Digital marketing has changed so much, often the best path forward it is best to step back and look at the broad landscape... the demographics of digital marketing if you will. To do this, I often look at summary reports from the best in the business. Below I lay out some of the biggest findings from a Razorfish report I love entitled "Digital Dopamine: 2015 Global Digital Marketing Report".
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According to Razorfish, "Ideas that were once dominant now face irrelevance, as new digital developments displace them. This transformation occurs rapidly, and marketers are constantly struggling to keep up. Therefore, in preparation for tomorrow, Razorfish took a deep dive into the qualitative and quantitative data of four international markets (the United States, the United Kingdom, China, Brazil) to examine the ways in which digital technology is shifting traditional brand-consumer relationships. From uncovering global commerce expectations to identifying the effect of digital on our subconscious, this research set out to expose the key trends shaping marketing."
What did Razorfish find in terms of how digital marketing was used in 2015? Here are a few of their key findings.
1. GENERATIONAL CHASM
Mobile dominates the Millennial shopping experience. A Millennial's smartphone is their key to the world. As mobile payment technology grows, mobile is going to become an even more important part of the overall brand and retail experience. Millennials draw no practical distinction between online and offline.
Millennials' constantly connected smartphones mean they no longer see a difference between "online" and "offline." Technology has become an integral part of their lives, and it is how they interact with and experience brands, even when in traditionally "offline" environments. They don't use media in silos. Rather, they use all of the tools at their fingertips at any given time, regardless of the device or platform.
Millennials are redefining privacy expectations. When compared to Gen X, Millennials are more likely to trust brands to protect their privacy-and less likely to think that mobile targeting is an invasion of privacy.
Plan for the Gen X / Gen Y digital divide. Millennials lead the pack when it comes to the adoption of technology, outpacing their Gen X counterparts in nearly every digital activity on a daily basis. Gen X-led organizations need to ensure that their brand experiences align with Millennials' tech-led lives and that digital isn't simply an afterthought in the brand planning process. Target carefully and with purpose.
2. THE DIGITAL EXPERIENCE ECONOMY:
Consumers are actively avoiding advertising. Consumers in all four markets (United States, United Kingdom, Brazil, China) report doing anything they can to avoid seeing advertising, and many are utilizing tools like DVRs to help them succeed.
Advertising is most effective when it is part of a value exchange. Consumers are now aware of how much their attention is worth to marketers, and they expect to be rewarded for it. They look to be compensated with loyalty programs, free content or useful tools that solve problems.
Brazil still has a cultural affinity to traditional advertising. Interestingly, Brazil remains more receptive to advertising than any of the other markets. Fifty-seven percent of Brazilian consumers endorse TV, radio and print ads as the most influential source of advertising. Therefore, it is important to understand that adding value means different things to different cultures.
Make yourself useful. Brands need to offer their customers services beyond core products and add some real value to peoples' lives, if they are not already. Consumers are more likely to stick with a brand if they feel it makes their lives easier.
3. SEAMLESS COMMERCE
Digital is the new storefront. A good e-commerce site is not just a nice-to-have; it has a major impact on your brand. The numbers speak for themselves: 84% of people in Brazil and 92% of people in China say that a bad brand website negatively impacts their opinion of the brand. Seventy-three percent and 79% of people in the U.S. and U.K., respectively, agree.
Current e-commerce experiences fall short of expectations. Even with the massive accomplishments made in the evolution of commerce, consumers are still not impressed. Current e-commerce experiences, return policies and shipping options are falling flat in cultivating satisfied customers.
Consumer journeys are peppered with dead ends. Although consumers no longer view a distinction between online and offline brand channels, brands are not yet structured to support this outlook. This creates a tension between what consumers want and what brands are providing, forcing consumers to jury-rig solutions.
Empower your customer. Inflexible returns policies, in particular, are a major point of friction in both the online and offline retail experiences. A good return policy is an easy way to differentiate your brand from the competition, build loyalty and earn trust.
4. DIGITAL CONDITIONING
Consumers admit to technology dependence. Over three-quarters of consumers in all four of the markets surveyed admitted to often feeling dependent on technology. Many elements are cited for the development of this dependence, including utility, connectivity and the positive emotions they associate with it.
We've been exposed to digital classical conditioning. As proven by Pavlov, repeatedly pairing two cues can elicit a classically conditioned response. This is equally true for many consumers who use smartphones-the light or sound emitted from the device triggers a response of immediate attention.
