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BizReport : Ecommerce : January 21, 2020

Expert: Choice, story take precedence for shoppers

Over the past 20 years the way consumers learn about and shop for products and services has changed. From digital ads and message boards to social media, merchants and brands have a plethora of new ways to engage. The problem is finding the right elements; one expert offers his thoughts one what will be important engaging elements for consumers in 2020.

by Kristina Knight

Meaningful platform differentiation ‍

"Amazon won the decade by giving consumers the power of choice and by giving brands the power of operational efficiency at scale as a hybrid sales, marketing, and logistics resource. The rest of the retail industry scrambled to keep up, with the most successful platforms finding ways to replicate the model and the magic of Amazon's approach," said Michael Lagoni, CEO, Stackline."But we think the mindset will be different in the 2020s. Amazon will become an increasingly price-motivated platform, with private label products applying more pressure to traditional consumer brands. Rather than follow suit, successful Amazon challengers will lean into the opportunity to heroicize "brand" and help brand leaders build differentiation and equity that insulates them from the price sensitivity rewarded elsewhere."

Brand story meets product sales ‍

"We look at Target's focus on brand partnerships and the evolution of point-of-sale opportunities on Facebook properties as clear evidence of an increasingly tight connection between the top and bottom of the funnel. The rise of social commerce (led by Instagram and Facebook Marketplace) will continue to transform the way consumers interact with brands, while giving brands the opportunity to showcase their brand story, expand their reach, and sell all at the same time. Social feeds will rival the Amazon search bar as a tool of brand and product discovery, and social pages (and DTC sites) may see a resurgence of importance as hybrid marketing and sales channels in command of more traffic," said Lagoni. "Traditional marketers should be assured that reports of the death of "brand" have long been overstated, but the connection between brand, performance marketing and the sales team has never been stronger; as of 2020, their highest-potential growth channels are the same."

Multiplatform data in unified dashboards

"We're biased and bullish on this one, but we think irretrievably gone are the days when your analysts could successfully report on the state of your business by keying in the marketing and sales metrics from a handful of relevant channels. To understand your performance now, you need to track millions of clicks on multiple platforms that don't often play nice with each other. Complicated customer journeys, partial-credit attributions, data privacy veils; all will influence your team's ability to synthesize sources of truth on your way to data-driven decisions. Brands will increasingly need to find analytics providers that have access to anonymized data spanning more of the digital marketing and retail ecosystems to help them define sustainable, profitable growth strategies," said Lagoni.

Tags: advertising, ecommerce, ecommerce advertising, ecommerce in 2020, ecommerce tips, ecommerce trends, Stackline

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