Unified commerce, which blends online and offline channels to create a fun and functional shopping journey, will drive this evolution. More enjoyable retail experiences will be fuelled by personalised shopping agents and in-store media opportunities that engage and entertain, along with loyalty programs that turn shopping into a game. And we think we’ll see retailers getting more creative with new tactics aimed at winning the hearts and wallets of Gen Z. So let’s get on with it.

Our 2025 retail predictions:

1. Unified commerce will unlock new AI capabilities
2. Retailers will build shopping agents for consumers
3. Retail media strategies will focus on in-store opportunities
4. Gamification will be table stakes for loyalty programs
5. Retailers will explore new ways to reach Gen Z

Retail prediction #1: Unified commerce will unlock new AI capabilities 

Unified commerce happens when you use a single, integrated platform to manage retail operations across the entire digital and physical shopping journey. With an integrated system, you can unify data from every touchpoint including point of sale, shopper data, inventory information, digital engagement, order management, and marketing. With the right tech stack, you can enable a connected customer experience that can be automated or enhanced by retail AI agents.

This has never been more critical, as our research shows that 84% of shoppers expect a seamless shopping experience across a retailer’s app, website, and in store. But 29% feel retailers don’t deliver on that expectation. 

A unified commerce strategy provides a seamless, comprehensive view of each customer by linking front- and back-end data. This integration will allow you to build AI agents that deliver highly personalised experiences, such as tailored marketing campaigns and product recommendations, based on real-time customer behaviour and preferences. Additionally, it can enable automated merchandising, where AI analyses sales trends and inventory levels to optimise promotions and stock, enhancing the shopping experience and reducing manual effort. Finally, unified data empowers customer service AI agents to provide more informed and proactive support, leading to faster issue resolution and higher customer satisfaction.

Pro tip: Use an integrated, cloud-based platform to create a single source of truth for customer, product, and order data. Then use advanced analytics and machine learning to help you uncover actionable insights. This data helps you anticipate customer needs, forecast trends, optimise inventory, and personalise marketing efforts.
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Retail prediction #2: Retailers will build shopping agents for consumers

Our Cyber Week 2024 data shows that AI and agents drove $60 billion in online sales through personalised offers and engagements, up 20% year over year. Salesforce alone powered nearly 60 billion AI-generated product recommendations throughout the week. 

Per Caila Schwartz, Director of Consumer Insights at Salesforce, “Retailers who invested in AI and agents were able to reap even greater revenue during Cyber Week this year through personalised promotions, recommendations, and support.”

We’ve already seen a strong push for personalised shopping experiences, with consumers wanting tailored recommendations and seamless interactions across all channels. With recent advances in AI and conversational commerce, shopping agents are the logical next step. These intelligent assistants, such as Agentforce Personal Shopper, can provide 24/7 support, analyse customer data to offer personalised suggestions, and create engaging, convenient shopping experiences that cater to tech-savvy consumers. Personal Shopper agents can predict which products a customer is likely to enjoy based on their past interactions and preferences. The more data the agent collects, the more accurate its recommendations become over time. 

What does this mean for you? Retailers that use agents as personal shoppers see increased sales and conversion rates because personalised product recommendations increase the likelihood of a purchase. What’s more, by helping customers find the right products, sizes, and fits, agents can significantly reduce return rates. This saves you the operational costs associated with processing returns but also minimises inventory waste. Finally, you can put personal shopper agents in the hands of store associates to help with clienteling, quickly delivering personalised product recommendations based on the shopper’s history, freeing up time for them to serve more shoppers. 

Pro tip: Ensure AI understands your brand and customers. Invest time in training agents on your brand’s voice, product offerings, and customer preferences, so it provides on-brand, relevant, and personalised recommendations. Regularly update the AI with new product information and customer feedback to continuously improve its performance.
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Retail prediction #3: Retail media strategies will focus on in-store opportunities

Retail media refers to the advertising opportunities that retailers offer to brands and suppliers within their owned properties. This includes online and offline channels, such as websites, mobile apps, in-store displays, and even receipts. The primary goal of retail media is to help brands reach consumers at the point of purchase, influencing their buying decisions and driving sales. EMARKETER predicts a $60 billion spend in retail media in 2025. 

Most retail media spend is for online formats, such as search. But search is increasingly saturated as more brands start their spending there, so retailers are looking for new inventory supply to sell to brands.

In-store advertising has become crucial for retailers and advertisers as 84% of retail sales still occur in physical stores. In a 2023 Salesforce survey, 16% of shoppers ranked in-store ads as the most helpful for making purchasing decisions (second only to social media ads at 20%), which tied with streaming tv ads. Search followed at 13%, then ads on retailer websites and apps at 12%.

When it comes to purchasing decisions, more people prefer in-store media than online retail media ads, so the industry needs to catch up. Shoppers in stores are in discovery mode and close to the point of purchase. Their intent is clear. Because of this, in-store retail media can have a significant impact on sales volume and revenue.

Despite this fact, FTI Consulting says less than 1% of retail media spending is spent on in-store media. This is about to change, as U.S. in-store retail media is expected to reach more than $1 billion by 2028. We believe there will be a surge in in-store retail media opportunities in 2025, including screens on cooler doors and at self-checkout stations, smart carts, point-of-sale (POS) systems, or audio ads over store speakers. Retailers can strategically interact with customers throughout their shopping experience using tools such as kiosks, digital end caps, vertical banners, and smart carts. 

These tools not only engage shoppers but also gather important data, monitor ad views, and assess the impact of advertisements based on purchasing patterns.

Pro trip: Be sure your in-store media doesn’t detract from the overall shopping experience. Thoughtfully integrate in-store media elements into the store’s natural flow. Keep digital signage and audio announcements subtle and well-placed to provide useful information and promotions without disrupting the shopping experience. The key is to enhance, not overshadow, the customer’s journey, encouraging engagement rather than distraction.
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Retail prediction #4: Gamification will be table stakes for loyalty programs

Retail marketers are using gamification to increase customer engagement and drive desired actions. The goal is to create personal connections with shoppers through enjoyable, memorable, and rewarding interactions, which can drive customer loyalty and increase sales, especially through loyalty programs. Tactics include:

• Chance games, such as spin the wheel or scratch off to win prizes
• Tiers, where earning or spending points gives shoppers access to benefits
• Challenges where shoppers complete tasks to earn points within a time period
• Milestones, which shoppers unlock based on completing multiple actions
• Leaderboard rankings that show shopper performance against others

What’s more, there’s been an explosion of retailers introducing interactive video game experiences that give customers the chance to unlock rewards and exclusives. Also, retailers continue to expand into gaming platforms like Roblox with brand-specific experiences. The new twist? Connecting the Roblox game with the retailer’s loyalty membership and incentives, where achievements and time spent playing can unlock rewards in real-life shopping interactions, as well as purchases in the real world that unlock perks exclusive to the Roblox platform.

Why should you game-up your loyalty program in 2025? Our data shows 73% of shoppers plan to take part in more gamified loyalty opportunities in the coming year.

By incorporating more gamification into your loyalty programs, you can turn routine transactions into interactive experiences, making the process of earning rewards more enjoyable and motivating for customers. And 69% of shoppers say gamification would motivate them to more frequently engage with loyalty programs, purchase from a specific retailer, and open a retailer’s app to check their points. By encouraging repeat purchases and upselling through reward systems, gamification can directly contribute to increased sales and revenue. 

Pro tip: To make gamified loyalty programs even more personal and effective, use AI to create and scale personalised and engaging experiences. For example, AI can analyse customer data to tailor gamified elements like challenges, rewards, and badges to individual preferences and behaviours, making the loyalty program more relevant and fun. Additionally, AI can dynamically adjust the difficulty and rewards of these gamified elements based on customer engagement, so the program remains exciting and motivating over time.
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Retail prediction #5: Retailers will explore new ways to reach Gen Z

Retailers know the importance of capturing the hearts and wallets of Gen Z shoppers. Born between 1997 and 2012, Gen Z makes up about 25% of the global population. With two billion of them out there, Gen Z is the largest generation ever, with spending power expected to reach $12 trillion by 2030. 

But you may need to rethink your approach to this generation.

Gaming: Gen Z enjoys gaming and virtual worlds, like Roblox, Minecraft, and Fortnite. You can win them over with a fun, social, gamified shopping experience. In fact, 84% of Gen Z and Millennials said they planned to take part in more gamified loyalty programs in 2025. And 79% said they would buy more frequently from a retailer with a gamified loyalty program. Use gaming platforms to launch virtual words, which could include virtual fitting rooms, fashion shows, and digital clothing purchases to help build long-term relationships with Gen Z shoppers.

Influencers: Many Gen Zers follow gaming influencers and content creators on platforms like YouTube, Twitch, and TikTok. Influencers often review and recommend products, which can sway Gen Z’s purchasing decisions. Our data shows that 43% of Gen Z follow influencers specifically to discover and evaluate new products, compared to just 22% of the general population. Gen Z is twice as likely to follow influencers than everyone else. Partnering with the right influencers can significantly boost your brand credibility and drive sales. 

Generative AI inspiration: Gen Z also interacts with generative AI when making purchasing decisions, often using AI-driven tools for personalised recommendations and product information. Our data shows that 29% of Gen Z have used generative AI for product purchase information, as compared to 17% of the general population. AI-powered platforms that offer personalised shopping experiences, such as style recommendations or virtual try-ons, are particularly appealing to them.

Pro tip: No matter which tactic you use, be sure to create authentic, co-branded experiences that blend all elements seamlessly. Don’t change your brand to attract Gen Z, but find what appeals to them about your brand and focus your efforts there. Then partner with influencers who genuinely align with your values, develop gamified experiences, and offer AI-powered interactions that feel organic to this generation. The key is to make the experience fun, authentic, and shareable, fostering a sense of community and connection with your brand.
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Put these retail predictions to work in 2025

In 2025, unified commerce and AI agents will change how retailers do business. By offering seamless online and offline experiences, you can win new customers and maintain relationships with loyal ones. If you increase engagement, you’ll stay competitive and meet the evolving expectations of their customers.

The post Our 2025 Retail Predictions: Unified Commerce and AI Agents Will Help Retailers Engage Shoppers appeared first on Salesforce.

Over the years, Salesforce has continued to strengthen its commitment to helping both B2B and B2C commerce businesses build highly personalised and AI-powered customer experiences at scale.

Grow Revenue Everywhere.

Get Commerce Cloud

Why it matters: According to Gartner, the digital commerce platform market’s revenue grew by 11.5% in 2023 to $8.9 billion. While below pandemic-driven rates, growth is steady, and Gartner expects an increase over 2024 to 2025.

Commerce Cloud empowers B2B and B2C companies across a wide range of industries to power commerce everywhere, equipping brands with tools to accelerate growth and reach customers on any channel with:

• Proactive, autonomous agent applications that provide always-on support to merchants and customers. 
• Unified insights and data-driven actions that drive personalisation and boost efficiency. 
• Flexible and extensible commerce interactions at every touchpoint that drive growth.

Innovation in action: Salesforce recently announced three agents for Commerce Cloud — Merchant, Buyer, and Personal Shopper — designed to autonomously manage a range of tasks, including product recommendations and order lookup, without the need for direct human supervision.  

Humans with Agents Drive Customer Success Together.

Agentforce is here

Salesforce also recently acquired PredictSpring, a modern retail Point-of-Sale (POS) software vendor built natively in the cloud. PredictSpring will enable Salesforce to unify digital and physical commerce channels at a global scale and provide AI-powered shopping experiences to customers both online and offline. 

