Pixelated data and technology stacks in the form of red physical cubes on a black artificial background. … [+]
For a long time, commerce technology and marketing technology often existed in parallel: a retailer's ability to run stores and have an online presence was one function, and marketing to consumers and shoppers was another.
How manufacturers manage their sales channels has historically been quite separate from the marketing of their brand. These are often separated as “back office” and “front office” responsibilities – or sales vs trading, brand vs marketing etc.
But if companies and brands are truly going to put the consumer at the center, these two worlds need to work in sync. A retailer's commerce tech stack is just as important as its marketing tech stack today. Commerce tools like inventory management, supply chain visibility, demand forecasting, logistics and payments need to work together with marketing technology. Failing to do so will create gaps in your ability to meet consumer demand, including out-of-stocks during campaigns. “There's nothing worse than having customers who are ready to buy but can't,” said Nicola Cora, head of IT omnichannel at Bata Group, onstage at the World Retail Congress I recently attended.
Today, data from both sources can be connected and visualized through dashboards to provide a single view. The goal is to provide customers with the best possible digital experience while generating demand and managing supply harmoniously. This is easier said than done in an omnichannel world. The VML Tomorrow's Commerce 2024 report notes that “44% of business leaders struggle to deliver a consistent brand experience across channels.” Meanwhile, consumer demands continue to grow. According to a Salesforce study, 73% of customers “expect companies to understand their unique needs…”
Customer-centric Amazon has always maintained a mission to deliver experiences that surpass the best ever. In a 2017 letter to shareholders, Jeff Bezos noted the fundamental nature of customer expectations: “One of the things I love about customers is that they are divinely dissatisfied. People have an insatiable appetite for doing things better, and yesterday's 'wow' quickly becomes today's 'normal.'” To achieve this, commerce technology and marketing technology agendas and capabilities must be integrated.
The integration of commerce technology and MarTech will also help more closely connect what I used to call “brand love” and “brand purchase,” which will need to be intrinsically linked in 2024. This will allow marketers to be more creative and up-front with their communications and experiences, knowing that once a consumer is engaged, they can easily, effortlessly, and confidently move them towards a purchase.
Retailers like Shein are taking supply orchestration and consumer expectations to a new level, producing products in real time in response to demand. It's what Shein calls an “on-demand model,” where they launch new products in micro-batches of 100-200 pieces, get instant customer feedback, and manufacture and quickly replenish popular items. The process is as much about technology as it is about fashion. “What sets us apart is that we're embracing some of the concepts that have come out of the tech sector over the last few years…” It's also enabling a more sustainable approach to fast fashion, which is good for retailers and consumers.
The next step beyond the on-demand model is true real-time customization: getting what you want, customized for you, now. AI can help make that future a reality. According to Salesforce, nearly three-quarters of consumers “expect greater personalization as technology advances.” We're fast approaching the day when retail can truly evolve without limits.
According to science, the collision of parallel universes is a theoretical event. For brands and retailers, it needs to be put into practice. A great starting point is building a strong relationship between the CMO and the CIO and/or COO. Aligning the organizations is the first step to aligning the stars. Agencies and technology partners can realize and deliver greater impact through this collaboration.
