The Importance of Embedded Commerce Strategy for Every Business Looking to Unlock Growth and Success
Businesses in today’s rapidly changing and interconnected world are under immense pressure to adapt and flourish in the digital marketplace. Embedded commerce has emerged as a crucial growth and success driver in this scenario. Innovative technology has made it possible for businesses to integrate transactional capabilities into various customer touchpoint seamlessly. This allows them to connect with customers wherever they may be and take advantage of every potential opportunity. In this blog post, we will discuss the growing trend of embedded commerce, its importance across different industries, how it differs in B2B and B2C settings, and the crucial role mobile apps play in executing this transformative strategy.
The Rise of Embedded Commerce: A Paradigm Shift
The trend of embedded commerce is increasing and changing the way businesses interact with their customers. In the past, businesses depended solely on e-commerce websites to conduct transactions. However, with the advancement of technology and the increasing use of connected devices, customers now demand a smooth and seamless buying experience across multiple digital platforms such as social media, mobile apps, smart speakers, and wearable devices. Here are some recent statistics that highlight the importance of embedded commerce.
- Mobile Commerce Dominance: As of the fourth quarter of 2022, mobile commerce spending in the United States made up 38% of overall digital spending, a record high since the fourth quarter of 2017.
- Social Commerce: As of 2021, 55% of online shoppers have made a purchase through a social media channel.
- Voice Commerce: Voice-activated commerce is rapidly gaining momentum, with 27% of consumers using voice search to purchase.
- IoT and Smart Devices: By 2025, it is estimated that there will be over 75 billion connected devices worldwide, presenting immense opportunities for businesses to embed commerce capabilities into various IoT devices.
Top 4 Industries in Need of Embedded Commerce Strategy
- Retail and E-Commerce: Retailers were among the first to adopt embedded commerce strategies. Integrating buy buttons directly into social media platforms, mobile apps, and even influencer content offer consumers a seamless path from discovery to purchase. Retail m-commerce sales are expected to account for 43.4% of total retail e-commerce sales in 2023, up from 41.8% in 2022.
- Travel and Hospitality: The travel industry has embraced embedded commerce to enhance the booking experience for customers. Hotels, airlines, and travel agencies have embedded booking functionalities into various touchpoints, simplifying the reservation process. Nearly 63% of US travelers say it’s essential to use a smartphone when planning a trip, while nearly two-thirds rely on a mobile app during their trip.
- Banking and Finance: Financial institutions have integrated commerce capabilities into their mobile banking apps, allowing customers to make payments, invest, and manage their finances from a single platform. As of 2021, 49% of consumers have used mobile banking apps for financial transactions.
- Healthcare: The healthcare industry has seen the rise of embedded telehealth solutions, enabling patients to consult with doctors and purchase medications directly through health apps. The global telehealth market is expected to reach $191.7 billion by 2025, indicating a significant adoption of embedded telehealth solutions.
Embedded Commerce: B2B vs B2C
Although the fundamental concepts of embedded commerce remain the same, its execution and emphasis vary between B2B and B2C companies. B2C Embedded Commerce, for instance, concentrates on improving the customer experience by simplifying the buying process. By integrating commerce features into social media, mobile apps, and websites, they can decrease obstacles and take advantage of spontaneous purchases.
Embedded commerce offers significant advantages to both B2B and B2C businesses. However, each sector has its own unique challenges and opportunities when it comes to implementing this innovative approach.
B2C: Driving Consumer Engagement and Impulse Buying
When it comes to selling to consumers, embedded commerce can be a great way to get them interested and encourage impulse buying. B2C businesses can use mobile apps, social media, and other digital channels to make it easy for consumers to find and buy products. For example, they can use shoppable posts on social media, recommend products based on a person’s preferences, and simplify the checkout process. Sending push notifications and offering time-limited deals can also encourage people to make a purchase right away. When businesses use embedded commerce well, they can increase customer loyalty, make the most of small opportunities, and build strong relationships with their customers. This can lead to more sales over time and help the business grow.
B2B: Streamlining Complex Transactions and Nurturing Relationships
When it comes to purchasing processes that involve multiple stakeholders, personalized pricing, and customized product catalogs, it’s crucial to ensure a seamless and efficient experience. Businesses can achieve this by integrating embedded commerce into their procurement systems, vendor marketplaces, and B2B e-commerce portals. This allows them to offer self-service options, simplify order management, and provide personalized quotes and recommendations based on past purchase history. Additionally, B2B mobile apps can keep clients updated on order statuses and inventory availability in real-time, giving them more visibility and control over their supply chain. The benefits of B2B embedded commerce go beyond transactions, as it also enables businesses to provide ongoing customer support, offer upsell opportunities, and deliver personalized account management. Ultimately, an effective B2B embedded commerce strategy builds trust and loyalty among business clients, increasing the chances of repeat business and valuable long-term partnerships.
