Our E-Commerce Trends for 2022
In the age of Big Data, AI and deep learning, personalization no longer applies to having a customer's contact details or knowing their birthday. Instead, as we recently showed in our live shopping study, personalization or rather hyper-personalization means a direct communication channel with a customer where the customer is offered a product based on their individual preferences, a feature that has only been made possible by merging behavioural and real time data extracted from the online customer. To remain competitive in a post pandemic world, many brands and online players are employing the right technology and infrastructure to support these hyper-personalization techniques. The aim is to get the right product to the right customer at the right time.
Buy Now, Pay Later
There is something reassuring when you tell your customers, "try first, then pay for it later". It is a customer experience similar to when a customer visits an offline shop. Although this payment method has long been around, especially in the DACH region, it is also becoming a global phenomenon and a necessary feature in every online checkout funnel. According to various sources, the share of the "buy now, pay plater" payment method has quadrupled globally since 2016, a feature which we believe is moving from a “nice to have” option to a “must have” one demanded by consumers.
By now in 2021, most consumers in Germany and Europe are already familiar with the concept, be it their monthly Netflix subscription or their online grocery shopping. More importantly however, this successful business model is finding its way through many more industries and we believe this trend will continue to win many loyal customers in the coming years. The effects of what was started by pioneering companies such as Dollar Shave Club and Blue Apron, can now be seen within Fashion (justfab), Automotive (Sixt), and Personal Care (Gillette) industries.
In a modern customer journey, loyalty is achieved through hyper-personalization, reassurance and convenience.”
Abbas Tolouee is a Senior Consultant in the Digital Unit of Arvato Supply Chain Solutions. Thanks to his many years of experience in consulting and strategy, he has already developed successful digital strategies for various clients within Arvato's consumer goods branch. The focus of his work is on the topics of e-commerce, internationalization, marketplaces and sustainability.