In the ever-evolving realm of e-commerce, the MENA region is undergoing a remarkable transformation. Projections indicate that the GCC region is on track to achieve a staggering $50 billion in e-commerce sales by 2025.
The concept of experiential commerce has gained significant attention within the retail industry. It involves enhancing the customer’s shopping experience by providing unique and engaging interactions.
Nevertheless, in the age of rapidly evolving technology and shifting consumer behaviour, it is pertinent to redefine experiential e-commerce to give it a more comprehensive meaning.
REDEFINING EXPERIENTIAL E-COMMERCE
Experiential commerce traditionally referred to the creation of immersive in-store experiences for customers. However, in today’s context, experiential commerce encompasses the entire spectrum of a consumer’s shopping journey.
It extends beyond flashy websites to include the user interface, personalised recommendations, the checkout process, and post-purchase interactions.
The e-commerce landscape is rapidly evolving, characterised by technological advancements, personalisation, AR, VR, alternative payment methods, subscription models, various delivery options. In this dynamic environment, brands and agencies often struggle to determine where to focus their efforts.
The competition is fierce, with brands advertising and selling across multiple platforms, including offline, web, apps, social commerce, e-retailers, messaging apps, phone call orders, influencer marketing, and even virtual influencers.
UNDERSTANDING THE CONSUMER REVOLUTION
To excel in this market, it’s crucial to comprehend the driving force behind the evolution of this industry: the consumer.
Consumer behaviour has undergone a significant transformation. Loyalty is harder to secure, and today’s customers demand speed and seamlessness. In fact, 72 per cent of GCC customers express loyalty to brands, but a matching 69 per cent of customers are open to buying products regardless of the brand. Purchase journeys are no longer linear but instead resemble intricate mazes
THE COST OF MISTAKES
The most essential step in formulating a successful e-commerce strategy is doing less but doing it better. Consider a scenario where a customer has multiple payment options at their disposal, including cash on delivery, credit card, Apple Pay, buy-now-pay-later services and installment plans.
Providing an array of options can make the customer happy and satisfied. But, if none of these payment methods function correctly, the customer’s satisfaction quickly turns into frustration. Then there’s a high chance that the customer will seek another retailer, potentially one that provides a seamless payment option.
Losing a customer due to a poor payment experience not only results in lost sales but also has a more significant impact. The cost of acquiring a new customer is typically much higher than retaining an existing one. When a dissatisfied customer turns to a competitor, that competitor gains a foothold in their CRM (Customer Relationship Management) system, allowing them to retarget the customer with enticing monthly offers.
Winning back such a customer becomes an expensive endeavour. Therefore, the emphasis must be on doing things right, rather than attempting to do everything, and our customer satisfaction must be front of mind.
EMBRACING CUSTOMER EXPERIENCE
Consumer behaviour is complex, but consumer satisfaction is significantly less complicated. All companies must ensure they have an open feedback loop with their customers, whether through customer service or reviews. The first crucial step in understanding your consumer is being able to hear their feedback and use it to make changes.
The second, more challenging step to success is really understanding your customers and potential customers. Using well designed testing frameworks and strong customer data infrastructures, brands can identify key answers: why are, or aren’t, customers shopping with them?
What are their customers buying? And how?
With these answers, the overall framework for redefining your focus emerges. So I encourage you to embrace experiential e-commerce in the MENA region as an ever-evolving journey, encompassing the entirety of a consumer’s shopping experience.
To thrive in this dynamic landscape, brands must first ensure they use their customer feedback, second correctly gather, manipulate, and analyse customer data, and thirdly, use this to formulate an e-commerce transformation strategy, where they focus on one thing, and do it correctly.
Brands must look past their desire for hyper-growth, and focus on hyper-experiences, where consumers are cared for and nurtured by a brand through every touchpoint available.
By striking a balance between customer acquisition and retention, integrating data-driven decisions, and maintaining a customer-centric approach, businesses can navigate the burgeoning MENA e-commerce market with confidence.
As the market grows, those who invest in delivering exceptional experiences are poised to capitalise on the vast potential this evolving industry offers.
By Laura Gleadhill, Head of Performance at Keyade
