Recommerce: Exploring Reselling Within eCommerce

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Recommerce: Exploring Reselling Within eCommerce

The resale market is getting a makeover. Companies are finding ways to take back used consumer goods and repurpose or resell them to interested customers. Recommerce refers to the buying and selling of previously owned items and is set to grow at a rate of 11x that of regular retail.1 Consumers are keen on the idea of recycling and repurposing and have been increasingly buying secondhand goods. In response, the number of online resellers has exploded to keep up with consumer demand for affordable and sustainable alternatives to buying new. While the concept of reselling goods is nothing new, the way that consumers and sellers are coming together is currently evolving.2 Recommerce platforms have enabled peer-to-peer transactions to increase. Even high-profile brands recognize the opportunity resale has to offer, and have created their own recommerce marketplaces. Recommerce is more than just a cost effective way to achieve sustainability; it is a business opportunity rooted in circular economic principles.

The World of Recommerce is Changing

Once confined to brick and mortar stores, sites like eBay and Etsy now provide a platform that allows buyers and sellers to purchase and sell items in a thrift-like marketplace. However, a plethora of online startup recommerce brands like Poshmark, Mercari, Tradesy, ThredUP, and The RealReal have allowed the industry to grow to new heights.3 While eBay and Etsy allowed for sellers to list just about anything for sale, these newer sites have boosted transactions by building online communities and using data to learn which brands are currently trending. Poshmark’s annual report revealed consumer buying habits depend greatly on generation. Baby Boomers favored well-known, higher-end brands, like Coach and Michael Kors, while Generation X preferred more mid-priced goods like Tory Burch, Kate Spade and Patagonia. Millennials are most likely to purchase goods from brands that would typically be found in an American mall, like Nike and Antrhopologie, and Gen Z purchased secondhand items from across the spectrum. Their top Poshmark brands are Gucci, Adidas, and Brandy Melville.4 

Recognizing the success of recommerce among peer-to-peer platforms, large companies, particularly clothing retailers, are seizing the opportunity to connect with consumers like never before. For example, buy-back campaigns create incentives for recycling and strengthen the relationship with consumers by offering a way to address concerns over sustainability.5 In moving towards a circular economy, companies can generate profits and eliminate waste by keeping materials in use for as long as possible. The cost effectiveness of recommerce combined with the ability to strengthen the bond between retailer and consumer makes it an appealing strategy for businesses.

Recommerce is Gaining Traction

An emphasis on conscious consumption has grown in the past few years, but changes in attitudes and actions have increased significantly in response to the pandemic. Consumers are concerned about the effects of their purchases and are re-evaluating their priorities and choices. By changing their buying habits, consumers can continue to shop while still caring about sustainability, and resellers can earn extra money, save space and avoid waste.6

Already gaining popularity pre-pandemic, recommerce websites received a huge boost when COVID-19 forced many stores to close their doors and individuals to tighten budgets.7 With more free time, reliable internet (5G), and a desire to escape the pandemic, shoppers discovered an endless aisle of secondhand goods to browse on the internet. Despite decreased disposable income, retail therapy continued to thrive as recommerce websites connected shoppers with affordable goods without ever leaving home. To make the situation even more appealing, apps like Poshmark accept almost every form of payment including credit or debit cards, Affirm, Apple Pay, Google Pay, PayPal, and Venmo.8  All of these factors encourage shoppers to visit recommerce marketplaces and contribute to the growing recommerce economy. 

Benefits of Recommerce

Both individuals and large companies can benefit from recommerce. While individuals have much to gain from peer-to-peer platforms that allow for an easy exchange of goods, large companies are finding different ways to capitalize on the recommerce industry. Consumers are concerned about the negative impact of their purchases on the environment and are looking for ways to reduce their consumption. In response, retailers are developing creative solutions to source and reuse materials for new products so that consumers can feel better about buying their products. 

Upcycling, the act of converting a used product into something new,9 is a concept that is being adopted by many notable companies such as Timberland, Adidas, Zara, and Patagonia to name a few. Timberland is reusing rubber from used tires for the soles of many of its boots. Similarly, Adidas has produced nearly 6 million pairs of shoes using recycled ocean plastics, and Zara is producing a line of denim made exclusively from recycled denim waste.10 Programs that provide customers with incentives for recycling such as Patagonia’s Worn Wear initiative encourage customers to return used goods to be refurbished and sold in exchange for credits towards future purchases once received.11 All of these measures are cost effective means of sourcing materials. 

Recommerce is Here to Stay

Many notable companies are embracing the concept of recommerce as a way to reconnect with customers. There is a changing consumer mindset regarding ethical and environmental issues. Younger consumers care deeply about the environment and will continue to demand accountability from companies.11  According to a study conducted this year by Green Print, an environmental technology company, 75% of Millennials and 63% of Generation Z are willing to pay more for an environmentally sustainable product.13 In many cases, younger consumers prefer secondhand products because they are more affordable and better for the environment.

