Composable is the future of commerce. In order to stay ahead of the curve, leading brands are investing in experiences which delight customers at every touchpoint, which requires agile technology to keep up with trends and produce huge amounts of content at speed.
In fact, 79% of tech leaders want to increase composable elements in their architecture in the next 12 months, giving their marketing teams the flexibility to invest in only the best solutions for maximum return on investment and limitless innovation. The question is, how can brands make the leap to a new generation of cloud based, composable systems whilst still running their day-to-day marketing operations?
James Derry, co-founder of Nemetos and Michael Haahr, Chief Technical Officer, attended the Netlify Headless Commerce Summit and gave us their three biggest takeaways and predictions for the future of composable commerce.
1. Doing composable right is not easy or fast, but definitely worth it.
If you’re still new to composable architecture, you can read more about it here. For those of you who are ready to embrace this new era of digital marketing, the next challenge is getting from your current solution to an agile tech stack.
The good news is that it doesn’t all have to be done at once. Planning a gradual move to composable, based on how it fits with your business, finances and internal resources is the best way to get started. It’s a much lower risk option for digital investments, because you can make changes bit by bit, switching out technology you no longer have need for, and replacing it with more agile solutions that give your customers (and your teams) the best experience.
Composable is the next generation of digital marketing, and so you may, justifiably, be worried about initial costs. But consider this.
On average, brands are spending over 40% of ecommerce budgets on upgrading their platform with regular version releases so teams can access additional features. This also comes with a whole host of shiny stuff that sounds great but they’ll probably never use in their business. The process happens again just a few years later.
Yes, switching to composable requires some initial groundwork. But in exchange, you have a future-proof foundation for future growth, with only the features your business actually needs.
With this, you can expect to invest a good chunk of that upgrade budget into campaigns, events, and innovations.. you know, the fun, money making stuff!
2. Gen Z are driving commerce with 32% of the purchases in ecommerce
Did you know that Gen Z spends more money online than any other generation?
Whether this is because the majority of Gen Z are coming into early adulthood and thus spending their own money or because they are dipping into the bank of mum and dad, it is confirmed that Gen Z are the big spenders of our economy. Over the next 10 years they will continue to transform the world of commerce as we know it.
However, this generation is careful with where and how they spend their money. 61% of the population are willing to pay more for ethical or sustainable goods, and 80% care about brand purpose which could affect how they interact with a brand.
This is a generation of highly diverse, educated and liberal individuals who have lived through global events that have largely shaped their views of the world. As a result of this, in order to be successful with this cohort, brands must be transparent with their purpose and values across all touchpoints of the customer journey. More merit is attributed to brands with authentic credentials. Honesty is indeed the best policy. Luckily, the gap in the market is there for businesses to cater towards what Gen Z values in brands and how they buy.
To have the best relationship with Gen Z, brands need to reflect their values across all channels. That being said, personalization is still key. It is important to avoid playing into lazy stereotypes as it could do more harm for your business than good. With a spending power of 149 billion USD, Gen Z are a group you want to get on your side.
3. Mobile first, or BUST
According to Thomas Husson, VP and Principal Analyst at Forrester Research, “mobile is becoming not only the new digital hub, but also the bridge to the physical world.”
Customers now expect a seamless experience between devices, being able to use mobile, smart watch and in-store purchasing throughout their shopping journey. They want to waste less time inputting their data, expect retailers to be able to keep track of their preferences, and know their buying history.
Plus, over 70% of customers are now browsing on their phones first, before deciding to make a purchase decision on another device. This is a HUGE part of the buying experience, and may be the difference between even your most loyal customers choosing to continue shopping with your brand.
The rapid revolution of mobile shopping, means mobile first design is essential.
It’s okay to not have all the answers right now
For a large number of businesses, they have been using the same systems for decades. Having to learn a completely different method of working is understandably daunting.
Not everyone will have the appropriate skills instantly to implement these solutions, so it is important to reach out for help from the experts where you can, in order to put your business in the best position.
Nemetos Tanasuk has a team of experts that can help you navigate the world of composable structures and work with you to choose the tech stack that is best for you. If you feel like you need some more guidance why not have a coffee with one of our experts to guide you through the next steps for your brand.