Technology has forever changed the D2C ecosystem, and it has done so for the better.
During and following the Covid-19 pandemic, the world of business has observed a swift and necessary incorporation of various technologies to elevate their authority, strategy, and overall position in their respective markets.
Today we find that there isn’t a single industry that hasn’t been impacted by steadily progressing technology. E-commerce, as we know it today, is also another colossal success of the intelligent utilisation of technology.
So, it goes without saying that technology is the backbone of e-commerce. However, to understand the role of technology pertaining to D2C businesses, the answers lay within the thorough understanding of details and the meticulous process of adopting new, ever-evolving technology.
Technology leads to better decisions and minimising risks. Adoption of innovative technology creates a massive difference between businesses. How? The adoption of progressive technology such as artificial intelligence, machine learning, logistics planning, Internet of things, big data etc. leads to a better understanding of key business metrics, this, in turn, leads to higher conversions, engagement, brand loyalty, and inevitably, precise and profitable decisions.
My company ‘Rubans’, too, has greatly benefited from similar technology. By enabling us to understand the needs of our customers, what they enjoy, what they dislike, when they choose to shop, and many others, we are able to make decisions entailing the least risk possible, without missing out on potentially profitable opportunities.
Technology helps create a personalised consumer experience. An excellent consumer experience is one of the most crucial factors leading to the success of any business. Physical stores or experience stores have a conversion rate ranging between an estimated 10-30%, and digital stores have a conversion rate of approximately 1-4%.
This massive difference can be credited to the personalised experience a customer receives the moment they enter a tangible store. With advancements in technology such as Artificial Intelligence, Machine Learning, and Big Data, businesses are able to provide tailor-made experiences for each and every customer, attending to thousands of customers at the same time. In addition to a high-quality product, consumers are also in search of a seamless purchase, delivery, and return process. By analysing the data collected by other tech tools, UI/UX designers are able to help customers navigate the website or online portal with ease, contributing greatly to the overall online shopping experience.
Surpassing competitors
The competition in the market is increasing at a rapid rate, which means that D2C brands have to outshine their competitors if they want to survive.
Technology plays a paramount role when it comes to enhancing a brand’s visibility, and market impact. Businesses are now able to access and observe customer data in real-time, which, in turn, enables them to curate personalised campaigns, and various engagement strategies. This gives them a leg-up, overcoming obstacles with ease, compared to similar difficulties faced by their technologically lacking competitors.
Conclusion
Technology has forever changed the D2C ecosystem, and it has done so for the better.
The ease of doing business, the strategies to approach countless customers from across the globe, the tailor-made experience that one can have from the comfort of their own home, all of this is made possible due to the adoption of intelligent technology in the business world.
Chinu Kala is Founder, Rubans Accessories.