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THE NEXT WAVE: B2B ECOMMERCE TRENDS BEYOND 2024
09/04/2024
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In the current B2B market, buyers are becoming more tech-savvy, mirroring the independent purchasing patterns of B2C consumers. This shift is driven by the changing demographics of B2B buyers, with 64% being Millennials and Gen Z, according to Forrester. Moreover, Gartner notes that 44% of Millennials prefer to make purchases without the involvement of sales representatives.

As a result, B2B eCommerce trends are rapidly evolving, influenced by both consumer behavior and technological progress. The increasing integration of generative AI into eCommerce, and the merging of online and offline experiences, are all pivotal trends. Keeping pace with these developments is essential; otherwise, businesses risk lagging in the fiercely competitive B2B eCommerce landscape.

In this article, let’s explore the top 8 B2B eCommerce trends that will shape the industry in 2024 and for many years to come.

1. AI For Personalized Customer Experiences

AI

 

AI is making big strides in online shopping. AI chatbots are now a key part of customer service, offering personalized assistance and product suggestions. For example, Shopify Magic has AI tools that help create content and provide tailored shopping advice.

Chatbots are widespread, with over 1.4 billion people interacting with these AI systems worldwide. Retailers who have adopted AI have seen a significant increase in sales. It’s predicted that by 2027, 80% of retail leaders will use AI to enhance efficiency in their operations.

Beyond retail, AI is set to make a major impact on the economy. PwC estimates that AI could contribute as much as $15.7 trillion to the global GDP by 2030, affecting many industries.

2. Utilize Tools & Features For Workflow Automation

Automation

 

Businesses are increasingly turning to automation to improve efficiency without growing their teams. According to Markets and Markets, the marketing automation industry is expected to grow from USD 5.2 billion in 2022 to USD 9.5 billion by 2027, with a 12.8% yearly growth rate. Additionally, 57% of companies plan to use automation to make their employees more productive.

Shopify Flow is a tool that automates routine tasks for businesses. It activates specific actions based on rules set by the user, simplifying the workflow.

3. Embrace The B2B Omnichannel Model

Omnichannel

 

With the rise of AI and automation, businesses are increasingly embracing an omnichannel strategy. This trend allows for seamless interaction across various channels, helping companies to be more budget-efficient in managing both their online and physical storefronts, ultimately enhancing customer satisfaction.

Data shows companies with robust omnichannel engagement retain 89% of customers, compared to 33% for those without. Additionally, 59% of consumers prefer self-research over interacting with sales-focused staff, highlighting the need for sales teams to prioritize customer guidance. Moreover, establishing a solid omnichannel base is essential, followed by streamlining all digital touchpoints for a unified and efficient customer journey. You can learn more on how to build an effective omnichannel strategy here.

Digital Touchpoints Need To Be Streamlined

In B2B e-commerce, the harmony of digital touchpoints is essential for delivering an exceptional customer experience and driving sales. Integrating all digital channels, such as payment systems, online stores, and customer support, is crucial. This integration provides a unified customer profile, streamlining management across multiple channels and focusing on omnichannel sales.

Streamlining transcends mere system connections; it ensures seamless data flow for personalized customer interactions. For instance, leveraging browsing habits for advertising and purchase history for customer service can develop comprehensive customer profiles.

Ultimately, streamlining is about fostering a consistent, reliable customer experience that bolsters brand interaction. Companies excelling in this are well-positioned for enduring success in the competitive B2B e-commerce market.

4. B2B Subscription eCommerce

B2B Subscription eCommerce

Subscription models are becoming vital for customer loyalty in B2B eCommerce, with the Global Subscription eCommerce Market expected to hit US$ 478 billion by 2025. These models offer a predictable revenue stream and deepen customer relationships beyond one-time sales. They cater to various business needs, from product supplies to software services. Moreover, as buying habits shift online, subscriptions align with customer preferences for self-services and problem-solving services.

Moreover, businesses often find that prioritizing the enhancement of the customer experience yields better results than constantly pursuing new leads. In the B2B sector, nurturing existing relationships and promoting additional purchases can be more profitable strategies than seeking out new customers. Find more about subscription eCommerce here.

5. Headless B2B eCommerce

Headless B2B eCommerce

 

Headless architecture is a way of building online stores where the front-end and back-end work separately but talk to each other through an API. This setup lets the back end hook up with any front end, making it perfect for businesses that sell across different channels.

Looking ahead to 2024, headless B2B eCommerce is on the rise. It’s not going to replace traditional eCommerce completely, but it gives businesses a leg up by being more adaptable, integrating better with other systems, scaling up easily, and making life easier for developers. All this leads to a better experience for business customers. The headless commerce market is booming; it’s expected to grow to $32.1 billion by 2027, with a yearly growth rate of 20.5%. You can find more information about headless eCommerce here.

6. Mobile CommerceMobile eCommerce

 

The trend of using mobile phones for online shopping is on the rise, primarily due to the advancements in online payment systems. This shift is attributed to the seamless buying experience provided by mobile commerce, where customers are quickly redirected to payment apps like MoMo or ZaloPay, offering a hassle-free transaction compared to traditional website payments that require them to pick up their phones for the payment process.

Furthermore, mobile devices are leading the charge in the B2B digital commerce evolution, with a significant majority of consumers preferring them over desktops and tablets. This growing preference underscores eCommerce platforms’ importance in crafting responsive and well-tuned mobile shopping experiences.

To leverage this trend, eCommerce sites need to go beyond mere mobile-friendliness and aim for mobile optimization. This involves designing interfaces that facilitate thumb-friendly navigation, expediting the checkout process, and ensuring swift site loading times. By concentrating on these aspects, eCommerce sites can become preferred shopping destinations, boosting online sales. In the realm of mobile commerce, the ease and speed of the shopping experience are directly proportional to the likelihood of completing a sale.

7. B2B Payment Innovations

B2B payment

 

The B2B eCommerce sector is rapidly adopting digital efficiency in payment processes. Automation and advanced digital transactions are replacing traditional methods, significantly reducing operational costs and manual labor. This modernization benefits both companies and customers, offering a more streamlined payment experience.

In the dynamic realm of B2B eCommerce, the transition from traditional payment methods to automated and advanced digital transactions is accelerating. A study by Markets and Markets highlighted that adopting automated payment systems can reduce operational costs for accounts receivable departments by 50% and cut down manual tasks by 85%. This evolution is beneficial not only for businesses but also for customers, who now have the convenience of making payments at their own pace, thus enhancing the overall payment experience.

Mobile Payments

The proliferation of mobile technology has revolutionized both shopping and payment behaviors. As smartphones become integral to the consumer journey, offering various payment options, including digital wallets like Apple Pay or Samsung Pay, has become essential. The year 2024 will mark a point where not accommodating such payment methods could be detrimental to customer retention.

Buy Now Pay Later 

The ‘Buy Now, Pay Later’ (BNPL) model is emerging as a significant trend, particularly in Vietnam, where it’s a departure from the traditional installment payments. Platforms like Shopee are incorporating BNPL, indicating its potential to reshape the B2B payment landscape significantly.

In the US, Buy Now, Pay Later (BNPL) has won over more than a third of consumers recently, and it’s also gaining traction in Europe and Africa. This surge is tied to shifts in how people, particularly the younger crowd, prefer to manage their money, with BNPL’s flexible and wallet-friendly options being a hit. Gen Z is leading the BNPL charge, as they’re stepping into the workforce in big numbers. The trend shows that BNPL use among Gen Z is set to grow from 36.8% in 2021 to 47.4% by 2025. You can read more about BNPL here.

8. Augmented Reality (AR) in B2B eCommerce

Augmented Reality (AR) is transforming B2B eCommerce, turning simple spaces into interactive showrooms. With AR, businesses create 3D models that customers can explore in detail, offering an engaging experience far beyond what static images can provide.

Vietnam is riding the AR wave with remarkable vigor. The market is booming, with forecasts predicting a surge from US$96.4 million in 2023 to US$181.5 million by 2028, thanks to an impressive annual growth rate of 13.48%. AR is already a hit in children’s books and playgrounds, but it’s set to become a staple in our everyday lives, moving beyond novelty to become a standard in our daily routines, especially in the B2B eCommerce market, much like the memorable Oreo campaign during Tet 2020.

Oreo AR Campaign

Wrap Things Up!

B2B eCommerce is booming, outpacing traditional stores. This surge is driven by digital advances and the economic shift after the pandemic. It’s not just a change; it’s a new online business era, where tech innovations benefit both shoppers and companies.

Navigating the digital marketplace can be complex, but you don’t have to do it alone. With a solid decade of crafting B2B eCommerce solutions, SECOMM is here to support your business’s growth journey. Feel free to contact SECOMM or call our hotline at (+84) 28 7108 9908 to discover solutions that align with the latest trends and propel your business forward.

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KEY BASICS OF SUBSCRIPTION ECOMMERCE
KEY BASICS OF SUBSCRIPTION ECOMMERCE
05/04/2024
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Subscription-based eCommerce, while not a novel concept, is increasingly being adopted in tangible forms, preserving its inherent value. Consider, for instance, the scenario of launching a seafood restaurant. You enter into an arrangement with a seafood supplier who commits to delivering fresh seafood daily.

This arrangement exemplifies a subscription model, which often includes perks such as discounts, promotional offers, or simply more favorable pricing compared to purchasing items individually from various suppliers.

If the concept still seems unclear, fear not! We’ll delve deeper into the mechanics of subscription eCommerce in the paragraphs below.

What Is Subscription eCommerce?

Subscription eCommerce is a business model where customers subscribe to receive regular deliveries of products or access to services over a specified period. Transactions are facilitated online, and customers continue to receive deliveries until they choose to cancel their subscription or until the agreed-upon subscription term concludes. Payments can be various, including one-time payments, periodic billing cycles, or automated payments.

In addition, there are several types of subscription-based online shopping, but in this blog, we will mention three common types. The first one is product or service subscriptions in which customers will receive annual product delivery or service access like gym memberships, daily grocery goods, etc.

The second one is the membership program, which is quite similar to most people. A good example of this could be “Hoi Cam” from Guardian, where customers can get exclusive discounts and a lot of benefits when joining.

The third one might be familiar to many of you, which is called Software-as-a-Service (SaaS). For example, when using Microsoft 365 or Canva customers need to pay monthly or yearly to use all the functions of the tools and software. You can find more about SaaS here.

Additionally, the eCommerce subscriptions market seems to have risen steadily in recent years with the global market size reaching US$ 193.6 Billion in 2023. Moreover, this number is forecasted to reach US$ 5,014.4 Billion by 2032, showing a growth rate of 43.56% from 2024 to 2032.

From the information above, it prompts an important consideration: what are the tangible benefits and drawbacks for businesses when adopting eCommerce subscription programs? Assessing the impact of these programs is crucial for understanding their influence on operational dynamics and customer engagement.

The Benefits of The Subscription eCommerce Model for Businesses

The Benefits of the Subscription eCommerce Model for Businesses

ECommerce subscription models aren’t just a trend; they are a strategic approach that offers businesses a plethora of benefits, from predictable revenue to deepening customer relationships.

Predictable Revenue Stream 

Contrary to the unpredictable nature of one-time transactions, subscription models offer a steady revenue flow. This advantage enables your organization to formulate a comprehensive budget for marketing endeavors spanning an entire quarter or year, necessitating only slight adjustments. Essentially, businesses are equipped to more accurately project their financial trajectory by establishing a consistent subscriber base pledged to recurrent payments. This later helps enhance strategic planning and facilitate expansion prospects.

Strengthening Customer Relationships 

Subscriptions are more than transactions; they are the foundation of a long-lasting relationship with customers. A study by Zuora highlights that 93% of subscribers believe companies should invest more in customer satisfaction. By adopting a subscription model, businesses are not merely selling a product—they are nurturing a connection that encourages customers to return, fostering loyalty and trust.

Actionable Customer Insights 

Truly understanding customers goes beyond superficial interactions. It involves analyzing their behaviors and preferences over time. Subscription models are instrumental in gathering this data, offering insights into customer tendencies, shopping habits, and interests. This information is crucial for customizing products and services, enhancing marketing strategies, and identifying growth opportunities – all while potentially reducing market research costs.

Efficient Marketing Expenditure 

Additionally, enterprises need to capitalize on the insights derived from their eCommerce subscription base to enhance marketing initiatives, rather than allowing this valuable data to remain underutilized. Traditionally, significant financial resources are allocated to market research to amass sufficient consumer data for constructing an impactful persona. However, the utilization of extant subscriber data can streamline this process, yielding more efficacious outcomes. Armed with an in-depth understanding of customer predilections, companies are empowered to devise bespoke experiences that truly engage their clientele. This strategic personalization not only bolsters customer loyalty but also fortifies the company’s market position, diminishing the likelihood of customers exploring alternative options.

Maximizing Sales Opportunities 

Subscribers typically exhibit greater loyalty and, as a result, have a propensity to increase their expenditure over time, which can significantly enhance a company’s profitability. Additionally, the subscription framework provides fertile ground for upselling and cross-selling strategies. Businesses can boost their average order value and realize extra revenue from their current subscribers by offering assorted subscription options or supplementary products and services. Take, for instance, a fitness establishment that could propose special offers on workout gear to its patrons, thereby establishing a reciprocal relationship where the customers benefit from the perceived value, and the business sees a rise in sales.

Crafting An Effective Subscription eCommerce Model

Understanding the purpose and goals of your eCommerce subscription model is essential. Whether you’re targeting revenue growth, increased profitability, or business expansion, defining these objectives upfront will shape a successful strategy.

Additionally, your end goals will inform the development of user personas and the structure of your pricing strategy. By aligning your subscription features with the varied needs of your audience, you set the stage for a successful market entry.

For instance, if your goal is to boost profit margins in the upcoming quarter for a special campaign, consider enhancing your subscription benefits with exclusive deals or limited-time offers to attract a broader customer base.

Simplifying The Subscription Process 

Ease of subscription is crucial in the eCommerce industry. A straightforward and user-friendly sign-up process not only improves conversion rates but also increases the value perceived by customers, making them more likely to sign up.

To ensure optimal accessibility and ease of registration, it is crucial for eCommerce subscription services to be prominently featured and straightforward to navigate, thereby accommodating a broad digital audience. For instance, consider the “Hoi Cam” program by Guardian: the membership is subtly referenced via a brief mention in each social media post, rather than being highlighted in a dedicated post. Similarly, on their website, the registration option is relegated to a minor tab, devoid of any prominent banners to signal its presence.

Guardian Vietnam does not do well in simplifying the registration process.

 

Even in physical outlets, the program is scarcely communicated by staff members. This approach necessitates that customers invest effort into seeking registration details, which could lead to frustration and a diminished user experience.

Fostering Customer Relationships 

In the eCommerce subscription business, building strong customer relationships is crucial. It involves recognizing your customers’ importance. If customers don’t see the value, they may feel overlooked and undervalued, and consider other options. So, it’s important to grow loyalty and strengthen these bonds over time. Remember, when your service team consistently provides excellent support, customers will trust your brand more, which is key when they decide to renew their subscription.

Also, developing detailed customer personas is helpful. Knowing your customers’ preferences, habits, and spending limits helps you tailor your services to fit their needs, keeping them engaged and happy. When customers notice that you care about their preferences, they’re more likely to stay loyal and not switch to another business.

