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D2C Brands Can Win 2020 With AI & Mobile

If you’re looking for a formula to take your D2C brand to the next level then this is it. Shopping is not a task anymore; it is a fun experience that delights consumers enough to convince them to buy products. In fact many use online shopping as a de-stressing tool; emotional shopping is a modern-day concept that is here to stay. A study done by University of Michigan concluded that “shopping to relieve stress (otherwise known as retail therapy) was up to 40 times more effective at giving people “a sense of control” and that shoppers were three times less sad compared to those that only browsed for items

The evolution of the digital store is backed by AI. To anticipate what every shopper would like and to get them to buy more than what is needed is now a best practice for every D2C brand. The aim is to minimize touchpoints from browsing to checkout and AI does just that. By removing the friction points the checkout process becomes seamless thereby conveniencing every shopper whether they are looking to buy a specific thing or just browsing. That’s just the tip of the iceberg; cross-sell, up-sell, customer segmentation, personalization of services, and targeted campaigning without the help of an in-person customer service to drive sales. AI can help boost sales by up to 67%. 

When it comes to mobile; let the numbers do the talking:

  • Mobile commerce grew in transaction value from $50.92 billion in 2014 to $693.35 billion in 2019
  • Mobile payments will have passed the 50% milestone, becoming mainstream in most markets by 2026
  • By 2021, 53.9% of all US retail eCommerce is expected to be generated through mobile commerce
  • The apps that see the heaviest in-home use are:
    • Pure online retailer apps (92%)
    • Mass merchant retailer apps (81%)
    • Apparel apps (79%)
    • Convenience store apps (62%)
  • 75% of people use shopping apps while at home instead of on-the-go or in a store
  • Among those that use shopping apps more than once per month, 54% use them weekly, and 28% use them daily
  • Over 60% of millennials and generation Z-ers are likely to complete transactions on their mobile devices

By now, it’s safe to say that shopping apps on mobile devices suit a consumer’s busy schedule. They affirm trust in a brand by downloading the brand app and thereby are more likely to purchase products from the app. The shopping and buying behavior has changed drastically over the last decade. Making payments via mobile is preferred considering the level of convenience and ease. 

Many D2C brands have already started adapting mobile app strategy and focusing their efforts on user experience optimization with the help of AI to keep their shoppers excited and engaged. Making their efforts cost-friendly and twice as effective. Mobile & AI is the winning combo. 

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P.S – Here’s something fun for you to do

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Download the below image, tick off the boxes on what you’ve done and post it on your Instagram story or posts and tag us with #ecommbingo20.

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