Recommerce offers an avenue for retailers to acquire new customers who might not have previously purchased full-price items in the past. For example, Levi created a buy-back and resale program where customers return their used denim in exchange for a gift card. Levi then sells the used clothing at a fraction of their original cost on the store’s website. This allows Levi to reclaim and authenticate its goods at a low cost to them, and turn a profit on an item that they have already sold once. This is a win-win as shoppers know they have made a sustainable purchasing decision, and Levi can earn additional profits, protect the authenticity of their brand, and strengthen the relationship they have with their customers.14

There is real consumer demand for sustainable recommerce models. Consumers will seek products from brands that align with their values and will expect retailers to offer transparency regarding how they source materials and manufacture goods. Through the implementation of recommerce initiatives companies can save resources, restore value to used items, improve brand image and generate profits. With increased pressure on the retail sector to act more socially and environmentally responsible, recommerce offers an opportunity for businesses to succeed in the post-pandemic world. 

Footnotes

1. https://www.greenbiz.com/tag/recommerce

2. https://www.liebertpub.com/doi/full/10.1089/sus.2020.29178.ers

3. https://nymag.com/strategist/article/recommerce-apps-changing-online-resale-depop-poshmark-real-real.html

4. https://superposher.com/blog/top-poshmark-brands/

5. https://www.zerowastescotland.org.uk/content/what-are-circular-economy-business-models

6. https://www.easyship.com/blog/rise-of-recommerce

7.  https://support.poshmark.com/s/article/284791087?language=en_US

8.  https://getshogun.com/learn/what-is-recommerce

9. https://www.liebertpub.com/doi/full/10.1089/sus.2020.29178.ers

10. https://www.zara.com/us/en/z-join-life-mkt1399.html

11. https://www.easyship.com/blog/rise-of-recommerce

12. https://www.businesswire.com/news/home/20210322005061/en/

13. https://www.forbes.com/sites/niallmurphy/2021/02/17/theres-a-quiet-revolution-underway-with-recommerce/?sh=7b2c9a405bfc

14. https://www.forbes.com/sites/niallmurphy/2021/02/17/theres-a-quiet-revolution-underway-with-recommerce/?sh=7b2c9a405bfc

Exploring The World Of Online Payments

Posted on by Antony
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Exploring The World Of Online Payments

The saying “cash is king” is still true today. However, the use of physical currency is declining as more online payment options become available. The physical dollar, euro, pound, yen, and others are being used less in transactions. Instead, businesses are enabling customers to pay through digital payment processors. Why are businesses making the shift from accepting physical currency to digital payments? In the past, it was commonplace to see a sign on many storefronts reading “cash only.” During the COVID-19 lockdown, most storefronts shut down and converted their business online, eCommerce was booming. Now, with most storefronts opened back up to the public, many are opting to stick with digital payments. It makes sense to use online payment options because we live in a global economy, and digital transactions can help businesses reach consumers worldwide. However, online transactions don’t come without concerns, and some skeptics believe they could pose security risks. Luckily, different payment options are available that can help mitigate the overall risks. 

Digital Wallets

According to Investopedia, a digital wallet securely stores users’ financial information through a software-based system. Digital wallets can be adapted by financial institutions and payment processors, such as PayPal.1 Banks can use digital wallets through mobile applications that allow users to deposit checks, transfer funds and pay bills. Payment processors make it easy and secure to pay and get paid through online digital wallets. For consumers, many payment processors offer buyer protection to help combat fraud, and businesses can invoice customers worldwide in all currencies with a click of a button. Most smartphones also have a digital wallet feature that allows users to store their credit and debit card information securely, so there’s no need to carry a physical card.

Cryptocurrencies

Cryptocurrencies are becoming increasingly prevalent worldwide, and many countries are considering ways to include them within local economies. An article from the Atlantis Press discusses how cryptocurrency uses technology that secures transactions making it difficult to falsify. This is accomplished through online transactions that include unique encrypted algorithms. Many countries, including Indonesia, are searching for ways to replace conventional money with cryptocurrency. Unlike traditional money, cryptocurrency is not created by a central bank or government, which prevents interference from the state.2 This is particularly useful for the developing world or unstable governments. For eCommerce, cryptocurrencies provide a secure way for consumers to purchase goods worldwide. The true potential of cryptocurrency has yet to be seen, but with online payments increasing, it’s bound to be a top contender.

Blockchain

Often blockchain is referred to when talking about cryptocurrency, but this digital transaction system can be used for so much more. So, what is blockchain? According to Forbes, blockchain can help prevent hacking and cheating because it uses identical copies of its database with each transaction. The blockchain digital ledger can store data from online payments, NFT ownership and smart contracts. Unlike traditional databases, blockchain is entirely decentralized.3 Blockchain can be used in many digital transactions, including cryptocurrency, traditional currency (dollar, euro, etc.) and asset transfer (inheritance, real estate, etc.).

