Strategies for Legacy Brands to Adapt in E-Commerce

Seventy percent of executives recognize changing customer expectations as a major challenge for legacy brands in the evolving e-commerce landscape, where a poor experience causes 52% of consumers to stop buying. Enhancing Customer Experience and Fulfillment With 52% of consumers ceasing purchases after encountering a bad experience, the importance of customer satisfaction cannot be overstated.

Legacy brands are navigating a rapidly evolving e-commerce landscape, where 70% of executives recognize changing customer expectations as a pressing challenge. As e-commerce growth stabilizes following the pandemic-induced surge, brands are compelled to adapt to remain relevant and competitive. This article explores the strategies that legacy brands can employ to thrive in the current e-commerce environment.

Enhancing Customer Experience and Fulfillment

With 52% of consumers ceasing purchases after encountering a bad experience, the importance of customer satisfaction cannot be overstated. Many brands are struggling with fulfillment outsourcing, while 70% of modern brands have adopted an in-house fulfillment strategy. This shift reflects the need for greater control over the customer experience and order fulfillment processes.

For brands with revenues under $50 million, 60% rely on a single distribution center. However, legacy brands are encouraged to establish faster partnerships and integrate with marketplaces to enhance the customer experience. The fulfillment footprint not only impacts logistics but also plays a significant role in customer acquisition, making modernization essential for maintaining relevance in the market.

Leveraging Digital Platforms and Channels

Social media has emerged as a powerful product discovery engine, influencing how consumers find and engage with brands. However, traditional e-commerce sites remain the preferred platform for completing purchases. Therefore, brands need to develop optimized cross-channel strategies that encompass both discovery and transaction phases.

By focusing on building first-party marketing lists through email and SMS, brands can establish direct relationships with their customers. This tactic is crucial as the retail environment becomes increasingly fragmented, with heightened competition from niche and direct-to-consumer (DTC) players.

Data-Driven Decisions and Online Behavior

Understanding online shopping behavior is vital for legacy brands aiming to optimize their e-commerce strategy. Consumers often engage in webrooming and showrooming, meaning brands must cater to different shopping interactions for different products. Online interactions significantly impact in-store success, necessitating a comprehensive understanding of consumer behavior across channels.

Brands should focus on optimizing product listings for search results and leveraging mobile apps and online platforms to enhance visibility and customer engagement. Utilizing SEO effectively can further increase brand visibility and attract potential customers.

Building Community and Loyalty

Building a brand community is a strategic approach to cultivating customer loyalty. Effective storytelling can foster a deeper connection with consumers, encouraging long-term engagement and repeat purchases. An e-commerce strategy that prioritizes enhanced customer engagement not only increases market reach but also strengthens brand loyalty.

As legacy brands adapt to the current e-commerce landscape, understanding and implementing these strategies will be key to maintaining their market position. By prioritizing customer experience, leveraging digital platforms, making data-driven decisions, and building strong communities, legacy brands can navigate the complexities of the modern e-commerce environment and achieve sustained success.