customer journey – Management Events

March 9, 2021

Understanding The Tech Challenges of Retail Giants

With more and more people embracing digital and smart shopping experiences, the retail market is scrambling to adopt new retail technology to remain viable and sustain growth in a rapidly changing landscape.

In this article, we’ll highlight some of the major challenges businesses are facing and the solutions they are looking for. For a more in-depth look at the trends of the retail industry, head over to our Retail Investment 2021 report.

Challenge 1: Evolving and Enhancing CX

Customer experience is expected to shift even more in 2021 and as consumers become more conscious of their spending, retailers will need to optimize every step of the customer journey to maintain loyalty, and spark growth.

Improving customer journey optimization will involve significant investments in retail technology trends, a key touchpoint of which will be the tech that improves process efficiency such as AI, automation, and customer touchpoints (as well as mapping them out).

A quick view at the core focuses among retail leaders shows that many organizations are prioritizing smart solutions and digital competency to handle customer needs and ensure quality CX.

What Are They Looking For

Improving the experience for customers by delivering fast and accurate responses through CX software which integrates marketing automation, customer service, CRM, CPQ, sales force automation (SFA) solutions, and customer data platform (CDP)

Challenge 2: Deciphering The Data

Achieving effective customer journey optimization will require targeted investments in retail technology and a high priority tech among retail leaders is data and analytics.

With the influx of data available due to rapid digital transformation, organizations are scrambling to adopt big data and real-time data analytics to better refine their business actions according to customers’ needs and profiles.

As the global big data market is forecasted to be worth $103 billion by 2027, data analytics is no longer just a buzzword, but an important retail technology investment needed for day-to-day efficiency in organizations and individuals.

Given the current talent gap, however, businesses will still look to third-party solutions in terms of building an infrastructure that allows them to utilize data analytics effectively.

What Are They Looking For

Platforms that implement easy-to-use analytics, data mining, and automated forecasting. Department-specific data such as marketing, sales, and customer analytics will also be a key factor for many businesses.

Challenge 3: Digitalizing Stores and Scaling e-Commerce

A shift towards improved digital storefront experiences is in line with customer market behavior as globally, 49% of the population is shopping online more now compared to pre-COVID times.

Nevertheless, customers still prefer shopping on-location, with a recent survey done by Shekel showing that 87% of customers prefer to shop in stores, but with touchless or seamless self-checkouts.

As such, improving the infrastructure for businesses’ e-commerce platforms and brick-and-mortar stores has become a race. Those who are able to achieve seamless online shopping experiences and frictionless smart payments will get the lion’s share of the market.

What Are They Looking For

The ability to transition from an analog business model to a digital, omnichannel model through cloud solutions or optimizing current digital channels such as mobile apps, IoT, and smart shopping.

Challenge 4: Improving Digital Security

Machine learning and cloud computing continue to be high priorities in tech adoption for retail leaders. Cybersecurity, however, has seen a significant rise due to demands for safer and more secure digital/smart shopping.

The confusion caused by the coronavirus and the massive shift towards digital/remote working has led to cyberattacks becoming frequent with large data breaches increased by 273% in the first quarter of 2020.

Retailers will face an uphill battle in the “new normal” of post-COVID to assimilate all the necessary digital security strategies, be it upgrading vulnerable software and hardware components or strengthening customer data protection, to ensure customer confidence and loyalty.

However, with the global market for cyber security software expected to grow to $230 billion in 2021, they can expect exponential growth in the practices and solutions for digital security.

What Are They Looking For

A simplified platform that allows them to reduce security risk through robust privileged access management (PAM) and optimal solutions for customer data storage and protection that comply with GDPR.

Overcoming The Challenges

At the start of 2021, it’s clear that retail giants are making big investments when it comes to innovative retail technologies. Certain technologies, such as digital transformations, continue to be a major priority for retailers.

The big changes, however, come from renewed interest in improving customer journeys through data analytics and scaling up digital channels via e-commerce or smart shopping experiences.

For any organization, it’s essential to identify which areas of retail technology they are trailing behind, then network with the right solution provider, invest in skilled talents and have the necessary tools to maintain growth in a soon-to-be revitalized industry.