Online payments aren’t going anywhere. The growing global eCommerce industry depends on having reliable and secure digital transactions for consumers. This is the time for businesses to expand their online payment options. Whether primarily brick and mortar or exclusively eCommerce, adding the ability to pay with cryptocurrency or through a digital wallet and blockchain will provide opportunities to attract new customers.

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Footnotes

  1. https://www.investopedia.com/terms/d/digital-wallet.asp
  2. https://www.atlantis-press.com/proceedings/iclave-19/125937703
  3. https://www.forbes.com/advisor/investing/what-is-blockchain/

Making Waves – eCommerce After COVID

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Making Waves – eCommerce After COVID

“We are in the midst of a seismic shift in business and society.  Understanding platform strategy will be vital to grasp tomorrow’s economic model.”* –Aditya Basu, Strategy & Marketing – CEO Office.

As tectonic shifts sink continents and elevate swamps into mountains, the tsunamis unleashed leave those in their path with a single question: how will you survive?  Thus we are reminded of Andy Grove, the former chairman of Intel and author of “Only The Paranoid Survive”(1996), the subhead of his book being “How to Exploit the Crisis Points That Challenge Every Company”. 

Grove is credited as the “Father of OKRs” by legendary investor John Doerr, but was also a mentor to Steve Jobs, Larry Ellison, Ben Horowitz of Andreessen Horowitz and many more.  Though “Objectives and Key Results” are worthy of their own article, “Strategic Inflection Points” (the theme of “Only the Paranoid Survive”) seems a more urgent read as the “return to the new normal” looms like a tidal wave eager to flood the COVID-wasteland that left businesses marooned and our cities desolate.

A Strategic Inflection Point is the moment in a company (or person’s) trajectory where they have the opportunity to weather a crisis and soar to new heights, like a phoenix reborn, OR plummet to new lows like an ostrich with its head in the sand.  These inflection points are often prompted by “10X forces”; a force that is outside the norm of what may even be considered possible.

Grove introduces the 10X force in the context of six forces known to affect businesses, originally introduced by Professor Michael Porter of Harvard.  The forces as paraphrased by Grove are: the power, vigor, and competence of 1) existing competitors, 2) potential competitors, 3) suppliers, 4) customers, 5) complementors (other businesses from whom customers buy complementary products; products that are used in tandem or required together — like cars and gasoline, or from an online merchant’s perspective: an eCommerce site-build and fulfillment services for the products to be shipped), 6) the possibility that your product or service can be built or delivered differently.  

A 10X force could be any of the normal forces, but an order of magnitude larger than what is expected.  Dramatic examples of before and after general “inflection points” might be: Commuting to work: by horse, then car, now computer.  Entertainment: by video rental, then mail, and now streaming.  Shopping: from retail to online.

As referenced by Aditya Basu, we see examples of 10X forces as evidenced in the McKinsey Digital Report 2020 (DigitalCommerce360): “We have seen a 10 year growth in a mere 90 days for US eCommerce penetration.  Online spending represented 18.6% of total retail sales for the first two quarters of 2020.” And in the BCG+ Deloitte Digital Report:  “Consumers spent $861.12 billion online with US retailers in 2020, up 44% from 598.02 billion in 2019.”

Basu also reveals that 66% percent of B2B leaders now believe eCommerce solutions are essential, up from 48% pre-COVID.  He emphasizes: “what may be most interesting is: the shift in numbers serves as a dramatic example of the ‘Before’ and ‘After’ of a 10X force.  When you consider ‘10 year growth in 90 days’ and ‘a $260+ billion dollar increase in sales’ you begin to get an idea of the sales velocity reached by business leaders that were able to steer into the storm and capture the 10X force. As for those who were blown off course, or completely knocked over — there may still be time to get it right, but you need to be decisive, and can accelerate your rebound by partnering with those who navigated the crisis early.”

Grove explains how 10X forces may sneak up in plain sight to capsize your business before you even realize what’s happening.  He also explains how to be nimble so you can be better prepared for the squalls, and not only come out on the other side, but far ahead of the beached wreckage and flotsam left behind.  Strategic Inflection Points are essentially the moments where the future is made. But since it’s hard to predict which way the wind blows, or whether a breeze will turn into a gale, it is often difficult to separate the signal from the noise when it comes to 10X forces.  Grove makes suggestions on questions to ask yourself in the context of competitors and complementors (Chapter 6 of “Only The Paranoid Survive”), as well as recommending the importance of looking to middle-management, and sales (from the ground to C-suite) to get a “barometer” on what storms may be brewing.  

