Boosting conversions and average order values (AOV) requires modern and flexible commerce services to enhance product discovery, streamline purchases, and elevate the post-purchase experience.
Real-time inventory, pricing, promotions, and product enhances the customer experience, while e-commerce KPIs can measure the effectiveness of strategies across various stages of the customer journey.
Customers that migrated from legacy technologies to fabric experienced a 20% uptick in conversion rates. Similarly, customers that opened up inventory through fabric’s dropship service saw a 7% increase in average order values (AOV).
With fabric’s composable services, retailers have the flexibility to adopt as few or as many commerce services they want—when needed—to create world-class shopping experiences that delight their customers.
With the hustle and bustle of the Cyber 5 shopping season still fresh in retailers’ mind, and as we enter the home stretch of this holiday season, it’s important to take a moment to reflect on what worked and what still needs improvement for the overall customer shopping experience.
For example, having a multi-channel sales presence was more important than ever as customers wanted convenience to shop where they wanted, how they wanted. According to the National Retail Federation, consumers utilized both online and in-store channels over the five-day holiday weekend from Thanksgiving Day through Cyber Monday, with 121.4 million people visiting physical retail locations and 134.2 million people shopping online.
Meanwhile, omnichannel fulfillment options remained popular with consumers. According to data from Adobe, curbside pickup and BOPIS was used in 12.7% of all online orders during Cyber 5.
For retailers that want to convert more browsers to buyers, addressing these key areas are critical for optimizing the customer journey and driving more sales. But what are some other strategies that can help boost conversions for enterprise retail businesses?
Before we dive into strategy, it first helps to know what key performance metrics retailers may want to improve. A few e-commerce KPIs that retailers should track include:
To improve these metrics, retailers need to provide a great shopping experience to customers, which is where flexible and composable commerce services can help.
More traffic to a store or website is great, but while this may indicate that ads and organic content are improving the awareness and consideration stages of the customer journey, retailers still need that traffic to convert and move through the purchase, retention, and advocacy stages of the customer journey.
Today, it’s not enough to simply slap on a new coat of paint to optimize a front end website experience. Beyond the look and feel of a website, it’s important to show up in the critical moments of intent throughout the purchase journey.
This requires the core elements of composable and modern commerce services to power the entire shopping experience from start to finish. For example, retailers choose fabric when they want to migrate away from legacy monolithic commerce platforms. After launching fabric’s services, our customers experienced a 20% increase in conversion rates. Similarly, retailers choose fabric’s dropshipping service to expand product assortment without inventory risk. By opening up inventory through fabric’s dropship service, our customers experienced a 7% increase in average order values (AOV).
With this in mind, let’s explore how modern commerce services can help businesses convert more traffic into sales.
When shoppers find what they want and have great pre- and post-purchases experiences, they feel delighted, engaged, and satisfied. Happy customers spend more and are more likely to return to your business.
Sounds simple enough, right?
While most businesses focus on building a great website storefront, the core commerce functions that actually power product discovery and the pre- and post-purchase experience are product, pricing, promotions, inventory, and orders (along with dropshipping, cart, and checkout).
With a suite of flexible and composable commerce services, retailers can modernize outdated legacy tech with best-of-breed technologies, such as a product information management (PIM) system, a pricing and promotions engine, an order management system (OMS), or a dropshipping service. By using these services, retailers can boost customer satisfaction across the product discovery, purchase, and post-purchase stages of the customer journey.
Product discovery refers to the process by which users find and explore products. Product recommendations is a powerful tool for enhancing product discovery while cross-selling, upselling, and product bundling can increase basket sizes and AOV. Below are a few other strategies for enhancing product discovery to boost conversions:
As customers progress from product discovery to making a purchase, retailers must focus on creating a smooth and frictionless buying journey. In addition to allowing customers to change or cancel their orders, retailers need to provide clear delivery and pickup times and have transparent shipping costs, which prevents surprises and builds trust.
The following strategies can also enhance the experience, making customers more likely to hit the buy button:
Retailers must also deliver a seamless post-purchase experience. A modern OMS not only automates order confirmations and provides regular updates on order status and shipping details, it can provide frictionless returns and exchanges to customers as well. With a distributed order management (DOM) system, retailers can also use order fulfillment logic, or logic-based rules, to route orders to the best fulfillment locations to maximize speed and efficiency.
Additionally, here are several strategies that can enhance order processing, fulfillment, and customer support:
By leveraging fabric’s composable commerce services, which include a native OMS and dropshipping service, retailers can unlock the potential for higher conversions, increased AOV, and enhanced revenues. With solutions that power product, pricing, promotions, inventory, orders, dropship, and cart and checkout, it is a flexible and powerful solution that empowers retailers to choose only the services they need to deliver exceptional experiences across the buyer’s journey.
To witness firsthand how fabric can transform your enterprise retail business, please contact us for a personalized demo. Or if you’d like to see us in person, you can also visit our booth at NRF 2024.
We’d love to see you there! Happy holidays!