Balancing Pricing with Customer Satisfaction 

Your pricing strategy should reflect your product/service type, business objectives, and customer personas. Starting with a basic package covering essential services is advisable if you’re unsure of customer preferences. This approach allows you to launch your service while remaining adaptable. As you gather customer feedback and preferences, you can adjust your packages to suit different customer segments, ensuring your offerings evolve to meet customer demands effectively.

Challenges for Applying Subscription eCommerce Model

When implementing a subscription-based eCommerce model, it’s crucial to be aware of potential pitfalls to ensure seamless business operations.

Customer Engagement 

The key to a successful subscription model is maintaining long-term subscriber engagement. Incorporate personalized elements, exclusive content, and loyalty rewards to make subscribers feel valued. Moreover, you could highlight the unique benefits your service offers over competitors to discourage churn.

For new subscribers, businesses need to simplify the sign-up and showcase their services’ value straightforwardly to reduce the likelihood of early drop-offs.

Inventory Management 

If your business involves physical goods, managing inventory against customer demand is critical. Monitor customer preferences closely and adjust inventory accordingly. Always have a contingency plan for supply chain disruptions to maintain consistent product availability.

Scaling Infrastructure

As your subscriber base expands, the complexity of your infrastructure must evolve accordingly. It’s wise to invest in the appropriate technology and systems ahead of time to avoid a frantic rush during periods of rapid growth. Consider the user experience – a seamless service is expected, particularly for digital offerings akin to Canva. Your infrastructure should be robust enough to handle a spike in users without compromising performance.

Embracing automation is the way forward, replacing outdated manual processes with streamlined, efficient operations. Employ artificial intelligence for routine tasks, freeing up your team to concentrate on strategic initiatives.

Is everything making sense so far? Before we conclude today’s session, let’s examine the following case study for a practical understanding.

A Case Study from Amazon

Amazon Prime serves as an exemplary model of subscription eCommerce success, offering a suite of benefits that extend well beyond swift shipping. Subscribers gain access to an array of advantages, such as complimentary two-day delivery, an extensive library of streaming content, and exclusive shopping deals. This service is not merely about rapid order fulfillment; it represents a continuous stream of value and convenience.

Amazon Prime case study

 

The distinctiveness of Amazon Prime lies in its amalgamation of various services into a single subscription package, which streamlines customer experience and fosters brand loyalty. The program’s expansion reflects Amazon’s dedication to customer satisfaction and its strategic addition of new perks, all while integrating seamlessly with the larger Amazon eCommerce ecosystem. This strategic bundling is a key factor in customer retention, positioning Amazon as a leader in the eCommerce sector.

To Wrap Ups!

Subscription eCommerce is a strategic approach adopted by numerous businesses, yet only a select few have truly harnessed its potential. This guide is designed to deepen your understanding and provide actionable insights to effectively utilize subscription eCommerce. For those ready to embark on this journey and in search of a trusted advisor, Secomm is your ideal partner. We offer end-to-end solutions to address all your eCommerce needs, from technical infrastructure to event management.

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7 Must-Have eCommerce Integrations for Your Store
7 MUST-HAVE ECOMMERCE INTEGRATIONS FOR YOUR STORE
11/01/2024
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Several crucial factors impact the efficiency of running an online store. Among these, effectively implementing eCommerce integrations plays a key role in helping you streamline your operations and reduce risks. 

Below are 7 essential integrations that you should include in your eCommerce website.

PIM

PIM (Product Information Management) is one of the common eCommerce integrations. The PIM system is used to collect, organize, and manage product information, including details such as product descriptions, images, prices, product attributes, customer reviews, and ratings.

7 Must-Have eCommerce Integrations for Your Store
PIM

This tool helps you manage product information across diverse platforms, making it easier for customers to choose their desired products. Plus, PIM helps you save time compared to manual data entry, thereby reducing personnel costs.

Take Akeneo PIM, for instance; it is an open-source platform tailored for managing product information effectively. Akeneo is also flexible enough to seamlessly integrate with various systems such as ERP, CRM, POS, and popular eCommerce platforms like Magento, Shopify, and WooCommerce.

Currently, Akeneo offers three main PIM plans, including:

  • Community Edition: Free – For small and medium-sized enterprises seeking to focus on product information management and distribution at a low cost.
  • Growth Edition: Starting from $25,000 per year – For mid-sized businesses managing product information.
  • Enterprise Edition: Price on request – For large enterprises looking to develop specialized PIM systems.

OMS

The Order Management System (OMS) helps you process orders in various channels.

7 Must-Have eCommerce Integrations for Your Store
OMS

This eCommerce integration not only helps businesses efficiently manage orders, optimizing the customer experience, but also collects and analyzes data at peak and off-peak sales times, as well as for specific orders, top-selling items, and consumer behavior.

So, you’ll easily adjust their business strategies and manage inventory effectively.

For example, Fabric OMS is a Distributed Order Management (DOM) system designed to help you streamline the order processing process, including online purchases at the store (BOPIS), delivery to the store, and in-store order fulfillment. 

Fabric’s order management solution helps you integrate and manage the entire order process on a single interface. You can optimize your order processing, minimize inventory discrepancies, and free up resources for other important tasks.

WMS

The Warehouse Management System (WMS) will help you manage the flow of goods, inventory, and shipping to facilitate sales and order fulfillment.

By automating order processing and optimizing the layout of goods in the warehouse, WMS accelerates order processing, reduces order preparation time, and enhances the ability to quickly respond to customer demands.

7 Must-Have eCommerce Integrations for Your Store
WMS

For example, Oracle Warehouse Management Cloud (WMS) is one of the eCommerce integrations that offers a cloud-based warehouse management system. It is well-suited if you’re looking for effective warehouse inventory management.

It automates warehouse processes such as receiving, storage, order processing, and shipping, particularly well-suited for a wide range of business scales. It also seamlessly integrates with ERP, CRM, and other supply chain solutions.

POS

POS (Point of Sale) is a system that includes both hardware and software components, or it can be as straightforward as a point-of-sale device like a computer, tablet, smartphone, or receipt printer.

POS helps you manage and execute sales transactions, calculate payments, generate receipts, manage inventory, handle customer relations, and provide crucial sales-related information.

7 Must-Have eCommerce Integrations for Your Store
POS

For instance, the Square POS system, developed by Square, has garnered the interest of numerous large businesses globally due to its free features. However, each transaction conducted through the POS incurs a fee of 2.6% and 10 cents for each tap, dip, or swipe. 

For the “Buy Now Pay Later” model, the fee is 6% and 30 cents. Additionally, Square provides tailored POS packages for businesses with revenues surpassing $250,000.

Xem thêm:

 

CRM

CRM (Customer Relationship Management) helps you organize and manage customer information, including contact details, purchase history, and interactions. So, you’ll easily tap into customer needs and preferences, optimizing the shopping experience and increasing order conversion rates.

Moreover, CRM allows internal departments to interact and work on a unified and automated system, saving time and costs.

7 Must-Have eCommerce Integrations for Your Store
CRM

For example, Dynamics 365 Sales is one of the CRMs developed by Microsoft. With its intuitive interface, easy setup, and flexible customization capabilities, you can manage and enhance the efficiency of the sales process.

the system provides a “Real-time Insight” feature to deliver real-time insights from sales calls, such as customer emotions and sentiments. This helps businesses assess and strategize for their sales teams.

Currently, the system offers three plans:

  • Dynamics 365 Sales Professional: Starting from $65 per month
  • Dynamics 365 Sales Enterprise: Starting from $95 per month
  • Dynamics 365 Sales Premium: Starting from $135 per month
  • Microsoft Relationship Sales: Starting from $162 per month

Learn more:

ERP

Instead of relying on separate, isolated software systems lacking interdepartmental cohesion, ERP (Enterprise Resource Planning) integrates all software into a unified system.

The ERP eCommerce integration helps you manage all organizational activities, from inventory control and orders to financial planning and customer interactions.

You’ll maximize time efficiency, minimize costs, boost business productivity, and reduce unnecessary workforce.

7 Must-Have eCommerce Integrations for Your Store
ERP

For example, Oracle ERP is one of the top global ERP software known for its outstanding features for operational efficiency.

Currently, Oracle provides three different plans tailored to specific needs:

  • Advanced Financial Controls: Starting from $80/month – Designed for small-scale businesses requiring a simple system.
  • Advanced Access Controls: Starting from $150/month – This service plan offers advanced features for efficient operations.
  • Financial Reporting Compliance: Starting from $175/month – Oracle ERP’s premium plan provides comprehensive features suitable for various business needs.

Learn more: 6 best enterprise ERP software

BI

Business Intelligence (BI) helps you analyze data from various sources such as eCommerce websites, POS systems, CRM, and other data sources. Plus, you’ll gain a deeper understanding of customer behavior, shopping trends, and factors influencing sales performance.

By using BI, you can also predict shopping trends to formulate specific strategies, while simultaneously monitoring financial performance, including forecasting sales figures, profits, and other financial indicators. This helps you allocate resources accurately.

7 Must-Have eCommerce Integrations for Your Store
BI

For example, Tableau is a widely used BI tool suitable for various individuals and organizations. With a user-friendly interface that requires minimal technical knowledge, Tableau allows users to easily create reports and visualize data. 

The ability to connect and integrate data from various sources, including cloud data, and transform it into visually appealing charts and graphs, makes it easy for users to analyze trends and information

Deploy eCommerce integrations today!

Above are 7 popular eCommerce integrations to build your eCommerce website and enhance your online presence. You’ll choose your best-suited systems depending on the strategy, estimated budget, and business direction.

With profound knowledge of the eCommerce industry and experience in deploying integrations for all sizes of businesses, SECOMM is committed to proposing cost-effective solutions to develop your high-performing eCommerce system.

Contact or call directly on the SECOMM hotline (02871089908) to get started today!

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Mua trước Trả sau trong thương mại điện tử Mô hình và Ví dụ
BUY NOW PAY LATER IN ECOMMERCE: MODELS AND EXAMPLES
30/11/2023
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The Juniper Research report titled “Buy Now Pay Later: Regulatory Framework, Competitive Landscape & Market Forecasts 2022-2027” predicts that the global user base for Buy Now Pay Later (BNPL) will exceed 900 million by 2027. In Vietnam, the BNPL payment method is expected to experience an annual growth of 126.4%, reaching 1,123.9 million USD in 2022.

What is Buy Now Pay Later (BNPL)?

Buy Now Pay Later (BNPL) is a short-term financial arrangement that allows consumers to make immediate purchases and defer the payment to a future date, typically without accruing interest.

How it works

In BNPL, the financial technology (Fintech) organization facilitating the service directly pays the purchase amount to the seller on behalf of the customer. The customer then repays this amount gradually to these organizations over a period, often extending from one to several months.

When using BNPL, customers can make payments through bank transfers or have the amount automatically deducted from their debit card, bank account, or credit card. While the specific terms and conditions may vary between companies offering BNPL services, the general operational mechanism is similar to credit card instalment plans. However, BNPL is often considered much simpler, and additionally, it typically does not involve interest charges; instead, late payment fees are calculated as a percentage of the product or service value.

Buy now Pay later in eCommerce Models and Examples - How BNPL works
How does Buy Now Pay Later work in eCommerce?

Pros and Cons

For customers

With the BNPL model, consumers can make immediate purchases even if they don’t have the financial capacity to pay the entire shopping cost upfront. This payment is divided into shorter instalment periods, corresponding to smaller amounts, reducing financial pressure on consumers. Additionally, BNPL typically does not entail annual fees or hidden charges, and the registration process is simple and quick, averaging less than 15 minutes. In general, BNPL companies usually only require customers to be at least 18 years old and own a bank card, without specifying a minimum personal income.

However, BNPL often comes with a relatively low consumer spending limit, typically ranging from 20 to 30 million VND, to meet the needs of purchasing items such as fashion, cosmetics, phones, laptops, electronic components, etc. If consumers do not know how to control their spending, they may easily engage in excessive shopping as there is no immediate need to pay the full amount at the time of purchase. This can lead to late payments for the instalment periods and additional penalty fees.

For businesses

Collaborating with BNPL organizations to launch BNPL programs with 0% interest can help businesses attract more customers without incurring excessive marketing costs. With this approach, businesses can encourage customers to make purchasing decisions more quickly without extensive financial consideration, thereby significantly boosting revenue. Moreover, instead of offering discounts or freebies, the ability to pay gradually without urgency and without incurring interest aligns with customer psychology and needs.

However, many businesses still hesitate to implement BNPL models due to concerns about not being able to control the debt of individual customers. Additionally, this potential model is relatively new to the Vietnamese market, so there are not many payment service providers offering BNPL services, and there is a scarcity of experienced eCommerce website development units capable of efficiently integrating this functionality.

Compare Buy Now Pay Later with Credit Cards

The BNPL model is revolutionizing the global consumer credit sector, but many people still confuse BNPL with credit card instalment plans offered by banks. 

So, what are the differences between Buy Now Pay Later and credit cards?

Format Buy Now Pay Later Credit Card
Unit accepting payment The seller allows BNPL payment method Banks issue credit cards
Registration process Register quickly, completely online The procedure requires a lot of paperwork
Time 1 to 3 minutes Have to wait for censorship, which can take up to several days, even weeks
Credit limit Depends on buyer profile Depends on buyer profile
Card maintenance fee All free Average 299,000 VND/year
Registration fee All free Average 50,000 VND/card
Conversion fee in instalments All free Average 200,000 VND/transaction, or calculated as a percentage of transaction value

Comparison table of Buy Now Pay Later with Credit Card

Despite trailing behind the global trend, the BNPL model in Vietnam is forecasted to explode due to the market falling into a favourable timeframe. This is influenced by the impact of the Covid-19 pandemic, which has significantly propelled the development of online shopping and eCommerce. Additionally, the BNPL model aligns more with the preferences of Generation Z than traditional credit cards.

Case studies

Tiki and Sendo – Two of the four kings of eCommerce participating in BNPL

Two out of the four largest eCommerce platforms in Vietnam have begun implementing BNPL, affirming the tremendous potential of this model in the online shopping market.

In 2020, Sendo was a pioneer in eCommerce by early adoption of BNPL through collaboration with financial solution provider Atome, offering Buy Now Pay Later services. With BNPL, Sendo aims to make shopping more convenient for customers, removing concerns about financial issues often associated with credit cards, such as increasing interest rates for late payments over an extended period.

Buy now Pay later in eCommerce Models and Examples - Sendo
Buy Now Pay Later program in Sendo

Since the beginning of 2022, Tiki has collaborated with two financial service providers, Home Credit and Lotte Finance, to launch the ‘Buy Now Pay Later’ project, enhancing smart payment solutions directly within the Tiki app. This initiative not only supplements intelligent payment options for Tiki users but also empowers customers to manage their personal finances better when engaging in online shopping, thereby further enriching the overall eCommerce experience for consumers.

Buy now Pay later in eCommerce Models and Examples - Tiki
Buy Now Pay Later program in Tiki

Laybyland – The leading brand in the Buy Now Pay Later model in Australia

Laybyland was established in 2012 in Australia with two key eCommerce business models: Layby (Pay Later) and Shop Now Pay Later (Shopzero). Over its 10 years of eCommerce operations in the Australian market, the business has witnessed remarkable growth. Starting with +10,000 products across two initial websites, it has expanded to offer over +400,000 products daily across five online stores, including Laybyland, Shopzero, Mylayby, and Layawayland.