Salesforce perspective: “Businesses grow on Commerce Cloud because it delivers the agility and innovation customers need to scale their workforce and grow revenue across both digital and physical channels while building highly personalised customer experiences,” said Michael Affronti, General Manager of Commerce Cloud. “Today, Commerce Cloud unifies every element of ecommerce on a single, integrated platform powered by trusted data and agentic AI, helping companies fuel business success across digital and physical channels.”

Fast facts:

• Salesforce was recognised as a Leader in this Magic Quadrant report based on its “Completeness of Vision” and “Ability to Execute,” and was positioned furthest on Ability to Execute among all other vendors evaluated. 
• In the last year, Commerce Cloud unveiled Unified Commerce, Salesforce Foundations, and Agentforce for Commerce.

Customer perspective: 
According to Gartner® Peer Insights™, Salesforce customers are saying:

• Strong tool, nice SLA and support, leader on the market, allow to cover the full scope for ecommerce in one CMS.”
  • “Leader on the Market” (A Ecommerce Platform Manager from a 3B-10B USD Services company, giving the Salesforce B2C Commerce Platform 5/5 Rating)
• “Incredible experience. Connects all customer data to the account level which is what we need in a B2B world.”
  • “Modern B2B World: Interconnecting Shoppers to Account” (A CMO from a 500M – 1B USD Manufacturing company, giving the Salesforce B2B Commerce Platform 5/5 Rating)

Additional information:

• View a complimentary copy of the 2024 Gartner® Magic Quadrant™ for Digital Commerce 
• Learn more about Salesforce Commerce Cloud

Gartner Disclaimer

Gartner, Magic Quadrant for Digital Commerce, 6 November 2024, Mike Lowndes, Sandy Shen, Aditya Vasudevan, and Jason Daigler.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organisation and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

GARTNER is a registered trademark and service mark of Gartner and Magic Quadrant and Peer Insights are a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences with the vendors listed on the platform, should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose.

Appeared as Demandware in 2016 report. Demandware was acquired by Salesforce in 2016.

The post Salesforce Positioned as a Leader in 2024 Gartner® Magic Quadrant™ for Digital Commerce appeared first on Salesforce.

Seamless handoffs between departments are crucial to making this happen. Marketing, Commerce, Sales, and Service all need to be in lockstep. This requires both a cohesive strategy and a strong tech foundation. Oftentimes, poorly integrated technology and processes leave customers feeling like they engage with separate departments rather than with one unified company. But that will soon be a thing of the past. 

With access to unified data that’s actionable across the entire organisation, as well as advanced AI and automation capabilities, departments can work together to deliver hyper-personalised, connected, frictionless experiences across the entire customer lifecycle. Today’s most successful marketing and commerce pros engage on the customer’s terms and provide value across the entire customer experience. 

On that note, this week we announced Marketing Cloud and Commerce Cloud innovations that will help businesses use data from across their company to deliver customer-driven relationships, while also improving internal team efficiency and productivity. Let’s take a look at the details. 

What you’ll learn in this blog…

What Salesforce Marketing Cloud Dreamforce innovations mean for you

What Salesforce Commerce Cloud Dreamforce innovations mean for you

What Salesforce Marketing Cloud Dreamforce innovations mean for you

First, a little background. These four Marketing Cloud innovations are built on the Salesforce Platform and are grounded in customer data and metadata through Data Cloud. This gives marketers easy access to customer records from across their entire businesses to enable seamless handoffs, great customer experiences, and ways to measure success.

1. Agentforce embedded in the flow of work 

Agentforce for Marketing brings generative and predictive AI together into an end-to-end campaign experience that’s initiated by the marketer and actioned on by the agent. Agentforce for Marketing helps marketers:

• Plan, launch, and optimise campaigns. Agentforce Campaigns will use predefined campaign goals and brand guidelines set by the marketer to create an entire campaign. It will create a brief, identify and create target audience segments, generate the first draft of an email and landing page, and build a customer journey. It will then continuously analyse campaign performance and recommend how  to optimise the target audience, content, and channels based on target KPIs.
• Personalise 1:1 engagement at scale. Using real-time interactions, conversations, and customer profile data, Agentforce Personalisation predicts which content fits each individual customer, what the best time and channel is to send it, and then actions on this.

Let’s look at an example of how this works. A marketer uses Agentforce Campaigns  to launch a campaign to re-engage potential churn customers. It can identify  the target audience, bring together data from various departments (such as device usage and upcoming renewal status). Agentforce Campaigns agent can even generate a personalised multi-channel campaign including building the journey and the first draft of an email to entice customers to renew or upgrade.

2. More capabilities for small and medium-sized businesses 

The new Marketing Cloud Advanced Edition expands on Marketing Cloud Growth Edition with more advanced AI and automation capabilities to build better relationships, scale personalisation and improve productivity. This helps marketers: 

• Make SMS messaging more fruitful. With Conversational SMS in Marketing Cloud Advanced Edition, brands can bring together SMS conversations across Marketing and Service, so customers can have two-way interactions within a single phone number.

• Test your journeys in real-time. The Path Experiment feature helps you understand how your customers can interact with different, personalised paths in Salesforce Flow – allowing you to measure or optimise your customer journeys.

• Use predictive AI to send fewer, better messages. One of the cardinal rules of marketing is to never inundate your customers with too many messages. However, this can be challenging when you are running multiple automated journeys at the same time. With Advanced Edition, marketers in small businesses can use Einstein Engagement Frequency to automatically remove customers who are getting too many messages – and add customers to journeys if they need more outreach.
• Use predictive AI to find your most interested customers. Scoring is key to understanding how engaged your customers are with your marketing. However, maintaining scoring rubrics can be a highly manual process. With Einstein Engagement Scoring, small businesses can use predictive AI to understand which customers are ready to buy and which customers need additional nurturing. This takes manual analysis out of the equation so marketers can just act. 
  
  For more on Marketing Cloud Advanced Edition and updates on Growth Edition too, check out this blog by our colleague Eric Zenz.

See Growth Edition in action

Learn how Marketing Cloud Growth Edition can help your business connect with customers in new – and powerful – ways.

Watch the demo

3. Automate marketing data preparation and analytics 

Einstein Marketing Intelligence (EMI) uses AI and Data Cloud to connect, harmonise and enrich your marketing data in three clicks. It gives marketers one place to optimise spend and cross-channel campaign performance in real time. This helps marketers:

• Make faster and better decisions. EMI automates the complexities of data ingestion, transformation, and mapping across first- and third-party data using out-of-the-box connectors and prebuilt marketing data models. Einstein classifies new dimensions and identifies patterns, generating additional data for analysis.

• Gain transparency into marketing spend. Marketers can use unified data and attribution models to forecast and track cross-channel campaign performance and ROI against goals, from anonymous visit to closed revenue. 

• Optimise campaign performance in real time. Marketers can evaluate the health of their marketing programs and adjust spend in the moment to optimise performance with AI generated campaign summaries, ready-to-use insights, and out-of-the-box, marketing-specific, Tableau analytics dashboards. 

4. Automatically recommend products or content based on individual preferences

Einstein Personalisation is our new AI-based decision engine that enables businesses to create real-time 1:1 customer experiences. Einstein Personalisation will help you:

• Optimise for customer intent and business goals. Use rules or AI-based recommendations to surface the most relevant products, content, and articles for each individual. 

• Test and learn with dynamic content experiments. Use Salesforce Flow’s A/B split testing to select and send dynamic email content by audience – and then track performance and adjust content to optimise impact.

• Empower cross-department personalisation. Einstein Personalisation automatically surfaces recommendations in the Data Cloud customer profile based on the person’s engagement and affinities. A service agent or sales rep can use that to personalise their interaction without the customer having to repeat what they said or did before.
  
  For example, a service agent can offer a discount for a product the customer was recently browsing, and a sales rep can recommend relevant content and have a more personalised interaction with the customer.

Take your marketing to the next level

Learn how Marketing Cloud helps you action all your data faster, deploy smarter campaigns, and personalise across every touchpoint.

Make the connection

What Salesforce Commerce Cloud Dreamforce innovations mean for you

Commerce is complex. Especially now, as companies collect vast amounts of data, expand into new channels, and navigate the new era of AI. Disparate, disconnected systems make it even more difficult to manage all the complexity. To meet this challenge, Salesforce is extending Commerce Cloud capabilities and making it easier than ever for businesses to deliver truly unified commerce. 

Unveiled at Dreamforce, new out-of-the-box features will further extend commerce into all areas of the business. Here’s how:

1. Simplify complex, cross-functional tasks

What if you could predict which promotions and marketing campaigns would turn casual shoppers into paying customers? Or discover what motivates shoppers on a more granular level? With unified data from across your business, you can. Unified commerce is making every part of the business better together.

• Marketing Cloud and Commerce Cloud: Easily build campaigns using detailed engagement and purchase data. Create precise marketing segments to reach customers with highly personalised offers. Abandoned cart? Re-engage shoppers with perfectly timed notifications. 
• Service Cloud and Commerce Cloud: Increase visibility for service agents by connecting point of sale, checkout, and the contact centre. Now reps can check on orders, process returns or exchanges, and place orders on behalf of customers from within the service console — and manage every order with ease.
• Revenue Cloud and Commerce Cloud: Create product bundles, offer and manage digital subscriptions, and streamline revenue options with recurring billing invoices.

Explore new Commerce Cloud innovations

The most complete, configurable, AI-powered commerce platform on the planet just got more powerful.

See what's new

2. Scale assistance with Agentforce commerce agents 

Grounded in trusted, secure customer data and metadata from Data Cloud, new AI-powered commerce agents help simplify and speed up key processes for merchants, businesses buyers, and consumers alike. Here’s how they work:

• Merchant Agent: As a business leader, it can be difficult to know where to focus your efforts to increase revenue. With Merchant Agent, you can use the power of unified data to set and achieve business goals faster. Not sure which levers to pull to increase average order value? Want to create a product bundle to help sell unpopular inventory? Get suggestions from Merchant Agent by simply typing a prompt.  
• Buyer Agent: Business buyers want — and deserve — the same commerce experiences as consumers. Powered by generative AI and natural language processing, Buyer Agent allows business buyers to use chat and photos to find, buy, and reorder products.
• Personal Shopper Agent: Give customers a digital concierge that mimics a helpful, personable in-store associate. Bring conversational search and product recommendations to any digital experience.

3. Streamline checkout — for you and your customers

What if you could turn any customer touchpoint into a transaction? With Commerce Cloud Checkout, you can. New express payment options like Link by Stripe and Amazon Pay help merchants improve conversion by an average of 14% and enable shoppers to checkout 3 times faster.

Commerce Cloud now also offers an integration with Amazon’s “Buy with Prime”. Here’s what that means for the customer experience on your site: Shoppers can conveniently pay using their Amazon Prime account and choose to have their items delivered with Prime in a matter of days.

With this integration, you and your customers receive all the benefits of Prime, including fast and free delivery, a trusted checkout experience, and hassle-free returns. You can even embed reviews from Amazon directly into your product listing pages. 

Introducing the next generation of unified commerce

Unlike isolated, incomplete point solutions or outdated systems, Commerce Cloud natively connects all facets of commerce onto a single platform with sales, service, and marketing. This enables a truly 360-degree view of the entire customer journey. And that’s good news, because commerce should be connected with the rest of your business — not a secluded island. 

Unified commerce means you can bring B2B and B2C experiences together. Easily deliver B2B and D2C from one platform. And it all runs on the same catalog and pricing engine. With everything in one place, you can focus on what matters most: your customers, your teams, and your goals.