March 2, 2021

How to Fully Utilize Data for Improved Customer Experience

Every great business recognizes the importance of customer experience (CX) – a critical strategy in engaging and retaining customers to your brand.

With the e-commerce landscape booming amidst impacts from COVID-19, it’s apparent that CX has transcended through both digital and physical sales channels, and is a key competitive differentiator for brands.

But with the extensive research and analyses on achieving great customer experience, why is CX still an ongoing concern for businesses?

THE CX CHALLENGE

However, as straightforward as it may sound, it’s becoming harder for companies to achieve the customer experience that consumers expect due to:

Customer touchpoints are especially significant as these are the areas in the customer journey where the consumer interacts with your brand, and have a direct impact on their overall experience.

According to customer service provider, Help Scout, “a poor experience at one touchpoint can easily degrade the customer’s perception of multiple positive historical experiences at other touchpoints.” And Qiigo claims that it can take between 13 to 20 touchpoints, or touches, to convert a prospect into a customer.

Fortunately, as businesses become more digitized, it’s much easier to identify customer behavior patterns and to improve touchpoints in their journey.

However, the amount of raw data available combined with the challenge of analyzing and acting on customer insights are factors as to why organizations are still lacking in quality customer experience.

PREDICTIVE ANALYTICS IN CX

Unlike prior generations, the consumers of today have higher expectations and a clear idea of what they want and how they want companies to deliver it to them.

But 71% of consumers are still receiving “An offer that clearly shows they do not know who I am” while 41% are seeing “Mistakes made about basic information about me.”

Such errors are taken as signs that the brands are ‘intentionally’ not placing importance on their customers when actually, it shows that organizations are not using their customer data to the fullest potential.

Pre-Purchase, Purchase and Post-Purchase

By leveraging data and artificial intelligence (AI), companies can improve all stages of their CX journey.

One example given by Capgemini showed how Amazon used AI and predictive analytics, before the browsing prospects even made a purchase, to:

Qymatix Solutions also emphasized the cruciality of using predictive analytics in the pre-purchase and purchase stages through predictive lead scoring while utilizing churn and cross–selling predictions in the post-purchase phase.

Micro-Segmentation and Personalization

In the past, segmentation was sufficient to deliver an ‘adequately personalized customer experience’, but today, brands need to micro-segment their potential consumers for hyper-personalization.

Using machine learning, predictive modeling and data mining, predictive analytics help to:

In a use case by Wavicle Data Solutions, a restaurant chain’s consumers were segmented into multiple groups and clusters based on gathered data. Following that, “predictive analytics and machine learning created both macro and micro-segments of customers, with matching customized offers for each audience”.

At the end of their process, the restaurant chain was able to develop personalization and loyalty programs that engage customers with more customized offers and meaningful messages, increase customer retention, and grow revenue.

Resource Efficiency For Higher CX

Aside from giving consumers exactly what they need, predictive analytics also help in the efficient allocation of your resources.

For instance, a coffee shop saved 38% of their marketing costs by predicting which of their customers were more likely to churn and sending them targeted offers to convert them into loyal customers.

Other examples, given by MarTech Series, show how predictive analytics can reduce resource wastage and streamline costs by planning staffing levels in advance for smoother and more timely customer experience, and upgrade delivery timelines by conveying transport route adjustments for on-time deliveries.

These efficiency strategies not only lead to savings for the company, but also ultimately improve the interactions and experience of the consumers.

But predictive personalization cannot be made without quality data, and data strategy is where some organizations face roadblocks.

MAPPING ORGANIZATIONAL DATA JOURNEY

While businesses often map out their customer journey, companies should also map out their internal data journey, which can involve multiple functions and C-suites, to determine weak areas in the sharing of their CX data.

For instance, are there information silos between the business departments? Which function has decision authority over data?

In a CX team proposed by TechTarget, the Chief Customer Officer (CCO) is responsible for the customer experience metrics and research while the Chief Experience Officer (CXO) “creates customer journey maps that use data to predict future consumer actions”.