Shopzero, a part of Laybyland, provides BNPL services through seven main partners: Afterpay, Zip, Openpay, Humm, Latitude, Klarna, and Wizpay. Notably, Shopzero maintains complete control and operation over all BNPL activities and payment processes within its system. Pioneering the BNPL market has brought Shopzero significant success, especially in the electronics, office supplies, fashion, cosmetics, furniture, gardening tools, children’s toys, and travel sectors.

It is evident that BNPL is contributing to a significant revolution in consumer payment habits, shifting from a payment method choice to a crucial factor in customer purchasing decisions.

Buy now Pay later in eCommerce Models and Examples - Laybyland
Buy Now Pay Later program in Laybyland

With extensive experience in implementing eCommerce solutions in various countries, especially in the Buy Now Pay Later market, SECOMM understands the challenges businesses face when exploring how to establish Buy Now Pay Later systems.

Contact SECOMM now or call us via hotline (+84)28 7108 9908 for a free consultation on detailed eCommerce system development solutions!

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What is Social Commerce? A Trend That Keeps Heating Up
WHAT IS SOCIAL COMMERCE? A TREND THAT KEEPS HEATING UP
21/11/2023
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As per Statista’s data, Social Commerce worldwide generated 992 billion USD in revenue in 2022, with projections indicating a potential surge to 2.9 trillion USD by 2026. This positions Social Commerce as a highly valued and potential trend in the future of eCommerce.

What Is Social Commerce? A Trend That Keeps Heating Up
Source: Statista

What is Social Commerce?

Social Commerce is a term that combines two key concepts: “Social” and “Commerce”.

It represents a business model that seamlessly integrates social media and eCommerce, aiming to create a shopping experience that is more interactive and connected for customers.

What Is Social Commerce? A Trend That Keeps Heating Up
What is Social Commerce?

Social Commerce enables users to view and purchase products directly through social media platforms such as Facebook, Instagram, TikTok, etc.

This approach allows customers to delve into product details, read reviews, engage with comments from other users, and even make direct purchases through business posts, advertisements, or social platform storefronts.

The Social Commerce model often comes with interactive features, product-sharing capabilities, and personalized product recommendations.

Social Commerce takes advantage of the widespread popularity and extensive user base on social media platforms to naturally amplify the reach and influence of products and brands.

How does Social Commerce work?

Social Commerce vs eCommerce

Social Commerce and eCommerce are two distinct online business models, yet they share the common goal of online commerce. Here are the differences between these two models:

What Is Social Commerce? A Trend That Keeps Heating Up
Social Commerce vs eCommerce

Types of Social Commerce

There are various popular types of social commerce, and the choice depends entirely on the scope and objectives of each business. Here are some common types of social commerce:

  • Influencer Marketing: This marketing form leverages the influence of users with large social media followings. Businesses collaborate with celebrities or influential individuals to promote their products and brands.
  • Affiliate Marketing: In this strategy, businesses empower influential individuals to promote or review their products/services in social media posts by embedding links, and incentivizing sales. In return, these affiliate partners earn a percentage of the revenue generated from those links.
  • Social Media Advertising: This type of social commerce centers around using social media platforms as advertising spaces. Businesses can run ads on platforms like Facebook, Instagram, Pinterest, TikTok, etc., to reach their target audience.
  • User-Generated Content (UGC): By encouraging customers to share their experiences using products or services on social media platforms, businesses aim to build trust among both current and potential buyers. 
  • Live Streaming: Hosting live streaming sessions on platforms like TikTok, YouTube, or Twitch allows viewers to interact directly with the business. This involves introducing products/services, fielding questions, and receiving user feedback during the broadcast, ultimately boosting online interaction and sales.

Benefits of Social Commerce

Enhance brand identity

Social Commerce facilitates businesses in reaching millions of users across various social media platforms, particularly globally popular ones like TikTok, Facebook, Instagram, and Pinterest.

This approach not only boosts brand awareness but also promotes businesses’ products and services to the extensive user base on these platforms, creating organic traction through user sharing and interaction.

The renowned sportswear brand Nike has successfully implemented Social Commerce by leveraging engaging posts, videos, and advertisements on social media platforms such as Facebook, Instagram, and Twitter.

The brand consistently runs advertising campaigns encouraging users to share their product experiences. Through user-generated posts and the strategic use of specific hashtags, Nike has sparked natural virality, resulting in an increased level of brand recognition.

What Is Social Commerce? A Trend That Keeps Heating Up
Enhance brand identity

Optimize the shopping experience

A key feature of social commerce is its focus on creating a seamless online shopping experience for users, simplifying the transition from product browsing to actual purchases. Customers can buy directly from posts, advertisements, or online stores on social media platforms.

This not only streamlines the shopping process but also enables businesses to optimize customer experiences, save time, and boost the eCommerce sales volume for the brands.

The cosmetics brand L’Oréal has created various TikTok channels for each target market in its beauty chain, such as lorealparis (global), lorealparisusa (U.S. market), lorealparis_vn (Vietnamese market), lorealparisid_shop (Indonesian market), lorealparisth_store (Thai market), and so on.

This approach not only allows the brand to reach the right target audience but also takes advantage of TikTok Shop, enabling customers to purchase products directly through L’Oréal’s TikTok channel.

What Is Social Commerce? A Trend That Keeps Heating Up
Optimize the shopping experience

Monitor & measure performance

Presently, social media platforms offer comprehensive analytics and data measurement tools for businesses. For instance, Instagram Insights provides demographic information such as gender, age groups, and geographic locations.

Facebook Audience Insights goes a step further in collecting detailed data about a business’s target audience, while TikTok Pixel allows tracking vital metrics like clicks, views, and conversion rates, and assessing the effectiveness of advertising campaigns.

Leveraging these data sources assists businesses in creating more efficient social commerce campaigns compared to traditional retail operations. A noteworthy example of the successful implementation of Social Commerce with optimized tracking and measurement is Fashion Nova.

This prominent American fashion brand specializes in offering women’s clothing and accessories. Fashion Nova’s Instagram posts often incorporate sharing and user tracking features, enhancing the dissemination of information about products and the brand.

Furthermore, Fashion Nova utilizes Instagram’s measurement features and analytical tools to evaluate the effectiveness of the brand’s marketing and advertising campaigns.

What Is Social Commerce? A Trend That Keeps Heating Up
Monitor & measure performance

Boost engagement & customer service

Embracing social commerce enables businesses to seamlessly engage in direct interactions with customers and gather their feedback regarding the brand or product through posts, direct conversations, comment responses, and messages.

This facilitates quick customer support, addresses inquiries promptly, fosters satisfaction and fortifies customer relationships. Moreover, based on this valuable customer feedback, businesses can refine their products/services to align with customer expectations.

Tarte Cosmetics, a renowned cosmetics brand specializing in makeup and skincare products, has effectively utilized social media platforms such as Instagram, Facebook, and Twitter to implement social commerce. The brand consistently engages with customers across social media channels.

The administrative team promptly responds to user comments and messages, addressing inquiries and offering technical support. This approach builds trust and satisfaction among customers, actively strengthening positive customer relationships.

What Is Social Commerce? A Trend That Keeps Heating Up
Boost engagement & customer service

The Bottom Line

Here are insights, advantages, and examples of businesses effectively embracing Social Commerce. Depending on each business’s strategy, administrators can blend social media and eCommerce to engage customers and establish a brand in the current digital era.

Related Reading: eCommerce: Inbound Marketing vs Outbound Marketing

Contact SECOMM or directly call the hotline at 02871089908 today for complimentary guidance on implementing eCommerce Marketing overall and Social Commerce specifically.

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Build Your First eCommerce Marketplace with Marketplacer
BUILD YOUR FIRST ECOMMERCE MARKETPLACE WITH MARKETPLACER
30/10/2023
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As reported by Digital Commerce 360, global consumers have collectively expended more than $3.25 trillion on famous eCommerce marketplaces such as Amazon, Ebay, and Alibaba. This indicates the increasing significance of online marketplaces in customer shopping experiences. 

Therefore, many businesses have promptly devised strategies to enter the race for market share in eCommerce landscape. To achieve this goal, businesses must first develop their own marketplaces. The initial but crucial step in this process is selecting the ideal platform.

The following article focuses on introducing this platform as a recommendation for large businesses among countless optimal choices out there. 

What is Marketplacer?

Marketplacer is a Software as a Service (SaaS) platform hosted on AWS, providing businesses with essential tools and features for building professional and highly adaptable eCommerce marketplaces capable of rapid scalability and swift page loading.

Build Your First eCommerce Marketplace with Marketplacer - What is Marketplacer
What is Marketplacer?

This platform streamlines the management and administration of eCommerce marketplaces. It simplifies tasks like order fulfillment, product category adjustments, third-party extension integration, cross-marketplace operational synchronization, and the implementation of strategies for revenue optimization.

To date, this platform has successfully established and expanded over 100 eCommerce marketplaces, forging connections with more than 13,000 sellers spanning the globe.

How Marketplacer works?

Build Your First eCommerce Marketplace with Marketplacer - How Marketplacer works
How Marketplacer works?

The Operator portal

This platform offers businesses a Marketplace-wide API based on GraphQL API, allowing them to:

  • Build a headless frontend or seamless integration with existing eCommerce systems.
  • Access and manage all data on the online marketplace via the Operator Portal, which includes:
    • Manage Sellers
    • Manage Seller payouts and billings
    • Product category management
    • Order management
    • Delivery management
    • Content management
    • Custom reporting

Furthermore, Marketplacer provides businesses with access to Webhooks, enabling them to receive notifications from the Marketplacer platform for any changes or updates during their operations.

The Seller portal

This platform provides sellers on the marketplace with Seller API based on V2 (REST) API to

  • Automate their sales processes on the marketplace
  • Access and manage various aspects of their seller data through the Seller Portal, including:
    • Product management
    • Sales & Marketing management 
    • Order management
    • Inventory management
    • Analysis & reporting

Similar to how businesses operate their business on the marketplace, sellers also have access to webhooks for receiving notifications regarding changes throughout their selling journey.

Marketplacer implementation models

This platform offers two implementation models, allowing businesses to tailor the development of their online marketplace to align with their specific goals.

Build Your First eCommerce Marketplace with Marketplacer - Marketplacer Implementation Models
Marketplacer Implementation Models

Headless

The Headless model empowers businesses to utilize their tailor-made frontend, commonly known as the “head,” which represents the user interface. This frontend is integrated with Marketplacer’s fundamental backend through APIs to execute the marketplace. 

Therefore, opting for the Headless model is ideal for businesses seeking extensive control over the user experience while leveraging Marketplacer’s core technology to foster eCommerce growth.

Connected

In the Connected model, businesses can efficiently integrate a pre-built eCommerce system into Marketplacer’s backend, avoiding the need for an extensive time and financial resources to build from scratch. This integration allows businesses to maintain the full functionality of the pre-existing system while benefiting from this platform’s advanced infrastructure for seamless marketplace deployment.

It’s worth noting that Marketplacer currently offers pre-built connectors exclusively for three prominent platforms: Adobe Commerce, Salesforce Commerce Cloud, and commercetools. As a result, the Connected model is best suited for businesses utilizing one of these three platforms to facilitate their eCommerce.

Pros of Marketplacer

Build Your First eCommerce Marketplace with Marketplacer - Pros of Marketplacer
Pros of Marketplacer

Ease of use

This platform offers a user-friendly interface and intuitive tools, making it simple for businesses to build and manage their online marketplace. 

Flexibility & Scalability

This platform is tailored to suit online marketplaces of diverse sizes. The platform boasts excellent scalability and remarkable flexibility, empowering businesses to manage an ever-increasing volume of sellers, customers, and listing products. This facilitates seamless expansion of operations as needed.

Integrations

Businesses can easily discover well-known applications and extensions within Marketplacer’s growing collection of available integrations. Some noteworthy integrations include popular social media platforms like Facebook, Twitter, and LinkedIn, as well as payment gateways such as PayPal, Zooz, Yotpo, and advertising management tools like Fuze, Firstpage, and Citrus Ad.

Marketplacer Connected Integration

Marketplacer’s success is attributed to its ‘Connected’ technology, enabling businesses to deploy their marketplaces with two versatile options: crafting a tailored frontend or integrating seamlessly with existing systems.

Also, businesses can effortlessly blend third-party products into their current inventory, broadening their product range and portfolio with minimal investment and mitigating product lifecycle management tasks. This model is known as the Hybrid Marketplace and has been successfully adopted by enterprises like Amazon, Walmart, and others.

Cons of Marketplacer

Build Your First eCommerce Marketplace with Marketplacer - Cons of Marketplacer
Cons of Marketplacer

Costs

The license fee isn’t publicly available and businesses are required to reach out to the Marketplacer team for a personalized consultation and cost estimates. Furthermore, the platform doesn’t offer a trial version, which may pose challenges for businesses when planning their implementation budget.

Require technical skills

While this platform offers a user-friendly interface, it may pose challenges for users who are not familiar with building and operating an eCommerce marketplace. Therefore, the implementation process will require businesses to have technical expertise, or they can seek specialized assistance to efficiently build and optimize the platform.

Limited customization

Despite its flexibility and high degree of customization, Marketplacer’s ability to meet the highly complex deployment needs of large-scale eCommerce systems may pose challenges.

Support 

This platform provides 24/7 support services and offers learning resources, but there is room for improvement in the quality and responsiveness of their support. Plus, as an Australian-based company primarily serving the Australian market, some of their terminology might be less clear to international customers.

To successfully build and operate a thriving eCommerce marketplace, the first thing businesses need to do is choose a platform. This platform is one of the standout platforms that businesses should consider.

Feel free to contact or call SECOMM’s hotline at (028) 7108 9908 for free consultations.

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6 Best ERP Softwares for Enterprise-level Businesses
6 BEST ERP SOFTWARES FOR ENTERPRISE-LEVEL BUSINESSES
24/08/2023
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Data holds significant value for eCommerce enterprises across all sizes, yet effectively managing and monitoring it is no simple task. Hence, the advent of ERP software emerges as a superior solution, enabling the amalgamation of all business data into a singular database for seamless accessibility, analysis, and oversight.

Nevertheless, to fully unlock the capabilities of ERP, businesses must opt for software equipped with features aligned with their specific business requirements. Recently, six prominent ERP software solutions are widely adopted by many eCommerce enterprises: Oracle Netsuite, Acumatica, Odoo, Sage x3, SAP S/4 HANA, and Microsoft Dynamics 365.

What is ERP?

ERP stands for Enterprise Resource Planning, is a software solution designed to assist businesses in gathering, storing, analyzing, and overseeing all data pertaining to their business operations from diverse internal departments, all within a single database. This data encompasses:

  • Business financial data
  • Sales and marketing data
  • Production, inventory, and supply chain data
  • Human resource management functions, and more

Integrating ERP software into eCommerce operations empowers businesses to centrally manage data originating from multi-channel sales and marketing endeavors, encompassing sources like websites, social media, mobile devices, and brick-and-mortar stores.

6 Best ERP Softwares for Enterprise-level Businesses - What is ERP
What is ERP

Types of ERP Systems

On-premise ERP

On-premise ERP software, also referred to as ERP in-house, is installed and stored directly on the business’s servers and internal infrastructure. When utilizing on-premise ERP, the business assumes responsibility for managing hardware, IT infrastructure, software updates, and maintenance.

Cloud-based ERP

Cloud-based ERP software is supplied, stored, and managed by a third-party provider. This allows users to access it remotely from any device with an internet connection and is also known as Software as a Service (SaaS). In this scenario, the provider takes charge of infrastructure management, encompassing servers, storage, data backups, updates, and software maintenance.

