Connect with us

MARKETING

20 Google Analytics Alternatives – Moz

Published

on

20 Google Analytics Alternatives - Moz

The author’s views are entirely his or her own (excluding the unlikely event of hypnosis) and may not always reflect the views of Moz.

The adage is that if you’re not paying for the service, you are the product. Unfortunately, this rings especially true in the analytics world.

The analytics space is changing, though, and there are many alternatives — both free and paid — that take into account privacy, cookie-less tracking, GDPR compliance, core web vitals, and more. The current leader in the analytics space is Universal Analytics (UA), which has been tracking web data since 2005. But Google is going to stop tracking any new data in UA as of July 1, 2023 (Happy Canada Day?).

This is a move to get users to migrate to Google Analytics 4 (GA4), which is a whole new way of tracking and navigating. In a move from sessions to an event model, GA4 will require some knowledge and familiarity to get up and running, as there’s quite a bit changing.

If you haven’t yet set up GA4 yet, or are on the fence, now is the time to take a look at what else is out there and how the landscape has changed. We’ve broken the alternatives up into three categories:

Advertisement

How legal is Google Analytics?

The short answer is: depends on where your visitors are from.

Without getting too deep into legal jargon, the user has control over the options now and although there are a few lawsuits out there I’m sure Google will make the proper adjustments to ensure that everyone using it will be mostly covered, eventually.

This isn’t happening right now and under GDPR there are requirements that Google Analytics isn’t passing. Also, by using a product that’s integrated into other products I doubt they’ll ever see 100% coverage.

Even if you’re planning on installing Google Analytics 4, you can run an alternative to ensure that you’re getting the right data and test as you go

Web Analytics

More than a visitor counter, but often simplified, web analytics providers focus on giving services to small businesses, bloggers, and small websites. Their metrics are also the closest to Google Analytics. Most of the web analytics tools below are easy to maintain, quick to install, and don’t need self-hosting. However, some will offer self-hosting in addition to their regular services.

Fathom Analytics

Launched in 2018, Fathom Analytics is a cookie-less, privacy-focused Google Analytics alternative that’s really simple to use. They care about user privacy and pioneered proprietary routes in compliance with the EU for EU visitors. Calling the route “EU isolation”, Fathom Analytics is also GDPR, PECR, COPPA, CCPA, and ePrivacy compliant.

Advertisement

Features of Fathom Analytics include:

  • Seven-day free trial

  • Prices start at $14 per month for up to 100,000 page views

  • Can include up to 50 sites

  • Shows live visitors and where they’re navigating
  • Offers uptime monitoring, event filtering, email reports, ad blocker bypassing, live visitor information, and much more from a bootstrapped company

Being privacy-focused, Fathom Analytics has a beautiful interface and offers unlimited CSV exports of your data available at any time. This allows you to conveniently connect it to other data sources. In addition, Fathom is expected to release a backup option for GA data in the near future.

DEMO FATHOM ANALYTICS

Matomo

Previously named Pikqwik, Matomo (“keep your data in your own hands”) is an open-source, cookie-free tracking, and GDPR-compliant analytics tool offering a search engine and keywords section where you can connect with Google Search Console data.

Additional Matomo features include:

  • Customizable dashboard.

  • Real-time data insights (pages visited, visitor summary, conversions, etc).

  • E-commerce analytics.

  • Event tracking (analyzes user interaction on apps or websites).

  • Measures CTR, clicks, and impressions for text and image banners as well as other page elements.

  • Visitor geolocation (stats can be viewed on maps by city, region, or country).

  • Page and site speed reports.

  • Page performance (number of views, bounce rates).

You can host Matomo on your own servers for free. Otherwise, their cloud pricing starts at $29/month after a 21-day free trial for 50,000 hits (up to 30 websites).

Advertisement

DEMO MATOMO

Cloudflare

If you’re already using Cloudflare’s CDN solution, then there’s no setup required. You can simply authorize the web analytics to start tracking inside your account. You can add up to 10 websites for free, and there’s no need for a cookie banner, since they do not collect personal data.

