Comarch’s integration with Shopify and Magento enables rapid implementation of customer loyalty
The percentage of total retail sales is slowly shifting into the digital realm. Global e-commerce sales increased from 15 percent in 2019 to 21 percent in 2022. In the long term, the e-commerce market is projected to grow from $3.3 trillion today to $5.4 trillion in 2026 . According to built with25.5 percent of the top 1 million live websites today are e-commerce websites.
According to the PwC Customer Loyalty Survey 2022, volatility in consumer behavior is at an all time high. The research found that 30% of customers today say they are increasingly likely to try a new brand. Younger age groups tend to be increasingly brand independent.
Customer experience is critical to influencing customer behavior. 55 percent of those surveyed by PwC said they would stop buying from a company they liked after several bad experiences. 8 percent said it would only take one bad experience to make a mark.
The price of losing customers is increasing. CommerceNext Report 2022shared that roughly 61 percent of direct-to-consumer businesses called rising customer acquisition costs their biggest challenge to achieving 2022 revenue goals.
Customer loyalty and e-commerce
What is the role of customer loyalty in combating these headwinds in e-commerce? To meet growth needs and offset rising customer acquisition costs, e-retailer priorities are shifting from pure acquisition games to customer growth and retention. For this reason, customer loyalty strategies are becoming more and more important and the opportunity for growth of loyalty management systems (LMS) will continue to increase in the coming years.
E-commerce retailers have special advantages over their physical retail cousins. But they also have vulnerabilities that can be detrimental to the business if not managed properly.
The ability to collect data about customers, even potential customers, is one of an e-retailer’s strongest assets. Using multiple techniques, e-retailers can collect email addresses and understand interest and product preference based on browsing patterns. On the other side of the equation, potential customers can easily bypass the retailer, visit, buy, inquire (do everything except complete a purchase), and then disappear.
The result? The switching cost for customers to compare prices of similar products and switch providers is so low that e-retailers should invest in customer loyalty strategies to preserve customer value. The ability to manage data to personalize messages and offers should be a core capability of a loyalty provider partner. McKinsey found that 71 percent of consumers expect personalized interactions and 76 percent get frustrated when they don’t receive them. Creating targeted recommendations and offers based on customer insights is vital, all of which contribute to increasing the appeal of an e-commerce brand.
Creating a more structured approach to retaining customer interest and converting browsing to purchase is one of the goals of a customer loyalty strategy and can deliver a triple-digit ROI on loyalty investment. A well-conceived loyalty strategy must present the value proposition to retain that customer.
This is an example of the challenges faced by e-retailers that can be addressed through a customer engagement and loyalty strategy. The average shopping cart abandonment rate for all eCommerce retailers is just above 68 percent. the Baymard Institute provides some of the most useful statistics on this topic and while the numbers acknowledge that a large portion of abandoned carts are a natural consequence of the way people browse i.e. window shopping, comparing prices, saving items for more afternoon, explore gift options, etc. they are answers available through a smart marketing strategy.
Improving cart abandonment levels is just one indicator of how important it is to apply customer engagement, loyalty, and retention techniques to eCommerce today. Tools that guide the customer to purchase with messages like “you might like it too” or “you might need it in the near future” can help build a relationship with the customer. Reinforcing the strategy with AI/ML tools is the way to quickly process data in real time and be able to make purchase predictions and propose the next best offer.
But don’t equate investing in customer loyalty with launching a points program. That’s one option, but first e-retailers need to personalize the experience for their customers, combining special offers and incentives that will turn browsers into buyers.
How to implement Loyalty effectively in Electronic Commerce
Your loyalty strategy should first focus on goals, how to create more repeat visits and higher customer satisfaction. This is especially important today, when good customer reviews, social media “virals” and online recommendations have a significant impact on future sales and profits.
Encouraging people to sign up for newsletters and engage with helpful content can create stronger engagement and redemption methods (the most compelling moment of any loyalty experience) should be thought through and tailored to delight customers in the moment, but also drive store visits and generate value. . Value can be enhanced with point-free offers that include faster delivery, free shipping, and extended returns.
Comarch has developed an integration between its loyalty management system and two e-commerce platforms (Shopify and Magento) that together account for around 20% of the global e-commerce platform market share. Shopify is a software-as-a-service (SaaS) platform that helps anyone start, grow, and manage an online store. It was started in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake in Ottawa when they were trying to open an online store for snowboarding equipment. Magento officially began development in early 2007. Seven months later, on August 31, 2007, the first public beta version was released. The capacity will be available in the first quarter of 2023.
Learn how to customize the right loyalty solution for your business
using the new Comarch automated demo system here.
Comarch has created a “commerce connector” that represents a holistic approach to customer loyalty for any e-retailer. Integration connectors are ready-to-use components offered by most major integration platforms that allow you to easily connect and integrate with applications and data sources. They bring together the entire business ecosystem. Along with integration, they solve complex workflows and automate critical processes. Comarch eCommerce Connector has the advantage of being ready to use, with fast time to market. It will be continually updated to ensure compatibility with the two major e-commerce engines and requires easy installation with no complicated integration or IT work. E-retailers get loyalty support and web analytics with AI/ML recommendations in one package.
The importance of customer loyalty will continue to grow for online retailers. Comarch’s loyalty strategy and consulting experts have proven success working with retail brands to attract and retain customers throughout the entire customer journey.
How to implement Loyalty effectively in Electronic Commerce
Your loyalty strategy should first focus on goals, how to create more repeat visits and higher customer satisfaction. This is especially important today, when good customer reviews, social media “virals” and online recommendations have a significant impact on future sales and profits.
Encouraging people to sign up for newsletters and engage with helpful content can create stronger engagement and redemption methods (the most compelling moment of any loyalty experience) should be thought through and tailored to delight customers in the moment, but also drive store visits and generate value. . Value can be enhanced with point-free offers that include faster delivery, free shipping, and extended returns.
Comarch has developed an integration between its loyalty management system and two e-commerce platforms (Shopify and Magento) that together account for around 20% of the global e-commerce platform market share. Shopify is a software-as-a-service (SaaS) platform that helps anyone start, grow, and manage an online store. It was started in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake in Ottawa when they were trying to open an online store for snowboarding equipment. Magento officially began development in early 2007. Seven months later, on August 31, 2007, the first public beta version was released. The capacity will be available in the first quarter of 2023.
Comarch has created a “commerce connector” that represents a holistic approach to customer loyalty for any e-retailer. Integration connectors are ready-to-use components offered by most major integration platforms that allow you to easily connect and integrate with applications and data sources. They bring together the entire business ecosystem. Along with integration, they solve complex workflows and automate critical processes. Comarch eCommerce Connector has the advantage of being ready to use, with fast time to market. It will be continually updated to ensure compatibility with the two major e-commerce engines and requires easy installation with no complicated integration or IT work. E-retailers get loyalty support and web analytics with AI/ML recommendations in one package.
The importance of customer loyalty will continue to grow for online retailers. Comarch’s loyalty strategy and consulting experts have proven success working with retail brands to attract and retain customers throughout the entire customer journey.
Find out if Comarch Loyalty Management System is right for you, here.
