tag:econsultancy.com,2008:/topics/customer-experience Latest Customer Experience content from Econsultancy 2017-10-23T12:00:00+01:00 tag:econsultancy.com,2008:Report/4622 2017-10-23T12:00:00+01:00 2017-10-23T12:00:00+01:00 B2B Digital Transformation <p>The<strong> </strong><strong>B2B Digital Transformation: Leading brands share their insights </strong>report aims to explore the challenges B2B companies are facing as they drive forward digital transformation in their own organisations and highlights a number of different approaches these companies are taking.</p> <h2>Methodology</h2> <p>We carried out a series of in-depth interviews with senior executives from B2B companies and agencies to understand how companies in this sector are responding to different opportunities and challenges.</p> <p>Companies interviewed include: Arkadin Cloud Communications, Work with Agility, Atos, British Gas, Fuji Xeorx, IBM, Ogilvy APAC, OppenheimerFunds, Oracle Marketing Cloud, Salesforce, Slater and Gordon Lawyers and Velocity Partners.</p> <p>We also looked at sector-specific data from our <a title="Digital Intelligence Briefing: 2017 Digital Trends in B2B" href="https://www.econsultancy.com/reports/digital-intelligence-briefing-2017-digital-trends-in-b2b">2017 Digital Trends in B2B report</a>.</p> <h2>What you'll learn </h2> <p>Digital transformation is not only redefining how businesses connect with customers, it's redefining business models, the way they deliver value and how they make money. With more and more services being mediated through technology, and an increasing share of revenue being made online, there is little doubt that B2B organisations need to embrace digital transformation and give it strategic importance.</p> <p>You will learn:</p> <ul> <li>How the focus on digital is changing within B2B companies. </li> <li>Making the customer experience matter is a major focus for B2B companies. </li> <li>Driving insights is a priority, with the future of marketing considered to be around data.</li> <li>Driving a cultural change that supports digital transformation is essential.</li> </ul> <h2>You'll discover: </h2> <ul> <li>How digital priorities are rising higher on the agenda as companies encourage a move towards thinking digital first and creating journey-based experiences. </li> <li>How companies are focusing on putting the customer at the heart of everything and identifying how to enhance the experience and develop a deeper understanding of the customer decision journey. </li> <li>The ways in which B2B companies are moving towards a more data-driven approach, focusing on insights to support the buyer journey.</li> <li>The ways in which companies are driving a cultural change that supports digital transformation and a continuous change type of culture.</li> <li>How companies are adopting new ways of working and working towards digital first. </li> <li>A greater push for alignment and collaboration between marketing and sales.</li> <li>Key ingredients to drive success highlighted by those interviewed.</li> </ul> <p>Download a copy of the report to learn more.</p> <p>A <strong>free sample</strong> is available for those who want more detail about the report and its content.</p> <h2>How we can help you</h2> <h2 style="font-weight: normal; color: #3c3c3c;"><a style="color: #2976b2; text-decoration: none;" href="https://econsultancy.com/training/digital-transformation" target="_self"><img style="font-style: italic; height: auto; float: right;" src="https://assets.econsultancy.com/images/resized/0004/8296/rgb_dt_logo-blog-third.png" alt="Digital Transformation" width="200" height="66"></a></h2> <p><a title="Digital transformation - Econsultancy" href="https://econsultancy.com/training/digital-transformation/">Digital transformation</a> is a journey that's different for every organisation. To enable delivery of your digital vision (or help you shape that vision) we’ve designed a comprehensive approach to tackle your transformation.</p> <p>Covering everything from strategic operational issues to specific marketing functions, we will work with you to achieve digital excellence.</p> <p>Talk to us about an initial, no-cost consultation.