UK retailers: ‘30% of ecommerce work offers no value’
Retailers in the United Kingdom expect 30 percent of all their ecommerce work to give them back no value. Most retailers are facing some sort of ecommerce challenge. Customer retention, customer experience and measuring metrics are among the most important challenges.
This is according to a recent study by Greenlight Commerce, which questioned 100 UK-based ecommerce decision makers within the retail sector.
68% had at least one failed ecommerce project in 2018
Almost all of them face challenges with ecommerce and two-thirds (68 percent) experienced at least one failed ecommerce project last year. UK retailers think that 66 percent of their organizations’ ecommerce projects will hit all key objectives, while 20 percent will miss some and 15 percent will miss all key objectives.
Retailers ignore many key metrics
Retailers who face some sort of ecommerce challenge, have most problems with customer retention (41 percent), customer experience (39 percent) and measuring metrics (33 percent). With regards to that last topic, it seems that many key metrics are being neglected by retailers. Because 71 percent are failing to measure the return on investment, while 48 percent aren’t measuring customer retention and 47 percent fail to measure the impact upon revenue.
Ecommerce projects are rushed
The researchers also asked UK retailers why their ecommerce platforms are failing or, at least, not living up to the expectations. Almost half of respondents said that projects are rushed. Other problems involve budgets and costs (47 percent) or a lack of expertise with the business (37 percent).
61% of retailers: “We are behind the competition”
“The survey results are stark in their findings, with retailers experiencing far too many failed ecommerce projects and wasted resources”, Kevin Murray, managing director at Greenlight Commerce, explains. “Digital has completely revolutionized the way UK consumers shop, but retailers don’t appear to be keeping pace. The current climate presents a wealth of challenges and retailers need to adapt or face extinction.” It’s no surprise that the survey also shows that 61 percent of ecommerce decision-makers think their organization is behind its competition.
Murray continues: “Rather than focus on the competition and compare themselves, brands should look in the mirror and ask themselves what will work for their customers? What will make them stand out? In answering these questions and ensuring the technology supports customers, they will generate success. If the sector doesn’t make these changes, it might as well just hand the keys to Amazon and give them the market.”