1 A study shows that digital commerce maturity among consumer brand manufacturers leads to revenue growth1.0.1 Are you a digital commerce leader or laggard?1.0.2 Framework for Digital Commerce Maturity: From Unstructured to Optimized1.0.3 Magento can help you become a digital […]
A study shows that digital commerce maturity among consumer brand manufacturers leads to revenue growth
Merchants around the world are turning to a range of digital commerce channels to stay relevant in customers‘ eyes and to keep their businesses in business. This means that new technologies and infrastructure are needed to accelerate digital transformation. It is crucial for businesses and brands to understand digital commerce maturity, which refers to the key processes, technologies and strategies required to deliver next-generation customer experiences.
Adobe and 451 Research commissioned a study to better understand how digital commerce maturity affects customer experience. The study included a survey of brand owners that sell their products digitally through a combination of direct-to consumer and retail channels in key global markets such as the U.S., U.K, Germany, Spain and Australia. The survey surveyed 356 decision-makers in small and midsize businesses.
This study was completed before COVID-19 lockdowns. 451 Research continues to monitor the situation and shows that commerce technology adoption has accelerated to meet changing consumer needs, as well as to support businesses’ shift to online shopping, regardless of whether they offer essential goods or non-essential services.
Today we are revealing the results of our study “Digital Commerce Mature Leaders Deliver Revenue Growth” It provides a roadmap to achieve global digital commerce excellence.
Are you a digital commerce leader or laggard?
The maturity of consumer brand manufacturers in digital transformation is directly related to their attitudes towards new technology adoption. This has led to the development of three distinct digital commerce personalities and philosophies.
1. 1.They are actively digitizing their business using digital transformation strategies.
2. 2.Are in the planning stages for digital transformation. They are actively researching a formal strategy, and adopting a pragmatic approach towards new technology adoption.
3. LaggardsThere are no formal plans for digital transformation. These businesses face a dilemma as they attempt to keep some of their digital capabilities in place, or close their doors.
Except for a few industries only, digital commerce leaders were well-placed to transition to an all-digital approach. They reported an 80%+ improvement in key performance metrics along with better revenue growth, coordinated digital management, and improved omnichannel engagement. With 84% of all touchpoints being tracked and measured, they are twice as likely have a dedicated digital strategy leader. This allows them to adapt to the disruption caused by this pandemic.
These three people have very different approaches to digital commerce transformation strategy execution. This creates an innovation gap that separates leaders and laggards.
Framework for Digital Commerce Maturity: From Unstructured to Optimized
Businesses should evaluate where they are at each stage of the digital commerce maturity journey before implementing a strategy. Your goal is to align your brand strategy and the investments in modern Commerce Technologies that will offer the greatest growth opportunities and competitive differentiation.
The study’s top-level maturity model analysis results show that the maturity curve for businesses is roughly similar to a bell curve.
1. Organizations in the early stages:Only 7% of respondents to the survey said that their companies provide primarily unstructured or siloed experiences.
2. Organizations in the midstage:Most businesses fall between managed maturity (39%) and defined maturity (34%). These companies offer standardized processes with some personalization, but they are also reactive or operational.
3. Organizations at advanced stages:Only 19% of businesses offer optimized experiences by investing in new technologies to meet customer expectations.
Digital laggards account for 69% of the digital failures. They have limited or minimal digital commerce capability that is focused only on one channel. It’s crucial to gain a better understanding of how to provide optimized customer experiences across all channels. Businesses must assess their digital commerce maturity to understand the business value. This includes strategy and brand focus, commerce platform capabilities, data and analytics, customer experience, and commerce platform. As companies move from structured experiences to optimized experiences, they will be at different points in these key areas.
Magento can help you become a digital commerce leader
For long-term success, it is more important than ever to climb higher up the digital commerce maturity ladder. No matter where you are on your digital commerce journey, it may be difficult to catch up with digital commerce leaders. But it is possible if you start the digital transformation journey now.
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