Hybrid ERP

Hybrid ERP software is a combination of both on-premise and cloud-based ERP solutions. In the hybrid ERP model, specific modules of the ERP system are stored on-premise, while others are stored in the cloud. This approach enables businesses to leverage advantages from both software models. For instance, critical data or modules can be kept on-premise for control and heightened security, whereas less critical data or modules can be hosted in the cloud for effortless accessibility and future expansion.

Advantages of Using ERP in eCommerce

6 Best ERP Softwares for Enterprise-level Businesses - Advantages of Using ERP in eCommerce
Advantages of Using ERP in eCommerce

Single Source of Real-time Data

One notable advantage of ERP software is its real-time integration capability, which consolidates diverse departmental data into a unified database. This consistency streamlines data management, especially considering the substantial volume of data that eCommerce businesses accumulate daily, much of which pertains to purchasing behavior.

As a result, when integrating this data with other business information, enterprises can uncover and implement distinctive approaches to:

  • Cultivate brand identity
  • Increase sales
  • Create marketing campaigns to enhance conversions
  • Trim unnecessary operational expenses, and more

For instance, ERP software provides businesses with reports encompassing details about best-selling products, canceled orders, recurring customer lists, cart abandonment rates, interactions with social media posts, and more. In turn, businesses can amalgamate all this data within a shared database to gain a holistic perspective of the current landscape and swiftly make pertinent adjustments for eCommerce expansion.

Multiple Sales & Marketing Channels Management

eCommerce enterprises employing a variety of channels in their sales and marketing strategy will likely need to evaluate sales performance and engagement levels across each channel to gauge their efficacy. ERP software assists businesses in concurrently managing sales channels within a centralized database. 

Through analyzing integrated ERP data from various channels, encompassing social media, websites, mobile apps, eCommerce platforms, and more, enterprises can understand why one sales channel surpasses others and determine which marketing campaigns yield favorable conversions and which ones require enhancement.

Boost Productivity

Insufficiently integrated business data can lead to difficulties in accessing accurate and updated information. This may compel businesses to manually input extensive data, potentially resulting in errors.

Conversely, the use of ERP can facilitate nearly impeccable automated data entry. Moreover, this software supports other automated processes, like invoice generation and marketing campaign automation, among others. This frees businesses from monotonous manual tasks, enabling them to concentrate on pivotal tasks that enhance revenue.

Top 6 eCommerce ERP Software

Oracle NetSuite

Oracle NetSuite serves as a cloud-based ERP solution, delivering a comprehensive set of tools for effectively managing business operations. This software empowers eCommerce enterprises to automate functions across multiple domains, including sales management, marketing, customer relations, financial control, inventory management, and more.

What sets Oracle NetSuite apart is its adaptability and scalability, catering to businesses of various scales and industries. It streamlines eCommerce workflows while enhancing operational efficiency, all facilitated by real-time insights available through a unified dashboard.

6 Best ERP Softwares for Enterprise-level Businesses - Oracle NetSuite
Oracle NetSuite

Key features of Oracle NetSuite encompass:

  • eCommerce Capability: Facilitating efficient management of eCommerce outlets, multichannel sales, product catalog administration, online order handling, and seamless omnichannel shopping experiences.
  • Order & Inventory Management: Optimizing order fulfillment processes and live monitoring of inventory levels and control.
  • Customer Relationship Management (CRM): Empower businesses with CRM functionalities for overseeing customer interactions, sales workflows, marketing endeavors, and personalized customer experiences.
  • Financial Management: Oracle NetSuite aids in financial oversight by providing shared ledgers, budget planning, revenue recognition, and comprehensive financial reporting.
  • Real-time Reporting & Analytics: NetSuite integrates real-time analytics and reporting tools into a customizable dashboard, offering support for data-driven decision-making.

Pros:

  • Easily accessible on multiple computer and mobile browsers.
  • User-friendly and intuitive interface suitable for a wide range of users.
  • Real-time reporting capability.
  • Easily customizable and expandable to match individual business needs.

Cons:

  • Undisclosed pricing, causing challenges in estimating deployment costs.
  • Complex deployment procedures.
  • Being primarily a cloud-based ERP, Oracle NetSuite might restrict businesses’ control.
  • Dependence on internet connectivity.
  • While NetSuite allows for customization, there are limitations on the extent of flexibility in these customizations. Hence, complex customization needs might require additional development or alternative solutions.

Cost: Estimated deployment costs for Oracle NetSuite can commence at $10,000. Nevertheless, this is not a fixed price and will be tailored according to each business’s specific deployment requirements.

Acumatica

Acumatica stands as a cloud-based ERP software designed to cater to businesses of all sizes, particularly those in rapid development. It offers adaptable cloud storage alternatives, including both public and private clouds, ensuring convenient access and secure handling of business data.

6 Best ERP Softwares for Enterprise-level Businesses - Acumatica
Acumatica

Prominent features of Acumatica including

  • eCommerce Integration: Acumatica empowers businesses to seamlessly integrate with popular eCommerce platforms like Amazon, Magento, Shopify, BigCommerce, and more. The integration process is designed to be swift and smooth, enabling businesses to harness specific eCommerce functionalities such as order management, inventory synchronization, shipping, and taxation.
  • Financial Management: Acumatica equips businesses with tools to streamline financial operations, automate accounting procedures, generate financial reports, and manage general ledgers. This ERP solution furnishes real-time insights into financial performance, supporting informed decision-making based on precise and updated financial data.
  • Inventory Management: Acumatica delivers an array of tools to efficiently manage and optimize inventory. Moreover, it facilitates real-time monitoring and predictive analysis of inventory, enabling businesses to minimize stock shortages and unnecessary inventory costs.

Pros:

  • The flexible modular structure allows businesses to register and use the modules they need, and easily add or modify modules over time based on developmental needs.
  • Real-time data delivery anytime, anywhere, and on any device.
  • The software can be easily integrated with modern technologies in the future.
  • An outstanding solution that meets the specific needs of various industries, including construction, distribution, manufacturing, and eCommerce retail.

Cons:

  • The pricing is not publicly disclosed, which makes it difficult for businesses to estimate deployment costs.
  • The flexibility in the modular structure can lead to additional costs when the demand for additional modules increases rapidly over time.

Cost: Estimated costs for deploying Acumatica can range from $15,000 to $40,000 per year. However, this is not a fixed price and will be customized based on the specific deployment needs of each business.

Odoo

Odoo is an open-source ERP software in a modular form that can be customized to support businesses in efficiently managing various aspects of their operations, such as customer relationship management (CRM), accounting, inventory management, and more. Odoo provides an optimal solution for businesses of all sizes and industries.

6 Best ERP Softwares for Enterprise-level Businesses - Odoo
Odoo

Key Features of Odoo:

Odoo offers a comprehensive set of features and modules ranging from basic to advanced, catering to all business operational needs in eCommerce. It stands out with the following features:

  • Webstore Creation: Odoo provides a web builder that enables businesses to swiftly establish and manage their online presence. Businesses can design and customize professional eCommerce websites through drag-and-drop features, utilizing available templates and features such as page creation, content management, integrated blogging, SEO, and more.
  • Customer Relationship Management (CRM): Odoo supports effective customer relationship management with features for managing potential customers, interacting with existing customers, handling sales processes, and segmenting customer groups. Moreover, the CRM module can integrate with other Odoo modules for streamlined tracking and operation.
  • Product Management: Using Odoo, businesses can efficiently manage their products by creating and organizing product catalogs, defining attributes, managing product pricing, tracking product availability, and overseeing product lifecycle stages.
  • Inventory Management: Businesses can utilize Odoo to track inventory movements and optimize order fulfillment. The system also supports features such as barcode scanning, serial number tracking, real-time batch management, and updates.
  • Marketing: Businesses can automate marketing campaigns using Odoo. From email marketing and social marketing to SMS marketing, Odoo assists businesses in creating, executing, and automating the monitoring of campaign effectiveness. Additionally, integrating Odoo with social media platforms helps businesses increase their potential customer reach, nurture leads, and achieve rapid conversions.

Pros:

  • Complete range of customizable features from basic to advanced.
  • Offers a variety of modules spanning from sales management, and marketing, to financial management and inventory control. Modules are integrated and share data with each other.
  • Intuitive and user-friendly interface.
  • Capability to display all detailed information on a single unified database.
  • High degree of customization to suit specific business needs.

Cons:

  • Complex setup process.
  • While Odoo offers customization capabilities, complex customization needs substantial investments in terms of time, costs, and technical expertise.
  • Limited customer support.
  • Performance and scalability fall short of meeting the demands of large enterprises.

Cost: Businesses receive free usage if they utilize only a single module and there’s no restriction on the number of users. However, if a business uses two or more modules, the pricing structure is determined based on:

  • Number of users
  • Number and type of modules used

Sage x3

Sage X3 is a hybrid ERP software solution designed to meet the needs of medium-sized and large enterprises in managing and operating business activities across multiple locations or countries.

6 Best ERP Softwares for Enterprise-level Businesses - Sage X3
Sage X3

Key features of Sage X3:

Sage X3 offers a range of features from basic to advanced to support business management and operations processes, with a focus on product management, supply chain management, and financial management.

  • Product Management: Sage X3 provides businesses with flexibility in managing product-related processes through solutions such as Bill of Materials (BOM) planning, Quality Control, Shop Floor Control, and Project Management.
  • Supply Chain Management: Sage X3 offers comprehensive integration of solutions including Purchasing, Inventory Management, Sales Management, and Customer Service to help businesses capture customer demands and enhance supply chain operations efficiency.
  • Financial Management: Sage X3 provides businesses with a set of solutions to monitor real-time financial data, aiding in strategic decision-making. Solutions encompass budgeting and accounting, fixed asset management, and financial reporting.

Pros:

  • Real-time data reporting and updates, enhancing financial management processes and decision-making optimization.
  • Intuitive and user-friendly interface.
  • High scalability and extensive customization options.
  • Offers tailored support for specific industry workflows.

Cons:

  • Undisclosed pricing complicates cost estimation for deployment.
  • Absence of live chat support for direct customer assistance on the website.
  • Lack of social media integration.

Cost: Estimated implementation costs for Sage ERP can commence at $128,000. However, this figure is not fixed and will be adjusted based on the unique deployment requirements of each business.

SAP S/4 HANA

SAP S/4 HANA (High-Performance Analytic Appliance) is a leading hybrid ERP software designed for large-scale enterprises. SAP S/4 HANA is considered the next-generation comprehensive ERP solution by SAP, incorporating artificial intelligence technology. It is designed to optimize business processes, cater to specific industry requirements, and support decision-making processes. The software offers solutions in financial management, supply chain management, sales management, customer relationship management, and more.

6 Best ERP Softwares for Enterprise-level Businesses - Acumatica - SAP
6 Best ERP Softwares for Enterprise-level Businesses – Acumatica – SAP

Key Features of SAP S/4 HANA:

  • In-Memory Computing Technology: With this technology, SAP S/4 HANA can process and analyze real-time data while performing calculations and accessing data about 10,000 times faster than current technologies. This enables businesses to instantly access accurate and updated data, ensuring more confident decision-making.
  • Consolidated Reporting: This ERP provides a solution for businesses to generate consolidated reports such as balance sheets, profit and loss statements, and cash flow statements. Additionally, businesses can visualize both aggregated and unaggregated financial information using SAP Analytics Cloud.
  • On-Cloud and On-Premise Deployment: This offers businesses the flexibility to choose their preferred deployment model. On-cloud deployment promotes scalability, accessibility, and reduces infrastructure costs, while on-premise deployment grants businesses more control over data and customization options.
  • User Experience: SAP S/4 HANA offers an enhanced user experience through the modern and intuitive SAP Fiori user interface. Personalized and responsive dashboards allow access to the system across multiple devices.

Pros:

  • Real-time data retrieval using in-memory computing technology.
  • Streamlined data simplification accelerates processing, enhances system performance, and ensures data consistency.
  • Diverse features and industry-specific solutions effectively tackle sector-specific business requirements and challenges.

Cons:

  • Due to its comprehensive and advanced nature, deploying it can be intricate.
  • Given the modern technologies and features of SAP S/4 HANA, businesses must have relevant knowledge and skills for successful implementation.

Cost: The pricing details for SAP S/4 HANA are not publicly disclosed, though businesses can access a 30-day free trial with certain feature limitations.

Microsoft Dynamic 365

Microsoft Dynamics 365 software stands out as a superior hybrid ERP solution tailored for large enterprises. Depending on individual business needs, the ERP system can seamlessly integrate with diverse Microsoft applications to optimize various aspects of business operations, including sales, inventory, and financial management. Microsoft Dynamics 365 is well-equipped to provide effective support for numerous industries such as manufacturing, financial services, healthcare, eCommerce, and more.

6 Best ERP Softwares for Enterprise-level Businesses - Microsoft Dynamic 365
Microsoft Dynamic 365

Key Features:

  • Supply Chain Management: Enterprises establish an intelligent and automated supply chain by harnessing real-time, in-depth data insights that aid in forecasting, planning, and inventory management.
  • Commerce Management: Businesses enable customers to make purchases anywhere, anytime, and on any device by facilitating consistent interactions across online and offline channels.
  • Marketing Management: Companies can predict, create, and distribute content through appropriate channels while delivering personalized customer experiences.
  • Intelligent Order Management: Streamlining and automating order fulfillment processes using AI technology and real-time omnichannel inventory reporting. Additionally, it proactively addresses order disruptions by restructuring order flows.
  • Customer Data Management: Utilizes AI to gather and analyze customer data, revealing new insights while maintaining a balance between personalized experiences and data security. Leveraging these insights, businesses enhance campaigns to boost customer retention and loyalty.
  • Customer Service Management: Connects with customers across all engagement channels, addressing inquiries via chatbots and remote portals. Centralizes relevant data on a single dashboard, optimizing costs and enhancing decision-making for future requirements.

Pros:

  • Smooth integration with other Microsoft products.
  • Seamless operation of interconnected modules, spanning from marketing and commerce to supply chain.
  • Automated workflows empowered by AI technology.
  • Highly adaptable and scalable, aligning with business expansion needs.
  • Cloud ecosystem facilitates effortless connectivity to on-premise systems across devices with internet access.
  • Comprehensive reporting and in-depth analysis bolster data-informed decision-making.
  • Trial support enables businesses to evaluate suitability before full deployment.

Cons:

  • The software’s utilization of AI technology and advanced functionalities demands specific knowledge and skills for successful implementation, contributing to intricate and time-consuming deployment processes.
  • Module costs are relatively elevated, ranging from $50 to over $1000 per user per month. Thus, businesses should make the most of the trial version to ensure alignment with needs and budget.
  • Storage capacity restrictions might necessitate supplementary purchases, incurring additional expenses.

Cost:

Businesses can avail of a free 30-day trial of Microsoft Dynamics 365. Depending on the module, the software offers two pricing categories:

  • First Dynamic 365 app
  • Subsequent qualifying Dynamic 365 app

Subsequent pricing is applicable solely to individuals licensed to utilize the first app.

As an example, in the Financial Management module:

  • The initial app license cost is $180 per user per month.
  • Subsequent pricing for additional apps, for users already licensed for the first app, stands at $30 per user per month.

For detailed pricing information on other modules, businesses can refer to Microsoft Dynamics 365’s pricing page.

