"Nothing better highlights the threat to brands than Amazon recently shrugging off a steep profit drop in the same week it announced recruitment drives, massive expansions to its R&D arm and its first major TV sports deal. Amazon is the seemingly unstoppable machine, capable of shrugging off poor financial results while still expanding. You'd be forgiven for questioning how other brands can possibly compete."
"Yet, despite outward appearances, Amazon does have a weakness - it's simply too big to provide an engaging product discovery phase. If you know what you want, it's ideal - but otherwise, the Amazon experience, in all its enormity, can resemble wandering aimlessly through a giant warehouse. While recent tool Amazon Spark may go some way to addressing this, rollout continues to be limited to not using existing customer data and app only."
"The likes of Asos are already leveraging tech to make their own discovery phase more seamless, but there's more room for brands to excel significantly here. For retailers, knowing which tech to leverage can often be the difficult part. With such a wide variety of martech toolkits to choose from, and many vendors keen to inflate their own success in order to make a sale, a significant degree of murkiness has so far prevented brands from identifying what definitely works and what is a waste"
Amazon's scale enables it to absorb profit setbacks while pursuing recruitment, R&D expansion and major media deals. The company's shopping experience favors customers who already know what they want but struggles to facilitate product discovery, sometimes resembling 'wandering aimlessly through a giant warehouse.' Competitor retailers are improving discovery through targeted technology. Selecting effective martech is difficult because many vendors overstate results and tool effectiveness varies. Qubit analysed over 2 billion online journeys and, with PwC, ranked 28 common ecommerce techniques to identify what drives revenue, what has declined, and what harms performance. Brands that streamline discovery can win and retain market share.
Read at The Drum
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