With the rise of headless commerce, many eCommerce businesses are looking to adopt this architecture to improve their KPIs. No doubt, it’s an effective way to decouple the front-end and back-end of your eCommerce store. Still, it’s important to understand how to use this technology to achieve optimal results properly.
In this guide, we’ll show you how headless commerce can help you improve your conversion rate, average order value, and more. Let’s get started.
What Is Headless Commerce?
Headless commerce is a decoupled architecture that separates the front-end experience from the back-end systems. The front-end experience (the “head”) can be built on any platform or framework without being tied to the back-end system. This provides greater flexibility and agility in designing and deploying your eCommerce experience.
Also, the back-end systems (the “body”) consist of the eCommerce platform, product information management (PIM) system, order management system (OMS), and any other systems that power the eCommerce experience. These systems are typically more complex and require more stability, so they are often deployed on-premise or in a private cloud.
With opportunistic headless commerce, businesses can improve their eCommerce KPIs by rendering faster pages, lower latencies, higher conversion rates, and leveraging progressive web apps.
Benefits Of Headless Commerce
Many benefits of headless commerce can help improve your online store’s KPIs.
1. Complete Customization
With a headless solution, you have complete control over the look and feel of your online store. This means that you can design your store to match your brand perfectly. Also, you can customize the user experience to fit your target audience. Try a split test to see how different user experiences affect your conversion rate.
2. Faster Page Loading Times
You must focus on the front-end and back-end performance to improve your website’s speed. Headless commerce can help you improve both. The approach can help reduce the number of HTTP requests on the front end. This will make your pages load faster. On the back-end, it decouples the back-end from the front end. This means that your back-end can scale independently. As a result, you’ll be able to handle more traffic without affecting the performance of your website.
3. Less Need For IT Support
With headless architecture, web teams can execute the vision of an online store quickly without needing to rely on the development team as much. Changes can be made to the front end easily, so developers save time.
This architecture also provides fewer boundaries to the internationalization of online stores—it’s much easier to include multi-currency and multi-language options.
For example, apparel brand Kotn switched to headless commerce to make site changes more quickly, customize the shopping experience, and maintain fast site speed even during periods of high traffic. Headless commerce enables the brand to control its own site experience and customization without overly relying on experience platform providers.
4. More Control And Faster Scaling
To support future growth, your eCommerce platform needs to be able to handle an increasing number of SKUs and customers. Headless commerce provides the perfect foundation for this growth. Decoupling the front-end from the back-end allows you to add new features and products much faster than with a traditional eCommerce platform. Plus, with complete control over the front-end, you can customize the user experience to match your brand perfectly.
5. Faster Time To Market
Go headless to improve your eCommerce KPIs and get products to market faster. Alleviate the age-old issue of developers who can’t work on front and back-end systems at the same time. With headless, customer-facing work can be done independently, without having to wait for back-end work, and vice versa. This separation of copy from code allows each team to keep moving without depending on the other to finish first. A headless strategy can help you get products to market faster and improve your eCommerce KPIs.
Headless Commerce Vs. Traditional Commerce
Headless commerce is a decoupled architecture that allows businesses to create unique digital experiences without being hindered by the limitations of their eCommerce platform. In contrast, traditional eCommerce platforms are monolithic systems that bundle the front-end experience with the back-end infrastructure. This tightly coupled approach limits businesses’ ability to create innovative digital experiences and can lead to slow performance, poor scalability, and high Total Cost of Ownership (TCO).
Also, traditional eCommerce platforms are often difficult to customize and lack the flexibility to integrate with third-party applications. This can make it hard for businesses to create a seamless omnichannel experience or take advantage of emerging technologies like Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR).
Using Headless Commerce To Improve Your KPIs
There are many benefits to using a headless commerce system, including:
1. Average Order Value
You can easily add new product recommendation widgets or loyalty programs to upsell and cross-sell effectively. Also, by understanding which products are mostly purchased together, you can offer promotional pricing or package deals on those items.
Whether you’re just starting or have been in business for a while, your number one focus should be acquiring new customers. But once you have them, you need to find ways of keeping them and turning them into loyal, lifelong brand fans.
2. Customer Churn Rate
Churn rate is a metric that measures the percentage of customers who stop doing business with a company over a certain period. For eCommerce businesses, it’s important to keep track of churn rate because it can indicate problems with the product, customer service, or other aspects of the business.
With a headless commerce platform, businesses can keep track of churn rates in real-time and take action to address any issues that may be causing customers to leave. By understanding what is causing customers to churn, businesses can make changes to improve the customer experience and reduce the churn rate.