“Grove’s 10X force on retailers is important from a competitive standpoint, but we often find that organizations are sometimes competing against themselves because they are not efficiently operating the three most important levers to ensure an excellent Customer Experience; those levers being Brand, Behavior, and Book of Record Experience.  Customers not only interact with your company’s Brand, revealing Behavioral insights, but also with Back Office operations.  Customer experience defines the digital economy and goes beyond creative design and content management.  All three experiences must be tied together to drive consumer engagement.” says Amanda Volz, Vice President of Sales at BORN Group.  She continues, “In today’s world customers expect retailers to provide them a seamless shopping experience that’s safe, efficient, but most of all omnichannel. In other words, retailers must be experts in ALL the ways their customers shop: online, mobile, brick and mortar, in order to keep up with the behavioral shift that COVID has forced on both retailers and customers.  Those who are able to accommodate all of these models have had the most success in navigating the last 18 months.”

Basu offers further advice on how an eCommerce strategy is pivotal to making sure you do more than tread water: “In order to have the most leverage to seize short term opportunities and win new digital-first shoppers, you must conceptualize how to build and scale your eCommerce blueprint. You don’t need to get it perfect, but planning for contingencies, good and bad, makes it possible for you to at least be prepared for whatever comes next. Though it’s impossible to be ‘prepared’ for everything, you can set yourself up to handle challenges robustly, or even be in a position where every obstacle can become a step higher on the road to success.”

Basu continues: “Ultimately, the big question when dealing with inflection points, 10X forces, and planning ahead in general is: what to focus on? In life, as in business, weathering a storm is not just about navigating a crisis in realtime, but the preparations that make it possible for you to do so.  As the conditions of an actual storm, pandemic, or other crisis make it impossible to simulate and predict, the best you can focus on, in the now, is 1) to make sure everyone works together efficiently, that you have the people willing and able to rise to the occasion when one presents itself.  2) to make sure that all your “instruments” are in tip-top shape, and that your crew operates them expertly.  This might come in the form of certifications, cutting edge tech, best practices and data management.  3) have a compass to make sure your organization is always aligned onward and upward; at BORN we embrace the Stella Framework (as referenced by Amanda Volz above) which keeps the Customer Experience (CX) front and center.  While an individual’s customer’s experience may be unique, the sum total of all experiences combined represents the pulse of your company, and how it can stand up to unforeseen stresses.”

At BORN we’re like a racing yacht, crewed by seasoned and certified professionals with a love of the sport, helping you get where you need to go, fast and in style… we can turn on a dime, equipped with the best-in-class partner solutions like Arctic Fox for Salesforce, Bulldog for Adobe, Eagle for SAP, Bison for ShopifyPlus and more.  We also work with the sharpest partners in the world so we can always see beyond the cloud; through our sister agency Pininfarina we offer physical design.

“The retail experience must continue to evolve while focusing on the magic mix of the tangible and intangible. eCommerce and the online experience is a fundamental part of the equation in creating a strong and recognizable Brand personality in the market.” says Paolo Trevisan, Vice President of Design at Pininfarina of America. “While we continue pursuing our passion for timeless design solutions across various verticals including automotive design, transportation, industrial design, architecture and interiors, the synergy with BORN can allow for an experience-focused digital approach that will continue to push the boundaries of our human-centered approach.”

Wherever you are, and wherever you’re going,  BORN helps you capture a 10X force to fill your sail and ride the wave.

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*”eMarketplaces: Unlocking The Value of Platform Economy” read Aditya Basu’s original article in its entirety here: (https://www.borngroup.com/views/emarketplaces-unlocking-the-value-of-platform-economy/) 

**”The Three Most Important Levers” … read about The Stella Framework here (https://www.borngroup.com/news/the-stella-framework-2/)

eMarketplaces: Unlocking The Value of Platform Economy

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eMarketplaces: Unlocking The Value of Platform Economy

By: Aditya Basu

Unlocking & navigating the platform economy through a nuanced ecosystem strategy are en vogue these days, both in boardroom discussions and consumer preferences. Today, the world’s 6 most valuable companies by market capitalization and around 80% of the world’s unicorn startups operate a digital ecosystem that enables two-sided market dynamics and have gained enormous market share through network effects.

Platform businesses bring together producers, sellers, and consumers in high-value exchanges. Their chief assets are information and interactions, which together are also the source of the value they create and their competitive advantage. One of the classic examples of leveraging the platform economy through achieving critical mass & network effect is through the meteoric rise of Apple’s iPhones between 2007 – 2015. Though Nokia, Samsung, Motorola, Sony Ericsson, and LG collectively controlled 90% of the industry’s global profits in 2006, by 2015 the iPhone singlehandedly generated 92% of global profits by leveraging the power of platforms through a two-sided marketplace strategy.

McKinsey forecasted that 30% of all global economic activity, $60 trillion, will be mediated by platforms and ecosystems in 10 years’ time & Gartner says that “By 2023, at least 70% of the enterprise marketplaces launched will serve B2B transactions.” Yet, only 3% of established companies worldwide have adopted an active marketplace strategy. 

