What is Digital Commerce?
Digital commerce refers to the entire culture (selling, marketing, user experience, technology, etc.) that involves selling online. E-commerce, commonly confused with digital commerce, is just one aspect of digital commerce. E-commerce is the selling and buying of goods or services online. Digital commerce is much more expansive than simple sales and takes into consideration all the behind-the-scenes work that goes into making a sale.
Why is Digital Commerce Important?
Digital commerce is important because it is changing consumer behavior. The meteoric growth of the online marketplace has shifted the shopping experience and thereby expectations. The demands of online shoppers have never been higher nor the competition more fierce.
Successful Digital Commerce Strategy
The following are cornerstones of a successful digital commerce strategy.
One way that brands appeal to users is through their aesthetic, their values, and their overall look and feel. Not only is the visual portion important for users, but the user experience— how an online product functions— is also a large part of the customer equation. Poor user experience (UX) will quickly alienate, and poor aesthetic design and user interface (UI) will equally drive users away. When competition is fierce well-designed brands will reign. Successful brands know this and hire agencies to design and create entire online branding suites that match up with a target audience’s expectations.
Businesses are meeting the challenges of competition by building strong brands that increase customer loyalty and lifetime value to the brand. Brand building is multifaceted. It encompasses visual design that resonates with its users and is easy to navigate, and beyond this it creates a lifestyle that consumers aspire to. A brand represents the consumer in the world and mirrors his/her values and aspirations. More and more, consumers express themselves via select brands. Brand personality, authenticity and accountability are values that resonate with consumers. They will buy sustainable products, enquire about ethically sourced products, prefer to do business with carbon-neutral companies, or they may align themselves with high-end luxury brands that reflect their cultivated taste and socioeconomic level. The values may vary but for each one there is a brand that allows the consumer to express this in the world. Brands that can inspire, thrive.
So how does a brand promote itself in this moment digitally? There is no one answer, but as much as a brand used to advertise a product, now a brand advertises itself and its values. As part of a digital commerce strategy that incorporates strong brand values, businesses will want to use omnichannel strategies to promote their product (and values), invest in social media, and mobile-first shopping experiences.
Omnichannel marketing strategies deliver higher results. Marketers witness a 250% higher engagement rate with an omnichannel channel strategy than those using single-channel marketing.
Omnichannel marketing means creating a brand presence across multiple online (website, app, social media platforms, email, chat) and offline (retail store, events, pop-up shops). A key aspect to omnichannel marketing however is that each channel provides a cohesive positive experience throughout the customer journey.
Omni channel marketing is particularly useful because consumers usually will desire more than one channel to interact with a brand. For example, Starbuck’s used its app to allow users to pre order, pay and pick up their coffee all from the convenience of the app. This resulted in 29% of their transactions coming from mobile payments. Many other brick and mortar businesses such as Nike and J-Crew are adapting their models to be a hybrid of in-app purchasing and in-store pick up.
Social media is a growing, sought after space for digital marketers. Social media platforms offer large amounts of data about their users that can be leveraged by companies to target specific demographics. The social nature of social media makes it a great place to connect with consumers and share company values because users enjoy sharing their findings with others. Organic growth of brand influence and awareness is one of the key features of using social media to promote a business.
Influencer marketing is another aspect of social media marketing whereby marketers can partner with an influential individual with a large number of followers for product placements and promotions. The idea is that other users will purchase or be influenced by the tastes of the individual with a high following and an aura of ‘expertise’ or a lifestyle cache.
Marketers place ads on social media and also create and comment on posts to interact with users in the hopes of building relationships, trust and eventually sales.
Mobile first shopping experiences are in demand and an obvious way that businesses can expand a digital strategy. According to an article published by Outerbox, significantly more users accessing the web from a tablet or smartphone than a desktop, they are doing so with more eCommerce intent than ever before. And 79% of smartphone users have made a purchase online using their mobile device in the last 6 months.
To have a comprehensive digital commerce strategy, businesses must have easy to use mobile-first purchase and contact points. Apps are a great option to connect with mobile users. In addition, having a mobile version of a website that scales and simplifies to adjust for mobile browsing is another must-have strategy.
Part of a strong digital commerce strategy means leveraging technology to yield results for a competitive advantage. Below are a few examples of technologies impacting digital commerce.
Creating and building apps requires technology engineers and developers to bring a vision to life and make it responsive and function well.
Apps and any digital product that contains sensitive and personal information must have top level security systems and quality testing in place. Security breaches and bugs are costly both financially and in reputation for a business. In order to have a secure product, investment in testing and working with knowledgeable and reputable experts is imperative.
AI and Machine Learning
Marketers, as part of a larger digital commerce strategy, use technology such as artificial intelligence and machine learning to sort data services and connect with new target audiences.
5. Investing in a Digital Agency
Creating a digital commerce brand requires managing many different aspects of a digital presence. From app building, to security, from digital design to omnichannel marketing. Building a brand and loyal client base online requires diligence, patience and a strong strategy. This is where an end-to-end agency such as Pixel506 a 10 pearls can help. We are versed in all aspects of digital commerce, from digital transformation to technology to marketing and social media. Together we create and support your successful digital commerce strategy.
Pixel506 is a digital agency that helps businesses achieve their goals through creative solutions and innovative end to end service. We provide digital strategy, user experience, user interface, branding and much more. We started off as a small Brooklyn agency with big plans and great ambitions in 2009. Fast forward to 2022, and Pixel506 now also has offices in Costa Rica, Colombia, Nicaragua, and Peru. Over the years, our nearshore teams have grown and attracted top talent and dedicated people. Today, our team consists of 65+ UI/UX designers, graphic designers, content creators, SEO strategists, software developers, and other marketing professionals. Together, we share a strong drive to help our clients succeed.
- Digital commerce refers to the entire culture (selling, marketing, user experience, technology, etc.) that involves selling online.
- Digital commerce is important because it is changing consumer behavior.
- The following are cornerstones of a successful digital commerce strategy: design, brand building, digital marketing and technology.
An end-to-end agency such as Pixel506 helps brands manage digital commerce experiences.