Changing the future of E-commerce. Designing for people, not conversion

Constantine Gavrykov
ProfsoUX 2020

In this talk Constantine will examine the state of e-Сommerce in 2020 — the good, the bad and everything in between. He will also analyse the critical role UX and every designer personally play in shaping consumer experience of today and tomorrow. And will share a practical guide (Tactics, Strategy& Hands-on) on how and why we can use both incredible opportunities and impossible challenges to fight the dark side of commerce and drive innovation on a day-to-day basis.

Transcript

2. Constantine Gavrykov Global UX Director Intersport Kirill Zima Lead UX Designer Verifone Constantine Gavrykov Global UX Director - Intersport ProfsoUX, St. Petersburg Saturday, Feb 29
3. Why do I care? Why should you?
4. 3. 500000 000000 https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/ Global retail e-commerce sales in 2019 Golden Age Of E-commerce $
5. 3. 500000 000000 https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/ Global retail e-commerce sales in 2019 Golden Age Of E-commerce $
6. Golden Age Best of the Best 6 1. Attract 3. Buy 4. Deliver 5. Retain 2. Browse
7. 1. Attract Synthetic Realitites 7 4. Fulfilment 5. Retention What E-comm Benefits Synthetic Realities Lil Miquela 1. Attract
8. 1. Attract Synthetic Realitites 8 4. Fulfilment 5. Retention What E-comm Benefits Synthetic Realities CGI Influencer Lil Miquela Facebook Buy Instagram Checkout 1. Attract
9. 1. Attract Synthetic Realitites 9 4. Fulfilment 5. Retention What E-comm Benefits Synthetic Realities CGI Influencer Lil Miquela Siri, Alexa, Google Assistant, Samsung’s Bixby & Tiān Māo How it works Semantic & Natural Language Processing Our data, collected over time & different touch points + 1. Attract Ubiquitous Digital Assistants
10. 1. Attract Synthetic Realitites 10 4. Fulfilment 5. Retention What E-comm Benefits Synthetic Realities CGI Influencer Lil Miquela 50% Of all online searches will be voice-based by 2020 30% Of all web browsing sessions will be done without a screen by 2020 55% Of households are expected to own smart speaker devices by 2022 1. Attract Ubiquitous Digital Assistants
11. 1. Attract Synthetic Realitites 11 4. Fulfilment 5. Retention What E-comm Benefits Synthetic Realities CGI Influencer Lil Miquela Personalisation is the future AI is a King 2. Browse
12. A magical app to shop for sneakers using 3D augmented reality. Why? - Instant try-out - Sharing with friends - Win-win - Less returns 2.Browse Wanna Kicks 12 4. Fulfilment 5. Retention 2. Browse
13. 13 4. Fulfilment 5. Retention What E-comm Benefits Invisible Payments / Zero Checkout Biometric Wallets 3. Buy
14. 1. Attract Synthetic Realitites 14 4. Fulfilment 5. Retention What E-comm Benefits Synthetic Realities CGI Influencer Lil Miquela 20% Increase in repeat purchases in comparison to card payments 16% Avg. Order Value Increase 3. Buy Buy Now. Pay Later Klarna
15. 1. Attract Synthetic Realitites 15 4. Fulfilment 5. Retention What E-comm Benefits Synthetic Realities CGI Influencer Lil Miquela Reliable ordering & fulfilment Is expected standard 4. Deliver
16. 16 4. Fulfilment 5. Retention Whaaat? • Hyper-local • Eco-friendly • Kick-ass CX 4. Deliver Same Day? 2 Hours!
17. 1. Attract Synthetic Realitites 17 4. Fulfilment 5. Retention What E-comm Benefits Synthetic Realities CGI Influencer Lil Miquela 5. Retain Why? • Increased retention • More engagement opportunities • Improved forecasting Subscription Replenishment / Curation / Access
18. 1. Attract Synthetic Realitites 18 4. Fulfilment 5. Retention What E-comm Benefits Synthetic Realities CGI Influencer Lil Miquela 5. Retain Subscription Lexus One
19. The Other Side Of E-commerce 19 1. Mindful Tech 2. Mental Wellbeing 3. Sustainability
20. Mindful Technology 20 Values customers seek from brands, services & organisations are shifting
21. Right for quiet, quite right Communications an avg. customer gets on a weekly basis from a single brand Types 1. Flash Sales & Commercial Campaigns (Black Friday, Cyber Monday, Singles Day, Back to Beach, Back to School, Festival Season, etc.) 2. Seasonal Discounts 3. Product & Collection Launches 4. Personalised Comms (birthday, abandoned cart, recently viewed) Channels 5. Re-targeting // SoMe sponsored content in stories and feeds 6. Mobile Notifications 7. Direct Mail (yes they still send those) 8. Email