By bringing together enterprise-wide data and trusted AI with cross-department workflow automations  Salesforce helps you easily scale personalised, intelligent experiences across sales, service, and marketing. This approach turns every customer interaction into an opportunity for growth, setting a new standard for what it means to succeed in customer-driven relationships today. 

Watch us unveil new product features

Want more details? Watch the Commerce Cloud keynote on Salesforce+.

See the innovation

The post What Our Dreamforce Marketing Cloud and Commerce Cloud Innovations Mean for You appeared first on Salesforce.

Within this guide, we’ll explore 9 common pricing strategies that small businesses can use to succeed in 2024. From value-based and competition-based pricing to penetration and psychological pricing, we’ll cover it all. We’ll also provide real-world examples and expert insights to help you find the perfect pricing strategy for your target market and business goals. So, whether you’re just starting out or you’re looking to take your business to the next level, read on to learn how to rule the market with your pricing strategy.

9 Common Pricing Strategies for Small Businesses

Selecting the right pricing strategy is a game-changer within retail. To assist you in this decision, we present 9 effective discount pricing strategies that can propel your small business to success in 2024. From value-driven approaches to psychological tactics, we’ve got you covered.

Value-Based Pricing: This strategy revolves around setting prices based on the perceived value of your product or service to the customer. By understanding your target market’s preferences and willingness to pay, you can determine a price that aligns with their perceived benefits. For instance, if you offer a unique and high-quality product that solves a specific problem, you can command a premium price.

Competition-Based Pricing: Keeping an eye on your competitors’ pricing is essential. By setting your prices in line with or slightly below theirs, you can attract customers looking for a competitive deal. However, avoid engaging in wholesale price wars, as this can erode your profits. Instead, focus on differentiating your offerings through superior quality, customer service, or unique features.

Cost-Plus Pricing: This straightforward method involves adding a markup to the cost of producing your product or service to determine the selling price. While it ensures you cover your expenses and make a profit, cost-plus pricing may not always reflect the market value of your offerings. To strike a balance, consider market demand and customer willingness to pay before finalising your prices.

Penetration Pricing: If you’re looking to quickly capture market share, penetration pricing can be a powerful tool. By setting your prices significantly lower than the competition, you can entice customers to try your product or service. Once you’ve established a customer base, you can gradually increase your prices to more profitable levels.

Loss Leader Pricing: Loss leader pricing involves setting a low price on a popular item to attract customers, with the expectation that they will purchase additional items at regular prices. This strategy can drive traffic and increase overall sales.

Psychological Pricing: This strategy taps into the psychology of consumers to influence their perceptions of higher price or value. Techniques such as setting prices just below a round number (e.g., $9.99 instead of $10) or using odd-numbered prices can create the illusion of a better deal. Additionally, offering discounts, limited-time offers, or free shipping can further enhance the perceived value of your products or services.

Bundle Pricing: Bundle pricing, also known as multiple pricing, involves selling a group of products for a single price, such as a three-pack of socks or a five-pack of underwear. Retailers use bundle pricing to streamline marketing campaigns and attract customers. However, it can impact the sale of individual items and may lead to cognitive dissonance among consumers.

Keystone Pricing: Keystone pricing is a product pricing strategy in which the retail price is doubled based on the wholesale cost paid for a product. It is a simple approach to pricing, often used for products considered to be necessity items. However, it may not work for all items and could potentially lead to overpricing or underselling.

Price Skimming: Price skimming involves setting a high initial price for a new or innovative product and gradually lowering it over time. This strategy helps maximise profits from early adopters before targeting more price-sensitive customers.

How to choose a pricing strategy

Selecting the right Retail Pricing Strategy is necessary for the success of your business. Several factors come into play when determining the optimal pricing strategy. Here are key considerations to guide your decision-making process:

Understand Your Target Market:

Begin by thoroughly understanding your target market’s preferences, needs, and willingness to pay. Conduct market research to gain insights into their price sensitivity, purchasing behaviour, and the value they place on your products or services. Assessing price sensitivity, or how responsive consumers are to changes in price, can provide valuable insights into setting optimal prices. This knowledge empowers you to set prices that resonate with your customers and align with their perceived value.

Align with Business Goals:

Your pricing strategy should directly support your business goals. Whether you prioritise maximising profits, increasing market share, or enhancing customer loyalty, your pricing decisions should reflect these objectives. For instance, if customer acquisition is a primary goal, consider implementing a penetration pricing strategy to attract new customers.

Conduct a Cost Analysis:

Accurately calculate the costs associated with producing and delivering your products or services. This includes direct costs such as raw materials, labour, and shipping, as well as indirect costs like rent, utilities, and marketing expenses. A complete cost analysis ensures that your pricing covers all expenses and contributes to your business’s profitability.

Research Competitors’ Strategies:

Analyse the pricing strategies of your competitors to gain valuable insights into market trends and customer preferences. While it’s not advisable to base your pricing solely on competitors’ prices, understanding their approach can help you position your products or services effectively and identify opportunities for differentiation. Consider using the manufacturer-suggested retail price (MSRP) as a baseline for creating your pricing strategies and standardising prices across retailers.

Test Different Pricing Approaches:

Don’t hesitate to experiment with different pricing strategies to determine what works best for your business. Implement A/B testing or conduct market surveys to assess customer response to various price points. This data-driven approach allows you to make conscious decisions about your pricing strategy and optimise it for maximum success.

By considering these factors and adapting your pricing strategy accordingly, you can effectively position your business in the market, drive sales, and achieve your business goals. Remember, the right pricing strategy is one that strikes a balance between customer value, cost coverage, and business profitability.

Competitive pricing strategy examples

To gain a deeper understanding of these pricing strategies, let’s explore real-world examples of their implementation.

1. Cost-Plus Pricing:

• Example: A boutique adds a 50% markup to its clothing items, which includes the cost of materials, labour, and overhead expenses.

2. Value-Based Pricing:

• Example: An electronics store charges a premium price for a high-end smartphone due to its advanced features and brand recognition.

3. Competition-Based Pricing:

• Example: A grocery store matches the prices of its competitors to remain competitive in the local market.

4. Penetration Pricing:

• Example: A new coffee shop offers discounted prices for a limited time to attract customers and establish a loyal customer base.

5. Psychological Pricing:

• Example: A clothing store prices its items at Retail Pricing Strategies just below a whole number (e.g., $9.99 instead of $10.00) to create the perception of a better deal. Additionally, displaying a discounted price alongside the original price can enhance this perception by highlighting the savings.

6. Dynamic Pricing:

• Example: An airline adjusts ticket prices based on demand, time of booking, and competition to maximise revenue.

7. Premium Pricing:

• Example: A luxury car brand sets high prices for its vehicles to reflect their superior quality and exclusivity, attracting affluent customers.

These examples demonstrate how businesses across various industries apply different Retail Pricing Strategies to achieve their specific goals. By carefully considering customer perceptions, market dynamics, and business objectives, retailers can leverage these strategies to optimise their pricing approach and drive business success.

Finding the best pricing strategy for you

So, you’ve familiarised yourself with the various retail and wholesale pricing strategies available. Now, it’s time to embark on a journey to discover the pricing strategy that resonates most effectively with your retail business. This involves a holistic approach that encompasses several crucial considerations.

First and foremost, it’s essential to gain a strong understanding of your target market and their willingness to pay. Conduct thorough market research to decipher their preferences, purchasing patterns, and the value they associate with your products or services. This knowledge acts as a fundamental principle for crafting a pricing strategy that aligns seamlessly with their expectations.

Next, take a deeper look into your business’s cost structure, meticulously evaluating all expenses incurred during production, distribution, and marketing. This analysis will provide a clear picture of your break-even point, ensuring that your pricing strategy safeguards profitability while remaining competitive.

It’s all-important to conduct a meticulous competitor analysis, examining the competitive pricing strategies employed by your industry peers. Identify their strengths and weaknesses, and leverage this knowledge to position your pricing effectively within the competitive landscape. Consider using price anchoring, where a higher-priced item is placed next to a lower-priced item to make the latter appear more attractive, to influence customer perception and drive sales.

Lastly, don’t shy away from experimentation. Test different pricing strategies on a small scale before committing to a long-term approach. This hands-on approach will provide valuable insights into customer response, allowing you to refine your pricing strategy until you discover the perfect formula for success.

Remember, the retail landscape is ever-changing, and customer preferences are constantly evolving. So it’s imperative to regularly review and adjust your pricing strategy based on market conditions and customer feedback. This proactive approach will ensure that your own discount pricing strategy always remains relevant, competitive, and aligned with your business goals, ultimately leading to sustained success in the ever-evolving retail industry.

Finding the best Retail Pricing Strategy for your business is a process of exploration, analysis, and adaptation. By meticulously considering your target market, costs, competition, and customer feedback, you can craft a dynamic pricing strategy that propels your retail business to new heights of profitability and customer satisfaction.

Pricing strategy FAQ

As you navigate the dynamic landscape of retail pricing, it’s natural to encounter questions that may influence your approach. Let’s address some frequently asked questions to clarify key aspects of pricing strategies:

How do I assess the effectiveness of my current pricing strategy?

Evaluating your current pricing strategy is necessary for identifying areas of improvement. Here are a few metrics to consider:

• Sales Volume: Monitor changes in sales volume over time. A consistent increase or decrease can indicate the effectiveness or ineffectiveness of your pricing.
• Customer Feedback: Gather input from customers through surveys, reviews, or direct conversations. Understand their perceptions of your pricing compared to competitors and the value they associate with your products.
• Profit Margins: Analyse your profit margins to determine the profitability of your pricing strategy. Ensure that your prices cover production costs and allow for sustainable growth.

How can I implement pricing changes without losing customers?

Implementing pricing changes requires a delicate balance to minimise customer churn. Here are some strategies to consider:

• Communicate Clearly: Openly communicate the reasons behind the price change to your customers. Explain the value they will continue to receive or any improvements being made.
• Offer Incentives: Provide incentives such as discounts, loyalty programs, or added value to offset the price increase and retain customer loyalty.
• Implement Gradually: Consider implementing price changes gradually over a period of time, allowing customers to adjust and understand the new pricing structure.

What are some common pricing pitfalls to avoid?

Avoid these common pricing pitfalls to maintain a competitive retail price edge:

• Price Wars: Engaging in aggressive price wars can lead to a race to the bottom, eroding profits and diminishing brand value.
• Ignoring Customer Value: Focusing solely on cost-based pricing without considering customer-perceived value can lead to missed opportunities for higher profits.
• Ignoring Competition: Setting prices without considering competitor pricing can result in being overpriced or underpriced, impacting sales and market share.

How can I test different pricing approaches?

Testing different premium pricing approaches allows you to gauge customer response and optimise your strategy. Here are a few methods to consider:

• A/B Testing: Conduct A/B tests by offering different prices to different customer segments or on different platforms. Analyse the results to determine the most effective pricing approach.
• Surveys and Feedback: Collect customer feedback through surveys or focus groups to understand their willingness to pay and preferences for different pricing options.
• Experimental Pricing: Implement temporary price changes for a limited period to gather data and insights into customer behaviour and demand.

What is price discrimination and how can it be used effectively?

Price discrimination involves charging different prices to different customer segments based on their willingness to pay. This strategy can maximise revenue by capturing consumer surplus, but it must be implemented carefully to avoid customer dissatisfaction.

By addressing these frequently asked questions and implementing the recommended strategies, you can fine-tune your retail pricing strategies for success in 2024. Embrace the power of effective pricing to drive sales, enhance customer loyalty, and optimise your business performance.

