5 GUIDELINES OF DIGITAL RETAILING
Digital retailing is described as a way for self-propelled retailers to power every step of the purchase process, from how consumers submit their exchange and acclaim info to how you interconnect and manage the deal jacket. Merchant Inspires a lot, another retailing provider mentions the online tool as “CAR-BUYING AS EASY AS 1-2-3.” With a modest three-step registered process, once a customer knows which car they want, it can be kept at a dealership in a matter of seconds.
Nowadays online customers are interested in doing everything on their own from research to consideration and making a purchase. The mainstream of today’s customers prefer everything to be completely self-service. Because of this, many retailers have embraced digital retailing.
The main idea of Digital Retailing is clear, but it does not have some point of views with respect to different industries, and they are an auto dealer or consumer. In Digital Retailing, consumers look for a particular item or service which they want, after selecting items or services they add to cart, confirms the price and completes the buying process with payment.
However, digital retailing might mean entirely different.
For some retailers, digital retailing means supporting customers with the genuine deal making process and then leading the actual transaction face-to-face.
On the other side, it might mean doing literally everything online and simply having a product delivered to your home.
In a world where customers are flowing an important portion of their purchases from offline to mobile and online channels, the retailers should embrace the change and take advantage of the features of digital commerce. Customers like to conduct their research online, so retailers should give them a better online experience.
Our research suggests that managers should encourage consumers to embrace advanced technology features like different types of web technologies, personal assistants, and apps, because such usage is usually linked with a higher level of sales. But our research also shows that it’s critical for retailers to take steps to follow five common digital retailing guidelines.
1: Don’t let a customer get lost in a wide range of products
When customers do common searches on the web, a retailer should not just present a large set of products to them. Rather, the company should guide the consumer through a process which can narrow the search results. This is very important because a large set of possible options can confuse customers and lead them to abandon the purchase process.
2: Don’t recommend only popular products
Recommendation systems improve sales of both popular, and products that are not so popular yet. Though, our research found that their effect is more projecting for the latter group of products. Popular products naturally have a higher sales volume and a lower margin because of competition, while less-known products are expected to command a higher margin.
Hence, retailers should carefully choose a mix of both types of products in their recommendations. Similarly, a retailer should not just promote popular products to customers who are using the store app.
3: Don’t develop unrealistic customer expectations
Customers collect two types of information: factual and impression-based. Factual information relates to real facts, while impression-based information is the insight one forms by looking at a product.
Customers always have an expectation about any product they are thinking to buy, and their satisfaction with the product depends on how well that expectation matches with their post-purchase experience. Usually, factual information helps a customer form a realistic expectation, which leads to a better match between this expectation and the experience. On the other side, impression-based information may result in an unrealistic expectation in customer’s minds that their post-purchase experience can’t usually match.
4: Digital retailers must focus on sales rather than on net sales
Retail managers are often just keen on accumulative sales. Therefore, it is important to wisely consider what types of data consumers are collecting when the retailers use the technology available to them according to the environment.
In particular, many retailer’s websites and apps now have product-oriented technologies that are geared toward helping consumers to collect accumulate information.
Retailers need to ensure on daily progress that the technologies on their websites and apps are leading to anticipated results. For example, one way to moderate the negative effect of substitute photos is to allow consumers to upload their own photos and videos showing the product in use. Then on the basis of future potential customers can form more truthful outlooks about the product by seeing how other consumer’s look wearing the product or how they use it. Unexpectedly, a number of major retailers now inspire their consumers to upload photos or videos. These consumer’s uploaded pictures arguably to balance any impractical expectations potential consumers may form by looking at the retailer provided photos.
5: Not Skipping Technology Advances
Seeing all digital assistant’s with extensive focus on increasing competence, gradually through machine learning techniques, retailers face a hazard of being thrown out of the attention, which could put them in a downward twisting with obviously grave penalties. After all, these digital supporters programmed to collect data and continuously improve their services. As a result, it will become ever more necessary for retailers to take benefit of their data to offer consumers options that are well-targeted to their needs.
Digital retailing has been around for a while. However, dealers have finally started to realize the power digital retailing, and how it is important to optimize their sales strategies. Making more of the purchasing and service selection process online drives the customers to purchase your product. It acknowledges that we live in a world where shoppers want to have direct access to products. Dealers that can achieve this could see themselves overtaking the achievement in the coming years.
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