Let’s discuss why the future of eCommerce is a headless commerce architecture.
We’ll be talking about the direct-to-consumer shift, the challenges of scaling your e-commerce business experience, and what to think about from both a customer-facing and a back-end operational perspective. So starting with the direct-to-consumer shift, we all remember this when, to buy anything, you had to go to a mall or go to a shop in your town.
And that was the only way to be able to purchase things. Over the past few years, the megatrend significantly as covet changed the landscape and has been toward lots more shopping from an ecommerce perspective. So the question is why, why have brands been shifting here, and why have consumers been flocking to these models in such a big way.
Headless Ecommerce Architecture: The Way To Go With Retail Business
We think it starts with the brand being able to own their entire customer experience from the website that they visit, the packaging that they receive, and holding the very valuable customer data. Instead of giving it away to an aggregator, wholesaler brands also have the opportunity to build a community to build brand loyalty. This helps them drive the metrics they care about, like customer lifetime value, their net promoter score, and the margins they receive from their products.
Furthermore, direct-to-consumer helps to enable a multi-channel approach. So stores haven’t completely gone away. We’ve seen such kinds of stores and the likes of those.
However, the direct-to-consumer approach helps uh to be able to maintain a consistent brand experience across every different channel. Another megatrend in direct-to-consumer has been a shift to subscriptions, driven by economics.
In traditional ecommerce, you have to pay to acquire a customer, and when they purchase something from you. But don’t necessarily interact with you again in the future. The subscription movement has turned this on its head and emphasized monetizing that initial customer acquisition cost and increasing the lifetime value of that customer.
We’re seeing it across many different industries right now, especially in direct-to-consumer. So with that in mind, how do you take advantage of these megatrends? You have to find a way to move online in an efficient manner. There are many challenges to being able to do the right. There are many different considerations you know you have to meet customers where they are, whether that’s on a desktop computer increasingly on tablets and mobile devices.
And onto different future technologies like voice and video recognition that will be coming out in the coming decade. So how do you navigate that it’s not easy? The traditional approach of, say, ten years ago was you needed one platform which would manage your entire customer experience on the front end. Then also work on your operational experience on the back end, and the headless commerce approach has turned that on its head and suggested that there’s a better way to do this.
Headless Architecture For All-in-one Ecommerce Approach
Because the challenges of having an all-in-one e-commerce platform are really that once you start to scale, once you begin to offer different customer experiences, those experiences break down and become degraded. You don’t have very much flexibility in terms of eCommerce personalization. When you can ask to offer to customers, you don’t have much flexibility in the types of engaging experiences that you can create with these customers when they visit your website.
But it takes a long time to be able to implement new buying patterns and new payment options, and this is something that businesses today can’t afford to wait for. They need to be able to add them quickly and respond to a changing and ever more competitive market. So consider this in a survey that Gartner did of enterprises in 2020. 79% were considering an API-based or a headless commerce architecture for their business. So you can think about this in a similar context to the SaaS industry.
Where best in breed software has been the trend over the last 10 to 15 years where you choose a system for a specific purpose. But not for its suite of applications but for how it solves a particular need. In e-commerce, a headless commerce approach might use a different system for your content management system, which your customers will see when they visit your website.
Then your product catalog system is different from your order management system and your warehouse and fulfillment systems. Taking this step further, you need to consider many additional steps throughout the customer and operational journey.
But from an end customer perspective, you need to consider what the landing page looks like, where the assets are hosted where is the information about the products in the product catalog. Then how do you offer loyalty programs or coupons to your customers to incentivize them to return? How do you ensure that they have a seamless and efficient shopping cart and the checkout experience?
Then how do you have an identity management platform to have one view of your customer throughout your stack and from an operational perspective. How do you bill them if they’re entering into a long-term engagement with you? How do you ensure that the customer is billed for the right things every month, quarter, or year? Then how do you ensure that their payment information is up to date? How do you ensure that their orders have been shipped over the time they’ve been fulfilled?
Headless Architecture In Mission To Offer Classy Customer Experience
Finally, how do you offer them best-in-class customer support and customer care such that they know exactly where their things are and when they can expect to receive them. And yes, of course, there are many different ways to address these with technologies. Some systems try to do various portions of these stacks, but in a headless commerce architecture, you have flexibility over how you want to choose your systems, which is the key.
Because platforms built for headless commerce experience offer best-in-class developer experiences and APIs such that from an end customer perspective, they have a seamless experience. Still, all of your systems are in sync and talk to one another efficiently from an operational perspective.
If you’re considering adding a subscription component to your business, consider this in traditional ecommerce payments that are relatively straightforward. You know how much you’re going to charge a customer. You authorize that amount, and then you capture it. Still, in a subscription context, involuntary churn becomes a considerable concern for businesses, which can eat into your margins, especially in an e-commerce context.
So as you’re considering the move into subscriptions and increasing customer lifetime value, consider finding a partner who can help you scale, like who can help you navigate the complexities of working in recurring revenue business.
Let’s wrap up; we’ve discussed today that the e-commerce and headless commerce architecture is inherently complex because the customer journey is varied. There’s not a one-size-fits-all approach, and brands are approaching this in many different ways and are looking to make their mark with their customer base by offering a better customer experience.
So as you’re considering how to offer that best-in-class experience thinks about finding a partner who can help consult with you. Yes, help you scale and share the warnings they’ve had to work with other merchants.
Thanks for reading and spending all your time here. If you have any queries or would like to reach out to us, visit Webnexs headless solution for more information.