The aforementioned is a summary of 6 eCommerce ERP software options tailored for large-scale businesses, showcasing their unique features and respective strengths and weaknesses.

To gain a more comprehensive insight into ERPs and to select the ERP software that best suits your business requirements, contact SECOMM or call the SECOMM Hotline (02871089908) for a free consultation.

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What is Odoo The Pros and Cons of Odoo Software
WHAT IS ODOO? TOP 10 PROS AND CONS OF ODOO SOFTWARE
24/08/2023
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In today’s landscape, ERP software plays a pivotal role in the efficient management and operation of eCommerce activities. Among them, Odoo ERP stands out as pre-configured management software, tailor-made for businesses for easy downloading and utilization, providing a range of solutions to support various business facets like sales, marketing, inventory, customer service, and more. The subsequent article aims to elucidate the concept of Odoo ERP and delve into its strengths and weaknesses when integrated within enterprises.

What is Odoo?

Odoo, also known as Odoo ERP and previously called OpenERP, is a versatile open-source business management software. It comes with complete integration and customization capabilities, catering to offer a comprehensive solution for overseeing diverse facets of eCommerce operations. 

What is Odoo
What is Odoo?

Among its noteworthy functionalities are sales and marketing management, customer relations, project oversight, manufacturing, inventory control, accounting, human resource administration, customer service handling, and a plethora of other applications. As a result, Odoo is adept at fulfilling the real-world business requirements of enterprises spanning all sizes and budget ranges, across many industries.

Odoo Versions & Editions

Versions

There are various editions of the Odoo software, with the most recent being Odoo 16; additionally, Odoo 17 is anticipated for release towards the end of 2023. With respect to version 16, the development team has incorporated numerous features and tools to bolster business efficiency, concurrently concentrating on refining a host of existing attributes. Odoo 16 stands as a source of pride, being the swiftest, most visually appealing, and intuitively designed version.

Editions

The Odoo management software is available in two primary editions that every business should thoroughly explore before implementation.

What is Odoo The Pros and Cons of Odoo Software - Odoo community vs Odoo enterprise
Odoo Versions: Odoo community vs Odoo enterprise
  • Odoo Community Edition (Free Version)

This version of Odoo is free for users to download and use. The Odoo Community edition offers a wide range of features and modules that support essential business operations such as sales management, marketing, customer relationship management, inventory management, accounting, and more.

  • Odoo Enterprise Edition (Paid Version)

The Odoo Enterprise edition is a premium, paid version with multiple editions tailored to businesses of all sizes. The Enterprise edition is designed to provide advanced features and modules that enhance operational workflows. The cost of the Odoo Enterprise edition is determined by five factors: the number of users, the number of utilized apps, hosting type, deployment services, and integration with third-party systems.

Pros of Odoo

What is Odoo - Pros of Odoo
Pros of Odoo

Ease of use

The Odoo interface boasts a simple and intuitive design, with modules logically and systematically organized. As a result, new users will quickly become proficient without investing an excessive amount of time.

End-to-end Features and Modules

Odoo offers an expansive array of features and modules, spanning from fundamental to advanced, to address all requirements for effective business management and operations. These encompass tasks such as sales management, marketing, customer support, accounting, inventory control, and manufacturing. 

As businesses embark on Odoo implementation, they can initially utilize the complimentary Community edition and subsequently migrate to the paid Enterprise edition, unlocking the full spectrum of capabilities, modules, services, and progressive enhancements.

Modules Integration

Previously, businesses used to store information and data within individual department databases, leading to challenges in accessing and sharing information across departments. With Odoo, apart from providing the necessary modules for management and operations, it also aids businesses by integrating and storing data from all departments in a unified database, facilitating quicker and more convenient management and tracking.

Display Complete Data

Besides storage and integration, Odoo also holds the advantage of presenting comprehensive information. For instance, the ability to showcase detailed and complete data assists businesses in effectively managing product inventory levels on a daily or monthly basis, encompassing future shipments that have not yet been recorded. 

Moreover, businesses can better control working capital by gaining insight into their inventory status. Furthermore, the availability of all information in a unified database fosters collaboration and streamlines the accomplishment of complex tasks. This results in improved workflow processes, enabling businesses to effortlessly monitor interdepartmental processes with efficiency.

It Can Be Customizable

Another benefit of Odoo software pertains to its customization potential. Odoo allows users to tailor the software to their requirements without the necessity of writing code. Thanks to its intuitive and user-friendly interface, individuals without extensive programming skills can also make adjustments.

Affordable Costs

Comparatively, the cost of utilizing Odoo is quite reasonable in comparison to other ERPs. For businesses with a single function requirement, there is no charge for using Odoo, allowing for long-term usage. However, when utilizing two or more functions, businesses receive a 15-day trial period, followed by a moderately priced subscription. 

Costs escalate further if the customization and programming of additional modules are aligned with the business’s direction are required. If a business possesses an internal team to perform these tasks, the development costs can be avoided. In practice, businesses will need to seek support from specialized Odoo experts.

Cons of Odoo

What is Odoo - Cons of Odoo
Cons of Odoo

Customer Support

Because of constrained resources and a vast user base, Odoo is unable to offer top-notch customer support to every client. Certain customers have found themselves dissatisfied as their concerns weren’t entirely resolved during their initial support interactions. Furthermore, the cost of Odoo training is quite substantial, rendering it unfeasible for small businesses to establish a specialized Odoo support team.

Complex Set-up Structure

Much like other present-day ERP software, Odoo’s structure can pose difficulties during the initial setup for businesses adopting it for the first time. This can result in a time-consuming and effort-intensive process of addressing setup-related issues

Complex Custom

While Odoo provides numerous built-in functionalities, being a universal ERP solution for diverse business models worldwide means that adapting Odoo to a particular business type or a specific country requires customization. 

Odoo does offer customization options, but for highly specific or complex customization requirements, it might necessitate developers with extensive technical expertise and experience. This could potentially lead to extra costs for customization and overall maintenance.

Performance & Scalability

Although Odoo can meet the deployment requirements for a variety of business scales, its performance, and scalability may raise considerations for larger enterprises with substantial transaction volumes. Hence, businesses should strategize their development and assess scalability aspects prior to choosing, ensuring effective operations.

With many years of eCommerce deployment and integration of various ERP systems for numerous global enterprises, SECOMM comprehends the challenges businesses face when implementing the Odoo ERP system. 

Contact SECOMM or call the Hotline (02871089908) now to receive consultation on Odoo implementation.

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6 Tips to Build a Successful Omnichannel eCommerce Strategy
6 TIPs TO BUILD A SUCCESSFUL OMNICHANNEL ECOMMERCE STRATEGY
06/07/2023
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In 2021, The Vietnamese eCommerce market size reached 13.7 billion USD, which means the industry is growing rapidly and playing an important role in Vietnam’s economy. 

It forces business owners to find ways to make their businesses stand out and connect with customers.

One of the effective approaches is to implement an Omnichannel eCommerce strategy. This is a marketing method aimed at providing a consistent customer experience across multiple channels. It may be confused with Multichannel eCommerce, where brands sell on various channels but provide different customer experiences on each channel. Although customers can shop on social media, eCommerce websites, physical stores, etc, their experience across these channels could not be seamless. There is also the Single-channel eCommerce model, where a brand only uses one channel for sales. 

Retailers globally recognize the potential and impact of Omnichannel eCommerce on their business operations. According to Report Linker, the market for multi-channel retail platforms reached 5 billion USD in 2020 and is projected to reach 14.5 billion USD in 2027. Industry analysts and experts also emphasize that Omnichannel is the future of eCommerce and is a great way to attract customers and provide them with true value. 

Here are 6 tips to help you, as a business successfully build an Omnichannel eCommerce strategy.

Tip 1: Understand the target audience & their shopping behavior

Tip number 1, regardless of any business strategy, you have to know who your target customers are and their shopping behavior. You can start by gathering relevant data about demographic information, purchase history, etc from various sources, including eCommerce websites, social media platforms, physical stores, etc. Then, you will analyze how they interact with the brand across different channels and create detailed buyer personas. 

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 1_ Understand the target audience & their shopping behavior
Tip 1: Understand the target audience & their shopping behavior

This helps identify effective approaches for each customer segment and tailor messages for each channel. For example, if a significant portion of your customers prefers shopping on mobile devices, you can optimize your suitable marketing campaigns alongside improving the website to attract more customers. Or, you can invest in developing mobile applications to enrich the customer shopping experience and drive conversions.

Tip 2: Map the customer journey

Tip number 2 is to map out the customer journey to visually understand the process that a potential customer goes through when interacting with your brand. It helps you clearly understand their needs, buying motivations, and so forth. When developing an Omnichannel eCommerce strategy, mapping the customer journey allows you to proactively provide personalized customer experiences across channels. It not only enhances cross-selling, and upselling but also improves customer intention and loyalty. 

There are typically 5 stages in the customer journey: Awareness, Interest, Purchase, Retention, and Advocacy. 

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 2_ Map the customer journey
Tip 2: Map the customer journey

Here are the basic steps to create a customer journey map:

  • Set clear goals for the map
  • Identify buyer personas and define the target customers
  • Determine the stages and objectives for each stage
  • List out the touchpoints
  • Collect data and feedback
  • Identify areas that need to be improved

Tip 3: Develop a brand image & messaging

Another valuable tip is to develop a consistent brand message and image across channels. It requires you first to identify and understand the brand values, vision, and mission. For example, you can use consistent elements such as colors, fonts, etc, to help customers easily recognize your brand. Moreover, you need to train your staff on the brand message and image to ensure they understand and communicate the message properly across all channels. 

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 3_ Develop a brand image & messaging
Tip 3: Develop a brand image & messaging

This tip not only helps increase brand recognition and customer loyalty but also creates a seamless customer experience.

Tip 4: Engage customers on social media

Next, you can incorporate social media into your Omnichannel eCommerce strategy and focus on engaging with customers on social media platforms alongside other effective marketing channels. With over 3.6 billion social media users globally, building your brand presence in these places is no longer an option but an imperative measure  to effectively connect your brand with customers.

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 4_ Engage customers on social media
Source: Statista

Leveraging social media enables you to engage with customers by responding to inquiries and addressing concerns through messaging or interactions on the news feed in a friendly and approachable manner. In addition, social media provides you with great space to deliver brand messages and voices to customers in a quicker and more intimate way to enhance brand awareness. You can create your own ideas and content or collaborate with influencers. 

To tightly integrate social media with other channels in the Omnichannel eCommerce strategy, you can, for example, encourage users to like, comment, and share posts to receive attractive discount codes for purchases on websites or physical stores. 

Tip 5: Optimize the shopping experience

Tip number 5, for a seamless omnichannel experience, you need to ensure that customers can make purchases through any channel they interact with, such as eCommerce websites, marketplaces, social media platforms, and physical stores.

Additionally, to keep up with mobile commerce trends, you should optimize mobile-friendly and responsive websites as well as user-friendly mobile apps for easy navigation and usage.

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 5_ Optimize the shopping experience
Tip 5: Optimize the shopping experience

Since Omnichannel eCommerce emphasizes consistent experiences across all channels, content and customer-related information such as login credentials, payment details, and shopping carts should be synchronized. This enables customers to move seamlessly between channels and devices while preserving the items in their shopping carts or without the need to spend time logging in or re-entering payment information. Moreover, you can leverage data analytics to personalize product recommendations for each customer, displaying relevant or complementary products based on their behavior and purchase history across channels to increase cross-selling and upselling opportunities.

Tip 6: Measure & analyze the outcome

Tip number 6 is measuring and analyzing the results of the strategy. During the implementation process, you can utilize data analysis tools such as Google Analytics, Google Tag Manager, Facebook Pixel, and others to check, track and analyze customers across all channels. It helps identify which channels generate the most traffic, level of engagement, and sales revenue, and identify areas for improvement. In addition, you can gather customer feedback to enhance and optimize your strategy. The work should be conducted to make appropriate adjustments and achieve desired results. 

6 Tips to Build a Successful Omnichannel eCommerce Strategy - Tip 6_ Measure & analyze the outcome
Tip 6: Measure & analyze the outcome

Contact SECOMM now for a consultation on building an Omnichannel eCommerce strategy.

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Step-By-Step Guide To Develop eCommerce Loyalty Programs
STEP-BY-STEP GUIDE TO DEVELOP ECOMMERCE LOYALTY PROGRAMS
06/07/2023
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Loyal customers contribute significantly to the profitability and development of eCommerce businesses. Therefore, as a business, you need to focus on strengthening relationships with customers and encouraging repeat purchases. Among the methods available, building and convincing customers to participate in Loyalty Programs is an effective strategy.

Below is the ultimate guide to successfully build and implement an eCommerce Loyalty Program. 

Related Readings: Everything To Know About eCommerce Loyalty Programs

Set Objectives

The first step of the process is to establish the goals of the eCommerce Loyalty Program, which includes identifying the objectives (e.g. increasing customer retention rates, promoting repeat purchases, attracting new customers, increasing CLV). These objectives should align with the overall development strategy and business goals. 

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Set Objectives
Set Objectives To Develop eCommerce Loyalty Programs

In addition, as a business, you need to clearly define the target audience of the Loyalty Program by analyzing the demographic and psychographic characteristics of those audiences to design a suitable program that meets their expectations. 

You also can research the Loyalty Programs of competitors, analyze their strengths and weaknesses, and then create your own program to differentiate your business and provide unique value to customers. 

Develop eCommerce Loyalty Program

Determine types of Loyalty Program

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Determine types of Loyalty Program
Determine types of Loyalty Program

Currently, there are various types of eCommerce Loyalty Programs, but the most popular ones are point-based programs, tiered-based programs, and subscription-based programs. 

  • Point-based Loyalty Programs

This allows customers to earn points for each purchase or specific action and redeem them for rewards once they have accumulated a certain number of points. You should pay attention to the value of the rewards customers will receive and the reasonable time to redeem them to make the programs attractive. 

  • Tiered-based Loyalty Programs

This program encourages customers to strive for higher tiers to receive higher-value rewards and benefits. It will require customers to invest their time and money in shopping and engaging with your brand, meaning the more they spend, the more benefits they receive, and the higher their loyalty to your brand.

  • Subscription-based Loyalty Programs

This Loyalty Program requires customers to register as members and pay a monthly, quarterly, or annual fee, depending on the terms of each program. Because of that, customers are more likely to commit to engaging with the brand, which is higher than other types of programs. Typically, these programs will have a trial period for customers to decide whether or not to join, and this is also an opportunity for you to convince them that the value they will receive is worth every cent. 

The choice of Loyalty Program type depends on the budget, resources, and overall strategy of your business. 

Choose rewards meaningful to customers

After choosing the right type of eCommerce Loyalty Program, you will want to select rewards that are suitable for that program. For point-based Loyalty Programs, common rewards include:

  • Discounts on the next purchase;
  • Free shipping;
  • Free gifts;
  • Priority support;
  • The opportunity to join exclusive events 
  • The latest product updates.

The SHEIN Bonus Point Program is a typical point-based Loyalty Program, where customers will earn 1 point for $1 spent. In addition, customers can also earn reward points by taking specific actions such as verifying their accounts, reviewing products, etc. When reaching the required number of points, customers can redeem them for discounts of up to 70%.