</p> <p>Contact our Digital Transformation Team on <a href="mailto:transformation@econsultancy.com">transformation@econsultancy.com</a> or call</p> <ul> <li>EMEA: +44 (0)20 7269 1450</li> <li>APAC: +65 6653 1911</li> <li>Americas: +1 212 971-0630</li> </ul> <p><iframe src="https://www.youtube.com/embed/2q_lWLm5qtg?wmode=transparent" width="560" height="315"></iframe></p> tag:econsultancy.com,2008:BlogPost/69515 2017-10-20T10:21:10+01:00 2017-10-20T10:21:10+01:00 The changing consumer landscape: How brands can keep up with sky high customer expectations Nikki Gilliland <p>Ray was just one of the speakers at this year’s <a href="http://events.sap.com/sap-hybris-global-summit/en/home">SAP Hybris Live event</a> in Barcelona, as well as one of many people to mention the ‘L’ word. The subject of loyalty came up a lot, along with the many other ways digital technology is transforming the consumer landscape.</p> <p>Here’s a little more on the topic, along with the rest of the biggest talking points and trends from the conference.</p> <h3>It’s all about the experience</h3> <p>Before we get onto loyalty, it’s important to think about what defines the modern consumer, and what it is they want. Carsten Thoma, the President of SAP Hybris, put this into context by comparing today’s fashion consumer with that of around 20 years ago.</p> <p>He mentioned how consumers used to have to wait months for catwalk trends to trickle down into stores. Now, people are now blogging and tweeting directly from the runway, turning real-time moments into digital content. At the same time, brands are turning catwalk <a href="https://econsultancy.com/blog/68305-runway-to-retail-how-fashion-brands-are-introducing-see-now-buy-now/">shows into products</a> as soon as possible, bypassing the traditional structure of the fashion retail calendar.</p> <p><em><img src="https://assets.econsultancy.com/images/0008/9786/Runway_to_Retail.JPG" alt="" width="780" height="338"></em></p> <p><em>(Burberry's <a href="http://www.confashionsfromkuwait.com/2010/09/retail-theatre-from-runway-to-reality.html">retail theatre</a> concept)</em></p> <p>This is great from a consumer perspective, allowing shoppers to get their hands on clothes as soon as possible. But while the ‘I want it all, I want it now’ millennial stereotype sounds somewhat brattish, it fails to highlight the perhaps more pertinent millennial desire – that of experiences over material possessions or products. </p> <p>Interestingly, there has been a reported 50% decline in young people getting their drivers licence in the US over the past few years. Why is this the case? Well, alongside the aforementioned lack of desire for 'things' (especially products as status symbols), the rise of the sharing economy has taken away the need. </p> <p>Companies like Uber (controversies aside) have demonstrated how delivering a seamless experience can entirely disrupt traditional industries. In other words, millennials simply do not care about buying a car if there is an even more convenient way they can get from A to B.</p> <blockquote> <p>If you get hit by the amount of information and technology that is available to us today, you have got to make space somewhere else. This is what millennials are doing. And guess what? This change in behaviour is the most fundamental change in how you can sell to them. </p> </blockquote> <h3>Winning in an attention economy</h3> <p>But have companies like Uber and Amazon created an impossibly high set of expectations? For brands trying to compete, this is undoubtedly true. Today’s consumers are now so used to a certain type of brand that, like Ray Wang said, if they don’t get the service they expect they will go elsewhere. </p> <p>So, how can brands generate loyalty in a “post-sale, on-demand, attention economy”? One answer is mass-personalisation. By understanding the context of the consumer – e.g. factors like their identity, location, and sentiment – brands can reach out in a more relevant way. Second is the ability to give choices, which is increasingly important in a digital world. </p> <p>“Every choice is a demand signal”, according to Ray, which means it’s not about predicting what the customer might do in that moment, but anticipating what they will also want in the future (before they even recognise it themselves). </p> <blockquote> <p>If you're not delivering mass-personalisation, you're irrelevant, you're noise, you're junk mail. Brands have less than a second to capture consumers' attention with something contextually relevant.