Seven Trends for a Winning Customer Experience By Andrew Macey

8/7/2019 Seven Trends for a Winning Customer Experience By Andrew Macey

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© Sapient Corporation, 2011

POINT OF view

A couple decades ago, the brand experience was much different than it is today — and much more

simple. The consumer experience was historically controlled and managed primarily by the brand,

and the consumer played a somewhat passive role. Moreover, the stages of awareness, perception,

involvement, and loyalty were orchestrated by the brand to proceed in a linear fashion.

Since then, however, the world is a very different place, and today’s consumer bears few similarities

to the consumer of the past. Smart phones, ubiquitous internet access, and social networks are

pervasive. And yet, while current technology has made connecting and interacting with a brand even

easier, it has also stirred up some challenges.

So where will this shift take us next? There are several relevant trends to be aware of — and to consider

— as one thinks about merchandising and marketing in today’s digital environment, and before

planning the next campaign.

1. The pace of adoption and consumer acceptance has increased significantly.

Adoption of new ideas and technologies is moving faster than typically has been true historically.

Consider that Internet and cell phones have seen a 70% consumer adoption in just 15 years.

In contrast, cars, phones, electricity, stoves, dishwashers and similar technologies of the past each

took more than 60 years to reach the same 70% acceptance. Today’s inventions are latching on and

taking off with unprecedented speed — a speed which makes it all the more interesting a question as to

whether one should be a first-mover or a fast-follower.

2. eCommerce and mCommerce markets are large, and continue to grow more quickly than

traditional channels.

In 2009, eCommerce sales worldwide were $8 trillion in revenue. But by 2013, that number is expected

Seven Trends for a Winning

Customer Experience By Andrew Macey, Vice President, Strategy, SapientNitro

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POINT OF view

to have doubled in size. The mCommerce (mobile) market in 2010 was $42 billion and is expected to be

$68 billion by the end of 2013.

Whereas offline commerce only shows a 1.8% projected CAGR (Compound Annual Growth Rate),

digital, in comparison, is expected to have 15% CAGR over the next five years.

Web-influenced sales will grow at an estimated 21% CAGR, and already influence approximately two-

thirds of all commerce in some way.

3. Cross-channel customers spend more.

Cross-channel customers spend about 50% more spend on average, making them more valuable than

those who spend in only a single channel. While most retail revenue still comes from stores by far, it’s

important to understand how greatly online affects traditional channels. A Sapient Consumer Survey,

conducted in December 2010 revealed some interesting data about cross-channel customers:

• 53%purchasedin-storeafterconductingonlineresearch

• 44%boughtonlineafterlookingin-store

• 40%comparedpricesbeforemakingapurchase

• 35%lookedfordiscounts,deals,coupons,ordiscountcodes• 33%emailedortextedsomeonetotellthemaboutastoreexperience

• 30%usedtheirsmartphonewhileshoppingtotrytofindabetterdeal

• 27%boughtanadditionalitemwhenpickingupanonlineorderatastore

• 22%boughtanadditionalitemwhenreturninganonlinepurchasetoastore

It is in every brand’s best interest to find ways to cater to these highly profitable, cross-channel

consumers and to make the movement between channels easy and seamless.

4. Social media creates mass personalization.

By adding a few lines of code with tools like Facebook Open Graph, sites can provide incredible

contextual relevance and give users “Pandora-like” experiences easily. Brands can now tailor

experiences to social-affinity based behaviors, and deliver experiences that are highly personalized.

While consistency throughout a brand’s messaging and content are still paramount, it no longer means

that each customer needs to experience it in the same way in a static format. Shopping histories and

real-time data means that each interaction with the brand can now be personalized to the user, and the

consumer decides what, when, and how to experience the brand — it could be via online, via mobile, or

in-store. The consumer gets to decide how to interact.

5. The path to purchase is now non-linear.

For many years, the path to purchase revolved around a linear progression of events, as consumers

moved from awareness to store interactions, to purchase, support, and loyalty. Today, however,

consumers can research online and buy in store, or walk in-store and compare reviews and offers via

mobile, or buy online and pick up in-store.

With today’s pervasive access, constant mobility, and high-speed bandwidth for rich media, there are

nearly infinite options to reach the same end goals. Consumers demand a digital experience that

reflects needs throughout the customer lifecycle, across channels, that builds loyalty over time




POINT OF view

6. Consumer can participate with brands in a way not previously possible — and

disproportionately influence brand perception.

Consumers have always had the opportunity to be proponents of a brand, but postings, online

feedback, blogs, ratings and more make the ability to influence brand perception more visible.

Individuals can write and comment 24/7. There is significant evidence that negative reviews and

postings carry a lot of weight relative to positive postings, and that readers often value individual

postings more than information from brands and third-party organizations. Because of this shift,

manufacturers and retailers must deliver content and promotions that customers will find relevant and

trustworthy. The best customers should be engaged and rewarded, and brands must build a network of

advocates.

7. Marketing needs have changed.

Historically, 1:1 marketing was the goal, i.e.: the ability to push relevant offers, information, and

promotions to an individual based on a deep understanding of who that individual was and on what

s/he had previously purchased. The customer would be targeted based on pre-defined criteria

and preferences. Those personal experiences were based on past behavior patterns and historical

purchase patterns.

But that’s not good enough anymore. Now, the aspiration is real-time, experience-based marketing.Loyalty card data combined with techniques like location-based services via GPS make it possible to

offer consumers different promotions on a real-time, location-sensitive basis as they walk down a store

aisle. Customers respond to different messages based on how they interact with a brand at a given

point in time, and new CRM and campaign tools are needed to support those varying experiences.

Examples:

Let’s look at two examples of brands that are taking advantage of these trends and creating seamless

experiences across multiple channels.

MetLife Central | Interactive Stadium Experience

MetLife wanted to reposition its brand, and to reach new audiences, at the new Meadowlands stadium,

home of the New York Giants and New York Jets. To do this, they sponsored online and in-venue digitalengagements centered on a custom membership club, which was supported by social media and local

area marketing.

MetLife’s goal was to do something interactive that got people talking and engaging with the brand in

a fun and interactive way. The new concept was a program that used both digital signage and a loyalty

card application. When a customer applied for a loyalty card, not only did MetLife develop a lead, but

that particular person was also entered into a weekly contest. The adoption exceeded expectations and

created a seamless, cross-channel MetLife experience that built awareness with a consistent message

and feel for the fans in an engaging way, whether on the television screen, a digital sign, a smart phone,

or a computer.

MetLife successfully created an integrated experience for the consumer that brought together two

things: the fusion of social, mobile, and digital elements, as well as the foresight to make it easy to

move across channels.




POINT OF view

AutoTrader UK | The Snap-It iPhone Application

AutoTrader created a cross-channel plan between commercial transactions and mobile phone use,

enabling a relationship between the consumer and the seller than hadn’t been possible in the past.

The Snap-It iPhone mobile app gave consumers in the UK the ability to shop for a vehicle any time, any

place. Instead of limiting the shopper to traditional means of vehicle purchase, potential consumers

looking to purchase a vehicle can now take a picture of a license plate on any car they see and like.

The new mobile application then does a reverse lookup of the license plate, and cross-references thatparticular car with similar cars available on AutoTrader in a given geographic area.

Looking to the future

Today’s consumer has changed. And so has today’s marketer. As these trends unfold, it’ll be interesting

to watch the progression and implications of these changes in this non-linear, cross-channel, fast-

moving world. Are you prepared for it?

Andrew Macey is Vice President, Digital Strategy at SapientNitro (www.

sapientnitro.com), where he is primarily focused on helping companies

think through the challenges and benefits of future business models,

organizational capabilities, and new ways to create meaningful and

rewarding experiences across channels for business and consumer

customers.

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Seven Trends for a Winning Customer Experience By Andrew Macey