In addition to tracking standard metrics — page views, visits, load times, bandwidth, etc. — Cloudflare has incorporated Core Web Vitals metrics. These are measured each across your tracked websites, and can email you weekly with updates — very handy.

Cloudflare installation is light on page load, since you can proxy it through your Cloudflare setup. Alternatively, you can install their lightweight Javascript code (or “beacon”, as they call it).

Although Cloudflare doesn’t say they are GDPR compliant, what they do say is that they are considered an “Operator Essential Services” under the EU Directive on Security of Network and Information Systems. You can assume that Cloudflare is tracking something along the way, with a free price tag and with other offerings available where data could be shared.

Cloudflare is closest to server analytics without going directly to your server. It’s only available in specific areas, so you might have to pay for this.

Advertisement

DEMO CLOUDFLARE

Adobe Analytics

Adobe Analytics is a popular analysis platform that provides tools essential for collecting relevant data concerning customer experience. Company analysts and online marketers frequently depend on it for improving customer satisfaction.

Applying Adobe Analytics to your business website can help you determine what leads to conversions. For example, did changing content or the CTA increase conversions? Did adding more visual aids increase the number of inquiries about a certain service or product?

Adobe analytics is marketed as an enterprise analytics solution with audience insights, advertising analytics, cohort analysis, customer journey analysis, remarketing triggers, and much more. It truly could fit your web analytics or product analytics depending on how your team deploys it, and it has been around for quite a while just like Google Analytics.

REQUEST A DEMO FOR ADOBE ANALYTICS

Clicky

Privacy-friendly web analytics tool Clicky is easy to navigate and offers metrics similar to Google Analytics. However, Clicky embodies the feel of server analytics tools while making their interface simple and fast-loading, thanks to minimal graphics.

Advertisement

Features of Clicky include:

Clicky also provides a developer API and white labeling of their solution, where you can create your own theme for better brand integration starting at $49/month as part of their hosted service. They also offer a free tier if you’re looking to try it out with limited features.

DEMO CLICKY

Simple Analytics

EU-hosted, privacy-based Simple Analytics offers tools to use for checking your websites daily. Simple Analytics does not collect cookies, IP addresses, or any unique identifiers. Their package provides a bypass of ad blockers, hides referral spam, and includes an iOS app. You can even embed a widget to get public web statistics.

This GA alternative offers some nifty events that are gathered by default for ease of use. These include email clicks, outbound links, and files to streamline tracking. All of Simple Analytics features come together in a UI that’s a simple dashboard providing quick “in and out” times — much quicker, in fact, than it would take to get to the correct property using Google Analytics.

Simple Analytics offers a free 14-day trial. If you decide to keep Simple Analytics, you’ll pay $19/month, or $9/month if you pay a year in advance.

Advertisement

DEMO SIMPLE ANALYTICS

Pirsch

An open-source, cookie-free web analytics alternative to Google Analytics, Pirsch seamlessly integrates into websites and WordPress with plugins. A developer-friendly analytics offering a flexible, impressive API, server-side integrations, and SDKs, Pirsch provides Golang (Go), PHP SDK, JavaScript, or a community-provided code to embed snippets. Pirsch also works with Google Search Console.

You can perform any function you want from the Pirsch dashboard, like viewing statistics or adding websites.

Get started by viewing Pirsch’s live demo or opting in on their 30-day free trial. Paying for Pirsch is only $5 per month if you choose annual billing. If you want to make monthly payments, the cost increases to $6 per month.

DEMO PIRSCH

Plausible

A privacy-friendly, open-source web analytics platform, Plausible is cookie-free and fully compliant with PECR, CCPA, and GDPR. Plausible is a popular alternative to Google Analytics because of its simplicity, lightweight script, and ability to reduce bounce rates by expediting site loading.

Advertisement

You can easily segment data into specific metrics, analyze dark traffic via Urchin Tracking Module (UTM) parameters, and track how many outbound link clicks you get.