The post Rule the Market: 9 Retail Pricing Strategies 2024 appeared first on Salesforce.

What is Customer Relationship Management?

Within the business space, as it is today, it’s no longer enough to provide an exceptional product or service simply. Now, you must also showcase and maintain unmatched customer service to gain an edge over competitors. Customer Relationship Management (CRM) software has quickly become a powerful tool that helps businesses manage and nurture these relationships effectively. CRM systems serve as centralised platforms that capture, organise, and analyse customer interactions and data, providing businesses with valuable insights into their customers’ needs, preferences, and behaviours.

CRM systems facilitate the efficient management of customer information, encompassing contact details, purchase history, support requests, and communication history. This comprehensive data repository empowers businesses to deliver personalised and targeted customer experiences, fostering loyalty and driving business growth.

Additionally, CRM systems automate various tasks associated with managing customer data and interactions, such as sending marketing emails, tracking customer support tickets, and generating reports. These automation capabilities streamline operations, freeing up valuable time and resources that can be redirected towards enhancing customer engagement and satisfaction.

By leveraging CRM systems, businesses gain a competitive edge by improving customer service, boosting sales, and optimising marketing efforts. These systems provide a holistic view of customer interactions, enabling businesses to make informed decisions, build stronger relationships, and ultimately drive business success.

What is ERP?

In business management, the concept of ERP, or Enterprise Resource Planning, emerges as a transformative force, revolutionising how organisations manage their operations. Unlike customer relationship management (CRM) systems, which focus on interactions with external clients, ERP systems serve as comprehensive hubs, integrating various departments and functions within a company. This centralised approach allows for seamless coordination and resource management, streamlining business processes and fostering overall operational excellence.

ERP systems encompass a diverse range of modules, catering to critical business areas such as accounting and finance, supply chain management, manufacturing, human resources, project management, and more. These modules act as interconnected components, seamlessly communicating and sharing data in real-time. This interconnectedness empowers businesses with the ability to gain instant insights into their operations, enabling informed decision-making and strategic planning.

One of the key benefits of ERP systems lies in their ability to automate repetitive tasks, significantly reducing the burden of manual labour and enhancing operational efficiency. By eliminating data silos and ensuring a consistent flow of information across the organisation, ERP systems foster collaboration and communication among different departments. This interconnectedness breaks down barriers, allowing for a streamlined exchange of ideas and resources, ultimately driving organisational success.

The implementation of ERP systems provides businesses with a multitude of advantages, including optimised processes, reduced costs, and a distinct competitive edge. By offering a holistic view of the organisation’s performance, ERP systems empower data-driven decision-making and strategic planning, ensuring that businesses remain agile and responsive to market dynamics. In today’s fast-paced business landscape, ERP systems stand as indispensable tools, enabling organisations to thrive in an increasingly competitive environment.

CRM Benefits

CRM software offers numerous benefits that can significantly enhance a business’s operations, customer satisfaction, and overall success. Here are some of the key benefits of using CRM solutions and systems:

Improved customer service: CRM systems provide businesses with a centralised platform to manage customer interactions, ensuring that customers receive prompt and personalised assistance. By accessing customer information and interaction history, support teams can quickly address customer queries and concerns, leading to higher customer satisfaction and loyalty.

Increased customer retention: CRM systems enable businesses to gain a deeper understanding of their customers’ needs and preferences. This knowledge empowers businesses to tailor their products, services, and marketing strategies to meet customer expectations, resulting in increased customer retention and repeat business.

Automated sales and marketing processes: CRM systems automate various sales and marketing tasks, such as lead generation, contact management, email campaigns, and sales forecasting. This automation streamlines workflows, reduces manual labour, and allows sales and marketing teams to focus on more strategic activities that drive revenue growth.

Valuable insights into customer behaviour: CRM systems collect and analyse vast amounts of customer data, providing businesses with valuable insights into customer behaviour, preferences, and buying patterns. This information enables businesses to make data-driven decisions, optimise their marketing campaigns, and develop targeted strategies to attract and retain customers.

Enhanced collaboration and communication: CRM systems foster collaboration and communication between different departments within an organisation, ensuring customer-related information is seamlessly shared. This alignment improves the overall customer experience and allows businesses to respond to customer needs more effectively.

Increased profitability: By leveraging CRM systems, businesses can optimise their sales and marketing efforts, and sales cycle, leading to increased revenue generation. Additionally, the automation of tasks and improved customer retention contribute to cost savings, resulting in enhanced profitability for the business.

Overall, CRM systems provide a comprehensive suite of tools and functionalities that empower businesses to manage customer relationships effectively, deliver exceptional customer service, and drive business growth.

ERP Benefits

Enterprise resource planning (ERP) software can help businesses improve efficiency, productivity, and profitability in a number of ways. By streamlining business processes across multiple departments, ERP systems can help businesses reduce costs, improve customer service, and make better decisions.

One of the key benefits of ERP systems is their ability to automate repetitive tasks, which can significantly reduce the burden of manual labour and free up employees to focus on more strategic tasks. For example, ERP systems can automate tasks such as order processing, inventory management, and financial reporting. This can save businesses time and money, and it can also help to improve accuracy and consistency.

Another benefit of ERP systems is their ability to improve decision-making. By providing businesses with a single source of truth for all of their data, ERP systems can help them to make better decisions about how to allocate resources, manage inventory, and serve customers. For example, ERP systems can help businesses to identify trends in customer demand, which can help them to make better decisions about what products to produce or sell.

ERP systems can also help businesses to improve customer service. By providing customer service representatives with access to all of the information they need about a customer, ERP systems can help them to resolve customer issues quickly and efficiently. This can lead to increased customer satisfaction and loyalty.

Finally, ERP systems can help businesses to reduce costs. By automating repetitive tasks and improving decision-making, ERP systems can help businesses to save time and money. Additionally, ERP systems can help businesses to identify and eliminate waste, which can further reduce costs.

What is the Difference Between CRM and ERP?

CRM and ERP systems are both essential business software solutions, but they serve different purposes and cater to different aspects of business operations.

CRM systems are primarily focused on managing customer interactions and relationships. They provide businesses with a central platform to store and analyse customer data, track customer interactions, and manage sales and marketing campaigns. These CRM tools and systems help businesses understand their customers, personalise their experiences, and provide exceptional customer service.

On the other hand, ERP systems are more comprehensive and encompass a wider range of business functions. They integrate various modules such as accounting and finance, supply chain management, manufacturing, financial and operational systems, human resources, and project management. ERP systems provide businesses with a holistic view of their operations, streamline processes, and facilitate collaboration between different departments.

The key difference between CRM and ERP systems lies in their scope and focus. CRM systems are customer-centric, while ERP systems are business-wide. CRM systems help businesses manage customer relationships, while ERP systems help businesses manage all aspects of their operations.

In terms of users, CRM systems are primarily used by sales, marketing, and customer service teams. ERP systems, on the other hand, are used by a wider range of users across different departments, including finance, accounting, operations, and human resources.

Both CRM and ERP systems can provide significant benefits to businesses. CRM systems can improve customer satisfaction, increase sales, and optimise marketing efforts. ERP systems can streamline operations, reduce costs, and improve decision-making.

For businesses looking to improve their customer relationships and sales performance, a CRM system is a valuable investment. For businesses looking to optimise their operations and gain a holistic view of their business, an ERP system is the better choice.

CRM and ERP Similarities

Although CRM and ERP are distinct software applications, they share several similarities. Both systems help businesses manage and organise data, track customer interactions and sales, generate reports and analytics, and integrate with other business applications. Ultimately, both CRM and ERP can be used to improve customer service and satisfaction.

One of the key similarities between CRM and ERP is their focus on data management. Both systems collect and store data about customers, sales, and other business operations. This data can then be used to generate reports and analytics, which can help businesses make informed decisions about how to improve their operations.

Another similarity between CRM and ERP is their ability to track customer interactions and sales. CRM systems track customer interactions, such as phone calls, emails, and website visits. ERP systems track sales, such as orders, invoices, and payments. This information can be used to improve customer service and sales performance.

Finally, both CRM and ERP systems can be integrated with other business applications. This allows businesses to share data between different systems and improve their overall efficiency. For example, a CRM system can be integrated with an ERP system to share customer data, or an ERP system can be integrated with a financial management system to share financial data.

By understanding the similarities between CRM and ERP, businesses can make informed decisions about which system is right for them. CRM systems are best suited for businesses that need to manage customer interactions and sales. ERP systems are best suited for businesses that need to manage all aspects of their operations.

Do I need CRM or ERP or both?

Whether you need CRM, ERP, or both depends on several factors, including the size of your business, the nature of your industry, and your specific business goals.

If you are a small business with a relatively simple operation, you may be able to get by with just a CRM system. CRM systems can help you track customer interactions, manage sales opportunities, and provide customer service. However, if your business is larger or more complex, you may need an ERP system to manage all aspects of your operations, including accounting, finance, inventory, and manufacturing.

Here are some factors to consider when deciding whether you need an CRM or ERP system, or both:

The size of your business: CRM systems are typically more suitable for small businesses with a relatively simple operation. ERP systems are better suited for larger businesses with more complex operations.

The nature of your industry: CRM systems are particularly beneficial for businesses in the sales, marketing, and customer service industries. ERP systems are better suited for businesses in the manufacturing, distribution, and retail industries.

Your specific business goals: CRM systems can help you improve customer service, increase sales, and grow your business. ERP systems can help you improve efficiency, reduce costs, and make better decisions.

If you are unsure whether you need CRM, ERP, or both, it is a good idea to consult with a business software expert. They can help you assess your needs and recommend the best software solution for your business.

Ultimately, the best way to decide whether you need CRM, ERP, or both is to evaluate your business needs and goals. If you are still not sure which software solution is right for you, it is a good idea to consult with a business software expert. They can help you assess your needs and recommend the best software solution for your business.

Key Features of ERP vs. CRM

CRM and ERP systems offer a range of features that cater to the specific needs of their respective users. CRM systems prioritise customer-facing functions, such as contact management, sales tracking, and customer service. These features enable businesses to centralise customer data, streamline communication, and deliver personalised experiences.

ERP systems, on the other hand, focus on managing internal operations. They encompass modules for financial management, supply chain management, inventory control, and project management. These features help businesses optimise their processes, reduce costs, and make informed decisions based on real-time data.

The key features of CRM systems include:

• Contact management: Centralises customer information, including contact details, interactions, and preferences, providing a comprehensive view of customer relationships.
• Sales tracking: Allows sales teams to track leads, opportunities, and deals, enabling them to monitor progress and identify potential roadblocks.
• Customer service: Offers tools for managing outstanding customer service tickets, inquiries, complaints, and feedback, ensuring prompt and effective resolution.
• Marketing automation: Streamlines marketing campaigns, automates tasks, and personalised customer communications.
• Analytics and reporting: Provides insights into customer behaviour, sales performance, and overall business metrics, aiding decision-making.

The key features of ERP systems include:

• Financial management: Manages financial transactions, accounts payable and receivable, budgeting, risk management and forecasting, providing a clear financial picture of the business.
• Supply chain management: Optimises the flow of goods and services, from procurement to delivery, ensuring efficient inventory management and timely fulfilment.
• Inventory control: Tracks inventory levels, reorder points, and warehouse locations, minimising stockouts and optimising storage space.
• Project management: Facilitates project planning, resource allocation, scheduling, and progress tracking, ensuring successful project execution.
• Business intelligence: Offers advanced analytics and reporting capabilities, allowing businesses to analyse data, identify trends, and make data-driven decisions.