</p> </blockquote> <p>Alongside personalisation, the general consensus at SAP Hybris Summit was that both attention and loyalty do not just come from one-off experiences, but a relationship that’s built over time based on ‘magical moments’ along the customer journey. </p> <p>For example, it’s not good enough to deliver as quickly as Amazon. To win, brands need to match its service at every touchpoint, including checkout, brand communication, logistics, and post-sale recommendations. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">When your Razer mouse breaks and <a href="https://twitter.com/amazon?ref_src=twsrc%5Etfw">@amazon</a> comes in clutch with same-day delivery! <a href="https://t.co/F4cW2Ddhel">pic.twitter.com/F4cW2Ddhel</a></p> — Zach Church (@MediocreJack) <a href="https://twitter.com/MediocreJack/status/920778686881726465?ref_src=twsrc%5Etfw">October 18, 2017</a> </blockquote> <h3>The world as a computer </h3> <p>Another of the most interesting talks at this year’s event was delivered by futurist and researcher Sophie Hackford. She spoke about how digital technology will shape the consumer landscape of tomorrow.</p> <p>Sophie believes that “we’re no longer connected, but moving into an age of entanglement” – which essentially means that we will have to navigate the world as a computer, and it is up to us (as both brands and consumers) to decide what we what to do with it.</p> <p>Data is undoubtedly the biggest opportunity; however, it seems that new information isn’t only coming from the world around us, but also from space. So-called ‘astro-preneurs’ are creating satellites and sensors to generate a high resolution of earth, which they can then sell on as data to companies of all kinds, ranging from human rights groups to retailers and tech companies.</p> <blockquote> <p>Why? These companies want visibility of all human and all physical phenomena going on on this planet.</p> </blockquote> <p>But how is this relevant in the context of brands and consumers?</p> <p>Let’s take the recent example of the Amazon and Whole Foods deal, and how the former brand might establish how much the acquisition should be worth. One way would be to use a company like Orbital Insight, which generates data from satellites. It sounds somewhat crude, but by watching how many cars are going in and out of Whole Foods car parks, a prediction can be made about the brand’s sales forecast – as well as its competitors.</p> <p><img src="https://assets.econsultancy.com/images/0008/9787/Car_Parks_space.JPG" alt="" width="650" height="504"></p> <p>While this is just a hypothetical example, some companies have already started to unlock the potential of satellite data. Take Uber, for instance, which works with DigitalGlobe to help identify and improve pick-up and drop-off locations via satellite imagery. In future, the autonomous vehicle will undoubtedly use this type of technology to navigate cities. Meanwhile, roofing companies can now give you estimates and energy companies can tell you how much solar potential you have, without ever needing to visit your home.</p> <p>Altogether, this highlights the extent to which brands will be able to access consumer insight in future. Privacy concerns aside, it undoubtedly means that those aforementioned consumer expectations will also continue to skyrocket. </p> <p><strong><em>Now read:</em></strong></p> <ul> <li><em><a href="https://www.econsultancy.com/blog/69504-three-promising-signs-that-companies-are-finally-starting-to-appreciate-cx" target="_blank">Three promising signs that companies are finally starting to appreciate CX</a></em></li> <li><em><a href="https://www.econsultancy.com/blog/69269-17-stats-that-show-why-cx-is-so-important" target="_blank">17 stats that show why CX is so important</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/69499 2017-10-18T10:00:00+01:00 2017-10-18T10:00:00+01:00 Four lessons retailers can learn from Ted Baker’s international growth Nikki Gilliland <p>So, what’s behind Ted Baker’s recent success? Here’s a few reasons why I think it’s succeeding in today’s increasingly competitive fashion retail market, and what we can learn from its example.