While the platform economy offers the most profitable & lucrative business model, online marketplaces are tough to build and achieve the “Critical Mass.” The classic chicken & egg conundrum, “To attain a critical mass of buyers, you need a critical mass of suppliers—but to attract suppliers, you need a lot of buyers.” 

We are in the midst of a seismic shift in business and society. Understanding platform strategy will be vital to grasp tomorrow’s economic models.

Evolution of Brand Economy: Omnichannel to Ecosystem Play

Today’s customers increasingly expect a seamless, integrated, consistent, and personalized experience with their service providers which current multi-channel models, with their multiple silos of customer contact, are unable to provide. A fully integrated response to these new customer requirements will need to be both customer-driven and omnichannel in nature. As we speak, large conglomerates are struggling with the “IF & HOW” to leverage digital platforms and ecosystem models for their industries. The key CXO challenge today is to create a core platform that can deliver incremental growth along with the new business & operating models around customers, partners & competitors.

Digital marketplaces have been the pulse of the consumer industry, yet many brands struggle to strike the correct chord. The shift in consumer behavior during the COVID-19 pandemic accelerated digitization even further. However, the online marketplace model has persisted, driven by consumers seeking the convenience and broad assortment that marketplaces provide. In fact, online marketplaces now represent 58% of global web sales, totaling more than $2 trillion annually.

Broad Pivots of Marketplace Operations: Strategy to Execution

The typical marketplace model has millions of customers, multiple systems, and complex operations. Any brand trying to enter the marketplace will have to swim through the chaos to ace their digital marketplace strategy. We simplify the Marketplace model from the lens of 5 broad pivots of Marketplace Operator, Enterprise commerce & marketing capabilities, the right partnerships & alliances in Fulfillment, logistics & Financial services along with building a best in class Tech & Data Ecosystem, as depicted in the graphic below.

Our key capabilities encompass our methodology of Imagine, Build and Run; we develop and implement strategies for customers to grow profitably in a borderless, digitally-and-physically connected world. We lead brands from strategy to execution by setting up feasible business & operational models, defining KPIs, setting up integrated applications to enable associates, and finally delivering exceptional customer experience driven by our Stella Framework.

A few notable value drivers on Marketplace implementation include, but are not limited to;

  • Revenue augmentation with multi-channel & cross-border sales
  • Improved customer targeting & analytics through digital marketing, micro-segmentation & social integrations
  • Cross-sell & Up-sell opportunities through tailored pricing, product bundling & increase AoV (share of wallet)
  • Business process optimization
  • Walking the Talk Leadership: Marketplace Implementation across the globe

Walking The Talk Leadership: Marketplace Implementation Across The Globe

Recently we were approached by one of Asia’s largest transportation hubs to become their digital growth partner, to develop & manage its next-generation omnichannel e-Commerce Marketplace for onboarding and tenant management. BORN developed an experience-led Marketplace platform to provide a personalized shopping experience for Sellers (B2B), consumers (B2C), Enterprise users (B2E). The implementation has helped them to optimize marketing effectiveness, improve operational efficiency with faster time to market, accelerate conversions, and enable topline growth through upselling & cross-sell.

For more information in regard to BORN Group’s Marketplace offerings and further case studies, please inquire here.

Leonardo Da Vinci’s Wanted: The Atelier reBORN

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Leonardo Da Vinci’s Wanted: The Atelier reBORN

By: Adam Weissman, Back End Associate Developer at BORN Group

For boot camp grads and those early in their tech careers, the conventional
“job-seeker” wisdom is often less about lighting the spark that will make your star burn brightest, but finding a stepping stone that isn’t so slippery that your ambitions are extinguished before your journey even begins. In other words, they say, “Get into a training program, apprenticeship, or junior position as prestigious as possible, so that a second job will be the reward for the first.” While that mindset might be “practical” it disregards that not all training programs are about transforming you from a round peg to fit a square hole, and not all “stepping stones” are for crossing streams — some are for climbing mountains. 

Would-be associates at any company should consider the larger ecosystem of talent, and people they’ll be working with and learning from.

But how do you know if a company is just for crossing a stream, or the mountain to climb? It comes down to whether the associate training program is a factory or an atelier. The atelier, as mentioned here, is best represented in its ideal ‘graduates:’ the Leonardo Da Vincis, Michelangelos, Raphaels, and many more whose work you know, but names you’ve never heard of. The emphasis and goal of the High Renaissance atelier (1490s-1527) was to produce work worthy of the top art patrons of the day. In 2021, we might substitute art commissions for eCommerce builds, and the patrons for today’s leading brands. 