Plausible offers a 30-day free trial option that provides unlimited usage of its features without requiring a credit card. Once your free trial has ended, you can pay $9 per month for up to 10,000 page views. If you choose yearly billing, you get two months of free use. Unlimited data retention, slack/email reports, and event customization are also provided with a paid subscription to Plausible.

DEMO PLAUSIBLE

Umami

Umami is GDPR-compliant, open-source, cookie-free, and does not track users or gather personal data across websites. By anonymizing any information collected, Umami prevents the identification of individual users. In addition, you won’t need to worry about staying compliant with constantly changing privacy lawsi.

Features of Umami include:

  • Mobile-friendly so you can see stats on your phone at any time.

  • Since you host Umami under your domain, you won’t see any ad-blockers like you see when using Google Analytics.

  • Public sharing of your stats is available using an exclusively generated URL.

  • Umami’s lightweight tracking script loads almost instantly and won’t slow down the loading of your website.

  • A single installation of Umami enables tracking of an unlimited number of sites. You can also track individual URLs and subdomains.

Since Umami is an open-source platform and self-hosted, it’s free to use. Umami says a cloud-based version of its analytics is coming soon.

Advertisement

SIGN UP FOR UMAMI

Product (behavior) analytics

Although product analytics are not always GDPR-compliant, they provide powerful analytic tools that include valuable elements like segmentation and deeper levels of customization. For that reason and others, product analytics come with a higher maintenance cost. Here are several product analytics tools that are excellent Google Analytics alternatives for tracking customer behavior.

Hubspot Analytics

The traffic analytics tool provided by Hubspot Analytics offers exceptional analysis data for breaking down page views, new contacts, and even entrance/exit information regarding how long visitors remained on specific web pages. You can also install a tracking code to external sites so you can track traffic stats.

Additional features include:

  • Bounce rate percentages.

  • Number of call-to-action views/number of CTA clicks.

  • Conversion rates of visitors who click on your CTA.

  • Access to specific URLs or country stats.

A subscription to a starter Hubspot Analytics platform is $45 per month. You can choose monthly or annual billing, which is $540.

A professional subscription to Hubspot Analytics starts at $800 per month ($9,600 for one year). This subscription gives you multi-language content, video management and hosting, phone support, and A/B testing.

Advertisement

An enterprise subscription starts at $3,600 per month ($43,200 per year). You get 10,000 marketing contacts with this subscription, with additional contacts available for sale in increments.

FREE HUBSPOT ANALYTICS TRIAL

Kissmetrics

Kissmetrics offers analytics for e-commerce and SaaS websites. Kissmetrics for SaaS gives you deep insights into the type of content and features that are fueling conversions, converting trials into conversions, and reducing churn.

Kissmetrics detects characteristics that drive conversions and retain regular buyers, so you can adjust site elements appropriately. This unique analytics tool also streamlines checkout funnels and integrates with Shopify.

Pricing for Kissmetrics SaaS involves three tiers:

Heap

Heap Analytics works on mobile and PC devices, quickly captures nearly all behavioral parameters, and supports first or third-party installation. You can also create individual identities for users over numerous sessions and augmented product information to purchase/sales events.

Advertisement

Heap features include:

FREE TRIAL

FullStory

The makers of Fullstory state that if you know how to copy and paste, you’ll have no trouble setting it up. This analytics platform also offers “private-by-default” abilities that ensures masking of text elements at their source.

Their features include, but are not limited to:

FREE TRIAL

Mixpanel

Mixpanel offers a free subscription that gives access to core reports, unlimited data history, and EU or U.S. data residency. Mixpanel can be sliced and diced to fit so many situations, it’s flexible and moldable for many businesses at many levels.

Advertisement
Screenshot of the dashboard.

