year. This trend was on full display during last year’s holiday season when brands and consumers alike doubled down on m-commerce. Holiday spending broke records – last year’s Cyber Monday became the biggest US ecommerce day in history – and 37% of these sales were made on mobile devices.
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On the verge Attentive’s 2020 Retail & E-Commerce Holiday Marketing Report found that
78% of retailers
planned to send more text messages than average each week throughout November and December, with nearly half of those surveyed planning to use their text messaging channel to treat subscribers like VIPs by sending them SMS-exclusive promotions.
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Our research also illustrated how comfortable shoppers had become with text message marketing heading into 2021. Not only are the vast majority of consumers open to signing up to receive text messages from businesses, 55% already have. And approximately half of consumers say they became more interested in signing up to receive text messages from businesses over 2020.
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When compared to emails, text messages provide nearly 3x more revenue per message for Skatie. Within ten months, text messages were driving 29.8% of the brand’s total revenue.
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Opportunities to drive revenue in 2021 and beyond Just as consumers expect to be able to connect with businesses on social media today, they’re increasingly demanding the opportunity to communicate with their favorite brands via text messaging. However, not all brands have adopted a mobile-first mindset. While the majority of consumers already use text messaging to connect with businesses, many brands are failing to use this channel to its full potential, from sharing promotional offers and other marketing updates to providing customer service. In 2021, ecommerce businesses that leverage text message marketing across the entire customer lifecycle – from acquisition to retention – will outperform their competitors. The key to doing so is treating SMS as a two-way conversation channel instead of a broadcast-only platform. One example is sustainable fashion brand Skatie, which has moved from engaging fans primarily on social media to
building customer relationships over text message.
The brand is careful to ensure every message sounds like it’s talking directly to the recipient. When subscribers reply, it feels like a personal conversation between friends rather than a business transaction. This has helped Skatie differentiate their brand from larger, corporate competitors while significantly increasing incremental revenue.
On it This channel also improves overall customer experiences to support long-term loyalty. For instance, home goods retailer
Big Blanket Co integrated its text message marketing
solution with its helpdesk software to enable direct responses to customer communications sent via text message. All text messages received from a customer are automatically forwarded to the brand’s customer support team queue so they can quickly assist the customer on their preferred channel and keep two-way conversations going. Along with personalized messages promoting specific products, interactions such as these helped Big Blanket Co drive 18% of total revenue from text messaging within only four months.
Strategies for successful text message marketing Ecommerce brands are navigating a transformative moment in digital marketing. Consumers not only expect businesses to connect with them on their channel of choice, but to do so in a way that’s tailored to their unique wants and needs. Personalized customer experiences have evolved from a tool for targeted offers to table stakes across the whole buyer journey. Still, 60% of consumers feel like brands are
failing to deliver truly personalized experiences.
The opportunity for ecommerce brands to separate themselves from the competition remains huge.
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On the to do list Keep the customer lifecycle in mind: Concentrate on using personalized text messages to build brand affinity at every stage of the buyer journey, from first interaction with your brand to customer service inquiries to post-purchase communications.
Stay relevant: Personalize text messages so communications are specifically tailored to subscribers. Use segmentation to customize messaging based on when a subscriber joined your list, what they’ve clicked on, which products they’ve purchased, where they’re located, and more.
Refine targeting: Leverage time zone-based sending and geographic data to ensure messages are delivered at appropriate times for subscribers and don’t contain copy that is irrelevant to subscribers located in specific regions.
Encourage two-way interactions: Take advantage of sharing an inbox with your subscribers' close family and friends by engaging the same way we all do with text: in two-way conversations. Responding to shoppers' text messages as quickly as possible – whether to resolve an outstanding issue or obtain valuable feedback – helps you drive brand loyalty by building relationships with subscribers and improving the customer experience.