These features in both CRM and ERP systems cater to diverse user groups within an organisation. CRM systems are primarily used by sales, marketing, and customer service teams, while ERP systems serve a broader range of users, including finance, accounting, operations, and human resources departments.

Integration of ERP and CRM Systems

Integrating ERP and CRM systems can provide businesses with a unified view of their data and improve their ability to deliver exceptional customer service. This section will discuss the benefits of integrating ERP and CRM systems, including improved data management and consistency, enhanced customer service, lower customer acquisition costs, streamlined order management, and accurate inventory management.

By integrating ERP and CRM systems, businesses can ensure that customer information is consistent across all departments. This means that sales reps, marketing, and customer service teams will have access to the same up-to-date customer data, which can lead to improved customer service and increased sales. For example, if a customer calls in with a question about their order, the customer service representative will be able to access the customer’s order history and provide them with the information they need.

In addition to improving customer service, integrating ERP and CRM software systems can also help businesses streamline their order management process. When sales orders are created in the CRM system, they can be automatically transferred to the ERP system, which can then generate invoices and ship orders. This can save businesses time and money by eliminating the need for manual data entry.

Finally, integrating ERP and CRM systems can help businesses improve their inventory management. By having a single view of inventory levels, businesses can avoid stockouts and overstocking. This can lead to increased sales and reduced costs.

In conclusion, integrating ERP and CRM systems can provide businesses with a number of benefits, including improved data management and consistency across operational systems, enhanced customer service, streamlined order management, and accurate inventory management. By integrating these two systems, businesses can improve their operational efficiency and profitability.

Salesforce ERP integration and CRM

Businesses seeking to enhance customer service and operational efficiency can benefit greatly from integrating Salesforce’s CRM and ERP solutions. Salesforce CRM excels in managing customer interactions and fostering relationships, while Salesforce ERP seamlessly handles various business operations. Integrating these systems provides a comprehensive view of customers, enhancing customer service solutions and the ability to deliver personalised and exceptional service.

One significant advantage of this integration lies in automating customer service processes. When customers reach out with inquiries, representatives can swiftly access account and order information within Salesforce CRM, ensuring prompt and accurate responses. Moreover, Salesforce ERP’s inventory tracking and shipping data empower sales representatives to furnish customers with up-to-date order information, fostering trust and satisfaction.

This integration also elevates sales processes by identifying high-potential customers through data analysis of customer interactions and sales history. Armed with this knowledge, businesses can target personalised marketing campaigns, increasing the likelihood of conversions and revenue growth. Additionally, Salesforce ERP’s sales order management and inventory tracking capabilities ensure that businesses maintain adequate stock levels, preventing missed sales opportunities.

The synergy of Salesforce CRM and ERP delivers numerous benefits, including superior customer service, increased sales, and reduced operational costs. By presenting a unified customer data view, these systems empower businesses to make informed decisions, optimise processes, and provide a customer experience that stands out in today’s competitive landscape. Embracing this integration is a strategic move towards sustained growth and customer loyalty.

Businesses seeking to thrive in the modern marketplace should consider integrating Salesforce CRM and ERP solutions. The advantages they offer, such as streamlined customer service, data-driven sales strategies, and operational efficiency, contribute to long-term success and customer satisfaction.

The post ERP vs CRM: What’s the Difference? appeared first on Salesforce.

What is wealth management?

Wealth management services are meticulously tailored to each client’s unique circumstances and aspirations. Investment management lies at the core of this service, where experts strategically allocate financial assets to optimise returns while mitigating risks. Through careful portfolio construction and ongoing market monitoring, wealth managers ensure that investment strategies remain aligned with evolving financial goals.

Financial planning looks into the intricacies of an individual’s financial life, encompassing cash flow analysis, debt management, education planning, retirement planning, and insurance planning. This approach ensures that every financial situation and aspect is meticulously considered and optimally managed, creating a roadmap towards financial stability and prosperity.

Estate planning, an essential component of wealth management, focuses on preserving and distributing an individual’s assets during their lifetime and beyond. Through the creation of wills, trusts, and other legal instruments, wealth managers ensure that an individual’s wishes are meticulously documented and executed, safeguarding the financial wellbeing of their loved ones and preserving their legacy for generations to come.

Wealth management is an invaluable service for individuals and families seeking to cultivate, preserve, and grow their financial resources. By partnering with experienced wealth managers, clients gain access to personalised financial strategies, expert guidance, specialist advice, and unmatched proficiency in navigating the complexities of financial planning, investment management, and estate planning. This collaborative endeavour empowers individuals to confidently pursue their financial aspirations, ensuring a secure financial foundation for themselves and their loved ones.

Types of wealth management services

Wealth management services provide a thorough array of financial solutions designed to cater to the unique needs and aspirations of individuals and families. These services encompass four primary domains: financial planning, investment management, estate planning, and tax planning.

The Financial Industry Regulatory Authority (FINRA) plays a crucial role in overseeing professional standards and credentials in wealth management.

Financial planning is essential in wealth management as it offers a structured approach to achieving financial objectives. It entails a thorough assessment of an individual’s current financial standing, identification of short-term and long-term goals, and the formulation of a customised roadmap to realise those aspirations. This financial planner also encompasses budgeting strategies, debt management, retirement planning, education funding, and risk mitigation strategies.

Investment management plays a pivotal role in wealth management, focusing on the strategic allocation and management of assets to foster wealth growth. Wealth managers construct diversified investment portfolios tailored to each client’s risk tolerance, investment horizon, and financial goals. They exercise constant vigilance over market dynamics, making judicious adjustments to the portfolio to optimise returns while minimising potential risks.

Estate planning is an essential component of wealth management, ensuring the orderly transfer of assets during a client’s lifetime and beyond. It involves the creation of legal instruments, such as wills, trusts, and powers of attorney, to delineate the distribution and management of assets. Estate planning also addresses crucial matters like minimising estate taxes, preserving family wealth, and safeguarding the financial security of heirs.

Tax planning is an integral aspect of wealth management, aimed at minimising tax liabilities and maximising after-tax income. Wealth managers meticulously analyse clients’ tax situations and devise strategies to optimise tax efficiency. This may involve leveraging tax-advantaged investment vehicles, maximising deductions and credits, and anticipating the potential tax implications of various financial transactions.

By seamlessly integrating these services, wealth managers empower clients with a holistic approach to managing their financial resources and achieving their long-term financial aspirations. They serve as trusted advisors, providing personalised guidance, profound expertise, and unwavering support assisting clients to navigate the complexities of wealth management and make informed financial decisions.

Advantages of wealth management

Wealth management offers a range of advantages that can significantly benefit individuals and families seeking to achieve their financial goals. Firstly, a wealth management team provides clients with personalised financial advice tailored to their unique circumstances and aspirations. Through extensive financial planning, wealth managers assess clients’ financial situations, identify their goals, and develop customised strategies to help them achieve those goals. This personalised approach ensures that clients receive guidance that is aligned with their specific needs and priorities.

Secondly, wealth management services provide clients with access to professional expertise and knowledge in managing complex financial matters. Wealth managers possess extensive knowledge of financial markets, investment strategies, and tax regulations, enabling them to make informed decisions on behalf of their clients. This expertise is particularly valuable for individuals who may lack the time, knowledge, or experience to effectively manage their own finances.

Thirdly, wealth management offers clients peace of mind and financial security. By entrusting their financial affairs to experienced wealth managers, individuals and families can alleviate the stress and anxiety associated with managing their finances. Wealth managers continuously monitor clients’ portfolios, ensuring that they remain aligned with their financial goals and risk tolerance. This ongoing monitoring and management provide clients with the assurance that their financial future is in capable hands.

Fourthly, wealth management services can help clients achieve greater financial efficiency and optimisation. Wealth managers employ sophisticated financial planning techniques and strategies to maximise clients’ returns while minimising risks. They also assist clients in optimising their tax liabilities, ensuring that they retain more of their hard-earned income. This financial efficiency can significantly contribute to clients’ overall financial wellbeing and long-term financial success.

In conclusion, wealth management offers a multitude of advantages for individuals and families seeking to achieve their financial goals. Through personalised advice, professional expertise, peace of mind, and financial efficiency, wealth management services provide clients with the support and guidance needed to navigate the complex world of finance and secure their financial future.

How to choose a wealth manager

When selecting a wealth manager, it’s crucial to consider several key factors to ensure you find a professional who aligns with your financial needs and goals. One important aspect to consider is the wealth manager’s fiduciary status. A fiduciary is legally obligated to act in the best interests of their clients, prioritising their financial wellbeing above all else. This level of trust and responsibility is essential when entrusting your financial future to a wealth manager.

Experience and qualifications are also vital factors to evaluate. Look for a wealth manager with a proven track record of success in managing and growing wealth. Consider their educational background, professional certifications, and years of experience in the financial industry. A wealth manager with a strong track record and relevant qualifications can provide valuable insights and strategies to help you achieve your financial objectives.

Another important consideration is the wealth manager’s investment philosophy and risk tolerance. Understand their approach to investing and managing risk, and ensure it aligns with your own financial goals and risk appetite. A wealth manager or financial advisor who shares your investment philosophy and understands your risk tolerance can tailor their strategies accordingly, maximising the potential for success.

Fees are another crucial aspect to consider when choosing a wealth manager. Be clear about the fee structure and ensure you understand all associated costs, including management fees, performance fees, and any additional expenses. Transparent fee structures and reasonable rates are essential to ensure your wealth manager’s interests are aligned with yours.

Finally, don’t underestimate the value of references and recommendations. Seek referrals from friends, family, or business associates who have worked with wealth managers in the past. Personal recommendations can provide valuable insights into the wealth manager’s professionalism, expertise, and client service.

By carefully considering these factors, you can select a wealth manager who possesses the experience, qualifications, and values to effectively guide you towards achieving your financial aspirations.

Wealth management fees and costs

Wealth management services typically come with associated fees and costs that vary depending on the complexity of the financial plan, the level of service provided, and the wealth manager’s experience and qualifications. It is crucial for individuals and families to understand these fees and costs before selecting a wealth manager to ensure that they are making an informed decision.

Common types of fees charged by wealth managers include:

1. Advisory fees: These fees are typically based on a percentage of assets under management (AUM) and cover the ongoing investment advice, and management provided by the wealth manager. The percentage can vary depending on the size of the portfolio and the services included.
2. Transaction fees: These fees are charged each time a trade is executed on behalf of the client. They may include commissions, bid-ask spreads, and other related costs.
3. Custodian fees: These fees are an advisory fee charged by the financial institution that holds the client’s assets in custody. They cover the costs of safeguarding and administering the assets.
4. Performance fees: Some wealth managers charge performance fees based on the investment returns achieved. These fees are typically structured as a percentage of the profits generated above a predetermined benchmark.
5. Hourly fees: In some cases, private wealth managers may charge an hourly fee for specific services, such as financial planning or estate planning.

It is important to note that fees and costs can vary significantly between wealth managers, so it is essential to compare and understand the fee structures before making a decision. Some wealth managers may offer bundled services that include a combination of fees, while others may charge separately for each service.

Additionally, some wealth managers may require a minimum investment amount or a minimum annual fee, which can limit accessibility for individuals with smaller portfolios. It is advisable to seek clarification on all fees and costs, including any potential hidden charges, before committing to a wealth management service.