For $25 per month under their growth plan, you get all the free features, plus data modeling, group analytics, and reports detailing causal inference. Mixpanel also includes features such as:

  • Segmenting users based on actions

  • Integrate with Slack to share reports, even if they don’t use Mixpanel

  • No limits on the amount of events tracked

  • Team Dashboards with Alerts

  • Identify top user paths and drop-off points

  • Understanding of conversion points across the funnel

  • And much much more.

It’s used by 30% of Fortune 100 SaaS companies and if you need custom pricing and plans,

CONTACT MIXPANEL SALES

Amplitude Analytics

According to a report available here, Amplitude is consistently ranked as #1 among other product analytics platforms, top software products, and customer satisfaction. You can analyze collected data with fast self-serve analytics that do not require SQL.

You can use Amplitude to…

  • Explore behavioral data

  • Measure customer engagement

  • Use product intelligence to build faster

  • Understand channel performance

  • Answer questions between, product, marketing, engineering & analytics

The Start Amplitude package is free and offers unlimited data destinations, users, and data sources. You also get 10 million events (streamed or unstreamed) per month.

Their paid plans start with customizations on top of that including advanced behavioral analytics & custom event values.

Advertisement

CONTACT SALES FOR GROWTH OR ENTERPRISE PACKAGES or if you’re a startup you can apply for a free year of Amplitude Scholarship!

Segment

Segment which was acquired by Twilio in 2020 offers superior email onboarding and intuitive insights in SMS campaign and email performance & that’s just one arm of what it does. Segment uses only one API to collect data across all platforms. They also have SDKs for Android, iOS, JavaScript, and over 20 server-side languages. They have been written as a technology startup that lets organizations pull customer data from one app into another & they have as of writing over 300 integrations!

Segment has customers across industries including media, medical, B2B, retail and from startup to enterprise. As well you can upload your customer data into their data warehouse to keep your data there so they could fit into the data warehousing category below too.

To get started using Segment, simply make a free account which allows for 1,000 visitors from two sources and access to their 300 integrations or their paid tiers start at $120/month where you can sign up for a team account.

Rudderstack

Rudderstack provides developers all they need to get started immediately with this product/behavior analytics. Features of Rudderstack include identifying anonymous mobile and web users, customizing destinations through the application of real-time modifications to event payloads, and automatically occupying warehouses with event and user record schemas.

The free version of Rudderstack gives you five million events per month, over 16 SDK sources and more than 180 cloud destinations. Like Segment you can use Rudderstack as a data warehouse for your customer data and they’ve built their platform as warehouse-first and built for developers.

Advertisement

The Pro version starts at $500 per month. You get the free features, plus email support, a technical account manager, and even custom integrations in the higher tiers. Request pricing for the Enterprise version of Rudderstack here.

Data warehousing solutions

It’s always good to have your data backed up and if you have a lot of history in Universal Analytics it would be a good place to start. There are even services to connect all these solutions together seamlessly, such as Funnel. While these have additional costs, you can save all your data for many years without a problem coming up so you can refer to them when need be.

Google BigQuery / Google Cloud

Available with an easy connection to your GA4 data if you’re leaning that way. Google lists BigQuery as enterprise and there will be limits to how much data you can send to BigQuery before paying. They offer real-time analytics with built-in query acceleration and with the scale of data that Google handles we can be pretty sure that they’ll be able to handle it. Google Cloud Storage offers standard, nearline, coldline, and archive storage options.

One suggestion is if you’re using Google for backups to ensure you have a secondary account attached to it in case your primary account loses access, which I’ve seen happen from time to time. They provide a migration from some tools and their pricing is based on data, so it’s free up to 10GB. They created a billing calculator for easy cost analysis once you get into the paid side.

Amazon – AWS

AWS states that they support more compliance certifications and security measures than all other cloud providers. They allow for backup of all data types and have redundancy built in that you would expect at the Amazon level.

Like Google they have a calculator to estimate a pricing model for your team as they have a lot of other services integrated into this that you can take advantage of there.

Advertisement

Snowflake

Snowflake provides a data cloud and isn’t Google or Amazon, which may appeal to some. It supports data science, data lakes, and data warehousing on the three top clouds with their fully automated solution.