22. Right for quiet, quite right ~15x Types 1. Flash Sales & Commercial Campaigns (Black Friday, Cyber Monday, Singles Day, Back to Beach, Back to School, Festival Season, etc.) 2. Seasonal Discounts 3. Product & Collection Launches 4. Personalised Comms (birthday, abandoned cart, recently viewed) Channels 5. Re-targeting // SoMe sponsored content in stories and feeds 6. Mobile Notifications 7. Direct Mail (yes they still send those) 8. Email
23. Mental wellbeing What’s going on? • Cognitive overload • Newness addiction • Fear of missing out • Fear of better options
24. Combined with scarcity and urgency FOBO adds a great deal of cognitive load and could make our brain panic. FOBO Fear Of Better Options
25. 6.720 items
26. 2.000 items
27. F B In real world O OIn a Natural Habitat
28. Sustainability 28 Fast Fashion aspiration Buy as much as possible, in as little time as possible + Vicious cycle Cheap clothes → disposable clothes → keep buying
29. Sustainability 29 50%+ Avg. Return Rate 3x Times higher handling returns than original shipping costs E-commerce amplifier 1. Overconsumption 2. Inefficient Packaging & Logistics
30. What to do? & How to start?
31. https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/ Explore WHAT’S WRONG? Knowledge Create HOW TO MAKE IT BETTER? Driving Force Evangelize HOW TO DRIVE & SUSTAIN CHANGE Solid Foundation What to do & how to start Adapted Model Designing our Tomorrow by Cambridge University
32. Explore WHAT’S WRONG? Knowledge Investigate ‘What’s wrong with the business as usual’ Determine ‘What matters’ Main outcome Prioritized backlog Reviewed KPIs +
33. Explore WHAT’S WRONG? Knowledge Be strategic Stakeholders Map Stakeholder John Doe Head of Omni Zurich Contribution MEDIUM Knowledge in X issue is of value to our initiatives Dependency HIGH Directly affected by my initiatives Willingness to engage HIGH Proactive / already engaging Necessity of involvement LOW Not an outspoken stakeholder Influence HIGH Established relationships with all markets EXPERTISE WILLINGNESS VALUE Motiv MEDI Alignm requir Risks MEDIUM Budget shared with Omni initiatives
34. Explore WHAT’S WRONG? Knowledge Think Don’t wait Act
35. Create HOW TO MAKE IT BETTER? Driving force
36. Re-think Metrics Create HOW TO MAKE IT BETTER? Driving force
37. ≠ good user experience Conversion Create HOW TO MAKE IT BETTER? Driving force
38. Instant gratification • Email open rate • Notifications sent • Accounts created • Micro conversions Long-lasting relationships • Satisfaction rate • Completion rate • Error rate • Abandonment rate Re-think Metrics VS VS Create HOW TO MAKE IT BETTER? Driving force
39. Create HOW TO MAKE IT BETTER? Driving force
40. Best ideas only come with good understanding of your users Create HOW TO MAKE IT BETTER? Driving force
41. Talk to Your Users • Start with objective • Focus on the past • Share your findings Create HOW TO MAKE IT BETTER? Driving force
42. Hypothesis Hypothesis A supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation. Do research → Get idea → Predict outcome → Test! Create HOW TO MAKE IT BETTER? Driving force
43. Hypothesis Based on user interviews We believe that showing photos of many different models wearing same clothes For users on product page Will result in higher confidence of users’ choice We’ll know that when return rate decreases and conversion increases Create HOW TO MAKE IT BETTER? Driving force
45. Evangelise HOW TO DRIVE & SUSTAIN CHANGE Solid Foundation Process Your team, department, company Resources Resources & skillset on board to deliver Strategy High-level support of change & innovation Culture Brand values. reward systems & business metrics 1. 2. 3. 4.
46. Evangelise HOW TO DRIVE & SUSTAIN CHANGE Solid Foundation Wear different hats, speak business language Seek prove & present evidence Build business case to maximize leverage + +
47. Superheroes don’t always wear caps!
48. Thank you! Constantine Gavrykov constantine.gavrykov@gmail.com