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Choose rewards meaningful to customers - Shein
The SHEIN Bonus Point Program

For the type of tiered Loyalty Program, the tiers will determine the equivalent benefits that customers will receive and require effort to maintain or upgrade. Therefore, rewards will be designed to reflect the brand’s characteristics and personalized for each customer at each specific tier. This makes the customer’s efforts worthwhile. 

For example, Aldo Crew is a tiered Loyalty Program from the famous fashion brand – Aldo, with 3 main tiers: Crew, Plus, and VIP. The program offers customers attractive and personalized benefits such as special pricing, free birthday gifts, birthday discounts, 20% off handbags when purchasing shoes, exclusive privileges and surprises, and account sharing with friends.

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Choose rewards meaningful to customers - Aldo Crew
Aldo Crew

Most membership programs are applied by leading and well-known businesses worldwide due to their credibility, product value, and high-quality service that make customers trust them to spend their money to sign up. The rewards of this type of program tend to be exclusive, only available at the brand and for registered members. 

For example, customers who register for the Walmart+ membership program will receive benefits such as product discounts, shipping policies, gas service, and movie watching with Paramount+ that non-members cannot receive.

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Choose rewards meaningful to customers - Walmart+
The Walmart+ membership program

Depending on what Loyalty Program you choose, you will select rewards that are appropriate for both your customers and your business. However, you should consider the cost of each reward as well as the benefits it brings to the business before applying it to the program. Providing valuable rewards can not only increase customer retention and loyalty but also boost sales and increase the CLV. 

Choose Loyalty Program Software

Next, you will need software to develop,  and manage eCommerce Loyalty Programs, track customer activities, and distribute rewards. The choice will be based on some factors such as ease of use, integration with eCommerce websites, and the price of the software. There are some popular Loyalty Program software on the market today, including Smile.io, Loyalty Lion, Yotpo, S Loyalty, and so forth. These softwares can be easily integrated and work effectively with eCommerce platforms such as Magento, Shopify, WooCommerce, etc. 

Design the program rules

The next step is to design the rules of the program. You need to ensure that the rules and conditions for participation are presented clearly, easy to understand, and easy to follow.

For example, the Sephora Beauty Insider program is based on a tiered system where customers earn one point for every dollar they spend, and the conditions for participation and advancement are clearly presented.

Quy Trình Xây Dựng Và Triển Khai eCommerce Loyalty Program-Xây dựng thể lệ chương trình-Sephora
Sephora Beauty Insider

Again, with Walmart+ as an example, customers easily recognize the benefits they will receive for joining the program as a member, and the cost of $12.95/month after a 30-day trial as well. 

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Design the program rules - Walmart+
Walmart+

In addition, the registration process should be easy to execute. Typically, brands will require customers to create an account on their website or fill out a registration form, or even simpler, just log in with Facebook to participate. These actions are quick and easy to execute.

For example, in the Sephora Beauty Insider program, customers can click “join now”, fill out the form, and join the Insider tier. Or, if they already have an account, they need to log in to see their points balance and tier.

For the Aldo Crew program, customers need to fill out a registration form on the website or log in with their Facebook account to start.

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Design the program rules - Aldo Crew
Fill out the form to join Aldo Crew

In addition to ensuring the clarity and understandability of the program rules, you also want to ensure that the conditions set are appropriate for customers to quickly earn rewards and maintain the attractiveness of the program, while also bringing profits to the business.

For example, the Amazon Prime membership program offers customers a 30-day free trial and a range of pricing options. The most noteworthy are the monthly payment plan at $14.99/month and the annual payment plan at $139/year. The majority of customers are likely to choose the annual payment plan ($139) to save money, which is also Amazon’s intention as the profits they earn will be higher.

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Design the program rules - Amazon Prime
Choose a suitable plan to join Amazon Prime

Implement eCommerce loyalty Program

Integrate the program to eCommerce website

To implement a Loyalty Program, you will need to integrate the program into your eCommerce website and display the point balance and rewards on the Shopping cart page.

Taking Sephora as an example again, the Profile page displays the customer’s current membership tier and current point balance.

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Integrate the program to eCommerce website - Sephora
Integrate the Loyalty Program to your eCommerce website

Train the team

For the success of your eCommerce Loyalty Program, you have to educate your team about the program, including participation requirements, point accumulation methods, rewards, and more. 

Moreover, you want to ensure that your team knows how to answer customer questions about the program and handle any arising issues. This activity should be done regularly along with the changing of your Loyalty Program to fit market trends. 

By providing effective training, your team is able to promote and manage the program accordingly. This contributes to the success of your eCommerce Loyalty Program.

Launch & promote the program

When launching your Loyalty Program, you will want to make it popular so promotion is necessary. To do it effectively, you can prominently display the program on the Homepage and Navigation menu of your website. Also, you can promote the program on social media or use eye-catching graphics and compelling content for email marketing. 

An Influencer marketing campaign is an effective way to increase the program’s awareness and engagement. Referral Marketing is also a commonly used marketing strategy in Loyalty Programs today, encouraging customers to refer new members to the program to expand the customer base.

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Launch & promote the program
Launch & promote the program

Popular Loyalty Programs such as Sephora Beauty Insider, Amazon Prime, Walmart+, Aldo Crew, and eBay Plus all have referral programs. When someone signs up for the Loyalty Program through a referral link, both the referrer and the referee will receive a small bonus of $1-$10 or a discount on their next purchase. 

Measure outcomes & keep customers engaged

You will need to track and measure the results of the Loyalty Program to ensure the objectives are achieved and make adjustments if necessary. 

You can use KPIs like customer retention rate, repeat purchase rate, or average order value of members compared to non-members. Moreover, you can collect and analyze customer feedback and reviews on their satisfaction with the program to identify what to improve.

You also need to keep your customers engaged by regularly improving, updating, and promoting the program. At the same time, you should provide personalized rewards and experiences based on their interests and behavior to increase customer satisfaction and interaction.

In addition, you can consider building a community of members by providing online and offline events and special offers exclusively for program members. Again, Sephora does this well, they offer exclusive events for all Insider, VIB, and Rouge members in addition to other incredible experiences. This gradually creates a community of loyal Sephora customers who love beauty.

Step-By-Step Guide To Develop eCommerce Loyalty Programs - Measure outcomes & keep customers engaged - Sephora
Exclusive Events for Sephora’s all-tiered customers.

Retention isn’t about convincing customers who were going to leave to stick around. Instead, retention is about providing so much value to your existing customers that they never go anywhere else and become your strongest benefit.

Therefore, enhancing your customer experience through attractive Loyalty Programs is an effective way to increase customer retention and loyalty.

Contact SECOMM now for a free consultation on developing a comprehensive eCommerce Loyalty Program.

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Top 5 Most Popular eCommerce Marketing Channels
5 MOST POPULAR ECOMMERCE MARKETING CHANNELS YOU SHOULD KNOW
20/04/2023
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The global pandemic has created an unprecedented boost for the eCommerce industry, forcing business leaders to go for digital transformation whether they want to or not. However, there are still many businesses that are hesitant and encounter difficulties while embracing it.

In addition to selecting an eCommerce platform and building a website, they can leverage incredible marketing channels to develop an eCommerce marketing strategy.

What is eCommerce Marketing?

eCommerce Marketing, also known as Electronic Commerce Marketing, is the practice of using various marketing channels such as social media marketing, content marketing, SEO, or email marketing to increase the efficiency of eCommerce operations. To be more specific, eCommerce Marketing does the following:

  • Directs traffic to an eCommerce website;
  • Helps a brand appear in front of the target audience;
  • Makes it easy for people searching for products the company  sells and to discover the company’s website;
  • Converts website visitors into new potential customers;
  • Encourage existing customers to make repeat purchases;
  • Enhances the post-purchase shopping experience to increase customer satisfaction and loyalty. 
  • Drive more frequent and larger orders at the eCommerce website.
Top 5 Most Popular eCommerce Marketing Channels
What eCommerce Marketing does

The purpose of eCommerce Marketing is to enhance brand awareness and boost sales. Therefore, if a business doesn’t have an eCommerce Marketing strategy, then it’s really hard for their eCommerce website to generate conversion despite the beautiful interface and well-built functional system.

Most popular eCommerce Marketing Channels

Social Media Marketing

Top 5 Most Popular eCommerce Marketing Channels
Social Media Marketing

Currently, most brands and content creators take advantage of the popularity of social media as the first step for connecting and serving their target audience with content that interests them. eCommerce businesses can do the same by using engaging content and images to grab the audience’s attention and direct traffic to their website.

In this case, the eCommerce website interface must have a high level of visual appeal, especially showcasing prominent products to create inspirational shopping. Moreover, businesses can implement social commerce to directly sell products on social media platforms like Facebook, Instagram, TikTok, and so forth.

Content Marketing

Top 5 Most Popular eCommerce Marketing Channels
Content Marketing

This is an effective marketing channel that brings long-term results for eCommerce businesses as well as a sustainable branding tool for their brands. Currently, various types of content are widely used, including

  • Blogs;
  • Videos;
  • Podcasts;
  • Educational content;
  • User-generated content, such as images, videos, forum discussions, testimonials, etc.

The goal of content marketing is to answer questions, provide information, promote the brand, suggest and guide customers in choosing products, and even entertain them. With optimized content, customers will quickly find out the website and the business can increase the conversion rate. Moreover, the business can leverage that content for the next eCommerce marketing campaigns.

Search Engine Marketing (SEM)

Top 5 Most Popular eCommerce Marketing Channels
Search Engine Marketing

SEM includes both Search Engine Optimization (SEO) and paid advertising. While SEO requires marketers to understand Google’s ranking algorithm to optimize their content to meet Google’s evaluation criteria, SEM relies on various campaigns such as pay-per-click (PPC) campaigns, display campaigns, or product advertising campaigns like Google Shopping Ads. 

On Google, PPC campaigns ensure that potential customers will see the link leading to the brand’s website when they enter search terms that match the selected campaign keywords. That is the reason why eCommerce businesses frequently utilize Google Adwords and run PPC campaigns to advertise their product pages.

This way enhances the chances of searchers clicking on the link and making a purchase decision before leaving the eCommerce website, leading to a notable increase in conversion rates.

Influencer Marketing

Top 5 Most Popular eCommerce Marketing Channels
Influencer Marketing

A reliable influencer can be a brand’s ‘best friend’. The introduction or endorsement of an influencer can help businesses quickly increase sales, optimize marketing ROI, and raise brand awareness. In addition, Influencer Marketing leverages the trust in an individual’s persuasive abilities and self-confidence to influence and encourage their followers to make purchasing decisions.

Influencer marketing is a highly effective eCommerce marketing channel in that eCommerce brands are more likely to continually find ways to collaborate with influential individuals to drive recognition and emotional shopping for specific products or services

Email Marketing

Top 5 Most Popular eCommerce Marketing Channels
Email Marketing

This is one of the oldest categories of Digital Marketing. Today, in the eCommerce world, email marketing still plays a very special role that enables businesses to automate campaigns toward targeting subscribers from different segments or stages in the customer journey

However, businesses should be careful in selecting and categorizing the target groups in their email list, to send the right content to the right target audience. This way, businesses can maintain the trust of potential customers at a time when privacy and personal data security have become increasingly important to Internet users.

Therefore, they should be cautious in building their email list if email marketing is a part of their eCommerce marketing strategy.   

With all things considered, if there is no eCommerce Marketing, eCommerce websites are virtually unknown. The only way for a website to gain brand recognition, attract more online customers, and generate consistent and regular revenue is to effectively implement target marketing activities. 

With a wealth of experience successfully implementing eCommerce for many customers in various countries in recent years, SECOMM understands the difficulties and obstacles businesses face when undertaking tasks related to eCommerce marketing strategy. 

Contact SECOMM today to receive free support and consultation.

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Growth Potential With Mobile Commerce In 2023
GROWTH POTENTIAL WITH MOBILE COMMERCE
20/04/2023
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According to the latest data compiled by Statista, as of January 2023, the number of global smartphone users is 6.92B people, increasing by 4.2% annually. In Vietnam alone, this number is around 69 million users, whereas, in the US, Pew Research Center estimates that about three-fourths of Americans own a smartphone. These data demonstrate that smartphones have become common devices, and the demand for owning and using smartphones is significantly increasing. 

In addition, the Internet has long ceased to be a high-end infrastructure for countries. Therefore, people today tend to prioritize using mobile devices like smartphones to browse the web. 

Typically, Brands tend to establish a strong presence in areas with a wide pool of potential customers, so the emergence of Mobile Commerce quickly gained acceptance and became one of the key business strategies of many enterprises. 

Moreover, the appearance of the Covid-19 pandemic in 2020 became a great boost for eCommerce in general and Mobile Commerce, in particular, to explode strongly.

During that period, the smartphone became the shopping companion of users as 79% of users used their smartphones or other mobile devices to shop online, as reported by OuterBox. Despite the eventual end of the pandemic, the Mobile Commerce growth trend is projected to continue as mCommerce retail sales hit $415 billion in 2022, and are predicted to reach $710 billion by 2025.

What is Mobile Commerce?

Mobile Commerce or Mobile eCommerce, abbreviated as m-commerce or mCommerce, is also known as Thương Mại Di Động in Vietnamese. This term was first coined and used by Kevin Duffey at the Global Mobile Commerce Forum in 1997, which means “providing direct eCommerce capabilities to consumers, anywhere, through wireless technology”. 

Simply put, it is a business model in which all online monetary transactions are conducted on mobile devices such as shopping, banking, eWallet transactions, ride-hailing, food delivery, hotel reservations, etc.

Growth Potential With Mobile Commerce In 2023
What is Mobile Commerce?

mCommerce vs eCommerce 

eCommerce or electronic commerce is a relatively broad concept that refers to the buying and selling of goods and services over the Internet. Meanwhile, Mobile Commerce is a branch of eCommerce or the mobile version of eCommerce, specifically referring to electronic commerce transactions carried out on mobile devices.

Furthermore, the eCommerce shopping experience depends heavily on desktops and websites, making it less mobile-friendly and inconvenient for customers. On the other hand, with Mobile Commerce, customers can easily bring their devices with them anywhere, allowing businesses to provide personalized shopping experiences that help customers make quick purchasing decisions.

Top Mobile Commerce Trends Are On The Rise

Thanks to the popularity of smartphones in every consumer’s life, related trends are on the rise such as mobile shopping, mobile payment, and social commerce.

Mobile Shopping Apps

Mobile shopping apps are becoming more and more popular and are the most prominent trend in mobile commerce. Many retail brands across various industries are investing in building and developing their own eCommerce apps such as the fashion industry, the cosmetic industry, and so forth. This not only helps businesses increase their conversion rates and sales but also makes the shopping experience easier and more convenient for customers, as they will be able to search for products and complete purchases right on the app.

Growth Potential With Mobile Commerce In 2023
Mobile Shopping App

In addition, the outbreak of the Covid pandemic and the establishment of social distancing measures in 2020 marked the beginning of the boom of shopping apps. As stated by the Mobile Shopping Report 2021, global usage of shopping apps increased by 40% in Q1 2021. 

In the effort to develop sustainably amidst the pandemic crisis, the SHEIN app with nearly 15.5 million global users played a significant role in contributing to the company revenue of $9.81 billion in 2020.

As of 2021, SHEIN’s mobile app reached 43.7 million users and became the second most downloaded app in the world after Shopee. In 2022, SHEIN’s user base grew to 74.7 million and officially became the most downloaded mobile app globally in the shopping category with over 229 million downloads and installations from the App Store and Google Play

Mobile Payment Apps

The usefulness of smartphones not only lies in online shopping but also makes transactions and payments more convenient and easy during the peak period of the pandemic. In addition to Mobile Banking applications, users have a special preference for mobile wallet or eWallet applications.