Top 4 Benefits of Embedded Commerce for Business Growth and Success
- Enhanced Customer Experience: By utilizing embedded commerce, customers can enjoy a hassle-free and easy shopping experience, leading to higher levels of satisfaction and loyalty.
- Increased Sales Opportunities: By providing multiple touchpoints for customers to purchase, businesses can capitalize on potential sales opportunities that may have been missed with a traditional e-commerce approach.
- Improved Conversion Rates: When the buying process is smoother and less complicated, customers tend to finish their purchases, resulting in greater conversion rates and more revenue.
- Data-Driven Insights: With embedded commerce, businesses can obtain useful data on customer behavior and preferences. This helps them make informed decisions and provide tailored recommendations.
The Role of Mobile Apps in Embedded Commerce: Driving Success and Customer Engagement
Mobile apps have revolutionized how businesses operate in today’s fast-paced digital world. They offer a convenient and personalized customer touchpoint, providing seamless transactions that enhance the overall customer experience. In this section, we will explore the vital role that mobile apps play in embedded commerce and why businesses must adopt them to stay competitive and succeed.
- The Power of Convenience: Customers can enjoy unprecedented convenience through mobile apps, which provide access to products and services with a simple tap of their smartphone screens. They can browse a vast array of products, compare prices, and complete transactions without being restricted to a desktop computer. This level of accessibility and ease of use encourages higher engagement and conversion rates, as customers are more likely to make impulsive purchases when transactions can be completed quickly and effortlessly.
- Personalization and Customer Loyalty: Through mobile apps, businesses can gather essential data on customer behavior, preferences, and previous purchases. This information allows businesses to provide personalized product recommendations, customized promotions, and targeted offers. By offering personalized content, apps help to build a stronger relationship with customers, increasing brand loyalty and customer retention. Happy customers are more likely to become advocates for the brand, spreading the word to their network and contributing to organic growth.
- Seamless User Experience: Mobile apps are created to offer a straightforward and user-friendly experience free of the excess and distraction frequently present on websites. The streamlined and targeted approach of apps guarantees that users can swiftly locate the information they require and carry out transactions without any unnecessary difficulties. This leads to increased customer happiness and a decrease in abandoned carts, which ultimately raises both conversion rates and revenue.
- Push Notifications and Real-Time Communication: Businesses can use mobile apps to connect with customers through push notifications. These notifications can inform customers about new products, limited-time offers, order updates, and personalized recommendations. Real-time communication via push notifications can improve customer engagement and help keep the brand top of mind.
- Leveraging Mobile Device Features: Did you know that mobile apps can use a lot of the features that come standard on your mobile device? Things like GPS, cameras, and sensors can be utilized to create location-based marketing, augmented reality experiences, and even let you scan barcodes for quick info and checkouts. Using these features makes the shopping experience more interactive and immersive, making it even better for you as the customer.
- Enhanced Brand Identity and Visibility: Incorporating a mobile app into a business strategy can boost its brand identity and market position. A thoughtfully designed and easy-to-use app can improve customer trust and credibility. Moreover, businesses can leverage app marketplaces such as Apple App Store and Google Play Store to increase their visibility and attract potential users. 7. Competing in the Mobile-First Era: We’re clearly shifting towards a mobile-first world. Nowadays, most online activities take place on mobile devices. If businesses don’t adapt to this trend, they risk losing out to competitors who have integrated mobile apps for commerce. To stay competitive and up-to-date, having a mobile app is no longer a luxury but a must-have.
Incorporating commerce functionalities into mobile apps is essential for businesses to implement embedded commerce strategies. With most consumers using mobile devices for online activities, taking advantage of this trend is crucial. This integration offers a seamless and immersive experience, increasing engagement and driving customer loyalty. Mobile apps play a crucial role in achieving this goal.
Investing in a mobile app is crucial for businesses aiming to succeed in the digital marketplace. 90% of consumers’ mobile time is spent on apps, making them a critical touchpoint for embedded commerce strategies, and mobile apps offer a 3x higher conversion rate compared to mobile websites. Mobile apps enhance customer engagement, and companies can achieve substantial growth and success as they evolve and adapt by executing a well-planned mobile app strategy. Moreover, businesses can use mobile apps to send push notifications, create location-based marketing, and cater to individual user preferences for personalized offers and promotions. Such tactics are effective in increasing sales and encouraging customer loyalty.
The introduction of embedded commerce has transformed how companies interact with clients and capitalize on sales opportunities. Bryj provides a complete AI-driven mobile app SaaS solution, a valuable resource for various industries, such as retail, e-commerce, finance, and healthcare. Businesses can overcome the challenges of building and maintaining mobile apps with Bryj. They can take advantage of embedded commerce and provide a superior customer experience, positioning themselves as leaders in their industry. As the digital landscape changes rapidly, embracing a mobile app is crucial for businesses to stay relevant and competitive. Contact Bryj today to get started on your embedded commerce journey.