“Me-Commerce” is Changing Traditional Marketing
According to this infographic by McKinsey, “Retail Success today is all about developing the tech, tools and talent to be relevant to the individual.”
We completely agree with McKinsey: The future of retail is “me-commerce.” The best way to prove this is to note this fact: “Amazon’s recommendation engine accounts for approximately 30% of its revenue.”1 And this is from 2012. The trend continued on and today, “me-commerce” is here and it’s now bigger than ever.
Now, let’s consider how tech, tools and talent have changed or need to change because of “me-commerce.” We’ll do it in reverse order.
This article by Bernhart Associates Executive Search, a multichannel commerce and digital marketing recruiter, summarizes what to look for when hiring an ecommerce leader:
“The best ecommerce candidates I know couple marketing wisdom with technical know-how.”
To us, that means these candidates understand that today’s retail environment is about tailored customer experience, and they understand how to use data and analytics to improve their store’s omnichannel customer experience.
Let’s consider two marketing tools that are changing due to “me-commerce.” First consider the traditional purchase funnel. It used to look like this:
This purchase funnel was created in 1898 and was valid for more than one hundred years.2 And over time, that funnel has evolved to include additional steps and incorporate new media of the time: TV and radio.2 It came to look like this:
But even after its first evolution, what didn’t change was the fact that consumers waited for marketers to lead them through the funnel. Now, there’s been a more radical change. Now, the ‘funnel’ looks like this:
This modern consumer purchase path is much less brand led and more consumer led. So what does this mean for the modern marketer? Well, in the same article quoted above, the author suggests three actions:
- Putting the consumer in the center of the purchase journey.
- Mapping a complete cross-channel customer journey.
- Bringing it all together with modern tools that lead to a “customer command center.”
To us, that means you have to tailor your experience to what the consumer wants, which in turn means you really need to know your customer.
Now, let’s consider another tool: The Four P’s of Marketing. Although the tool is still viable, it’s not as important to today’s retailer. Instead, consider “The New ‘Four P’s’ of Customer Behavior:”3
The key “P” we’re focused on at Lumiary is Personalized. If your communication and your customer experience isn’t personal and individualized, your brand isn’t relevant. This leads to the last category:
In this “me-commerce” and omnichannel landscape, you have to make your tech work smarter. That’s where we come in.
Use Lumiary to truly understand your customers and market directly to them. Doing so will improve your ROI:
1 Mangalindan, JP. “Amazon’s Recommendation Secret.” Fortune. Fortune, 30 July 2012. Web. 24 Feb. 2016. <http://fortune.com/2012/07/30/amazons-recommendation-secret/>.
2 Yardley, Mike. “Chasing The Funnel, Part 1: Evolution Of The Purchase Path.” CMO. Adobe, 12 Feb. 2016. Web. 24 Feb. 2016. <http://www.cmo.com/articles/2016/2/2/chasing-the-funnel-part-1-evolution-of-the-purchase-path.html?utm_content=bufferb902d&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer>.
3 “Infographic: ‘Me-Commerce’ and Retail’s Future.” McKinsey on Marketing & Sales. McKinsey, Mar. 2014. Web. 24 Feb. 2016. <http://www.mckinseyonmarketingandsales.com/infographic-me-commerce-and-the-future-of-retail>.