Growth Potential With Mobile Commerce In 2023
Mobile Payment App

In the Vietnamese market, when it comes to eWallets, people immediately think of MoMo. However, MoMo is not only known as a typical eWallet but also an incredible super application.

To date, MoMo has built a platform that provides about 400 different types of services in many fields such as consumer finance, insurance, money transfer, payment, entertainment, shopping, dining services, and charity donations, etc. The number of MoMo users has increased significantly in recent years, from 10 million users in 2019 to about 31 million users in 2022, and the company’s next target is at least 50 million users.

Social Commerce

In addition to making their mobile shopping apps, selling on social media platforms is also one of the widely applied strategies. The popularity and large user base of social media are a solid foundation for the development of Social Commerce and a playground for merchants of all sizes. Social Commerce is a form of online selling through social media platforms like Instagram, Facebook, and TikTok.

Growth Potential With Mobile Commerce In 2023
Social Commerce

Selling on social media will help brands reach the existing large user base and utilize influencers for their marketing campaigns. 

For example, the vegan cosmetics brand Cocoon does this through TikTok Shop. Cocoon is known for its environmentally friendly and animal-testing-free products, and they opened a store on TikTok and collaborated with famous beauty vlogger Ha Linh, which brought them a lot of success. It not only boosted their sales but also reached nature-loving, animal-loving, and young customers on TikTok.

Benefits of Using Mobile Commerce

Convenience and Accessibility

As mentioned, the global number of smartphone users is estimated to reach around 6.9 billion by 2023, which is a driving force for the development of Mobile Commerce. Anyone who owns a smartphone has the potential to become a customer. As a result, implementing Mobile Commerce will help businesses reach this enormous user base, nurture and generate conversions. 

In addition, with the mobility of Mobile Commerce, smartphone users with internet access can shop anytime, anywhere, even on the go without being dependent on a fixed location. Especially when visiting a store to shop, instead of paying in cash or by card, customers can now pay through eWallets such as MoMo or VNPay, etc.

Offer Personalized Experience

Currently, businesses are very focused on personalized customer experience, which is particularly important in the Mobile Commerce world. A smartphone is a personal item that each person carries out personal activities throughout the day. Moreover, in the online shopping trend, customers highly value brands that provide them with a personalized experience because it demonstrates the brand’s concern for its customers. As a result, the more businesses focus on details and personalization in their messages and promotional programs, the better. 

For Mobile Commerce, push notifications are an effective solution. Mobile Commerce apps help businesses track and collect user data including personal information, social media accounts, interests, current location, purchase history, viewed products, etc. After that, they can combine and analyze the data to send appropriate messages to the right target audience through push notifications.

Growth Potential With Mobile Commerce In 2023
Using Push Notifications to offer personalized experience

Recent studies have shown the effectiveness of push notifications in connecting with customers and notifying them about new products and special incentives. 

  • The open rate of push notifications is 90%.
  • This open rate is 50% higher than email marketing.
  • Up to 55%-60% of mobile app users agree to receive push notifications.
  • 70% of them find push notifications useful.
  • 52% of users search for related information and promotional programs after receiving and reading push notifications.
Growth Potential With Mobile Commerce In 2023
Offer Personalized Experience

Push notifications are one of the strategies implemented to provide personalized shopping experiences and bring satisfaction to customers. The more satisfied customers are with their shopping experiences, the higher the likelihood that businesses will increase customer retention rates and maintain their loyalty

Provide Omnichannel Shopping Experience

The demand for a personalized shopping experience is increasing among customers, as well as the need for a consistent shopping experience across multiple channels, from online to offline stores. According to a study by MasterCard, customers who have a multi-channel shopping experience with a specific retailer tend to spend 250% more than the average. The fashion brand Macy’s has stated that the value of multi-channel shoppers is 8 times higher than that of those who only shop on a single channel.

Moreover, smartphone users tend to use their devices while shopping in offline stores for various purposes, as Retail Dive‘s survey has listed in detail: 

  • 58% search for product information;
  • 54% compare prices;
  • 40% collect vouchers or coupons;
  • 33% access the mobile app of the business;
  • 22% scan QR codes.
Growth Potential With Mobile Commerce In 2023
Provide Omnichannel Shopping Experiences

Therefore, by implementing Mobile Commerce, businesses can provide customers with a multi-channel shopping experience.

Mobile Commerce is exploding thanks to the boost from the Covid pandemic. Even though the pandemic has passed, the impact of Mobile Commerce on the development of eCommerce businesses is still significant. If businesses plan to approach Mobile Commerce in 2023, it is a wise decision.

Contact SECOMM today to learn more about Mobile Commerce and the best solutions to get started. 

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How to Leverage the O2O Commerce to Win the Retail Industry
HOW TO LEVERAGE THE O2O COMMERCE TO WIN THE RETAIL INDUSTRY
18/04/2023
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Retails has miraculously recovered from the global pandemic and is expected to make a breakthrough in the years ahead. One of the ways to embrace eCommerce is the O2O model, which combines online and offline operations. 

The benefits of implementing O2O Commerce

How to Leverage the O2O Commerce to Win the Retail Industry-The benefits of implementing O2O Commerce
The benefits of implementing O2O Commerce

Increase Brand Awareness

One of the big challenges of physical stores is how to raise brand awareness among potential customers who are far from the store location. Using online-to-offline marketing strategies can increase the public’s awareness of a business’s brand. That way, businesses will be able to reach an influx of customers and boost their awareness of the brand and its products which then lead to higher sales volume and massive revenue.

Boost Sales

Despite the rapid development of eCommerce, brick-and-mortar stores still maintain stable sales because many customers still prioritize visiting stores to shop. A recent study indicates 46% of responders said they preferred shopping at a brick-and-mortar store because they want to touch, feel and try the products physically before making purchases. Another interesting fact is customers are likely to spend more money while in the store.

For example, a man comes to a bookstore to buy a notebook, then he looks around and decides to buy some more pens. In case he buys the notebook online, he may only buy it. Thus, the O2O Commerce model is a good choice as businesses can not only use online channels to raise brand awareness but also overcome the limitations of offline channels to earn massive revenue.

Enhance Customer Experience

The incredible combination of online and offline channels makes the customer shopping experience more seamless and interesting. Online platforms enable consumers to contact brands easily and immediately. When they want to ask for a product’s details, they can send a message through Facebook Messenger or a chatbot on an eCommerce website and the supporting team will answer their questions instantly.

Based on the customer’s data, businesses can offer product recommendations via online channels or the next time customers visit physical stores. In another case, if businesses run ad campaigns, they can notify their customers via online channels, which will help them to reach a larger audience with their online ad campaigns instead of just informing customers when they walk into the store.

Common strategies in O2O Commerce

BOPIS (Buy Online Pick-Up In-Store)

BOPIS is not a brand-new way to shop but has been around for a while. Merchants that provide this service can attract online shoppers to visit their brick-and-mortar stores. This way, customers will browse the eCommerce website to search for products, buy them and get notifications when the products are ready to pick up in the physical store. It’s convenient for customers to select a specific time to come to check and get their orders at the store. Merchants gain benefits too with amazing cross-sell and up-sell opportunities.

How to Leverage the O2O Commerce to Win the Retail Industry-BOPIS (Buy Online Pick-Up In-Store)
BOPIS (Buy Online Pick-Up In-Store)

Home Delivery

Although BOPIS is great, it may not be every customer’s choice as not everyone likes to go to the store to pick up the products, instead people prefer home delivery rather than the in-store pick-up option. Sometimes, shopping at the store also causes many inconveniences, for example, finding a parking lot to go to the store in a densely populated area, picking up the goods, and returning to the car, seems time-consuming and annoying for busy people.

To solve this problem, merchants can self-deliver if the store location is close enough and convenient for the delivery process to be fast and efficient. Otherwise, collaborating with delivery companies like Giao Hang Nhanh, Giao Hang Tiet Kiem, and so forth, is a good choice when the business resources need to be increased.

How to Leverage the O2O Commerce to Win the Retail Industry-Home Delivery
Home Delivery

In-store Returns

Suppose a customer bought a product online but when receiving it, he realized it didn’t fit his demand. There was a store nearby, so he decided to return the product he bought there. But when he arrived, the staff there didn’t accept his return request because they had no clues of that purchase in the store’s system.

Therefore, he had to return his order to the carrier and wait a long time before receiving his refund. That will make consumers wonder whether they should keep shopping with that merchant next time. Thus, in-store return has become a fantastic offerable solution for customers to avoid the hassle of returning goods. This method simplifies the return process for shoppers and merchants because returns and refunds are processed simultaneously, which means better customer service and a much faster return to stock.

How to Leverage the O2O Commerce to Win the Retail Industry-In-store Returns
In-store Returns

Loyalty Program

Loyalty Program is another great way to encourage customers to engage with the O2O shopping experience. 

How to Leverage the O2O Commerce to Win the Retail Industry-Loyalty Programs
The two loyalty programs that are commonly used are reward points and gift cards/gift voucher

Reward Points

This is one of the popular types of loyalty programs. Every business can assign points to any items or user activities. While purchasing or joining any engaging program, customers will easily earn points afterward for later exchanging gift cards, vouchers, and even actual money which then encourages them to go back to spend more in order to get benefits from the gifts. As a result, reward points will boost sales and increase brand loyalty. 

Gift Cards/Gift Voucher

Gift cards can be used not just as gifting options but also as a powerful tool to get customers to spend in their outlet. Customers can use gift cards immediately or save for later purchases, or even give it to relatives and friends. As a result, relatives and friends are likely to become potential customers of the brand soon.

How to implement O2O Commerce in business

How to Leverage the O2O Commerce to Win the Retail Industry-The benefits of implementing O2O Commerce
3 steps to implement O2O Commerce

Identify Objectives

The first thing to do is identify the main objectives. If businesses haven’t built their online presence, they should do it immediately due to the rise of online shopping. If businesses already have their online presence (eCommerce website, mobile app, marketplace), it’s important to adjust their O2O Commerce strategy to increase sales online, offline, or both. They should also consider using some measurable metrics to ensure these objectives are appropriate and achievable.

Brainstorm Strategies

Next is working with a team to raise ideas for the O2O Commerce strategy. Here are a few suggestions:

  • Use performance analysis software to find out customer challenges in the purchasing process.
  • Use social media to connect the brand’s eCommerce store to its physical store.
  • Implement the BOPIS process.
  • Provide home delivery for some or all items for both online and in-store purchases.

Then use these data to decide which strategies to try.

Measure Outcomes

Once deciding on strategies to deploy O2O Commerce, businesses will use collected data to measure the success of those strategies and make the next business decisions. Looking back on the initial objectives when evaluating and adjusting the O2O marketing and business strategy, then considering the additional objectives if the original ones have been achieved.

O2O Commerce solution at SECOMM

Founded in 2014, SECOMM is specialized in providing O2O Commerce solutions. Over the years, SECOMM owns a massive fortune of O2O commercial projects with major domestic and international customers such as, Annam Gourmet, Trentham Estate, etc.

In particular, SECOMM provides a variety of services to support businesses to improve their competitiveness and dominate the retail market in the digital age including Solution Consulting, Core-team Building, and O2O System Development, including: 

Business System

  • eCommerce system: websites, mobile apps
  • POS system

Administration System

  • Enterprise Resource Planning (ERP)
  • Customer Relationship Management (CRM)
  • Product Information Management (PIM)

Customer Experience Management System

  • Mobile Apps
  • Loyalty Program
  • Omnichannel Commerce

Data system

  • Analyzing and Tracking business data 
  • Business Intelligence 

Want to learn more about O2O Commerce as well as the best solutions to win the retail industry? Contact SECOMM now for a free consultation.

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Everything To Know About eCommerce Loyalty Programs
EVERYTHING TO KNOW ABOUT ECOMMERCE LOYALTY PROGRAMS
11/04/2023
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In the world of eCommerce, customer loyalty plays an important role in the success of businesses amidst fierce competition. There are many ways to build and maintain customer loyalty, but one of the most prominent is to enhance the customer experience through loyalty programs. 

The Importance of Customer Loyalty for eCommerce Businesses

Sometimes businesses focus too much on finding new customers and forget the value of their existing customers. The following statistics show how valuable it is to maintain customer loyalty:

  • The probability of selling to an existing customer is 60%-70%, whereas, the probability of getting a prospective customer to buy products from you for the first time is only 5% to 20%. 
  • 65% of sales come from existing customers.
  • Compared to new and prospective customers, existing customers are 50% more likely to try out new products.
  • 80% of future profits will come from just 20% of your existing customers. 
  • Loyal customers spend an average of 31% more than new customers.
  • 32% of executives worldwide said customer retention is their top priority.
  • Increasing customer retention by even 2% has the same impact on profitability as cutting costs by 10%.
  • 75% of loyal customers will recommend the brand to friends and family.

Existing customers are the best customers and the most valuable asset of an eCommerce business. These customers contribute greatly to the business profit and help businesses save time and money to acquire new customers.

Everything To Know About eCommerce Loyalty Programs-The Importance of Customer Loyalty for eCommerce Businesses
The Importance of Customer Loyalty for eCommerce Businesses

What affects Customer Loyalty?

89% of eCommerce businesses around the world agree that the customer shopping experience affects customer retention. A high customer retention rate indicates that customers are happy and satisfied which leads to increased loyalty and repeated purchases.

Retaining customers plays an important role in eCommerce businesses because the cost of attracting new customers is five times higher than maintaining existing ones. Moreover, increasing customer retention by even 5% can increase business profits by up to 95%. This is because satisfied customers are likely to refer the brand to others.

Therefore, businesses need to focus their time, money, and energy on enriching the customer experience, persuading them to come back to shop more often, and recommending the brand to friends and family.

Among the various strategies for maintaining customer loyalty, Loyalty Program is one of the most effective factors for eCommerce success.

Everything To Know About eCommerce Loyalty Programs-What affects Customer Loyalty
What affects Customer Loyalty?

What is an eCommerce Loyalty Program?

A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the service of a business associated with the program. Simply put, eCommerce businesses build loyalty programs to reward customers for their purchases and engagement for a long time.

The reward can be any free product, discount code, or special offer to represent the appreciation of the business for its customers, who tend to spend more because of the benefits they receive when participating in loyalty programs.

Everything To Know About eCommerce Loyalty Programs-What is an eCommerce Loyalty Program
What is an eCommerce Loyalty Program?

According to Yotpo, nearly 68% of customers said they would be willing to join the loyalty program and special incentives motivates them to buy more products.

Loyalty programs not only enrich the shopping experience and keep customers engaged with the brand but also from a business perspective, the benefits they bring to eCommerce businesses exceed the initial expectation. 

The Benefits of Using eCommerce Loyalty Programs

Increase Customer Retention

The development of eCommerce helps customers shop more conveniently. That means their expectations for the shopping experience are higher. Today’s customers make their purchasing decisions not only based on price but also other factors such as service experience or emotional connection with the brand, etc.

Everything To Know About eCommerce Loyalty Programs-Increase Customer Retention
Increase Customer Retention

According to HuffPost, 66% of customers tend to switch brands for shopping if the service is not good enough. Loyalty programs help enhance the shopping experience. The more shopping satisfaction, the more customer retention and loyalty. 

