How are eCommerce Leaders in Europe Navigating 2024?

In our latest eTail report, we surveyed 100 of the most senior figures in the retail industry from across Europe to find out about the challenges they face, and the innovative solutions that are being implemented to help solve them. Partnering with Constructor, Nayax CoinBridge and Epsilon, the report features commentary from industry leaders at Holland & Barrett and Zooplus.

To uncover the cutting-edge statistics behind how the retail industry is tackling the coming 12 months, get your free copy of the eTail Europe 2024 Playbook by clicking here.

Here, we present some of the report’s key findings and provide a sneak peek into some of the survey results.

Life After Cookies: Optimising Data Collection and Building Long-Term Loyalty

The impending removal of third-party cookies poses a challenge for retailers, necessitating a shift in how customer data is collected. Our research has revealed the common hurdles in consolidating data and extracting actionable insights. In response, Artificial Intelligence, especially in the form of generative AI like ChatGPT, is proving crucial. AI-driven chatbots are enhancing customer support, as well as filling the gap left behind by the removal of third-party cookies, which is boosting customer engagement and personalisation offerings.

In the face of intense competition and economic challenges, customer data emerges as the linchpin for building enduring loyalty. Retailers are focussing on customer experience optimisation, informing product assortment and strategic pricing as they strive to build long-term customer loyalty. As the industry adapts to the post-cookie world, harnessing the power of customer data will only become more critical for loyalty-building initiatives in a dynamic market.

Bridging the Gap Between Loyalty and Payments

Establishing customer loyalty is essential for retailers navigating a fiercely competitive market in 2024. Loyalty programmes are proving to be a key strategy, with the majority of surveyed respondents offering them, with points/rewards programs being the most prevalent. These programmes transcend mere price competition, and are providing a value exchange that meets customer expectations. The inherent advantage of loyalty programmes lies in their capacity to collect valuable customer data, with our research highlighting that for those who do not offer a loyalty programme, their organisation is struggling to obtain sufficient first-party data.

The success of loyalty programmes hinges on aligning the programme type with customer preferences and purchasing patterns. For retailers dealing with frequent low-value transactions, a points system can be effective, given accessible redemption options. Others might find success with one-time cashback or an enhanced membership experience. The central objective is ensuring customers perceive tangible value in exchange for their loyalty.

Organisations with loyalty programmes are prioritising customer satisfaction, engagement, and loyalty, with over 90% believing that expanding redemption opportunities would enhance programme performance. In a crowded loyalty program landscape, effective differentiation becomes crucial, with well-implemented programmes serving as powerful tools for building enduring customer relationships.

The Future is Bright: Product Discovery, AI and Merchandising

The eCommerce landscape is undergoing rapid evolution, and customer-centricity will be at the forefront. To deliver exceptional experiences that retain customers, ecommerce teams must harness the power of data intelligence. Our research reveals that Artificial Intelligence (AI) is poised to be the pivotal technology for organisations in the next 12 months, enhancing merchandising efficiency and providing vital data insights.With AI's transformative potential across industries, it emerges as a key player in revolutionising various aspects of ecommerce, significantly improving data collection and analysis strategies to unveil previously inaccessible insights.

Confidence in data utilisation is widespread, with almost all respondents expressing confidence in their organisation's ability to collect and leverage diverse data types for informed decision-making. This industry-wide confidence underscores the significance of leveraging enhanced and trusted data insights for future business decisions, ultimately guiding retailers toward investments that elevate customer experiences and nurture lasting customer loyalty.

Brands, as revealed by our research, are poised to invest in a spectrum of solutions, including content management systems, content creation tools, behaviour recognition tools, and AI for personalisation over the next three years. This strategic tech adoption aims to optimise the customer experience, a critical element in winning brand loyalty. By incorporating key technologies like AI and aligning content with customer preferences, brands are well-positioned to cultivate a loyal customer base in 2024 and beyond.

For a deeper dive into these trends, get your free copy of the eTail Europe 2024 Playbook by clicking here.