The BORN Associate Program IS the modern equivalent to the renaissance atelier. The analogy starts with each project-build destined to be its own masterpiece, but goes further with each of BORN’s Practices serving as a quarry; with each custom build: Arctic Fox, Bulldog, Eagle, or Bison (supporting leading eCommerce platforms spanning; Salesforce Commerce Cloud, Adobe Commerce Cloud, SAP Customer Experience, or Shopify Plus) acting as a slab of marble waiting to take life. 

But the atelier is truly reborn in the relationships forged by associates with each other, and the Tech Leads that raise them up. In the 2021 class of Salesforce Associates, Tech Leads Matt Meagher and Chris Connell mentored the associates on the nuances of platform-specific problem-solving. Answering questions like; what can go right and what can go wrong, as well as passing down “unwritten documentation” and debugging techniques the way a Master Sculptor might illuminate secrets from one generation to the next. 

“Documentation can teach you only so much. Hands-on experience with the platform, day-to-day tools, and problem-solving techniques is where the real true comprehension happens,” stated Chris Connell, SFCC Tech Lead at BORN Group. 

“I tell anyone confused on how something works to ‘follow the path.’ Not sure what this is doing? What code is it using? What code is that using? Being able to trace that usually leads to discovery. I show them how the codebase can become documentation,” added Matt Meagher, Front End Tech Lead at BORN Group.

Lastly, the BORN Associate Program not only sets new hires on track to realize their potential as technicians with trade tools like Javascript, The Salesforce Platform, Git, and beyond — the way in which Leonardo Da Vinci or Raphael would’ve been masters of mixing their own paints and “techniques of the brush” — but as artisan problem solvers capable of conquering legacy code from pre-built solutions, similar to how Michelangelo might’ve had to reimagine and reengineer St. Peter’s Basilica after 40 years of construction and five earlier architects.

“We are creating a work environment where we consistently identify our team’s strengths, weaknesses, interests, and values by maintaining open, effective communication and ongoing encouragement. Based on these assessments we regularly promote new roles and responsibilities to challenge each one of us within the organization,” stated Kevin Yao, Salesforce Practice Lead at BORN Group.

And so, as the BORN Associate Program brings the atelier ‘full circle’, we come back to the point of those bootcamp grads and early tech-career starters that might be wondering, “Where do I go from here?” If you’re looking for a program that will help you realize your potential, where once you ‘graduate’ to production work every project is as its own commission, where the work you do is always fresh, then keep an eye out on BORN’s career page for updates surrounding the next Associate Program.

“Fostering a learning-based culture is paramount to growth, retention and satisfaction. Watching the new energy brought in by each batch of associates is infectious. The maturation of those leading the program gain each go-around is inspiring. The unbridled success of this program is inspiring adoption in other capabilities and geographies. I am personally excited to see the growth that comes out of these types of efforts in the coming years!” stated Dustin Holmstrom, Head of Digital Architecture, North America at BORN Group.

How to Leverage Technology to Improve CX and Build Loyalty

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How to Leverage Technology to Improve CX and Build Loyalty

What turns a browser into a customer, and a customer into a repeat customer? It may be as simple as listening and helping shoppers find what they want. That can be done face-to-face in a brick-and-mortar store. For online sellers, it requires technology.

Though brick-and-mortar retail stores have reopened nationwide, the coronavirus (COVID-19) continues to drive record online sales. July’s ecommerce sales were lower than June’s, but still up 55% year over year. Adobe Analytics expects online sales for the year to surpass 2019 online sales by October 5, 2020. For many consumers, including some who didn’t shop online before the pandemic, ecommerce is still the best option.

To capture new customers and retain old ones, retailers must provide the essentials: easy browsing, a secure ecommerce store, seamless checkout, and trackable delivery. Yet today’s savvy consumers often want more. They like to see themselves wearing your products. They may want to connect with a sales associate — like they do when shopping in person.

It can all happen online with the right technology. Chatbots powered by artificial intelligence (AI), authentication tools, and curation services can help customers navigate product catalogs. When a shopper needs more detailed assistance, human experts jump in.

Business intelligence platform PSFK examines how technology helps shape customer experience in its Digital Commerce Playbook. Key findings on the importance of customer education and assistance are summarized below and all statistics are attributed to this study;

Help them find what they want

Customers value clear information, well-timed input, and expert opinions. That’s hard to offer when consumers are anonymous, but increasingly, online shoppers are letting themselves be known. About 58% of millennials are willing to share personal information in order to get attuned product recommendations. And 36% of customers (not just millennials) expect a company to be able to provide “relevant recommendations for additional products and services after a single purchase.”

It would take an army of sales associates to offer that sort of personalized shopping experience for all browsers. Fortunately, AI-enabled support can assist with the early stages, narrowing down choices and gleaning preferences. If more personalized help is needed, it can gather information to share with human successors.