Examples of wealth management

Wealth managers provide a wide range of services to help clients manage their wealth effectively. Some common examples of wealth and asset management and services include:

1. Creating and maintaining an investment portfolio: Wealth managers can help clients build diversified investment portfolios that align with their risk tolerance, investment goals, and time horizon. They can also provide ongoing monitoring and management of the portfolio to ensure it remains aligned with the client’s objectives.
2. Developing strategies for tax-efficient investing: Wealth managers can help clients develop strategies to minimise their tax liability and maximise their after-tax returns. This may involve utilising tax-advantaged investment vehicles, such as retirement accounts and tax-efficient mutual funds, as well as implementing tax-loss harvesting strategies.
3. Providing advice on estate planning: Wealth managers can help clients create estate plans that ensure their assets are distributed according to their wishes and that their loved ones are financially secure. This may involve drafting wills, trusts, and powers of attorney, as well as providing guidance on issues such as probate and estate taxes.
4. Offering guidance on charitable giving: Wealth managers can help clients develop charitable giving strategies that align with their philanthropic goals and maximise their tax benefits. This may involve establishing donor-advised funds, charitable trusts, or private foundations, as well as providing guidance and tax advice on selecting charities and structuring gifts.
5. Assisting with business succession planning: Wealth managers and financial advisers can help business owners develop plans for the orderly transfer of their business to the next generation or to other owners. This may involve developing buy-sell agreements, creating family-limited partnerships, or implementing other succession planning strategies.

Wealth managers can also provide guidance on specialised areas of wealth management, such as retirement planning, education funding, and insurance planning. By working with a qualified wealth manager, individuals and families can gain access to the expertise and resources they need to achieve their financial goals and secure their financial future.

Strategies of a Wealth Manager

Within wealth management, meticulous strategies are implemented to assist clients in accomplishing their financial aspirations. Diversification stands as a central strategy, aiming to disperse investments across asset classes, industries, and geographic boundaries. This prudent approach to investment strategy seeks to mitigate the impact of market fluctuations, paving the way for sustained long-term growth.

Risk management plays an equally important role, with wealth managers meticulously assessing clients’ risk tolerance and crafting personalised investment strategies aligned with their comfort levels. This may entail employing stop-loss orders, strategic hedging, or incorporating alternative investments like real estate or commodities to fortify against potential losses. Regular vigilance and proactive adjustments ensure that clients’ portfolios remain harmonised with their risk preferences.

Rebalancing emerges as another essential strategy, ensuring that asset allocation remains optimal amidst dynamic market conditions. As investments traverse through varying performance cycles, periodic adjustments are made to restore the portfolio’s balance, aligning it with the target allocation. This prudent approach not only mitigates risk but also seizes emerging growth opportunities.

Tax efficiency holds a prominent position in wealth management, with strategies designed to minimise clients’ tax liabilities. Wealth managers leverage techniques such as tax-loss harvesting, judicious investment placement, and leveraging tax-advantaged accounts. By optimising tax efficiency, clients are empowered to maximise their after-tax returns and preserve a greater portion of their wealth.

Estate planning constitutes an integral component of wealth management, ensuring that clients’ wealth is transferred to heirs in a tax-efficient manner and their wishes are honoured after their passing. This includes crafting trusts, wills, and other legal instruments, as well as collaborating with estate attorneys and other professionals. Through comprehensive estate planning, clients can safeguard their legacies and provide for their loved ones.

These strategies coalesce to form a holistic framework for wealth management, encompassing financial guidance, risk management, and future security. Wealth managers serve as trusted financial advisors throughout, diligently guiding clients toward the realisation of their financial goals and securing their financial wellbeing.

The post What are Wealth Management Services? appeared first on Salesforce.

To succeed in the future of commerce and adapt quickly to all the changes, it’s critical to be strategic and methodical. Here’s what to expect in the world of ecommerce over the next few years — and how you can stay ahead.

Understanding your customers is the key to ecommerce growth

See the trends that are shaping customer engagement.

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Customer trust will take center stage

Today, 68% of customers say advances in AI make it more important for companies to be trustworthy. Customers want to know that their data is used responsibly, their privacy is respected, and that businesses use AI ethically. As AI becomes more advanced and widely adopted, trust will be paramount. This means your company (and those you partner with) should have ethical guardrails in place to address how data is collected and how AI for commerce is implemented.

AI can personalise prices, offers, and products in real time. It can help you automate tedious manual tasks and save teams hours per day. But this all requires a thoughtful approach to mitigate risk and keep data safe. Always get customer consent to collect and use data, and ask your technology partners how they avoid AI pitfalls like hallucinations, inaccuracies, biases, and toxicity. 

The future of commerce isn’t just about leveraging AI to move fast and drive revenue; it’s about building trust and customer loyalty. 

How you can stay ahead: Most customers (71%) are more likely to trust a company with their personal data if its uses were clearly explained. Build trust by creating transparent guidelines and sharing them with your customers.

Businesses will make moves to harmonise data

The average business uses over 1,000 different apps to run their organisation — that’s a lot of data from disparate sources. Before you can use all that data to create truly connected, personalised experiences, you need to harmonise it. Data harmonisation is key if you want to uncover insights fast and implement AI in a meaningful way. 

What is harmonised data?

Harmonisation brings together data from multiple sources (think: your customer relationship management, order management, and enterprise resource planning systems) to provide a holistic view of all the activities across your business.  

The first step to harmonisation: a customer data platform (CDP). This powerful tool unifies your data, creates a singular view of each customer, and opens up a new realm of possibilities for your business. That’s why 73% of business leaders say a CDP will be critical to their customer experience efforts. Once you harmonise data from across your organisation, you can apply AI (including generative AI), automation, and machine learning to help you market, serve, and sell to customers more efficiently. If you want to take advantage of all the new AI capabilities in the future of commerce, data harmonisation should be a top priority.

How you can stay ahead: Make sure your data is clean. Remove duplicates, outliers, errors, and other things that can negatively affect how you make decisions.

Personalisation will get better, easier, and faster

It’s no surprise: Customers expect personalised experience on every channel and at every touchpoint. However, more than half (56%) still say they’re treated like a number. That’s a huge opportunity for improvement. Fortunately, generative AI and other new solutions make it easier to create hyperpersonalised experiences at scale — no matter where or how your customers shop. 

As AI trains on large, rich datasets and continuously learns more over time, businesses will be able to create increasingly impactful personalised experiences. And as customer behaviours change, new commerce tools for sales and service teams will help businesses adapt by offering new ways to shop and pay. Here’s what personalisation and user experience will look like in the future of commerce:

• Dynamic product descriptions: Imagine the lift in your conversion rate if you could tailor your product descriptions to each customer. Now, it’s possible. In an instant, generative AI can use behavioural, demographic, and attitudinal data to whip up personalised product descriptions that speak to each shopper’s specific needs and preferences. Metatags are also instantly updated for each product detail page. AI can also analyse return reason codes, product reviews, and comments to create more accurate, helpful descriptions and reduce returns.

• Hyperpersonalised promotions: With generative AI, personalisation is no longer reactive — it’s predictive. Based on ecommerce data like order and search history, you can anticipate customers’ needs, generate content, and tailor promotions to meet the moment.

• Transactions on any touchpoint: Personalisation also lets customers shop how and where they prefer. Today, both consumers and B2B buyers want to be able to make purchases outside of a digital storefront. More and more, they’re buying on social media, through messaging apps, with QR codes, and in live-stream videos. To give your shoppers this freedom, you need the right tools. With embedded commerce for sales and service teams, any agent can send Pay Now links across any touchpoint. 

How you can stay ahead: Create a segment of your highest-value customers and focus on making their experience shine. Customer acquisition can be costly, and prioritising loyal customers can help you drive more revenue, fast.

Commerce teams will skill up for AI

Contrary to many fears, AI isn’t eliminating jobs — it’s making people more productive. When you train AI on secure customer data from across your business, your merchandisers, marketers, and ecommerce teams gain a trusted, whip-smart advisor. 

Consider a merchandiser tasked with increasing average order value (AOV). In the past, she’d spend days (or even weeks) tracking down behavioural data for specific customer segments, details about which items are often bought together, and the success of past promotional strategies.

Now? AI can help her quickly reach her goals. She can use generative AI to build a plan, receive step-by-step guidance, and track progress with data-powered insights. This turns weeks of work into a few simple clicks. 

More than half of retailers already use generative AI to boost commerce productivity. Creative teams use it to produce assets for ads, emails, social media, and websites. In-store associates use it to generate product recommendations. And technical teams use it to create conversational digital shopping assistants that help customers find the right product or service. As teams are asked to do more with less, the future of commerce will be a rush to automate growth and implement AI in a way that makes every employee’s job more efficient and effortless.

How you can stay ahead: Before you implement new AI tools, clearly define the business value they will bring, create a detailed plan for training and change management, and determine how you’ll measure success.

Are you ready for the future of commerce?

The landscape is changing fast and competition is heating up, but companies with the right tools and strategies will find success. As you plan for 2024, focus on the areas of your business that will increase customer trust, boost productivity and revenue, and garner customer satisfaction. First, make sure your data is harmonised and complete. Then, prioritise productivity and personalisation to boost revenue and loyalty.

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The post Planning for the Future of AI in Commerce? Here’s What to Focus On appeared first on Salesforce.

What you’ll learn:

1. Artificial intelligence is boosting efficiency
2. Businesses are prioritising data management and harmonisation
3. Conversational commerce is getting more human
4. Headless commerce is helping businesses keep up
5. Brands are going big with resale
6. Social commerce is evolving
7. Vibrant video content is boosting sales
8. Loyalty programs are getting more personalised
9. User-generated content is influencing ecommerce sales
10. Subscriptions are adding value across a range of industries
11. Ecommerce trends FAQ

1. Artificial intelligence is boosting efficiency

There’s no doubt about it: Artificial intelligence (AI) is changing the ecommerce game. Commerce teams have been using the technology for years to automate and personalise product recommendations, chatbot activity, and more. But now, generative and predictive AI trained on large language models (LLM) offer even more opportunities to increase efficiency and scale personalisation. AI is more than an ecommerce trend — it can make your teams more productive and your customers more satisfied.

Do you have a large product catalog that needs to be updated frequently? AI can write and categorise individual descriptions, cutting down hours of work to mere minutes. Do you need to optimise product detail pages? AI can help with SEO by automatically generating meta titles and meta descriptions for every product. Need to build a landing page for a new promotion? Generative page designers let users of all skill levels create and design web pages in seconds with simple, conversational building tools. 

All this innovation will make it easier to keep up with other trends, meet customers’ high expectations, and stay flexible — no matter what comes next.

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2. Businesses are prioritising data management and harmonisation

Data is your most valuable business asset. It’s how you understand your customers, make informed decisions, and gauge success. So it’s critical to make sure your data is in order. The challenge? Businesses collect a lot of it, but they don’t always know how to manage it. 

That’s where data management and harmonisation come in. They bring together data from multiple sources — think your customer relationship management (CRM) and order management systems — to provide a holistic view of all your business activities. With harmonised data, you can uncover insights and act on them much faster to increase customer satisfaction and revenue. Harmonised data also makes it possible to implement AI (including generative AI), automation, and machine learning to help you market, serve, and sell more efficiently. 

That’s why data management and harmonisation are top priorities among business leaders:

• 68% predict an increase in data management investments. 
• 32% say a lack of a complete view and understanding of their data is a hurdle.
• 45% plan to prioritise gaining a more holistic view of their customers.  

For businesses looking to take advantage of all the new AI capabilities in ecommerce, data management should be priority number one.