They’re HIPAA, PCI DSS, SOC 1 and SOC 2 Type 2 compliant, and FedRAMP Authorized and have a 30 day free trial with all plans you can check out as well as a “pay for usage” option or a “pay for usage upfront” option too.

Recap and recommendations

On July 1, 2023, Universal Analytics will stop tracking any new data, and then by EOY 2023 all UA data will be removed by Google — so back up your data! Think about warehousing your data long term for your Universal Analytics and moving forward.

Then, make a plan for how you’re going to be tracking moving forward. Talk options and thoughts with stakeholders.

Install GA4 now (or yesterday!) or try the options above out, as none of these are created equal and many have free trials.

Advertisement

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

MARKETING

Battling for Attention in the 2024 Election Year Media Frenzy

Published

on

Battling for Attention in the 2024 Election Year Media Frenzy

Battling for Attention in the 2024 Election Year Media Frenzy

As we march closer to the 2024 U.S. presidential election, CMOs and marketing leaders need to prepare for a significant shift in the digital advertising landscape. Election years have always posed unique challenges for advertisers, but the growing dominance of digital media has made the impact more profound than ever before.

In this article, we’ll explore the key factors that will shape the advertising environment in the coming months and provide actionable insights to help you navigate these turbulent waters.

The Digital Battleground

The rise of cord-cutting and the shift towards digital media consumption have fundamentally altered the advertising landscape in recent years. As traditional TV viewership declines, political campaigns have had to adapt their strategies to reach voters where they are spending their time: on digital platforms.

1713626763 903 Battling for Attention in the 2024 Election Year Media Frenzy1713626763 903 Battling for Attention in the 2024 Election Year Media Frenzy

According to a recent report by eMarketer, the number of cord-cutters in the U.S. is expected to reach 65.1 million by the end of 2023, representing a 6.9% increase from 2022. This trend is projected to continue, with the number of cord-cutters reaching 72.2 million by 2025.

Moreover, a survey conducted by Pew Research Center in 2023 found that 62% of U.S. adults do not have a cable or satellite TV subscription, up from 61% in 2022 and 50% in 2019. This data further underscores the accelerating shift away from traditional TV and towards streaming and digital media platforms.

As these trends continue, political advertisers will have no choice but to follow their audiences to digital channels. In the 2022 midterm elections, digital ad spending by political campaigns reached $1.2 billion, a 50% increase from the 2018 midterms. With the 2024 presidential election on the horizon, this figure is expected to grow exponentially, as campaigns compete for the attention of an increasingly digital-first electorate.

For brands and advertisers, this means that the competition for digital ad space will be fiercer than ever before. As political ad spending continues to migrate to platforms like Meta, YouTube, and connected TV, the cost of advertising will likely surge, making it more challenging for non-political advertisers to reach their target audiences.

Advertisement

To navigate this complex and constantly evolving landscape, CMOs and their teams will need to be proactive, data-driven, and willing to experiment with new strategies and channels. By staying ahead of the curve and adapting to the changing media consumption habits of their audiences, brands can position themselves for success in the face of the electoral advertising onslaught.

Rising Costs and Limited Inventory

As political advertisers flood the digital market, the cost of advertising is expected to skyrocket. CPMs (cost per thousand impressions) will likely experience a steady climb throughout the year, with significant spikes anticipated in May, as college students come home from school and become more engaged in political conversations, and around major campaign events like presidential debates.

1713626764 529 Battling for Attention in the 2024 Election Year Media Frenzy1713626764 529 Battling for Attention in the 2024 Election Year Media Frenzy

For media buyers and their teams, this means that the tried-and-true strategies of years past may no longer be sufficient. Brands will need to be nimble, adaptable, and willing to explore new tactics to stay ahead of the game.

Black Friday and Cyber Monday: A Perfect Storm

The challenges of election year advertising will be particularly acute during the critical holiday shopping season. Black Friday and Cyber Monday, which have historically been goldmines for advertisers, will be more expensive and competitive than ever in 2024, as they coincide with the final weeks of the presidential campaign.

