Written by Orla Cooney, CEO, Magico
2022 was the year that solidified the idea that eCommerce and omnichannel are the future of retail. Even with the return to bricks and mortar stores, Irish retailers and consumers continued to embrace online shopping, with retail eCommerce sales in Ireland estimated at €7.435 million in 2022 (Statistics, 2022). The online Irish Pharmacy market particularly flourished, and Magico forecast an average uplift of 31% among our Pharmacy clients from 2020 to 2022. We have seen an increase in Total Number of Orders, and the Average Order Value for Pharmacy clients has increased notably, by 6%.
Also encouraging, is that many of our Pharmacy retailers have achieved a higher Conversion Rate in 2022. Looking forward, there is much to be positive about and to help you navigate this dynamic eCommerce environment, we explore the top trends for 2023.
Customer Focus
In 2022, high customer acquisition costs led successful retailers to realise the potential of existing customers. To prosper in 2023, retailers should focus on driving up Customer Lifetime Value (CLTV). CLTV takes into account a number of metrics including Traffic, Conversion rate, Purchase Frequency (PF), AOV (Average Order Value), CRR (Customer Retention Rate), Customer Acquisition Cost (CAC) and Gross Margin. By tracking CLTV, retailers can truly evaluate their success. Ambitious retailers also understand the benefits of becoming indispensable to their customers. Offer online pharmacy services such as book a vaccination, e-prescriptions, online doctor and online photo printing to meet customer needs, secure repeat custom and increase their purchase frequency. Ultimately, creating a loyalty loop. As competition increases remember that your customer service will amplify your brand. The customer experience from initial online engagement, to answering pre sales queries, responsive delivery and returns policies, and after care service must be flawless. Can you go above and beyond with personal touches such as personalised packaging and thank you for your order notes? Little surprises to delight your customers! The question at the forefront of every eCommerce team should not be, how can we improve our website but rather how can we better serve our customers.
We are all Mobile Shopping
Almost half of all online purchases made in Ireland last year were through a mobile device – the second-highest rate in Europe, after the UK. Review not only the visual design and UX elements but also the search capability and ease of checkout on a mobile device. Don’t lose out on impulse sales because you are not mobile optimised.
Think Retail not Online vs Physical
As economic conditions continue to challenge, consumers are researching more extensively before spending their hard earned cash. Trust is critical and customers will often visit multiple touch points including your bricks and mortar store, social media, offline media and your online store before making a purchasing decision. Consistency and alignment in branding, messaging and promotions across each channel is crucial. With customers engaging with multiple touchpoints, consider supplying in store tablets so customers can browse your online stock, inform the sales team of your online promotions and always ensure that your online merchandising is as strong as your instore.
Personalisation is essential
Your customers will expect some form of personalisation in 2023. This could be introduced simply through your email marketing, or incorporated into your online store but retailers failing to personalise will lose sales to more savvy competitors. Personalised promotions based on customer preferences, product recommendations based on past purchases, or browsing habits are all effective personalization strategies. Personalisation is a fruitful means of staying connected with your customers, by showing how much you understand them.
Stay connected with Chatbots
2023 will see increased interaction with Chatbots. Consumers expect that they can access customer support on demand, and will increasingly expect to engage online with retailers with product queries or for post-sales support. Live and automated chat is the one tool that can bridge that gap and bring that rich customer experience of chatting to the instore team, online.
Keep customers engaged with Video Video is an extremely effective tool for capturing your target customers’ attention, keeping them engaged with your online store and social media. Use video to showcase new products, provide answers to common problems and advise on topical subjects such as flu season, allergies etc
Be Sustainable
In 2022 retailers started to embrace sustainability, but 2023 will see a much greater emphasis on retailers adopting sustainable practices. Consumer expectations are driving this change, indicating that they are more likely to choose a brand with a clear sustainability commitment. Everything from paperless offices to plastic-free packaging, consolidation of shipments and reducing the distance packages travel all contribute to how your target audience perceive your brand. It’s time to start thinking Green, and communicating that or you will fall behind.
Offer Payment Flexibility
Offering more than one payment option can help boost conversion rate. Consider flexible installment payment options for high ticket items. Ensure that online shoppers, in particular mobile shoppers can benefit from faster transactions, without sacrificing security.
Data driven clarity
In an increasingly competitive marketplace, when decisions need to be made quickly, eCommerce teams should examine data to assist with this process and break through stalemates. Access to good data will be pivotal in the success of your eCommerce team. Data is no longer used to merely influence product range but to assess how, and where you can improve the overall customer experience.
How to succeed online
in 2023 Going online was the challenge during the pandemic. The challenge now is how to grow your online pharmacy business. You need to know your customer both instore and online and be prepared to continuously adapt, addressing changes in consumer behaviour. Don’t rely on what worked last year or even last season.
In a rapidly changing environment consumers expectations are constantly evolving, so stay in tune with your customer and deliver an experience that keeps them coming back for more.
