Since the advent of e-commerce, consumers have become accustomed to lower prices, convenient shopping anytime, and instant gratification. This rapid evolution in consumer behavior is forcing the industry to reassess their business models in recent years as they prepare their companies for a long-term future.
E-commerce touches a variety of industries
Almost every industry in today’s digital world has an e-commerce component, whether it’s shopping for clothes, housewares, ordering taxis or booking travel.
With the ability to search comparison services like Expedia or Priceline for the best deals on hotels, flights or rental cars in just a few clicks, auto insurance has fallen far behind in its digital transformation.
Comparison tools available to auto insurance buyers lacked accuracy, often providing consumers with deceptively low quotes that later increase when the time comes to buy. The e-commerce industry also had to overcome this “bait-and-switch” tactic as abandoned cart rates skyrocketed due to high shipping costs.
“If e-commerce has taught me anything, consumers crave instant gratification. They need to trust you and immediately recognize the value proposition. But unfortunately, what most consumers don’t realize is that when they buy auto insurance online, they’re usually tricked into going through a crazy, tedious process where fractional coverage seems to have a good price,” says Paul Moss, CEO and Founder of Hey Driver, an AI-based car insurance platform.
According to a report by JD Power, 90% of consumers are now willing to purchase auto insurance online, yet most auto insurance comparison tools provide consumers with unverified quotes based on the little information provided by the applicant, with very little validation.
Understanding that consumers have made convenience and immediacy the norm makes it critical to combat the lag that has plagued the auto insurance industry for years. And it’s important to provide an efficient service without having to speak to an agent. Customers prefer text, chat, or messaging over speaking to an agent, which can involve waiting on hold or being repeatedly redirected to get to the right department – resulting in a poor customer experience.
The growing gig economy needs a marketing overhaul
Another industry completely transformed by the impact of e-commerce is the gig economy. The way we work is constantly evolving, creating an even greater opportunity for freelancers.
The gig economy is thriving in the post-pandemic world. Still, as gig workers seek to scale their services and offerings, it’s vital to implement the marketing tactics that make e-commerce better than anyone else.
Consumers are used to the catered experience of shopping and discovering products online, often through social media. Retail giants maximize every available channel to reach and engage new audiences, ensuring their brands and products take center stage. The gig economy is often limited to apps and platforms. For example, Uber, Task Rabbit, and Fiverr have created bespoke platforms for unique consumer and business needs. This business model is no longer sufficient to build a sustainable business and income as a gig worker, especially as space continues to expand and competition is fierce.
By 2028, the number of US-based freelancers is expected to reach 90.1 million, according to Statista.
For gig workers, digital transformation means bringing their products and services to the masses. As consumer expectations evolve, gig workers need to take ownership of their business and reach audiences across platforms and search engines.
E-commerce is more than just a retail trend – it’s changing the entire consumer experience. What used to be the buying and selling of goods and services over the internet has evolved into a much broader term for digital transformation.