</p> <h3>Distinct brand DNA</h3> <p>Ted Baker sets itself apart from other fashion retailers with a distinct brand identity. This is characterised by ‘Ted’ himself, who is a personification of the brand’s quirky and decidedly British image. </p> <p>The brand’s founder, Ray Kelvin, has previously been described as the ‘closest man to Ted’. He says that it is “an individual and quirky viewpoint on fashion which keeps the customer coming back for more”, and it is the brand’s distinctly British sense of humour that is a big part of this.</p> <p>Ted Baker now has 36 standalone shops, 237 concessions and 14 outlets in countries across the word, capitalising on its British heritage to appeal to international consumers. Alongside this, it also focuses on a dedication to quality (in terms of both its product and customer service) and a real attention to detail. </p> <p>The latter is particularly evident in its retail stores, with each one being entirely unique in design. Its stores also serve as an opportunity for the retailer to reflect its whimsical personality. Examples of this include its Bluewater store including its own fictional village called ‘Tedbury’, as well as its London-themed Tokyo outlet, which is complete with a booth made to look like a black cab.</p> <p>Altogether, it has managed to create a brand identity that is both fun and highly recognisable to consumers across the globe.</p> <p><img src="https://assets.econsultancy.com/images/0008/9611/TB_Tokyo.JPG" alt="" width="580" height="326"></p> <h3>Experiential and innovative retail</h3> <p>Ted Baker was one of the first fashion brands to launch an experiential retail concept. Its line of Grooming Rooms, which first opened in 2010, offers customers the opportunity to enjoy a traditional Turkish barber experience (which ‘Ted’ apparently discovered during his travels).</p> <p>It offers haircuts and shaves and even brow threading – drawing in customers who are fans of Ted Baker’s dapper and perfectly groomed image. Some Grooming Rooms are standalone, yet others are placed inside larger Ted stores to entice shoppers to linger.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Hold fast with the new Hair Mud from <a href="https://twitter.com/Teds_Grooming?ref_src=twsrc%5Etfw">@Teds_Grooming</a>, formulated to give matte definition without the weight: <a href="https://t.co/fHFJXN9b8f">https://t.co/fHFJXN9b8f</a> <a href="https://t.co/kNKvYCerAt">pic.twitter.com/kNKvYCerAt</a></p> — Ted Baker (@ted_baker) <a href="https://twitter.com/ted_baker/status/915275385079771136?ref_src=twsrc%5Etfw">October 3, 2017</a> </blockquote> <p>On the back of this demand for the brand, Ted Baker has also expanded its product offering, stretching to bath and body products, spectacles, and even a range of bicycles in collaboration with bike retailer Quella.</p> <p>This has meant that Ted Baker is transforming into much more of a lifestyle brand than just a straight-forward fashion brand – which is a clear advantage over competitors like Paul Smith and French Connection. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">We're all wheels: shop Ted bikes with <a href="https://twitter.com/QuellaBicycle?ref_src=twsrc%5Etfw">@QuellaBicycle</a>. <a href="https://t.co/cxgpJLwohw">pic.twitter.com/cxgpJLwohw</a></p> — Ted Baker (@ted_baker) <a href="https://twitter.com/ted_baker/status/914759479782146048?ref_src=twsrc%5Etfw">October 2, 2017</a> </blockquote> <p>Elsewhere, Ted Baker uses digital technology to dazzle in-store customers. For its Spring 2017 campaign, it installed an interactive window displays in its flagship Regent Street store.</p> <p>The display, which involved passers by placing their hands on the window and peering through, was effective for piquing consumer interest. It also gave them the chance to enter a prize draw if they got involved, which was a great way to forge long-term connections.</p> <h3>Strong logistics</h3> <p>While the aforementioned activity is bound to delight customers, Ted Baker’s recent success can also be put down to heavy investment in infrastructure. It has recently opened a brand new distribution centre based in Derby, which acts as the main base for all of Ted Baker’s retail, wholesale and ecommerce operations across Europe. It also allows Ted Baker to fulfil the increasingly demanding expectations of consumers, such as next-day delivery and <a href="https://econsultancy.com/blog/68739-how-has-click-collect-evolved-and-is-it-still-in-high-demand/">click and collect</a>. </p> <p>This approach has also led to steady but strong international expansion, with the brand leading with concessions in markets like Vietnam and South Africa to build desire for its product – and building further standalone stores in China and the US.