Company News • 04.11.2015

Digital not yet delivering

Multichannel integration challenges impacting revenue

Digital not yet delivering
Source: Salmon
A study from global ecommerce consultancy Salmon has explored the most important aspects of digital commerce in Britain, analysing how companies across a range of sectors rate their performance in digital channels.

The findings reveal a business world striving to maximise the revenue potential of digital technology but struggling to make that a reality. Despite UK businesses investing in digital commerce, with mcommerce (49%) and desktop ecommerce (81%) already key sales channels, only 19% of total annual revenue currently comes from digital commerce.

When asked to pinpoint the challenges faced in maximising the potential of digital commerce, respondents claimed the biggest battle for developing ecommerce as a whole (41%), and more specifically when it came to mcommerce (23%), was the issue of integration with traditional sales channels such as face-to-face and in-store. Handling customer service (37%) and managing the distribution of products when selling to customers (35%) were also noted as challenges.

However, businesses need little convincing of the advantages of digital sales channels and in many cases are already experiencing them – 89% of luxury retailers with a mobile sales channel have experienced benefits as a result. Additionally, over two thirds (69%) of respondents highlighted the ability to collect customer data and target customers more accurately as key benefits.

Digital not yet delivering
Source: Salmon
Neil Stewart, CEO of Salmon commented: “Increased year-on-year spend, technologies providing the next cutting-edge development and improved customer engagement are all proof that UK business is certainly seizing this opportunity with both hands. But the ecommerce journey is not a smooth one for a number of organisations and this is hindering their potential across digital channels.”

Despite the revenue opportunities digital commerce brings, it is clear that businesses face challenges in turning benefits, such as improved brand awareness, into increased sales. The situation is not helped by lack of clear responsibility – 67% don’t have a dedicated team in place – or a plan to deal with the pace of change, with over half (51%) agreeing their organisation does not have the skills to maximise the potential of digital technologies.

Looking ahead, as digital technology continues to innovate and new services come into play, businesses are preparing to take advantage, with almost half of all organisations (49%) planning to invest in the Internet of Things (IoT) and wearables within the next five years.

“British businesses are certainly exploiting digital sales channels but the fact is that they can do more to realise their full potential,” added Stewart. “Rushing ahead with emerging digital technologies before mastering the basics is unlikely to reap the revenue returns we all hope for. Digital commerce has the potential to be as vital to UK plc – whether B2B or consumer-facing – as it is to the lives of the general public. Businesses need to think long and hard about the role digital commerce can play in their organisations and go on a journey to realising that potential, implementing strategies which suit the bespoke needs of their customers.”

The full study, entitled ‘British Business In The Digital Age’, is available for download from www.salmon.com/digitalbritain2015.

Source: Salmon

related articles:

popular articles:

Thumbnail-Photo: Deal for personal data in luxury segment
13.02.2020   #customer satisfaction #data management

Deal for personal data in luxury segment

Affluent consumers demand security, privacy and personalization in exchange for personal information

Affluent U.S. consumers demand stringent safeguards on the security and privacy of their personal data from companies that collect their information, according to a new Luxury Institute survey of Americans earning at least 150,000 dollars per year. ...

Thumbnail-Photo: Listen to the heartbeat: Music in the store
07.04.2020   #in-store marketing #customer analysis

Listen to the heartbeat: Music in the store

The best playlist for the store

Taste is one thing, science is another. Because the sounds that entice people into purchasing are not just a matter of chance. In an interview with the Sound Experts, we learn more about the planning of playlists for brick and mortar stores. ...

Thumbnail-Photo: Launch: SBA’s paycheck protection program for small businesses...
09.04.2020   #personnel management #coronavirus

Launch: SBA’s paycheck protection program for small businesses

Economic relief provision to protect workers and businesses affected by the coronavirus pandemic

The U.S. Small Business Administration Administrator Jovita Carranza launched the Paycheck Protection Program, a 349 billion dollars emergency loan program created last week with the President’s signing of the Coronavirus Aid, Relief, and ...

Thumbnail-Photo: COVID-19: majority of Americans changing how they shop...
01.04.2020   #online trading #brick and mortar retail

COVID-19: majority of Americans changing how they shop

Most consumers are stocking up in-store, despite health concerns and empty aisles, according to the new Shopkick survey

As uncertainty and anxiety rise across the country due to COVID-19, Americans are doing whatever it takes to stay safe and healthy, including changing the way they shop, according to a new survey by leading shopping rewards app Shopkick. In fact, 76 ...

Thumbnail-Photo: Online fashion retail sales revenue plummets by over 30 percent...
03.04.2020   #online trading #e-commerce

Online fashion retail sales revenue plummets by over 30 percent

New data from Nosto about online shopping in Europe and the US during the COVID-19 pandemic

Online fashion, apparel and accessories retailers in the US and key European countries have seen revenues fall by over 30% year-on-year in March due to the coronavirus epidemic according to a new report. However, traffic did not drop by as much, ...

Thumbnail-Photo: German prestige beauty industry generates 3,2 billion € in sales for...
14.04.2020   #online trading #brick and mortar retail

German prestige beauty industry generates 3,2 billion € in sales for 2019

Sales are driven by skincare and fragrances

The sales of beauty products sold in the prestige beauty market generated 3,2 billion € in sales during 2019, according to The NPD Group. Within the five largest countries for sales of prestige beauty products in Europe, which are tracked by ...

Thumbnail-Photo: The eye is shopping too!
20.02.2020   #brick and mortar retail #decorative lighting

The eye is shopping too!

Visual merchandising and product presentation at EuroShop 2020

For a successful purchase, it sometimes takes more than just a full wallet. Customers want to be addressed in the store - not only by staff, but also visually. We also took a look around EuroShop in terms of visual merchandising and product ...

Thumbnail-Photo: Customer-centered, digital and adaptive
23.03.2020   #brick and mortar retail #digitization

Customer-centered, digital and adaptive

Bonprix’s Fashion Connect Store in Hamburg

In-store shopping via app – the fashion connect store in downtown Hamburg makes it happen. Daniel Füchtenschnieder, chief executive officer of Bonprix retail, is one of the creative minds behind the new retail concept. An interview about ...

Thumbnail-Photo: Crowdsourcing campaign to save Modells Sporting Goods and 3300 jobs...
03.03.2020   #digital marketing #brand management

Crowdsourcing campaign to save Modell's Sporting Goods and 3300 jobs

Mitchell Modell offers outside investment opportunities

Modell's Sporting Goods, America's oldest, family-owned and operated retailer of sporting goods, has announced that for the first time in its 130-year history, they are closing more than 15 percent of the stores in its fleet, and offering ...

Thumbnail-Photo: Take a deep breath ...and get back to work!
26.05.2020   #brick and mortar retail #personnel management

Take a deep breath ...and get back to work!

Retail employee break rooms and rest breaks in Germany

Working hard is important, but so is taking proper rest breaks! Whether we spend this time alone or with colleagues, by getting some sunlight and fresh air or by relaxing in designated rooms – we all need to take a break sometimes to relax and ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen