2018 FORRESTER. REPRODUCTION PROHIBITED.

Transcription

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2 The New Digital Imperatives: Customer-Obsession Through Data-Led Personalized Experiences Brendan Witcher Vice President, Principal Analyst Forrester Research October 3, 2018

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6 What s the value of a shopping cart? 6

7 Each time a consumer is exposed to an improved shopping experience, their expectations for all shopping experiences are reset to a new higher level Forrester Research, Inc. Reproduction Prohibited 7

8 Welcome to hyper-adoption Forrester Research, Inc. Reproduction Prohibited 8

9 and hyper-abandonment. 9

10 Hyper-adoption... 10

11 hyper-abandonment. 11

12 Customers are unique, and so must be their shopping journeys 61% I am unlikely to return to a website that does not provide a satisfactory customer experience. Base: 4,513 US online adults (ages 18 and older); Source: Forrester s North American Consumer Technographics Customer Life Cycle Survey, 2017 (US) 2018 Forrester Research, Inc. Reproduction Prohibited 12

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14 Forrester s 2018 Top Retail Tech Report Retailers and brands are focusing on tech investments that align with today s customer expectations. 14

15 2014 Strategy We need to be customer obsessed 2018 Forrester Research, Inc. Reproduction Prohibited 15

16 2018 Forrester Research, Inc. Reproduction Prohibited 16

17 We want to make it Convenient Simple Easy for customers to buy products Forrester Research, Inc. Reproduction Prohibited 17

18 2018 Strategy We need to be customer obsessed which requires us to be data-led Forrester Research, Inc. Reproduction Prohibited 18

19 Data-driven: We use data to support strategic decisions we ve already made. Maturity Data-aware Data-driven Data-averse Use of data in strategic decision making 19 19

20 Data-led: We avoid preconceived notions, and use data to drive strategic decisions. Data-led Maturity Data-aware Data-driven Data-averse Use of data in strategic decision making 20 20

21 Common thread among the most admired companies: Data-led decision making Data-led Maturity Data-aware Data-driven Data-averse Use of data in strategic decision making 21 21

22 The New Retail Imperatives for 2018 What matters in retail today and why, and what are the disconnects that you must avoid to maximize the value of your offering and optimize your business? 22

23 Omnichannel Commerce Engagement Fulfillment Product/Price Customer s path to purchase is a connected journey Customer can buy anywhere and fulfill orders anywhere View of the Customer. Company has enabled identification of the customer across all touchpoints Customer sees consistent content and price/promotions 23

24 Omnichannel Commerce Engagement Fulfillment Product/Price Customer s path to purchase is a connected journey Customer can buy anywhere and fulfill orders anywhere Customer sees consistent content and price/promotions View of the Customer. Company has enabled identification of the customer across all touchpoints 24

25 The more you understand each customer, the more effective engagements will be. 25

26 What does it mean to have a true 360 degree view of the customer? 26

27 In 2018, The Omnichannel Consumer = Identity Accounts/IDs Tech ownership/use Demographics Interactions Transactions Marketing responses Testing responses Feedback Ratings/opinions Language Social media Applications Files Public records Profile Behaviors Sentiment Content Affinity Memberships/ networks Affiliations Attitudes Preferences Disposition Context Time/location Environment Situation Journey/activity 27

28 Starbucks doesn t have a payments app, they have a customer data capturing machine 28

29 Omnichannel Commerce Engagement Fulfillment Product/Price Customer s path to purchase is a connected journey Customer can buy anywhere and fulfill orders anywhere View of the Customer. Company has enabled identification of the customer across all touchpoints Customer sees consistent content and price/promotions 29

30 Omnichannel Engagement: Provides the most opportunities to add value to the journey Engagement Often limited by disconnected systems Leading retailers target contextual relevant experiences Fulfillment 30

31 Neiman Marcus utilizes omnichannel engagement to personalize experiences 31

32 Omnichannel Commerce Engagement Fulfillment Product/Price Customer s path to purchase is a connected journey Customer can buy anywhere and fulfill orders anywhere View of the Customer. Company has enabled identification of the customer across all touchpoints Customer sees consistent content and price/promotions 32

33 14% of US shoppers use in-store pickup all or most of the time when it is available Another 26% use it sometimes 33

34 Omnichannel Commerce Engagement Fulfillment Product/Price Customer s path to purchase is a connected journey Customer can buy anywhere and fulfill orders anywhere View of the Customer. Company has enabled identification of the customer across all touchpoints Customer sees consistent content and price/promotions 34

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36 Nearly 90% of digital leaders recognize that personalization matters a lot! 89% 77% We are prioritizing and investing in personalizing our customer s experiences. - Retailers I ve chosen, recommended, or paid more for a brand that provides a personalized service or experience. - Consumers 2018 Forrester Research, Inc. Reproduction Prohibited 36

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38 True learns from every returned item how to & Co. personalize the customer experience 2018 Forrester Research, Inc. Reproduction Prohibited 38

39 Advanced Data Capabilities/Analytics Organizations already have analytics tools, but will continue to invest because they are looking for: Real-time analytics and insights Business tools with embedded analytics Predictive and prescriptive insights 39

40 Firms use a fraction of their data, and most of it is low quality 40

41 Fabletics designs customer journeys for the purpose of collecting data

42 Who is doing this well? 42

43 Sephora reaches personalization mastery through connected experiences.

44 What also makes the list for the top investments to meet the expectations of tomorrow s customers? 44

45 Experience Centers

46 Self-checkout 46

47 Chatbots & Social Commerce 47

48 Conversational commerce 48

49 Artificial intelligence

50 81% of leaders who are not ready to invest in AI either feel there is no defined business case, or they are unclear what AI can be used for in their business. 50

51 Culture Organization Technology Metrics 2018 Forrester Research, Inc. Reproduction Prohibited 51

52 53% culture limits our ability to deliver on our digital strategy Forrester Research, Inc. Reproduction Prohibited 52

53 83% organizational silos limit our ability to execute our digital strategy Forrester Research, Inc. Reproduction Prohibited 53

54 60% we do not have the right skillsets to deliver on our digital strategy Forrester Research, Inc. Reproduction Prohibited 54

55 53% we do not have the right metrics in place to measure the success of our digital strategy Forrester Research, Inc. Reproduction Prohibited 55

56 Culture Organization Technology Metrics 2018 Forrester Research, Inc. Reproduction Prohibited 56

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58 Steps to take towards success: 58

59 Steps to take towards success: Challenge your digital strategy - identify where you re confusing company-obsession & customer-obsession 59

60 Steps to take towards success: Challenge your digital strategy - identify where you re confusing company-obsession & customer-obsession Challenge your thinking about the customer move from an approach that is data-driven to data-led. 60

61 Steps to take towards success: Challenge your digital strategy - identify where you re confusing company-obsession & customer-obsession Challenge your thinking about the customer move from an approach that is data-driven to data-led. Build new digital touchpoints across the path to purchase to both use and collect customer data. 61

62 Steps to take towards success: Challenge your digital strategy - identify where you re confusing company-obsession & customer-obsession Challenge your thinking about the customer move from an approach that is data-driven to data-led. Build new digital touchpoints across the path to purchase to both use and collect customer data. Solve customer pain points before focusing on moments that surprise and delight. 62

63 2018 Forrester Research, Inc. Reproduction Prohibited 63

64 Steps to take towards success: Challenge your digital strategy - identify where you re confusing company-obsession & customer-obsession Challenge your thinking about the customer move from an approach that is data-driven to data-led. Build new digital touchpoints across the path to purchase to both use and collect customer data. Solve customer pain points before focusing on moments that surprise and delight. Invest in technologies that make sense for your unique customer journeys. 64

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66 Thank you Brendan Connect with me on LinkedIn! forrester.com