Never stop optimizing: Conduct A/B testing to continually optimize your strategy – analyzing copy, imagery, and call to action variations to determine what performs best for your target audiences. Consistently evaluate the performance of your text messages across segments and keep an eye on opt-out rates. Significant variations in subscriber engagement with your text message marketing program may indicate a need for adjustment – whether that means scaling up or down personalized content.
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On message By recognizing text message marketing for what it is – a way to have personalized, 1:1 interactions with consumers across the customer lifecycle on their preferred channel – ecommerce businesses can position themselves to increase revenue and deepen customer connections in 2021 and beyond.
About the author Allison Kelly
Head of Growth Strategy, Attentive Allison leads Attentive’s technology partnerships, helping our customers further adopt the Attentive platform alongside other technologies in the space. Spending the last eight years in the marketing technology industry working with companies like Digital River, BounceX and Cordial, her industry experience brings incredible value to both Attentive customers and technology partners alike. Allison holds a dual BA in History and Marketing from the University of West Georgia.
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About Attentive Attentive is a personalized mobile messaging platform for innovative brands and organizations that can quickly become a top three revenue channel. Using real-time behavioral data, Attentive automatically sends engaging text messages to each subscriber at every step of the customer lifecycle. Over 2,000 leading businesses rely on Attentive and are seeing strong performance, like 30%+ click-through rates and 25x+ ROI.
ON THE EDGE Why creatives will define your advertising strategy in 2021
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On a journey When Shoelace was in its infancy, we found our footing by spearheading a new definition of advertising we dubbed Customer Journey Advertising. At the time, it was an innovative concept: in an era where merchants pushed generic display ads over-and-over again, we believed in carefully thought out ad experiences that provided unique value to audiences based on where they were in the funnel. This turned out to be the first of many shifts towards the democratization of high-brow ad experiences, even for merchants without the comforts of venture funding. As new ad platforms opened, technology got smarter with integrations, and machine learning allowed merchants to advertise without the need for an expensive performance marketer; successful advertising became possible for just about anyone who had access to a laptop and a cup of coffee. The result is an ad environment that has vastly shifted in terms of what competencies allow marketers to successfully compete, dictating the rise of Creative-First advertising. Let’s look at the macro trends that are driving these shifts
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1. CPMs have recovered to pre-COVID levels and will continue to rise After a brief fall as bearish advertisers pulled out of paid advertising during the beginning of the COVID pandemic, CPMs have recovered and exceeded their 2019 levels. There are a host of causes for this, particularly the influx of online merchants as people chose to stay at home, driving up competition for ad spots. For the average brand, this means that it is more important than ever before to get the most from your ad dollar.
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2. Facebook’s algorithm optimizes nearly as well as the best performance marketers While there was once a time that highly-skilled performance marketers could push the needle on a Prospecting campaign, developments in Facebook’s algorithm and the introduction of Broad Targeting has essentially eliminated much of the technical heavy-lifting associated with paid advertising. As a result, the best media buyers are no longer just effective technical targeters, but have an intimate understanding of creatives and how they can be used drive differentiation in a crowded ad market. We dove into tens of thousands of dollars in monthly ad spend across three industries to see how each prospecting targeting types (Broad, Interest, and Lookalike) stacked up against one other. The results showed that performance was generally consistent whether it was targeted by Facebook’s algorithm (Broad) or through media buyers (Interest and Lookalike). It goes without saying that Interest and Lookalike audiences are still an important method to tap into new markets. That said, our results indicate that – with Facebook doing much of the heavy lifting from the targeting perspective – an increasingly important source of success comes from making apt creative decisions that algorithms are not capable of. At Shoelace, this has fundamentally shifted the way that our team manages media buying towards a Creative-First future.
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Creative-first advertising is 2021’s biggest growth lever With CPMs at an all-high and Facebook’s targeting algorithm leveling the playing-field among advertisers, it is more important than ever for brands to find new ways to distinguish their advertising from other merchants. For paid advertising, our experience has shown that this unequivocally comes from developing creatives that resonate uniquely with audiences.