To avoid being drowned out by the political noise, brands will need to start planning their holiday campaigns earlier than usual. Building up audiences and crafting compelling creative assets well in advance will be essential to success, as will a willingness to explore alternative channels and tactics. Relying on cold audiences come Q4 will lead to exceptionally high costs that may be detrimental to many businesses.

Navigating the Chaos

While the challenges of election year advertising can seem daunting, there are steps that media buyers and their teams can take to mitigate the impact and even thrive in this environment. Here are a few key strategies to keep in mind:

Start early and plan for contingencies: Begin planning your Q3 and Q4 campaigns as early as possible, with a focus on building up your target audiences and developing a robust library of creative assets.

Advertisement

Be sure to build in contingency budgets to account for potential cost increases, and be prepared to pivot your strategy as the landscape evolves.

1713626764 197 Battling for Attention in the 2024 Election Year Media Frenzy1713626764 197 Battling for Attention in the 2024 Election Year Media Frenzy

Embrace alternative channels: Consider diversifying your media mix to include channels that may be less impacted by political ad spending, such as influencer marketing, podcast advertising, or sponsored content. Investing in owned media channels, like email marketing and mobile apps, can also provide a direct line to your customers without the need to compete for ad space.

Owned channels will be more important than ever. Use cheaper months leading up to the election to build your email lists and existing customer base so that your BF/CM can leverage your owned channels and warm audiences.

Craft compelling, shareable content: In a crowded and noisy advertising environment, creating content that resonates with your target audience will be more important than ever. Focus on developing authentic, engaging content that aligns with your brand values and speaks directly to your customers’ needs and desires.

By tapping into the power of emotional triggers and social proof, you can create content that not only cuts through the clutter but also inspires organic sharing and amplification.

Reflections

The 2024 election year will undoubtedly bring new challenges and complexities to the world of digital advertising. But by staying informed, adaptable, and strategic in your approach, you can navigate this landscape successfully and even find new opportunities for growth and engagement.

As a media buyer or agnecy, your role in steering your brand through these uncharted waters will be critical. By starting your planning early, embracing alternative channels and tactics, and focusing on creating authentic, resonant content, you can not only survive but thrive in the face of election year disruptions.

Advertisement

So while the road ahead may be uncertain, one thing is clear: the brands that approach this challenge with creativity, agility, and a steadfast commitment to their customers will be the ones that emerge stronger on the other side.


Disruptive Design Raising the Bar of Content Marketing with Graphic

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

Tinuiti Marketing Analytics Recognized by Forrester

Published

on

Tinuiti Marketing Analytics Recognized by Forrester

News


By Tinuiti Team

Rapid Media Mix Modeling and Proprietary Tech Transform Brand Performance

Advertisement

Tinuiti, the largest independent full-funnel performance marketing agency, has been included in a recent Forrester Research report titled, “The Marketing Analytics Landscape, Q2 2024.” This report comprehensively overviews marketing analytics markets, use cases, and capabilities. B2C marketing leaders can use this research by Principal Analyst Tina Moffett to understand the intersection of marketing analytics capabilities and use cases to determine the vendor or service provider best positioned for their analytics and insights needs. Moffett describes the top marketing analytics markets as advertising agencies, marketing dashboards and business intelligence tools, marketing measurement and optimization platforms and service providers, and media analytics tools.

As an advertising agency, we believe Tinuiti is uniquely positioned to manage advertising campaigns for brands including buying, targeting, and measurement. Our proprietary measurement technology, Bliss Point by Tinuiti, allows us to measure the optimal level of investment to maximize impact and efficiency. According to the Forrester report, “only 30% of B2C marketing decision-makers say their organization uses marketing or media mix modeling (MMM),” so having a partner that knows, embraces, and utilizes MMM is important. As Tina astutely explains, data-driven agencies have amplified their marketing analytics competencies with data science expertise; and proprietary tools; and tailored their marketing analytics techniques based on industry, business, and data challenges. 