Be there for them

Consumers want to feel connected, perhaps now more than ever. Prior to the pandemic, 72% of consumers aged 18–64 said their overall customer experience would be better if they could text with a live agent in real time — too many of us have spent too many hours of our lives caught in endless cycles of automated help lines that provide no answers. Offering different, more human ways to connect can give you a competitive edge. 

Authenticate

Consumers want access to human help, but they also want assurance the products they’re buying are authentic. And unfortunately, the rise of marketplace sales was accompanied by an increase in counterfeit products. More than 70% of products purchased from marketplaces annually are counterfeit, and consumers spend almost $0.5 trillion annually on counterfeit goods.

Marketplaces are aware of the problem and working to stem the tide of counterfeit sales. Meanwhile, customers need assurance they can trust retailers. You can provide that via AI verification and blockchain tracking, among other tools.

In short, people like supporting businesses they can trust. They respond to ecommerce stores that curate selections to their taste and provide personalized assistance. It’s what they expect when they shop in person, and they’re coming to expect it online. Retailers that can fulfill those expectations are likely to outperform those that don’t.

Want more key insights about how technology can improve consumer engagement? Get the report from Avalara. 

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Welcome to BORN’s Partner series! Through this program we look to highlight thought leadership from our vast array of technology partners. Follow along using the hashtag #thisisBORN and #BORNpartner!

Today, we’re thrilled to call attention to our longtime partner, Avalara. Through this insightful piece, we hope you gain an understanding of what types of commerce technology can lift customer experience and bring loyalty to a brand.

BORN Group’s Guide to Mobile eCommerce

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BORN Group’s Guide to Mobile eCommerce

Mobile eCommerce or m-commerce is the purchasing of goods and services via mobile devices. You might have thought of mobile phones as being the main device used, and you wouldn’t be wrong. However, there are two devices that fall under this category – smartphones as well as tablets. Tablets sales are still increasing year-on-year and are often not given as much consideration when it comes to builds, while smartphones have been a transformative component of the eCommerce industry and are a main consideration as we develop digital strategies for our clients1.

Key m-commerce statistics

  • M-commerce is growing rapidly and is being driven largely by mobile-first economies in emerging markets. In South Korea, for example, a country that adopted mobile early, 65% of online transaction volume now comes from mobile traffic3. 
  • 76% of customers use mobile devices to purchase because it saves time4.
  • 53% of visitors will abandon the mobile site if it takes more than three seconds to load5.
  • Salesforce reports that 75% of customers want consistent experiences across multiple channels (web, mobile, in-person, social) and 73% will likely switch brands if they don’t get it6. 
  • 70% of users abandon their carts on eCommerce websites while up to 85.65% of those on mobile websites do so. Extra costs and steps till checkout were some factors cited7.

Mobile versus desktop eCommerce

Even as research finds that consumers order more from desktops than from their mobiles, mobile phones still dominate as the source of web traffic. In some segments, such as fashion, more than 75% of traffic comes from mobile devices. However, conversion rates are lower on mobile (0.6%) when compared to desktop (1.3%)8.

Mobile optimization vs mobile apps

Since they store data locally on your smartphone, dedicated apps work up faster than mobile websites. However, there are many steps that customers need to take to search, download and use an app, and thus many more opportunities to abandon the process. App development also uses a lot of resources as the experience has to be rich and rewarding beyond the initial download. Besides websites optimized for mobile, developers these days are turning to progressive web apps which are websites that function like apps.

Design for M-commerce

Any unnecessary steps that take up time till checkout should be eliminated in m-commerce. Fewer steps equals higher conversion rates. 

It’s not enough to reformat your product catalog. Sephora, for instance, included researchers, product and marketing managers as well as developers not to mention customer feedback in its app redesign9.

A small screen compared to a desktop means less real estate, so here are a few more things to keep in mind:

Smart and visual search: The search function is probably the most important feature on a mobile-optimized website. The ability for high-intent visitors to find, categorize, view, and eventually buy the product is contingent on it. Visual trends are also key in the space – text is less important on mobile than high-quality images and video, and repurposing user-generated content is another way to up the visual quotient of your site10. An example is on Lush, whose mobile-optimized website is deeply visual with a rolling feed of social-media-worthy product images. It also has a prominent search bar offering not just the product as well as articles related to it. Visual search tools allow users to search for products using images.

Gestures and thumbs: Smartphone-specific gestures such as scroll, swipe and tap can be used to increase user-friendliness on your website or app. Keep in mind that the part of the screen that your thumbs sweep across is the most valuable space, so buttons critical to the customer journey shouldn’t be on top or too close together at the bottom.

Navigation, carts and pop-ups: It’s essential to think through your information architecture. Keep menus up top and easy to access, carts and number of products there in view at all times and pop-ups to a minimum.

One-click checkout: The feature popularized by Amazon is becoming commonplace on mobile sites and apps. It requires shoppers to enter their payment information once, so that they can use the one-click option to check out without having to re-enter it. 