3. Gross Merchandise Value
Gross merchandise value (GMV) is a metric that measures the total value of all goods sold through an eCommerce platform. Headless commerce can help businesses increase their GMV by offering new and innovative ways to sell products and services.
For example, businesses can use headless commerce to create subscription-based models or offer pay-as-you-go pricing. By offering new and flexible ways to purchase products and services, businesses can increase their GMV.
4. Conversion Rate
Conversion rate is one of eCommerce businesses’ most important success metrics. It’s a good idea to keep an eye on your conversion rate and work towards improving it.
Many factors can affect your conversion rate, such as the quality of your products, the clarity of your product descriptions, the pricing of your products, the ease of use of your website, and so on.
Headless eCommerce can help you improve your conversion rate in several ways. It allows you to create a more seamless and user-friendly shopping experience for your customers. Also, it gives you more flexibility and control over the look and feel of your website, which can be used to create a more aesthetically pleasing and user-friendly website.
You can personalize the shopping experience for each customer. This can be done by using customer data to show them personalized product recommendations or by providing them with a more customized checkout process.
5. Cart Abandonment Rate
Forgetfulness, distraction, and change of heart are among the many reasons shoppers abandon their carts. The cart abandonment rate is the percentage of people who add items to their shopping cart but don’t complete the purchase.
While a certain amount of abandoned carts is expected, a high cart abandonment rate could indicate something wrong with your eCommerce site or shopping experience. With headless commerce, you can provide a smoother and more streamlined shopping experience that helps reduce cart abandonment.
Try to identify the reasons for abandoned carts on your site and address them accordingly. Also, use abandoned cart emails to encourage customers to return and complete their purchases.
6. Customer Lifetime Value (CLV)
CLV is the total revenue a customer brings in during their lifetime. Increasing CLV should be one of your main goals, representing your business’s health and potential growth. To increase CLV, you need to focus on two things: customer acquisition and customer retention.
With a headless content management system, you can focus on customer acquisition by personalizing the shopping experience for each individual. This is done by using data to understand each customer’s needs and then tailoring the content, products, and recommendations to them. For example, if you know that a customer is interested in a certain product, you can show them related products they may also be interested in.
You can also use headless commerce architecture to focus on customer retention. This is done by providing a seamless and personalized experience across all channels, including your website, mobile app, and in-store.
With headless commerce, you can quickly deploy new features and functionality to improve the customer experience and increase customer lifetime value. For example, you could add a new product recommendation engine or a new loyalty program with just a few clicks.
Also, since the headless commerce solution is decoupled from the presentation layer, making changes to the front-end is much easier without affecting the back-end. You can experiment with different design and layout changes without impacting your sales.
1. How Do I Make My Shopify Plus Store Headless?
To go headless with Shopify Plus, you have three options: build from scratch with Shopify’s Hydrogen, use a JAMstack approach, or level up with a frontend-as-a-service (FEaaS) platform such as Shogun Frontend. We recommend using Shogun Frontend with Shopify for the best possible results. Being Shogun Frontend certified Agency partners, we will help you get the most out of your headless Shopify implementation. Also, our responsive designs will ensure that your customers have the best possible experience on all devices.
2. When Should You Go Headless With Shopify Plus?
If you’re looking for complete customization, faster page loading times, or more control over your data, headless Shopify Plus is a good option. It’s also a good choice if you need to scale quickly or want to get to market faster.
3. Headless Commerce With Shopify Plus. Is It Worth It?
Shopify Plus is a great option for enterprises that need headless commerce capabilities. It offers all the benefits of Shopify, plus additional features and support. Also, because Shopify Plus is a managed platform, you don’t have to worry about hosting, security, or scalability. However, Shopify Plus is more expensive than headless Shopify, so weighing the cost before deciding which option is right for you is important.
Improve Your KPIs With Blue Owl Headless Commerce Agency
To get the most out of your eCommerce business, you need to understand your KPIs. Blue Owl can help. Our team of experts specializes in designing and optimizing eCommerce solutions that improve key performance indicators, making it easier for you to track progress and make informed decisions about the future of your business.
Understanding your customers’ needs, wants, and motivations, we’ll help you design an eCommerce experience that meets their unique expectations and drives conversions.
From there, we’ll work with you to track KPIs and analyze data to ensure that your eCommerce solution delivers the results you need to grow your business. We can help you reach your long-term business goals by constantly monitoring and optimizing your eCommerce solution.Contact Blue Owl today, and we’d be happy to discuss your specific needs and answer any questions you have about our services.