This year, US retail sales are expected to grow between 10.5% and 13.5%, with e-commerce accounting for 16% of total sales. To keep up with the demand, a majority of retailers are making improvements to the online customer experience and, per a report from Bold Commerce and RSR Research, 9 in 10 say the ability to continuously innovate and rapidly test new customer experiences will help them outpace their competition.
Retailers are aware there are things they can do in order to help customers embrace an omnichannel shopping experience, as well as enhance the online shopping experience. Some 88% agree that supporting new digital touchpoints would help them attract new customers, while 86% agree that delivering a more differentiated experience would allow them to improve conversion rates. About 8 in 10 (81%) also agree that improving the online checkout experience is a priority.
The recent increase in online shopping has presented retailers with some business challenges. Indeed, retailers say consumers demand more convenience in their shopping experience than before and that otherwise, they are more likely to abandon their purchase (60%). Retailers also believe that consumers also expect a more seamless experience across digital and physical touchpoints than retailers are currently providing (58%). Additionally, retailers say market trends are forcing them to look at new business models — such as subscriptions — to drive revenue growth (49%).
Retailers also say organizational challenges are standing in the way of innovating their online experience. In addition to about half (49%) of retailers saying current technologies are too difficult to change, others say there are a lack of resources available for innovation (43%). Some 4 in 10 (42%) are inhibited by a lack of vision or roadmap to improving the online shopping experience. Only 15% believe that the ROI of improvement is too low, though more than one-third (35%) feel that such ROI is too difficult to determine.
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About the Data: Findings are based on an April survey of 105 qualified retail respondents, 90% of whom work at companies with more than $500 million in revenue in 2019.