One third of organisations fear going out of business within next 36 months without reinvention of business model, according to new research.
Econsultancy, in partnership with Sitecore, has released a report entitled “Reinventing Commerce,” providing a snapshot of the global commerce market.
The research highlights that 60 percent of organisations report their business model is under critical or significant pressure to adapt to changing market conditions, with one-third concerned that the pressure could threaten the survival of their business within 36 months.
The research has been conducted across twelve countries throughout North America, Europe, and Asia.
Key stats:
• 60% report their business model is under critical or significant pressure to adapt to changing market conditions
• One-third are concerned the pressure could threaten the survival of their business within 36 months
• Two-thirds believe that the right personalised content for their customer is key part of their strategies to take on the big brands
• 80% say their success as an e-commerce business depends on their ability to create compelling customer experiences
• Less than 40% have a system in place today that can personalise for individual consumers
• 47% consider the top-tier eCommerce marketplaces such as Amazon and Alibaba as a significant opportunity for growth
A majority of companies surveyed identified a new model for growth by using commerce expertise combined with the right personalised experience for the customer. Two-thirds of respondents recognise that creating the right personalised content for their customers is how they can take on the big brands.
While excited about the possible favorable business outcomes of creating the right personalised customer journey, respondents globally are conflicted about working with and competing among macro-players such as Amazon and Alibaba. Nearly the same percentage of respondents consider the top-tier e-commerce marketplaces to be a significant opportunity for growth (47 percent), even as they are concerned about working with them (46 percent).
In response to this challenging market, over 80 percent of respondents say their success as an e-commerce business depends on their ability to create compelling customer experiences. Despite this fact, less than 40 percent report that they have a system in place today that can personalise for individual consumers. Sitecore Experience Commerce™ was designed specifically to solve this challenge and empower marketers and merchandisers to deliver a highly-personalised shopping experience. Sitecore Experience Commerce fuses content and commerce so any business can provide consistent customisation, from showcasing relevant products to delivering promotions and offers in the context of each individual’s journey—before, during, and after the transaction.
“No one wants to live in a world where newer or smaller brands are unable to compete against e-commerce goliaths—the ultimate result is a homogenous commerce landscape for consumers, void of variety,” said Paige O’ Neill, chief marketing officer at Sitecore. “Given that almost half of business leaders feel that their ability to personalise experiences for customers is insufficient, there’s a lot of room for growth. Taking control of data and content, as well as leveraging technology platforms like Sitecore’s, can help businesses level-up to compete with the bigger players and not leave a single dollar on the table.”
“The pressure to create more relevant customer journeys is felt across geographies and industries—no sector is exempt,” said Stefan Tornquist, senior vice president of research and content strategy at Econsultancy. “Most business leaders and marketers recognise the need to create customised content for commerce platforms, but there’s a real disconnect to their ability to deliver the digital experience that moves consumers to buy once and return many times. When you compare the priorities and sophistication of industry leaders with the mainstream, many companies are in a perilous state. They will only be able to close the gap when they can deliver relevant customer experiences at scale.”
The findings of the “Reinventing Commerce” report are based on survey responses of over 1,200 marketing executives in retail, CPG/FMCG, and branded manufacturing industries across twelve countries throughout North America, Europe, and Asia.
The final report can be downloaded from Sitecore.com.