On the other hand, Dion Hinchcliffe, Vice President and Principal Analyst at Constellation Research and Brian Hopkins, Vice President and Principal Analyst at Forrester Research, both talked about data-sharing and partnerships between different C-suites.

Hinchcliffe mentioned that the Chief Information Officer (CIO) and Chief Marketing Officer (CMO) each have a vital part to play in delivering quality customer experience.

Meanwhile, Hopkins believes that the Chief Data Officer (CDO) and CIO can form a powerful partnership to drive data strategy, where IT supports the CDO to maximize the impact of customer data.

To quote Hopkins, “The bottom line is that control over data is neither a pure tech decision nor a pure data decision.”

With more specialized C-level roles and functions emerging, organizations need to tear down data silos and establish active communication between all business functions for a joint effort towards better customer experience.

July 1, 2020

Dr Gero Decker: The Path To Customer Experience Excellence

With today’s increased focus on customer experience (CX), it’s hard to believe that customers were once seen as an afterthought to products.

But business process management (BPM) software vendor, Signavio, has long understood the importance of client satisfaction, building services around their ‘passion’ statement: Create products that people love to use.

Deep diving into the customer-centricity of Signavio, Co-Founder and CEO Dr Gero Decker shares with Management Events on the characteristics of a client-oriented organization and the aspects of customer experience excellence.

A SNIPPET OF SIGNAVIO

Offering solutions such as BPM tech, RPA and ERP since 2009, Signavio has been constantly recognized for their exceptional services.

Some notable awards and rankings include 2018 Inc. 5000 Europe, Deloitte Technology Fast 50 for 3 years, 2015 EY Founders Ranking, and the BPM2ThePeople Award for their BPM project with the daycare centre, Kita Am See Großbettlingen.

DEFINING CUSTOMER EXPERIENCE

“Concentrate on the areas that can have the greatest effect
on customer experience.”

There are many factors that contribute to customer satisfaction, from the company’s culture and staff capabilities to the processes and systems of the organization. For Signavio, what defines customer experience?

“All of these factors play a role in customer experience,” Dr Decker (picture left) relates. “Of course, some things are beyond the control of individual employees or companies. Just look at the unprecedented impacts of the COVID-19 pandemic.”

“That’s why it’s essential to concentrate on areas that can have the greatest effect on customer experience, often for a relatively low effort,” he discloses.

“Focus on your customer journey, including all the interactions, moments of truth and emotions. Then, concentrate on your processes that deliver against that journey.”

“Your capabilities and systems flow from this strong foundation, which then work together to reinforce a customer-centric approach, and help your company culture move from customer service to customer excellence.”

ESSENTIAL CUSTOMER-CENTRIC CHARACTERISTICS

“Build lasting relationships that are more than mere interactions.”

With customer satisfaction becoming an increasing differentiator among businesses, organizations are focusing on effective CX strategies to gain competitive advantage.

In fact, according to Gartner, two thirds of surveyed marketing leaders state that they are “currently competing partly or mainly on the basis of customer experience.” But what makes an organization truly customer-centric?

“It’s all about building lasting relationships, which are more than mere interactions: it’s about trust,” Dr Decker emphasizes. “The only way to ensure success is to reorient everything your business does around the customer.”

He further stresses how employees are an integral part of executing a successful customer journey and helping to improve customer experience.

“Does everyone in your organization know
what the company’s customer-oriented goals and objectives are?”

“Do they understand what they do and how they do it impacts the customer? Do they have access to all the information they need to serve the customer immediately?”

“And, crucially,” Dr Decker questions, “do they have the authority and ability to solve problems as they arise, without constant checks for permission?”

“If your answer to all these is ‘yes’, then you’re probably well on the way to becoming a customer-centric organization. If your answer is ‘no’, your customer experience efforts are likely too disconnected from your operational excellence efforts to be genuinely effective.”

CREATING A SEAMLESS CUSTOMER JOURNEY

“You need a ‘single source of truth’.”

Today, businesses are using multiple platforms to communicate and market to their target audience. But if the company doesn’t have a proper customer journey map in place, the omnichannel experience can be inconsistent and unsatisfactory.

Based on industry research, over 70% of customers see experience as a key part of their purchasing decision, but many of them state that companies deliver only an ‘ok’ experience.