Our Rapid Media Mix Modeling sets a new standard in the market with its exceptional speed, precision, and transparency. Our patented tech includes Rapid Media Mix Modeling, Always-on Incrementality, Brand Equity, Creative Insights, and Forecasting – it will get you to your Marketing Bliss Point in each channel, across your entire media mix, and your overall brand performance. 

As a marketing leader you may ask yourself: 

  • How much of our marketing budget should we allocate to driving store traffic versus e-commerce traffic?
  • How should we allocate our budget by channel to generate the most traffic and revenue possible?
  • How many customers did we acquire in a specific region with our media spend?
  • What is the impact of seasonality on our media mix?
  • How should we adjust our budget accordingly?
  • What is the optimal marketing channel mix to maximize brand awareness? 

These are just a few of the questions that Bliss Point by Tinuiti can help you answer.

Learn more about our customer-obsessed, product-enabled, and fully integrated approach and how we’ve helped fuel full-funnel outcomes for the world’s most digital-forward brands like Poppi & Toms.

The Landscape report is available online to Forrester customers or for purchase here

Advertisement

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

Ecommerce evolution: Blurring the lines between B2B and B2C

Published

on

Ecommerce evolution: Blurring the lines between B2B and B2C

Understanding convergence 

B2B and B2C ecommerce are two distinct models of online selling. B2B ecommerce is between businesses, such as wholesalers, distributors, and manufacturers. B2C ecommerce refers to transactions between businesses like retailers and consumer brands, directly to individual shoppers. 

However, in recent years, the boundaries between these two models have started to fade. This is known as the convergence between B2B and B2C ecommerce and how they are becoming more similar and integrated. 

Source: White Paper: The evolution of the B2B Consumer Buyer (ClientPoint, Jan 2024)

Advertisement

What’s driving this change? 

Ever increasing customer expectations  

Customers today expect the same level of convenience, speed, and personalization in their B2B transactions as they do in their B2C interactions. B2B buyers are increasingly influenced by their B2C experiences. They want research, compare, and purchase products online, seamlessly transitioning between devices and channels.  They also prefer to research and purchase online, using multiple devices and channels.

Forrester, 68% of buyers prefer to research on their own, online . Customers today expect the same level of convenience, speed, and personalization in their B2B transactions as they do in their B2C interactions. B2B buyers are increasingly influenced by their B2C experiences. They want research, compare, and purchase products online, seamlessly transitioning between devices and channels.  They also prefer to research and purchase online, using multiple devices and channels

Technology and omnichannel strategies

Technology enables B2B and B2C ecommerce platforms to offer more features and functionalities, such as mobile optimization, chatbots, AI, and augmented reality. Omnichannel strategies allow B2B and B2C ecommerce businesses to provide a seamless and consistent customer experience across different touchpoints, such as websites, social media, email, and physical stores. 

However, with every great leap forward comes its own set of challenges. The convergence of B2B and B2C markets means increased competition.  Businesses now not only have to compete with their traditional rivals, but also with new entrants and disruptors from different sectors. For example, Amazon Business, a B2B ecommerce platform, has become a major threat to many B2B ecommerce businesses, as it offers a wide range of products, low prices, and fast delivery

“Amazon Business has proven that B2B ecommerce can leverage popular B2C-like functionality” argues Joe Albrecht, CEO / Managing Partner, Xngage. . With features like Subscribe-and-Save (auto-replenishment), one-click buying, and curated assortments by job role or work location, they make it easy for B2B buyers to go to their website and never leave. Plus, with exceptional customer service and promotional incentives like Amazon Business Prime Days, they have created a reinforcing loyalty loop.

And yet, according to Barron’s, Amazon Business is only expected to capture 1.5% of the $5.7 Trillion addressable business market by 2025. If other B2B companies can truly become digital-first organizations, they can compete and win in this fragmented space, too.” 