Increase Customer Lifetime Value

Customer Lifetime Value or CLV is a key metric that indicates the total revenue an eCommerce business can reasonably expect from a single customer account throughout the business relationship. Most business owners will always find ways to increase the CLV index in order to maximize their profit.

Everything To Know About eCommerce Loyalty Programs-Increase Customer Lifetime Value
Increase Customer Lifetime Value

According to Harvard Business Review, the cost of acquiring a new customer is more expensive, ranging from 5 to 25 times, compared to retaining an existing customer. As a result, high lifetime value customers become priceless assets for a business, as their purchases will not require acquisition costs. In other words, a business doesn’t have to incur acquisition costs for loyal customers. 

On the other hand, the business has to spend acquisition costs to convince potential customers to buy its products. Thus, even if a new customer spends the same amount on a product as an existing customer, it may not bring in equivalent profits because of acquisition costs. 

Encourage Brand Advocates

In most cases, existing customers are also the most incredible advocates. When customers are satisfied with the shopping experience, they are more likely to share it with their family, friends, or colleagues, and the business will gain more potential customers naturally. 

Everything To Know About eCommerce Loyalty Programs-Encourage Brand Advocates
Encourage Brand Advocates

Compared to brand messages, recommendations from existing customers are even more effective. According to Nielsen, 77% of consumers trust recommendations from people they know more than any other source. As a result, before making a purchase, they will seek advice from people they trust. Plus, 64% of marketing experts believe that word-of-mouth marketing is one of the most effective forms of marketing. 

With the development of the Internet and social media platforms, recommendations from existing customers come in various ways, including posts, comments on social media or review videos, etc. This helps reduce acquisition costs so that every eCommerce business needs to focus on enhancing their existing customer shopping experience and new customers will end up rolling in for free. 

Types of eCommerce Loyalty Programs

Point-based Loyalty Programs

This is one of the most popular eCommerce loyalty programs since it is easy to set up and manage. By joining this type of program, customers can earn reward points after each purchase. They can then redeem their accumulated points for rewards such as gifts, discount codes, and other special offers. They also can earn reward points in many other ways besides making purchases, such as sharing product pages on social media, writing product reviews, completing surveys, filling out personal profiles, and so forth. 

Although this type of program is relatively simple to implement, businesses still need to ensure that the points customers earn have enough value to encourage them to continue shopping. Plus,  the time it takes to redeem points for rewards should be short enough because if customers have to wait for several months or even years to redeem points for a valuable reward, the attractiveness of the points-based program will decrease.

Everything To Know About eCommerce Loyalty Programs-Point-based Loyalty Programs
Point-based Loyalty Programs

SHEIN, a popular fashion brand founded in 2008, has created a great SHEIN Bonus Point Program reward system on its mobile app. This program allows customers to earn points by registering an account, making purchases, reviewing products, and participating in special online events held by the brand. 

Each activity equals a specific reward point. Then, customers can use their reward points to receive discounts ranging from 15% to 25%, and even up to 70% for their next purchase. Additionally, reward points can also be used to exchange vouchers or other special offers when customers participate in SHEIN events or play games on the mobile app.

Tier-based Loyalty Programs

Another popular loyalty program is the tiered-based one. It encourages customers to strive to move up higher tiers to receive more valuable benefits and rewards. The more customers spend on shopping, the more benefits they receive. 

This program helps to foster customer loyalty to the brand. To maintain or move up in rank, customers have invested a lot of time and money, and they will not easily give up the huge benefits they are receiving to participate in another brand’s loyalty program.

Everything To Know About eCommerce Loyalty Programs-Tier-based Loyalty Programs
Tier-based Loyalty Programs

The famous shoe brand Aldo, with over 1,000 stores in 65 countries, focused on 3 main markets – the US, the UK, and Canada – when building their loyalty program. Known as Aldo Crew, the program offers customers three levels of membership: Crew, Plus, and VIP. All customers are initially enrolled as Crew level members. To advance to the Plus or VIP levels, customers must spend between $150-299/month for the Plus level and over $300/month for the VIP level. Depending on the level, each customer receives corresponding rewards, and VIP-level customers receive all the special perks offered by the Aldo Crew program.

Subscription-based Loyalty Programs

eCommerce loyalty programs are very attractive because, from the customer’s perspective, they get benefits for free. However, in reality, customers have to make a purchase or perform a specific action to earn those “free” benefits. 

Many world-renowned brands have created incentive programs based on subscriptions to provide incredible services and charge customers for participation. Amazon Prime, eBay Plus, and Walmart+ are some examples.

Everything To Know About eCommerce Loyalty Programs-Subscription-based Loyalty Programs
Subscription-based Loyalty Programs

To participate and receive truly valuable benefits, customers are required to pay a fee. Since customers have to pay a fee, their commitment to engaging with the brand is also higher than in other loyalty programs. Also, because businesses charge customers when they register as members, this loyalty program type usually has a trial period for businesses to convince customers that the benefits they receive are worth the money they spend.

In 2020, the famous American retail chain Walmart launched a subscription-based loyalty program called Walmart+. The program is integrated into the Walmart app and offers many special benefits to customers both in-store and online, including:

  • Free delivery and same-day pickup
  • Free delivery with no minimum order value
  • The same prices for products purchased online and in-store
  • Scheduling delivery options
  • 10-cent discount on gasoline at over 14,000 Walmart branches
  • Scan-and-go checkout option
  • Special member-only deals and promotions during holidays and events, etc.

To join the program and enjoy these benefits, customers have to sign up and pay a specific membership fee of $12.95/month or $98/year. Customers can try the program for 30 days before committing to a membership. 

The loyalty program strategy plays an important role in customer experience which leads to their loyalty to the brand. The success of SHEIN, Aldo, and Walmart has become an inspiration for other eCommerce businesses to jump into the game. 

To learn more and develop the best loyalty program strategy, contact SECOMM now for a free consultation.

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What is TikTok Shop Everything You Need To Know
WHAT IS TIKTOK SHOP? EVERYTHING YOU NEED TO KNOW?
11/04/2023
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Along with the development of technologies, social platforms like Facebook, Instagram, and Twitter have been around to satisfy the demand for online interaction for over two decades. However, the change in consumer behavior makes TikTok the new favorite. 

By the end of 2022, TikTok was reported to reach 1B users globally, becoming the fastest-growing social platform ever. Having a large user base amid the rise of online shopping is an advantage, which contributes to TikTok’s ongoing transition into a Social Commerce platform. 

Recently, the social media platform has added a new buying and selling feature called TikTok Shop. It is a new solution for businesses of all sizes to boost customer engagement, brand awareness, and sales. 

What makes TikTok special?

The content of TikTok consists of vertically arranged videos that are compatible with smartphones and users only need to swipe up to watch a series of videos that are only a few seconds to one minute long. Creating content on TikTok is also easy and simple, users only need to upload the original video and add a few effects, then they will have an interesting and fun short video. With over 1 billion videos viewed on TikTok every day, it has opened up marketing opportunities for many brands. 

The majority of TikTok users are Millennials and GenZ, and it now expands to even younger users. They are a driving force behind the increasing expectation of digital experiences. Over 55% of GenZ in Vietnam are using TikTok, in the US, 62% of people between the ages of 10 – 29 are using this social network. The attention span of Millennials is about 12 seconds and for GenZ it’s around 8 seconds. Therefore, TikTok’s short-length videos are particularly popular with these generations because of their easily consumable content.

When compared to Reels (a feature of Instagram) and Short (a feature of Youtube), TikTok even has the upper hand. As The Graygency has noted, the monthly user base of IG Reels is in the lead with 2 billion users, followed by Youtube Shorts with 1.5 billion, and finally TikTok with 1.2 billion. The Reels feature was launched in 2020 and immediately became popular due to Facebook and Instagram’s enormous existing user base. The same is true for Youtube Shorts.

Meanwhile, TikTok was launched in 2016 but has reached 1 billion users in just 5 years. For Instagram and Youtube, this number took 8 years. A new player like TikTok when compared to the 2 major social platforms with a not-so-significant difference in user base, makes TikTok incredibly special. Plus, when considering other criteria like Engagement Rate, Female Users, Male Users, etc, TikTok even has higher rates than IG Reels and Youtube Shorts.

What is TikTok Shop Everything You Need To Know-What makes TikTok special
Source: The Graygency

Another thing that makes TikTok special lies in its algorithm. When opening the app, users will see the “For You” page where TikTok displays videos that users may be interested in and immediately capture their attention. However, these videos don’t come from creators or brands that the user is already following but from the users’ interactivities on the videos, which is completely different from other social media platforms. 

The “For You” page is the most successful feature of the app as it creates content every second specifically tailored to each user’s personal preferences. These successes have led to a new step for the social platform – TikTok Shop

What is TikTok Shop?

TikTok explained in its launch statement:

“TikTok Shopping is a suite of solutions, features, and advertising tools that give businesses the opportunity to capture the full power of TikTok’s influence on purchase decisions”

Simply put, TikTok Shop is a new feature that allows TikTok users to buy products right on the app. Also, it provides businesses a way to display, promote and sell their products to a huge user base on TikTok. 

After setting up the TikTok Shop feature, a dedicated shopping tab will appear on the brand’s profile. That way, customers can browse through and purchase within the TikTok app or be transferred to the brand’s eCommerce website for checkout.

What is TikTok Shop Everything You Need To Know-What is TikTok Shop
What is TikTok Shop?

TikTok Shop Live

Besides the TikTok Shop feature, TikTok Shop Live is also a great resource to take advantage of. Brands can integrate their products from TikTok Shop into their live stream to encourage customers to interact with the brand and whenever they see a product they like, they can buy it during the live shopping stream. 

Let’s see the key TikTok Live Shopping stats:

  • 50% of TikTok users have bought something after watching TikTok Live;
  • Users on TikTok are 50% more interested in branded Live content than non-TikTok users;
  • 1 in 5 users watch TikTok Live and of that group 62% watch it every day
  • TikTok users are two times more likely (compared to non-TikTok users) to say the live stream is the most trustworthy to use when shopping.

Ha Linh, a female beauty vlogger in Vietnam, is widely recognized by everyone in the Vietnamese beauty community for her genuine product review videos. She fearlessly provides critical feedback on any brand, and her reputation precedes her. Recently, Ha Linh held her first live stream on TikTok, which incredibly got 11 million hearts and 80K views. To everyone’s surprise, within an hour, all the products from the three factories of the brands she collaborated with were sold out. This case highlights the effectiveness of influencer marketing campaigns in conjunction with TikTok Live Shopping for brands targeting young customer demographics.

What is TikTok Shop Everything You Need To Know-TikTok Shop Live
TikTok Shop Live at Ha Linh channel (a Vietnamese KOC)

Why brands need to embrace TikTok Shop?

Keep up with Social Commerce

According to research, 87% of customers make their purchasing decisions through information provided on social media, 90% discover brands through social media, and the average spent per day on social media is over 2 hours. This is a new great boost for Social Commerce globally. In 2022, global Social Commerce sales reached $992B and are estimated to exceed $3 trillion in 2026. 

What is TikTok Shop Everything You Need To Know-Keep up with Social Commerce
Keep up with Social Commerce

With a massive user base of over 1 billion, TikTok has the potential to become the leading platform in global Social Commerce, and the TikTok Shop feature has been launched to achieve that goal. TikTok Shop is currently available in Europe, North America, and 7 Asian markets, including Vietnam.

The short videos on TikTok are already very appealing, and when combined with cleverly integrated advertising content, they can attract users’ attention. This not only entertains and engages users, but also motivates them to make purchases from the advertised shoppable content. According to data compiled by TikTok, 67% of users have purchased after watching a video even if they didn’t intend to do so beforehand. 

Thus, TikTok has created an infinite loop of shoppertainment that combines shopping and entertainment within the app. As TikTok prioritizes user-generated content and 83% of its users have created videos on the platform, after purchasing, they are more likely to share their experience with other people on the app. This ultimately creates an endless loop of shopping, discovery, consideration, purchasing, reviewing, and engaging that repeats itself.

Reach out to a large user base on TikTok

The majority of TikTok users are in the age range of 18-34. According to Statista, as of January 2023:

What is TikTok Shop Everything You Need To Know-Reach out to a large user base on TikTok
Reach out to a large user base on TikTok

Bên cạnh đó, những danh mục nội dung phổ biến nhất trên TikTok bao gồm giải trí, thể thao/fitness, nấu ăn, mỹ phẩm, thời trang,…

Do đó, nếu các doanh nghiệp đang kinh doanh trong những lĩnh vực này và hướng đến phân khúc khách hàng trẻ tuổi thì xây dựng hiện diện nhanh chóng trên nền tảng TikTok và tận dụng tính năng TikTok Shop là điều cấp thiết phải triển khai, như cách mà Kylie Cosmetics đã làm.

TikTok Shop Là Gì Giải Mã Sức Hút Mạnh Mẽ Của TikTok Shop-Kylie Cosmetics
Gian hàng TikTok Shop tại Kylie Cosmetics

Moreover, the most popular content categories on TikTok include entertainment, sports/fitness, cooking, cosmetics, fashion, etc. Therefore, for businesses operating in these fields and targeting younger customer segments, building a quick presence on TikTok and leveraging the TikTok Shop feature is crucial to implement, as Kylie Cosmetics has done. 

As soon as TikTok Shop was launched in the US market, Kylie Cosmetics was one of the first brands to get involved. To date, the brand’s TikTok account has over 3.5 million followers. Kylie Jenner once explained: “I built my business on social media; it’s where my fans go first to look for what’s new from Kylie Cosmetics. I have so much fun creating TikTok videos, and I love sharing posts of my fans using the products. That’s why I’m excited for Kylie Cosmetics to be one of the first to let customers shop directly on our TikTok!”.

Take advantage of TikTok Influencer Marketing

If Influencer Marketing plays a crucial role in the brand’s success on other social platforms, TikTok is no exception. This strategy is primarily used to increase brand awareness, run promotional campaigns, and boost sales. TikTok is a place for creative and engaging short videos, so TikTok users have a special love and interest in creators with their unique style and creativity that attracts users’ attention. 

TikTok Influencer Marketing is where business brands and personal brands are closely linked. Thus, some experts advise that in order to successfully implement TikTok Influencer Marketing, businesses should let their partners freely create promotional content as long as it meets ethical and cultural standards. This is because if TikTok videos are too focused on advertising, it will make users or potential customers “turn away”. 

Walmart, the American retail chain, recently sponsored a dance challenge called “SavingsShuffle”, which required players to show how to save money while shopping at Walmart with their creative fun dance moves, and then post the recorded video on TikTok. Six influencers were chosen to promote this campaign, including Trinity, AdamW, Sam Hurley, Bdash, Kidrl, and Ajani.

What is TikTok Shop Everything You Need To Know-Take advantage of TikTok Influencer Marketing
Take advantage of TikTok Influencer Marketing

Selling on TikTok VS eCommerce Marketplace

  • eCommerce marketplace: Brands and merchants have to rely heavily on the policies of eCommerce marketplaces, prices, products must be competitive, storefronts must be high-rated, etc.
  • TikTok: This is a fair playing field for all brands and merchants. By creating attractive content and cleverly incorporating promotional elements, they can increase sales and their followers. However, participating in the high-level sales race on TikTok requires brands and merchants to invest more in creativity. 

With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM understands the difficulties and challenges of implementing eCommerce. Talk to our expert to get free advice on eCommerce implementation.

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