The effect of COVID-19 on e-commerce
The recent lifestyle of staying at home has turned the attention of people towards online buying and selling and virtual shopping. The fear of getting sick is the ground reason behind the switch. Online Shopping has become a leading and expanding trend in the pandemic of COVID-19 thereby adding more importance and success to the E-commerce business industry.
The influence of COVID-19 is very positive and beyond satisfactory for those who are directly or indirectly involved in the E-Commerce business. The pandemic has rendered a kind of great favor and service to this community by offering them great business opportunities.
Going out and risking one’s health is not an option to consider and nobody is ready to do it happily that is why everyone is preferring to go digital and avail of the useful services being offered by the E-Commerce business. The ingress of daily consumers of grocery and food is highly noticeable because these are the necessities that are linked to every human being. All the sectors like food, health care, garments, jewelry even entertainment have developed online websites and facilitating applications to help the consumers in buying the required products and availing themselves the desired services in a quicker and easier manner.
The rise of e-commerce in India
In India, it has led to a rise in the number of FTUs or first-time-e-commerce-users in India, who had been so far inhibited to shop online.
- Coronavirus accelerates the shift to e-commerce by 5 years
- Ecommerce Up 18%, Brick-and-Mortar Down 14%
– RoI Revolution
Early in the pandemic, shoppers were focused on buying masks, toys to keep little ones entertained at home, and stocking up on groceries. Currently, shoppers are focused on home and garden improvements. Business and Industrial and Toys and Games are still seeing growth, but not as significant as it was during the pandemic.
Why customer journey matters in e-commerce
• 73% of all people point to customer experience as an important factor in their purchasing decisions
• The experience and expectation gap in the retail industry is around 21%
In Short, Better Customer Experience Leads to Better Business:
- 86% of the new users churn after 30 days of downloading the app.
- 69% is the Average Shopping Cart abandonment Rate.
- It takes 8 Days for users to Transact and move to the engagement phase.
Challenges in Ecommerce
Online shoppers often come across problems concerning product delivery timelines and customer support services. Customers’ perception of risk toward online web sites is aggravated due to the inferior IT set-up used by several companies, resulting in hacking/unintended leakage of personal information.
Almost 70% of online shoppers will abandon their carts without buying anything. This is an average figure, according to Baymard Institute’s calculations from 34 studies on e-commerce cart abandonment, but a rather alarming one. Some of the issues flagged in Baymard’s studies include
- Requiring an account.
- Unclear pricing.
- Site errors and crashes.
- Lack of trust when handing over credit card info.
- Insufficient payment methods.
The need for AI-enabled anomaly detection in e-commerce
To deliver a seamless customer experience, e-commerce brands must monitor the user path taken by customers and remove any friction arising due to platform or operational issues. Companies can leverage artificial intelligence and machine learning algorithms to monitor complex rapidly changing e-commerce variables in real-time to detect incidents, find the root cause, and quickly resolve problems that impact end-users.
With autonomous anomaly detection, e-tailers can monitor multiple KPIs such as click-through rates, the number of uninstalls, errors and application issues such as slow-loading pages to improve the customer experience. With real-time behavioral insights, companies can also run highly targeted and engaging marketing campaigns to drive conversions.
By improving the efficiency and speed of incident detection and resolution, automated anomaly detection makes it possible for retailers to deliver a great brand experience to every user every time.
Using CrunchMetrics to improve Customer Experience and Drive Revenues
CrunchMetrics is a real-time, automated customer journey analytics platform powered by AI. It enables you to understand how users navigate your app and behave over time to respond quickly to any underlying user experience issues and improve customer satisfaction. Here is how CrunchMetrics helps e-commerce brands deliver a smarted customer experience.
- Comprehensive Behavioural Analytics: Analytics that helps you understand your customers better.
- Find Patterns with Funnels, Cohorts, and Trends: Understand how users navigate your app and behave over time.
- View Uninstall Trends: Track uninstalls to understand churn and create effective win-back campaigns.
- Rich User Profiles: Get a centralized, real-time view of any user that includes data from all sources and an activity log.
- Smart Insights: With this add-on, discover patterns with customizable analytics to better understand your users.
- Real Impact: Tie marketing dollars spent to dollars earned and align marketing efforts to larger business goals.
- Improve Campaign Effectiveness with Powerful Tools: Increase engagement through various Campaigns, A/B testing, and engagement tactics.
- Campaign Precision: Fine-tune your messaging and send times to increase conversion.
- Data-Driven Marketing: Remove the guesswork with data-driven campaign creation.
- Onboarding Campaigns: Automate welcome campaigns to educate new users about key features and help them quickly.
- Retention Cohorts: Spot the friction points and create targeted campaigns to boost retention.
- Reactivation Campaigns: Using real-time uninstall data, schedule SMS and email campaigns for users who uninstalled their app to understand why and entice them to come back.
- Big Picture of Customer Engagement: Understand the levels of engagement across all Customers/users.
- Engagement across the Customer Lifecycle: Strategically move users through defined lifecycle/funnel stages.
- Increase Retention and Conversion: Improve key performance metrics by coordinating campaigns with lifecycle/funnel stages
As communities and economies emerge from the pandemic, the new consumer mindset sends a clear signal to merchants of all shapes and sizes that online shopping and touch-free transactions are essential to building the business and ensuring customer loyalty now and in the future. CrunchMetrics can help you discover business opportunities, identify anomalies, and give you the insights and speed you need to scale your e-commerce business. Get in touch with our experts today to take your e-commerce business to the next level.
Summon the power of Augmented Analytics to identify risks and business incidents in real-time.
Kshitish Sahoo is the product manager at CrunchMetrics. He has more than 7 years of experience in domains such as Energy and Utilities, QSR, Healthcare, CPG, Real Estate, Banking and Insurance and E-Commerce. He has worked on setting the strategy, developing the feature propositions, marketing the product and handling the financial metrics of the product.