Speed: Your customer experience correlates very closely with how fast your site or app is. Every second you can shave off is crucial. Google is famous for citing the ‘speed budget’, or a way to optimize site or app speed11.

M-commerce trends 

With the global smartphone numbers at three billion and growing every day, the proportion of eCommerce sales via mobile devices is only set to increase12.

Here are some exciting developments in m-commerce that will be keeping developers and brand managers busy in the foreseeable future. Some trends in eCommerce in general also apply to mobile. 

Omnichannel: With features such as location-based services, barcode scanning and push notifications, retailers can extend the user experience across all their customer touchpoints. 

Personalization: As with the general trend in eCommerce towards personalization, tailored and user-centric content and communications in m-commerce is not just becoming more popular but imperative.

Social commerce: One way to make the experience personal is to integrate key aspects of the social Web that customers are used to – interactions and recommendations from friends, groups, voting, comments and discussions – before and after the purchase. Integrations include pushing purchase information to social feeds or leaving reviews on forums. Moreover, social media sites such as Facebook, Twitter, Instagram and Pinterest have all introduced shoppable posts that let shoppers make purchases without having to leave the platform

There are other trends though that are specific to mobile because of the features that smartphones and tablets offer.

Voice shopping: Every smartphone sold these days is equipped with tools such as Alexa and Siri. Moreover, 28% of US households have a smart speaker and that number is expected to rise to 75% by 202513. Voice optimization of your website to make sure your products can be found and purchased in a simple flow using voice commands is becoming a standard feature.

AI, VR & AR: Artificial intelligence (AI), augmented reality (AR) and virtual reality (VR) make it easier for customers to imagine using your products and services. They help replicate the in-store experience in many ways. Amazon offers a ‘see how it looks’ feature. Mobile chatbots are another simple way for customers to ask a question and for a website to funnel customers to the product or answer they are searching for.

Mobile payments: The rise of various digital payment intermediaries such as PayPal, Google Pay and Apple Pay are changing the game in m-commerce. The use of cryptocurrencies is ramping up as PayPal and Venmo now accept all cryptocurrencies for payment14 – but ever more present is the use of mobile or digital wallets to pay for purchases that ensure the security of user details and save even more time. 

As a whole, the array of opportunities that m-commerce can provide for a commerce brand is infinite. For a tangible example of BORN’s work in mobile commerce, check out our case study for Nestlé Gerber here.

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Footnotes

1. Tablet shipments grew in 2020, Apple still dominant, gsmarena.com, https://www.gsmarena.com/tablet_shipments_grew_in_2020_apple_still_dominant_at_number_1-news-47634.php

2. Mobile E-commerce is up and Poised for Further Growth, Statista, https://www.statista.com/chart/13139/estimated-worldwide-mobile-e-commerce-sales/

3. E-commerce worldwide – Statistics & Facts, Statista, https://www.statista.com/topics/871/online-shopping/

4. The state of personalization in mobile commerce, XP2 by Dynamic Yield, https://www.dynamicyield.com/article/50-most-important-dynamicyield-personalization-stats/

5. Google Data, Global, n=3,700 aggregated, anonymized Google Analytics data from a sample of mWeb sites opted into sharing benchmark data, March 2016, GoogleData, https://www.thinkwithgoogle.com/consumer-insights/consumer-trends/mobile-site-load-time-statistics/

6. Customer Expectations Hit All-Time Highs, Salesforce, https://www.salesforce.com/research/customer-expectations/

7. Cart abandonment statistics, Sleeknote, https://sleeknote.com/blog/cart-abandonment-statistics#1

8. 2020 Global Digital Growth Benchmarks for Fashion Marketers, Insider, https://useinsider.com/report/2020-global-digital-growth-benchmarks-for-fashion-marketers/

9. How Sephora gave its app a customer-first makeover, ThinkwithGoogle.com, https://www.thinkwithgoogle.com/marketing-strategies/app-and-mobile/app-user-experience-redesign/

10. The State of Mobile E-Commerce Search and Category Navigation, Baymard Institute, https://baymard.com/blog/mobile-ecommerce-search-and-navigation

11. How speeding up your mobile site can improve your bottom line, ThinkwithGoogle.com, https://www.thinkwithgoogle.com/marketing-strategies/app-and-mobile/mobile-page-speed-data/

12. Number of smartphone users worldwide from 2016 to 2021, Statista, https://www.statista.com/statistics/330695/number-of-smartphone-users-worldwide/

13. Smart speaker household penetration rate in the United States from 2014 to 2025*, Statista, https://www.statista.com/statistics/1022847/united-states-smart-speaker-household-penetration/

14. PayPal and Venmo will offer and accept cryptocurrency for all online payments, theverge.com, https://www.theverge.com/2020/10/21/21527288/paypal-cryptocurrency-support-buy-sell-venmo-bitcoin