How creatives push the needle where targeting can’t We recently saw the impact of Creative-First advertising with a brand we were working with. After a new campaign failed to generate differentiated results, we tried multiple interest-based targeting strategies to reach additional audiences who may be more receptive to the brand’s product set. In spite of our attempts, the new targeting failed to move the needle as we had anticipated. We went back to the drawing board and worked with the brand to develop creatives that honed in deeper to the interest and aesthetic preferences of the brand’s target market. The results were stunning – in spite of the fact that we were targeting the same audience as before, results were now two times higher with the new creatives.
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Doubling your performance with creative-first media buying Leveraging creatives as the primary tool in your advertising arsenal can unlock an unlimited number of doors for creating experiences that will resonate with your audience. Oftentimes, this comes by translating tangible insights into creative direction.
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One brand we recently worked with had an interesting problem: While general ad performance was exceptional, a conversion-lift test revealed that female audiences in the 55 to 64-year-old age range dropped out of the funnel at disproportionate rates after adding products to their carts. Using the Creative-First approach, we realized that the best way to target these audiences would be to leverage creatives that better appealed to senior target markets. With that in mind, we tweaked our images to prioritize images of young children over images of parents and kids, and the copy to promote the idea of purchasing for grandchildren. Additionally, we introduced review ads as social proof to overcome apprehension among older populations towards shopping online. These changes doubled ad performance among senior audiences and helped the brand secure a stronger hold on this unique market.
Developing a creative-first growth strategy that will stick
You’d be forgiven if you’ve read online articles extolling the “best ad types” or “hottest ad trends” – they’re everywhere. However, these pieces take a short-sighted approach to a creative-first approach. For example, while user-generated content (UGC) has become a pillar of ad strategies, we see ebbs and flows in performance as merchants adopt and saturate the ad markets with different styles of creatives in an attempt to stick out. In actuality, different styles of creatives vary in performance based on several factors
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Stage of the funnel Our testing has revealed that formats like UGC performs best as a social proof device later in the funnel, and has mixed results compared to native-type ads in earlier stages
The nature of the brand Brands who have a more playful persona can shed studio formats in favor of UGC; while brands who are meant to be taken more seriously perform better with native-type ads
Trends in the ad market As a format becomes well adopted, it saturates ad spaces and consumers become less receptive to it
While UGC is just one example, we've learned to be wary of one-size-fits-all creative trends. By the time you are reading it, it may already be reaching saturation or it just might not be right for your brand. Trends ebb and flow and instead of hopping on the next bandwagon, your goals should be to find a true creative partner that understands your brand and has the experience to test the right creatives at the right time.
On and off As a creative partner, we like to monitor creative performance along the funnel based on a few tags such as “creative format”, “type of product”, and “ad type”. By collecting results over time and sharing them to help guide the creative process, we help redefine our role as media buyers for merchants to a role that is more strategic as a creative partner. Following this approach helped us develop key strategic insights for one of our favorite boutique brands, Ruthie Grace.
Learnings Winning ads perform at 25x losing ads Instant expereience ads perform best Punctuation & stand-out emojis ideal Models with neutral outfits resonate more
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About the author Elliott Brand
Marketing Lead, Shoelace As the Marketing Lead at Shoelace, Elliott works alongside a team of talented Ad Strategists to translate tangible insights into a common vision of what tomorrow’s brand-first advertising experience will look like.
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About Shoelace Shoelace leverages cutting edge technology, advertising data from 1000s of merchants, and a large team of trained media buyers to provide powerful brand-first advertising experiences to merchants such as Siete Foods, ZOX, and Mythical.
This ebook was brought to you by LoyaltyLion LoyaltyLion is a data-driven loyalty and engagement platform that powers ecommerce growth. Proven to increase retention and spend, LoyaltyLion is trusted by thousands of fast-growth ecommerce merchants worldwide. > Want to see how LoyaltyLion will accelerate your brand’s growth in 2021? Book a time to talk to a member of our team. Want a reminder of the trends shaping 2021? Access the on-demand recordings of the live Ask Me Anything sessions.