Instant gratification is not always preferred. Remarkably, consumers in all four markets reported more excitement when receiving a purchase in the mail than when buying in the store. This illuminates an interesting aspect of shopping that is specific to e-commerce- the power of pleasurable anticipation and delayed gratification.
Use "surprises and delights" to your advantage. Without turning brand communications into a carnival of push notifications and flashing buttons, you can still create pleasurable moments of anticipation around routine events for a brand. Smart marketers will play around with game mechanics in the shopping and purchasing process, while ensuring it doesn't get in the way of simplicity and service.
5. EMERGING MARKETS IN THE FAST LANE
Consumers in Brazil and China are tech-hungry early adopters. This data shows that Internet users in these markets rely on technology for every part of their lives and continually look for more ways to integrate it.
Consumers in countries with lower Internet penetration may be the most demanding online. There are unexpectedly high expectations for digital services and websites in countries with lower Internet penetration. In particular, there is a very strong desire in Brazil and China for e-commerce to improve.
Tech savvy spans all generations. While there is an important digital divide between Millennials and Gen Xers in the United States and United Kingdom, these demographic differences aren't so pronounced in Brazil and China.
Consider Brazil and China as early adopters. Emerging markets like these are exciting places to test new technology. These consumers are not afraid of technology and are actively looking for China Digital Marketing new ways to use it in their daily lives.
Global e-commerce is forecast to double to $4.1 trillion by 2020, from $1.9 trillion in 2016, as consumers in populous countries such as India and China prefer to shop online to avoid crowded malls. Online shopping has brought about significant developments in the Indian retail trade division, outlining a shift in the way buyers make a transaction.
The online shopping industry has progressed drastically over the past several years, to end up noticeably as a mainstream trade line. E-tail shopping has been supported by the accelerated development in affordable web cost and broadband infiltration combined with buyer acknowledgment of electronic business as a suitable and safe alternative to conventional bricks and mortar retailing.
In recent years, India has developed as the quickest developing economy on the planet. As per monetary analysts, India is the only nation that can take over rising economic expansion of mighty dragon China.
As per CSO (Central Statistics Organisation) and the IMF (International Monitory Fund) every possible business will get significant growth in upcoming years, including e-commerce sectors in India. Since the speedy growth of smart phones and internet connectivity across the nation driving the users in purchasing and selling commodities for comfort and mobility.
Many nations are working to improve and grow their e-commerce market like India. In fact, it is predicted that India's current e-commerce value worth of $16 billion will cross $100 billion dollars by 2020. Researcher estimated that the e-commerce market in India is set to grow the fastest within Asia-Pacific region taking over China in upcoming years.
What sells the most?
Online retail has advanced 57 percent following December 2014 and 60-70 percent of the total e-commerce sales are being completed from portable devices such as mobile phone, tablet, phablet etc so far it's a game changer. Before spending into e-commerce business the investor must know what people are looking and buying in the market.
The report describes that 48 percent shopper has looked for information online in appeals, footwear, and mobile categories. However, eighteen percent of them purchased offline. Also, 76 percent shopper still prefers paying by the cash. The online retailer is looking forward to fighting off the COD by introducing easy EMI and an additional discount for online payments.
Electronic goods and fashion items provide close to 49 percent of overall spend in e-tail. This singular section expected to reach 110,620 crores by the end of 2017. If we perceive the past, we apparently see that offline sellers like shopper stop have, in fact, started their personal online platforms to sustain this massive online expansion of e-commerce giants like Flipkart, Amazon etc.
E-commerce is bringing new business possibilities to the global travel on the tourism business. Tourism related organizations and internet companies are seeking to tap the potential market. With the Indian smart phone, business has risen by 100 percent in 2015, hotel booking and tourist sector also experienced the unparalleled growth of over 170 percent. The Federation of Hotels and Restaurants Association of India estimates that the way hotel industry is growing, to successfully satisfy the customer India needs another 1.8 lakh rooms by 2020.
At the conclusion, we can say that on account of growing awareness amongst purchasers about product quality, differences in buyer attitude and purchasing rules, India's e-commerce warehouse is suspected of growing at a tremendous rate through 2020. Soaring number of high-speed internet users is urging business to innovate and offer a diversified collection of commodities and online services. Over the last several years, with the notable development of payment fabrication in the e-commerce market, consumers are increasingly turning towards online purchasing medium and shredding their idea of the online market being insecure. Consumer electronics, online travel and apparel, and accessories are the market section displaying encouraging growth. With the advantage of same-day shipment, online supermarkets stores are also entering into the country's online space.