Other research found that a high majority of customers expect consistent interactions across channels. So how can organizations provide a steady and seamless customer experience?

“Beyond the potent combination of process mining with CJM technology,” Dr Decker shares, “the most important capability to deliver a seamless customer experience is clear communication across your business.”

“This is not only with the customers themselves, but internally.”

“You need a ‘single source of truth’, a standard that is understood by all staff, and delivered consistently no matter where and how customers interact with your business.”

“At the same time,” he informs, “a common understanding of “how we do things” will allow for clearer communication within your business, and give customer-focused staff and projects a solid foundation.”

“Enabling widespread communication means leaders can pull insights from across their organizations, and make more informed decisions that will ultimately benefit the customers.”

CONNECTING CUSTOMER FOCUS & OPERATIONS

“Companies need to bring together the Customer Experience practice
with their Operational Excellence efforts.”

The interaction between people and businesses has roots all the way to the pre-industrial revolution, when relationship-building was simple and a loyal customer base was typical of every business.

While CX has a much broader meaning today, what is truly new about building client relations and customer experience excellence?

“Indeed, customer experience is not a new topic,” Dr Decker agrees, “But what is different now is that companies realize that they need to bring together the Customer Experience practice with their Operational Excellence efforts.”

“As Kasper Rorstedt, the CEO of adidas, said:
Customer Experience is not just about a sexy front-end
but equally as much about great processes.”

“By viewing customer-centric imperatives through the lens of operational excellence, the connection between customers, their touchpoints, and your underlying business processes is always visible and traceable.”

“In other words,” he explains, “to succeed in becoming truly customer-centric, we must connect our business processes directly to the drive to delight customers.”

“This means refreshing our way of thinking about interactions, and focusing on deep changes down to the process level.”

“Being able to manage and fill process gaps across an entire company lays the groundwork for leadership to clearly understand the necessary changes for improved customer relationships.”

TOWARDS INTELLIGENT CUSTOMER EXPERIENCE

“Digital plays a critical role in retrieving customer data.”

Since the explosion of big data and digital technologies, industries from retail to healthcare have been utilizing analytics and adopting intelligent innovations to improve their customer experience.

As Dr Decker proclaims, “We have much more data available to understand our customers. On a daily basis, we can see customer behavior changing, sentiments going up or down, and the effects of changes that we implement in our processes.”

But how does digital capabilities and smart technologies help in delivering great customer experience?

“Digital plays a critical role in retrieving relevant data,” Dr Decker elaborates.

“On top of that, intelligent technology allows us to implement more customer touchpoints than ever.”

“Twenty years ago, the webshop was a big novelty, allowing customers to get informed and place orders 24/7. Now, almost all touchpoints can be automated, for instance through apps, in-product messaging and conversational interfaces.”

“The big realization these days, however, is that technology not only provides for a great user interface to the customer but that it is at least as critical for providing smooth and fast operations in the background.”

The findings from an IDC research further confirms Dr Decker’s point, which found that a majority of CEOs are shifting their focus to more modern and digital strategies to deliver better experiences to their customers.

SIGNAVIO’S CX APPROACH

“Customer experience is not simply a project; it’s the way we do business.”

Every company has their own unique CX strategy, and the recent coronavirus outbreak has brought significant changes in customer behaviour, pushing businesses to re-emphasize their customer relations.

But for Signavio, customer experience has always been a top priority.

“We pride ourselves on offering a customer experience second to none, and high levels of satisfaction to our own customers,” Dr Decker expresses. “For us—as it should be for all organizations—customer experience is not simply a project; it is the way we do business.”

“We closely track customer engagement, success and relationship health so that we can proactively influence the relationships we have with our customers, and rally everyone on the team behind the important moments of truth for our customers.”

“For us, now more than ever is the time to maintain customer trust, and work to add customer value while communicating with empathy.”

To support businesses during these trying times, Signavio is offering a free 30-day trial of their all-in-one Business Transformation Suite that helps optimize business processes and drive intelligent transformation.

From real-time insights to quick operational change, the Business Transformation Suite offers customers continuous improvements and efficiency to their daily business tasks.