3. Conversational commerce is getting more human

Remember when chatbot experiences felt robotic and awkward? Those days are over. Thanks to generative AI and LLMs, conversational commerce is getting a glow-up. Interacting with chatbots for service inquiries, product questions, and more via messaging apps and websites feels much more human and personalised.

Chatbots can now elevate online shopping with conversational AI and first-party data, mirroring the best in-store interactions across all digital channels. Natural language, image-based, and data-driven interactions can simplify product searches, provide personalised responses, and streamline purchases for a smooth experience across all your digital channels.

As technology advances, this trend will gain more traction. Intelligent AI chatbots offer customers better self-service experiences and make shopping more enjoyable. This is critical since 68% of customers say they wouldn’t use a company’s chatbot again if they had a bad experience.

4. Headless commerce is helping businesses keep up

Headless commerce continues to gain steam. With this modular architecture, ecommerce teams can deliver new experiences faster because they don’t have to wait in the developer queue to change back-end systems. Instead, employees can update online interfaces using APIs, experience managers, and user-friendly tools. According to business leaders and commerce teams already using headless:

• 76% say it offers more flexibility and customisation. 
• 72% say it increases agility and lets teams make storefront changes faster.
• 66% say it improves integration between systems.

Customers reap the benefits of headless commerce, too. Shoppers get fresh experiences more frequently across all devices and touchpoints. Even better? Headless results in richer personalisation, better omni-channel experiences, and peak performance for ecommerce websites.

5. Brands are going big with resale

Over the past few years, consumers have shifted their mindset about resale items. Secondhand purchases that were once viewed as stigma are now seen as status. In fact, more than half of consumers (52%) have purchased an item secondhand in the last year, and the resale market is expected to reach $70 billion by 2027. Simply put: Resale presents a huge opportunity for your business. 

As the circular economy grows in popularity, brands everywhere are opening their own resale stores and encouraging consumers to turn in used items, from old jeans to designer handbags to kitchen appliances. To claim your piece of the pie, be strategic as you enter the market. This means implementing robust inventory and order management systems with real-time visibility and reverse logistics capabilities. 

6. Social commerce is evolving

There are almost 5 billion monthly active users on platforms like Instagram, Facebook, Snapchat, and TikTok. More than two-thirds (67%) of global shoppers have made a purchase through social media this year.

Social commerce instantly connects you with a vast global audience and opens up new opportunities to boost product discovery, reach new markets, and build meaningful connections with your customers. But it’s not enough to just be present on social channels. You need to be an active participant and create engaging, authentic experiences for shoppers.

Thanks to new social commerce tools — like generative AI for content creation and integrations with social platforms — the shopping experience is getting better, faster, and more engaging. This trend is blurring the lines between shopping and entertainment, and customer expectations are rising as a result.

7. Vibrant video content is boosting sales

Now that shoppers have become accustomed to the vibrant, attention-grabbing video content on social platforms, they expect the same from your brand’s ecommerce site. Video can offer customers a deeper understanding of your products, such as how they’re used, and what they look like from different angles.

And video content isn’t just useful for ads or for increasing product discovery. Brands are having major success using video at every stage of the customer journey: in pre-purchase consultations, on product detail pages, and in post-purchase emails. A large majority (89%) of consumers say watching a video has convinced them to buy a product or service.

8. Loyalty programs are getting more personalised

It’s important to attract new customers, but it’s also critical to retain your existing ones. That means you need to find ways to increase loyalty and build brand love. More and more, customers are seeking out brand loyalty programs — but they want meaningful rewards and experiences. So, what’s the key to a successful loyalty program? In a word: personalisation.

Customers don’t want to exchange their data for a clunky, impersonal experience where they have to jump through hoops to redeem points. They want straightforward, exclusive offers. Curated experiences. Relevant rewards. Six out of 10 consumers want discounts in return for joining a loyalty program, and about one-third of consumers say they find exclusive or early access to products valuable. 

The brands that win customer loyalty will be those that use data-driven insights to create a program that keeps customers continually engaged and satisfied. 

9. User-generated content is influencing ecommerce sales

User-generated content (UGC) adds credibility, authenticity‌, and social proof to a brand’s marketing efforts — and can significantly boost sales and brand loyalty. In fact, one study found that shoppers who interact with UGC experience a 102.4% increase in conversions. Most shoppers expect to see feedback and reviews before making a purchase, and UGC provides value by showcasing the experiences and opinions of real customers. 

UGC also breaks away from generic item descriptions and professional product photography. It can show how to style a piece of clothing, for example, or how an item will fit across a range of body types. User-generated videos go a step further, highlighting the functions and features of more complex products, like consumer electronics or even automobiles. 

UGC is also a cost-effective way to generate content for social commerce without relying on agencies or large teams. By sourcing posts from hashtags, tagging, or concentrated campaigns, brands can share real-time, authentic, and organic social posts to a wider audience. 

UGC can be used on product pages and in ads, as well. And you can incorporate it into product development processes to gather valuable input from customers at scale. 

10. Subscriptions are adding value across a range of industries

From streaming platforms to food, clothing, and pet supplies, subscriptions have become a popular business model across industries. In 2023, subscriptions generated over $38 billion in revenue, doubling over the past four years. That’s because subscriptions are a win-win for shoppers and businesses: They offer freedom of choice for customers while creating a continuous revenue stream for sellers.

Consider consumer goods brand KIND Snacks. KIND implemented a subscription service to supplement its B2B sales, giving customers a direct line to exclusive offers and flavours. This created a consistent revenue stream for KIND and helped it build a new level of brand loyalty with its customers. The subscription also lets KIND collect first-party data, so it can test new products and spot new trends.

Ecommerce trends FAQ

How do I know if an ecommerce trend is right for my business?

If you’re trying to decide whether to adopt a new trend, the first step is to conduct a cost/benefit analysis. As you do, remember to prioritise customer experience and satisfaction. Look at customer data to evaluate the potential impact of the trend on your business. How costly will it be to implement the trend, and what will the payoff be one, two, and five years into the future? Analyse the numbers to assess whether the trend aligns with your customers’ preferences and behaviours. 

You can also take a cue from your competitors and their adoption of specific trends. While you shouldn’t mimic everything they do, being aware of their experiences can provide valuable insights and help gauge the viability of a trend for your business. Ultimately, customer-centric decision-making should guide your evaluation.

Is ecommerce still on the rise?

In a word: yes. In fact, ecommerce is a top priority for businesses across industries, from healthcare to manufacturing. Customers expect increasingly sophisticated digital shopping experiences, and digital channels continue to be a preferred purchasing method. Ecommerce sales are expected to reach $8.1 trillion by 2026. As digital channels and new technologies evolve, so will customer behaviours and expectations.  

Where should I start if I want to implement AI?

Generative AI is revolutionising ecommerce by enhancing customer experiences and increasing productivity, conversions, and customer loyalty. But to reap the benefits, it’s critical to keep a few things in mind. First is customer trust. A majority of customers (68%) say advances in AI make it more important for companies to be trustworthy. This means businesses implementing AI should focus on transparency. Tell customers how you will use their data to improve shopping experiences. Develop ethical standards around your use of AI, and discuss them openly.

You’ll need to answer tough questions like: How do you ensure sensitive data is anonymised? How will you monitor accuracy and audit for bias, toxicity, or hallucinations? These should all be considerations as you choose AI partners and develop your code of conduct and governance principles. 

At a time when only 13% of customers fully trust companies to use AI ethically, this should be top of mind for businesses delving into the fast-evolving technology.

How can commerce teams measure success after adopting a new trend?

Before implementing a new experience or ecommerce trend, set key performance indicators (KPIs) and decide how you’ll track relevant ecommerce metrics. This helps you make informed decisions and monitor the various moving parts of your business. From understanding inventory needs to gaining insights into customer behaviour to increasing loyalty, you’ll be in a better position to plan for future growth. 

The choice of metrics will depend on the needs of your business, but it’s crucial to establish a strategy that outlines metrics, sets KPIs, and measures them regularly. Your business will be more agile and better able to adapt to new ecommerce trends and understand customer buying patterns. Ecommerce metrics and KPIs are valuable tools for building a successful future and will set the tone for future ecommerce growth.

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The post 10 Ecommerce Trends That Will Influence Online Shopping in 2024 appeared first on Salesforce.

How did the market get this massive and what changes are in store as technology and customer expectations evolve? Here’s everything you need to know about digital commerce and how it works.

What you’ll learn:

• What is ecommerce?
• The rise of digital shopping
• How is ecommerce changing? New trends and priorities
• What are ecommerce channels?
• How does ecommerce work and what are the critical elements?
• What are examples of successful ecommerce?
• What are the benefits of ecommerce?
• What are the different types of ecommerce business models?

What is ecommerce?

Ecommerce is all the online activity involved in the buying and selling of products and services. In other words, it’s the process for conducting transactions online. When you go to your favourite online retailer to buy a new pair of shoes, you’re engaging in ecommerce. If you pay online for a ticket to attend a music concert or travel by plane, that’s ecommerce, too.

Ecommerce doesn’t only occur on desktop, though. In fact, most ecommerce traffic happens on mobile devices. Spurred by the influence of smartphones and the convenience of online shopping, mobile commerce sales make up almost 75% of ecommerce market share. That means nearly three out of every four dollars spent on online purchases today is done through a mobile device.

The rise of digital shopping

How important has online shopping become for businesses and consumers? Check out these stats:

• Ecommerce sales are projected to reach 57% of retail sales by 2024.
• There are 2.6 billion digital shoppers in the world. If you’re not selling online, you’re missing out on the chance to convert a vast pool of potential buyers.
• More than half (57%) of all customers prefer to engage through digital channels. 

To win your share of the market, it’s important to stay on top of the latest ecommerce trends and know what motivates customers to make purchases.

How is ecommerce changing? New trends and priorities

New technology 

You’ve heard it before, but it bears repeating: Generative and predictive AI are changing the ecommerce game. They’re making teams more productive and giving them new and valuable ways to engage with customers.

Thanks to AI trained on large language models (LLMs) and historical business data, tasks that used to take your teams days or weeks now take just hours. For example, generative AI can automatically write accurate, detailed product descriptions. With low-code generative development tools, business users at all skill levels can create landing pages and localised sites with less time and effort. Ultimately, new technology means that ecommerce teams can work smarter and faster. 

AI is also improving the customer experience. Remember when chatbots could answer only a few select questions? Now, their conversations are more human, more personalised, and more helpful. 

Chatbots trained on LLMs can guide shoppers to specific products based on their purchase history, preferences, and past searches. The bots can answer more complex questions, such as: How does this blouse fit? Does it run true to size? By providing these kinds of tailored experiences in real time and at scale, businesses can greatly boost their bottom line and customer satisfaction.

New channels 

Customers want to shop however, wherever, and whenever they like. This means online, offline, and, increasingly, in spaces like messaging apps, voice platforms like Amazon’s Alexa, or on social media. In the future of commerce, new channels will crop up. Businesses that find ecommerce success will be those that move quickly and engage customers in new spaces as they emerge. 

Customers use multiple channels to browse products and shop online, and businesses must make sure this omni-channel experience is cohesive. That’s the purpose of unified commerce: It means all your back-end systems are connected with your customer-facing channels. This is what creates a seamless customer experience, whether a shopper visits your website, mobile app, social media, or anywhere else.

New expectations

We know that customers already want personalised experiences. In fact, 53% of them expect companies to anticipate their needs. As AI improves the shopping experience with predictive intelligence and natural language processing, customers will notice which brands are doing it right. A staggering 81% of customers expect faster service as technology advances, and 73% expect better personalisation.

