Wunderman Thompson Commerce is out with a new study of industry commerce leaders. It found that over half of digital commerce projects fail annually.
In the U.S., the report — which surveyed over 500 digital commerce leaders in the US and UK —found that $200,000 on average per company is wasted annually on failed projects. That number rises to more than $330,000 in the UK.
About one-third of those polled stated the biggest reason for failure is a lack of alignment with customer needs.
When asked about Amazon, respondents seemed a bit conflicted. On one hand, 81% agree Amazon has been good for the digital commerce industry as a whole and over three quarters (77%) look to Amazon for inspiration. And 72% admit they need to invest more money in Amazon.
However, Amazon is viewed as a barrier by the majority of commerce leaders, as 57% say the online retail giant is holding back their organization’s growth and 56% believe the industry would be better off without it. That’s right, Amazon. Now that you’ve single-handedly (practically) built the ecommerce business, go away.
Nearly 70% of those surveyed said their companies have considered putting products for sale online to help address the challenges of fast-delivery expectations. About as many say their company has a voice commerce strategy and claim to have a social commerce strategy in place.
Among the study’s recommendations: Marketers should consider doing in-depth consumer experience research and mapping to better align their commerce offering with customer needs if lack of alignment is deemed to be a problem.
And love it or hate it, firms that want a thriving ecommerce business must work with Amazon, while at the same time investing in their own D2C offerings, “and exploiting what Amazon can’t do.”
Looking ahead, WTC believes “social commerce strategies and capabilities will be a core offering of successful commerce companies.”
The nearly 40-page report can be downloaded here for free if you’re willing to share a few personal details, like name, phone number and title. Of course, there’s more than altruism at play behind WTC's free report. Commerce advice and development is part of its practice — and the agency would love to sign your company up for those services.
That would set you back some, though.