Advertisement

If other B2B companies can truly become digital-first organizations, they can also compete and win in this fragmented space

Joe Albrecht
CEO/Managing Partner, XNGAGE

Increasing complexity 

Another challenge is the increased complexity and cost of managing a converging ecommerce business. Businesses have to deal with different customer segments, requirements, and expectations, which may require different strategies, processes, and systems. For instance, B2B ecommerce businesses may have to handle more complex transactions, such as bulk orders, contract negotiations, and invoicing, while B2C ecommerce businesses may have to handle more customer service, returns, and loyalty programs. Moreover, B2B and B2C ecommerce businesses must invest in technology and infrastructure to support their convergence efforts, which may increase their operational and maintenance costs. 

How to win

Here are a few ways companies can get ahead of the game:

Adopt B2C-like features in B2B platforms

User-friendly design, easy navigation, product reviews, personalization, recommendations, and ratings can help B2B ecommerce businesses to attract and retain more customers, as well as to increase their conversion and retention rates.  

According to McKinsey, ecommerce businesses that offer B2C-like features like personalization can increase their revenues by 15% and reduce their costs by 20%. You can do this through personalization of your website with tools like Product Recommendations that help suggest related products to increase sales. 

Advertisement

Focus on personalization and customer experience

B2B and B2C ecommerce businesses need to understand their customers’ needs, preferences, and behaviors, and tailor their offerings and interactions accordingly. Personalization and customer experience can help B2B and B2C ecommerce businesses to increase customer satisfaction, loyalty, and advocacy, as well as to improve their brand reputation and competitive advantage. According to a Salesforce report, 88% of customers say that the experience a company provides is as important as its products or services.

Related: Redefining personalization for B2B commerce

Market based on customer insights

Data and analytics can help B2B and B2C ecommerce businesses to gain insights into their customers, markets, competitors, and performance, and to optimize their strategies and operations accordingly. Data and analytics can also help B2B and B2C ecommerce businesses to identify new opportunities, trends, and innovations, and to anticipate and respond to customer needs and expectations. According to McKinsey, data-driven organizations are 23 times more likely to acquire customers, six times more likely to retain customers, and 19 times more likely to be profitable. 

What’s next? 

The convergence of B2B and B2C ecommerce is not a temporary phenomenon, but a long-term trend that will continue to shape the future of ecommerce. According to Statista, the global B2B ecommerce market is expected to reach $20.9 trillion by 2027, surpassing the B2C ecommerce market, which is expected to reach $10.5 trillion by 2027. Moreover, the report predicts that the convergence of B2B and B2C ecommerce will create new business models, such as B2B2C, B2A (business to anyone), and C2B (consumer to business). 

Therefore, B2B and B2C ecommerce businesses need to prepare for the converging ecommerce landscape and take advantage of the opportunities and challenges it presents. Here are some recommendations for B2B and B2C ecommerce businesses to navigate the converging landscape: 

  • Conduct a thorough analysis of your customers, competitors, and market, and identify the gaps and opportunities for convergence. 
  • Develop a clear vision and strategy for convergence, and align your goals, objectives, and metrics with it. 
  • Invest in technology and infrastructure that can support your convergence efforts, such as cloud, mobile, AI, and omnichannel platforms. 
  • Implement B2C-like features in your B2B platforms, and vice versa, to enhance your customer experience and satisfaction.
  • Personalize your offerings and interactions with your customers, and provide them with relevant and valuable content and solutions.
  • Leverage data and analytics to optimize your performance and decision making, and to innovate and differentiate your business.
  • Collaborate and partner with other B2B and B2C ecommerce businesses, as well as with other stakeholders, such as suppliers, distributors, and customers, to create value and synergy.
  • Monitor and evaluate your convergence efforts, and adapt and improve them as needed. 

By following these recommendations, B2B and B2C ecommerce businesses can bridge the gap between their models and create a more integrated and seamless ecommerce experience for their customers and themselves. 

Advertisement

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending

Follow by Email
RSS