What are ecommerce channels?

An ecommerce channel is any digital space where a customer shops. Think of all the ways you can browse or buy online: You can search for items on a brand’s website, download the brand’s app on your mobile device, or shop on social media. These are a few of the most popular ecommerce channels:

Mobile commerce: Simply put, mobile commerce is shopping through a handheld device (like a smartphone or a tablet). As more customers prefer shopping this way, businesses must meet demands for stellar mobile experiences. No matter what device a customer uses, shoppers want it to be simple and intuitive to browse products, add to cart, and purchase.

Social commerce: Social commerce brings the entire shopping experience — from browsing to checkout — to social media. Customers can discover products as they scroll their social feeds, browse your brand’s social posts for products that match their needs, and then buy directly on a social platform through shoppable content. For customers, social commerce is a convenient way to find and purchase products. For businesses, it’s a great way to quickly expand your reach and your customer base.

Ecommerce websites: An ecommerce website is a powerful sales tool where customers can visit, browse, and purchase your products via mobile or desktop. These sites should include a home page that represents your brand well, product pages that entice shoppers to buy, and a pain-free checkout experience.

How does ecommerce work and what are the critical elements?

Ecommerce brings businesses and customers together on different channels. To make ecommerce work, a business needs to create a user experience on a given channel where customers can easily search for and buy products. This requires certain elements and features, including:

Content: This is where you create and update your user experience. It includes all the content — images, video, product descriptions, and other written ecommerce content — across your entire site. Anything you see on an ecommerce site’s home page, product listing pages, and detail pages is all part of content management. Merchandisers, marketers, designers, and developers are responsible for creating the user experience and bringing it to life on the web.

Site navigation: Think of the last time you bought something online. Were products easy to find? Did you intrinsically know how to browse, add to cart, and pay for your items? That’s the  result of a carefully thought-out site navigation strategy. Ecommerce works best when businesses consider the customer journey and how each shopper will use the site.

Payment: If it’s hard to make a purchase or if a payment process feels clunky, customers will find a competitor who does it better. Getting the payment experience right and making it as easy as possible is critical.

Order management: This involves the logistics of ecommerce and everything that happens after a shopper clicks the Buy button. Order management is what gets an item from a warehouse to a customer’s doorstep.

What are examples of successful ecommerce?

There’s an art and a science to successful ecommerce. Your digital storefront is the “face”  of your brand, and it’s often a shopper’s first impression of your business. By combining the above elements with successful strategies for user experience (UX), design, and merchandising, you can create stellar, memorable shopping experiences that keep customers coming back.

It’s hard to understate the importance of a digital storefront. So, what makes an ecommerce website shine? Here are a few successful examples:

E.l.f. Beauty

Known for bringing clean beauty to the masses with affordable cosmetics, E.l.f. Beauty is a shining example of ecommerce. Neatly categorised products, uniform imagery, and easily scannable product details make it easy — and enjoyable — to browse the site. 

YETI

YETI makes tough, long-lasting outdoor gear built for all kinds of adventures, and its ecommerce site reflects that: Shoppers can easily browse by activity: hunting, fishing, travel, and more. Promotions are highly visible. Adding an item to your cart? Simple. Checkout is streamlined and the entire shopping experience is seamless.

Sonos

Wireless audio devices can be complex. Are the items compatible with a customer’s other technology? What are the product specifications? Wireless-speaker system leader Sonos offers filters by product type and feature to help customers find what they’re looking for. Product detail pages neatly display all the information a shopper needs to make a decision. 

What are the benefits of ecommerce?

Ecommerce provides the best in convenience and accessibility. It’s a highly efficient way to sell goods and services, whether you’re an all-digital business or you use ecommerce to supplement your physical stores. But the benefits of ecommerce go far beyond the convenience of running your business online. Here’s what you can look forward to once you launch your online store:

• Cost savings: Brick-and-mortar stores come with overhead, such as money spent on leases, staffing needs, and utilities. Physical locations also require business hours, which means you’re making sales only during a percentage of customers’ waking hours. Ecommerce lets you bypass these costs and sell at all hours of the day. 

• Borderless transactions: A physical store limits business operations to a specific geographical area. With an ecommerce website, your business can reach more customers, globally — maximising your selling potential.

• Earnings while you sleep: With a physical store, you likely operate during regular business hours. With ecommerce, customers around the world can buy your products at any time. 

• First-party data: Ecommerce lets you collect more customer data than you could at a brick-and-mortar store. With the right ecommerce platform, you gain access to detailed information and real-time data about how customers shop: their click paths, search history, order history, and product pairings. Business leaders use this data to make informed decisions for their ecommerce, marketing, and sales strategies. The result? A hefty boost to your bottom line.

• Scalability: As your customer base grows, you can expand your ecommerce businesses to accommodate more sales. While expanding your physical store typically means relocating or renovating (which can be expensive), with an ecommerce platform you simply need to increase its bandwidth to handle more traffic and orders. And, you can predict future sales based on past sales data and scale your platform up or down accordingly.

• Personalised experiences: With ecommerce, you can take advantage of AI to create  personalised shopping for your customers. AI-enabled upselling and cross-selling lets you present customers with products they’re most likely to be interested in, increasing your business’ sales.

• Access to innovative technology: As technology continues to improve, you’ll find more ways to streamline your business processes. With a physical store, there can be limitations to what technology can do. With ecommerce, you’ll find a range of apps and integrations that help you market your products, improve team collaboration, and provide faster customer service.

• Effective, targeted marketing: Rather than rely on traditional marketing methods like print ads to drive traffic to a physical store, you’ll have a range of affordable marketing channels to drive customers to your ecommerce business. Search engine marketing, organic and paid social media ads, and email marketing let you reach a segmented market for a lower cost.

What are the different types of ecommerce business models?

Whether you sell products directly to customers or sell services to other businesses, there’s an ecommerce model for you. Here are some of the different types of ecommerce businesses to consider before launching your online store.

B2C (Business to Consumer)

B2C ecommerce refers to selling goods or services to individual customers. B2C is what most people think of when they hear the term “ecommerce business.”

Traditional B2C sales occur between a business and a single consumer. In this model, a shopper finds a business online and places an order, and the business sends the product to the customer. A B2C ecommerce strategy, then, involves using customer data to get a full view of customers across their online shopping journeys.

B2B (Business to Business)

B2B ecommerce refers to selling products or services to businesses. B2B companies typically have a higher order value and more recurring purchases.

B2B ecommerce products and services may include manufacturing equipment, distribution, website hosting services, financial services, or software solutions for businesses, just to name a few. These businesses provide other businesses with the products or services they need to grow.

D2C (Direct to Consumer)

Like B2C, the D2C ecommerce customer is an individual consumer. The difference is that D2C allows manufacturers to sell directly to consumers instead of (or in addition to) using third-party retailers or wholesalers. 

What is ecommerce? It’s what powers every online purchase 

Ecommerce is a proven business model that helps drive revenue growth for some of the world’s largest brands. By getting started with ecommerce, you’ll reach more customers online and significantly increase your business revenue.

Ready to embark on your ecommerce journey? Start here:

• Learn how to prepare your business for ecommerce success. Get the step-by-step guide to organise your teams, goals, and road map for a painless digital transformation.

• Want to get started quickly? Consider a minimum viable product approach. It’s one of the fastest ways to get a commerce site up and running.

• Explore flexible tools to help you reduce costs, increase sales, and adapt quickly. To grow your revenue online, check out all Commerce Cloud has to offer.

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They’re also 1.6x more likely to rate themselves as effective at automating processes. Customers who have used Salesforce Customer 360 have seen automation of business processes speed up by 27%. 

When you have your customer data on one trusted platform, with automated processes handling your day-to-day operations, you can focus on your customer and grow your business.

Automation is critical in the drive for efficiency

Automation allows you to create a more efficient and productive workforce. 

In a recent Salesforce Success Metrics study, companies across industries and regions reported seeing, on average, a 26% increase in employee productivity* using Salesforce automation, plus an estimated 25% savings on IT costs*.

Other benefits of automation are described in the State of Service report — top of the list is time saving, with 98% of those surveyed describing it as a benefit, and 50% saying that it’s a major benefit to their business. 

The report also includes benefits such as connection with other departments, reduction of errors, and time for new projects. All of these factors contribute to a more productive organisation — and that’s not all. Forty-seven percent of service professionals also said that automation helped them focus on their customers.

Lower your ordering costs

To meet new challenges and keep customer satisfaction at the forefront, businesses need to streamline operations to reduce costs, improve customer experience, and earn loyalty. That means streamlining order management and automating repetitive and tedious processes. 

Order management system in Commerce Cloud Genie enables businesses to grow revenue with intelligent insights and build trusted relationships with real-time data. We’ve seen companies achieve a reduction of 26% in ordering costs* and boost productivity with Einstein AI within the Commerce Cloud. With commerce automation, 89% of Salesforce customers achieve positive ROI in only nine months.*

Customers demand personalised digital experiences

Your customers are more online than ever. As reported in our State of the Connected Customer report, customers worldwide expect more than 60% of their interactions with companies to be online this year. 

The report also highlights three important considerations:

• 88% of consumers say that the experience a company provides is just as important as the product or service it provides
• 73% of customers also say that they expect companies to understand their unique needs and expectations 
• 56% of customers still think that companies treat them as a number, rather than an individual.

The State of Commerce report told us that, after revenue growth and expanded customer base, the greatest concern for most industries is deepening customer relationships. 

Leaders in the world of commerce are nearly 1.7x more likely to rate themselves as ‘effective’ when it comes to personalised experiences. They’re also 1.5x more likely to be effective when it comes to understanding customer behaviour.

For your business to thrive, you need to create smoother journeys with highly personalised and intelligent shopping moments that make your customers feel truly understood. These insights present an opportunity for any company to offer a personalised digital service to wow your customers with great experiences and drive business growth. And this can be done with a comprehensive understanding of your customers’ needs – which comes from a complete set of customer data.

New channels = more opportunities

One of the keys to digital success is expanding into new channels. As shown in the State of Commerce report, 69% of digital commerce leaders are already investing in new digital channels. These new channels include mobile apps, online marketplaces, and social media platforms like TikTok. 

Fifty-seven percent of customers prefer to engage with companies through digital channels — that number rises to 65% for younger generations. Online comes out on top even when it comes to the final purchase — 63% of millennials and 58% of Gen Z prefer buying online over going into a store.

The time to start automating is now

The stakes for not automating the way you handle data are high — even among leaders. In fact, leaders who report that they aren’t effective at using their data are 37% more likely to report not being prepared to handle rising inflation. 

More than 60% of customers are already telling us that the majority of their interactions with companies will be online in the coming years. From Salesforce Cyber Week 2022 shopping insights, global online sales and digital traffic broke records. The numbers hit an all-time high of USD$281 billion, up 2% compared to 2021, and USD$68 billion, up 9% compared to 2021. If the trend continues, that number will only get higher. 

Prepare your automation strategy now, and you’ll be ready to grow in the future. The second edition of the State of Commerce contains analysis of buying data from over 1 billion customers worldwide. Download the report today to find out how you can handle your data to grow your commerce business more efficiently.

*Source: 2022 Salesforce Success Metrics Global Highlights study.

Data is from a survey of 3,706 Salesforce customers across Singapore, the US, Canada, the UK, Germany, France, Australia, India, Japan and Brazil conducted between June 8 and June 21, 2022. Results were aggregated to determine average perceived customer value from the use of Salesforce. Respondents were sourced and verified through a third-party B2B panel. Sample sizes may vary across metrics.

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