</p> <p>With a 43.8% rise in ecommerce sales, its investment has clearly paid off.</p> <p><img src="https://assets.econsultancy.com/images/0008/9639/TB_China.JPG" alt="" width="630" height="351"></p> <h3>Non-traditional marketing</h3> <p>Ted Baker has famously avoided traditional advertising, mainly focusing on digital and social channels. <a href="https://econsultancy.com/blog/69094-five-examples-of-brands-using-interactive-video" target="_blank">Video</a> has been a huge area of focus, with the brand clearly paying attention to the prediction that 79% of all internet traffic will come from video by 2020.</p> <p>In 2016, it released a <a href="https://econsultancy.com/blog/66625-shoppable-video-the-missing-piece-of-your-marketing-strategy/" target="_blank">shoppable video</a> directed by Guy Ritchie – essentially a mini-film that allowed viewers to click and save items featured. For its <a href="https://econsultancy.com/blog/68900-ted-baker-uses-360-video-and-instagram-stories-for-new-ss17-campaign" target="_blank">follow-up campaign</a>, ‘Keeping Up with the Bakers’, the brand launched a 360-degree shoppable film, allowing users to become further immersed in the world of Ted. </p> <p>This demonstrates how eager the brand is to innovate, with each campaign introducing new elements to surprise and delight consumers. According to research, 360-degree video increases engagement (and therefore sales) as people are said to feel greater affinity with things that they can control. Combining this with shoppable content means that consumers are even more likely to take action. </p> <p><iframe src="https://www.youtube.com/embed/ZSSfIlQnZb8?wmode=transparent" width="656" height="367"></iframe></p> <p>Meanwhile, Ted Baker uses social to further increase engagement around its campaigns, particularly focusing on Instagram for its large reach.</p> <p>It released its ‘Keeping Up with the Bakers’ sitcom on Instagram Stories, building anticipation in the run up to each episode, and giving viewers incentives to view each episode with daily challenges.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">UFO sightings have been confirmed on Tailor’s Lane. Head to Instagram Stories to find out the classified information <a href="https://t.co/auSCp3J3s1">https://t.co/auSCp3J3s1</a> <a href="https://t.co/px7PpjCmQl">pic.twitter.com/px7PpjCmQl</a></p> — Ted Baker (@ted_baker) <a href="https://twitter.com/ted_baker/status/841725624293117952?ref_src=twsrc%5Etfw">March 14, 2017</a> </blockquote> <h3>Key takeaways</h3> <p>So, what can we learn from Ted Baker’s approach to retail? Here are few key points to remember.</p> <p><strong>1. Define your DNA.</strong> Ted Baker has created a memorable brand image based on its quirky and British sense of humour. This allows the brand to differentiate itself from the competition, and engage consumers on a deeper level.</p> <p><strong>2. Constantly innovate.</strong> With a strong brand (and product) as its backbone, Ted Baker is unafraid to improve and innovate in other areas such as in-store technology. Again, this makes it stand out in a competitive retail market, as well as delivering a memorable customer experience.</p> <p><strong>3. Focus on logistics</strong>. While engaging customers is important, Ted Baker ensures it is able to deliver top quality service with heavy focus and investment on logistics. Factors like fast delivery and easy returns, as well as large and new amount of products helps to satisfy customer demand.</p> <p><strong>4. Refresh your content</strong>. Lastly, Ted Baker shows how an innovative and creative approach to marketing can pay off. With a focus on video – experimenting with 360 and shoppable content – it constantly surprises and delights consumers, helping to increase long-term loyalty to the brand.</p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><em><a href="https://econsultancy.com/blog/69037-four-digital-commerce-lessons-from-fashion-retailer-bonobos" target="_blank">Four digital commerce lessons from fashion retailer Bonobos</a></em></li> <li><em><a href="https://www.econsultancy.com/blog/69334-lessons-in-brand-building-from-deliciously-ella" target="_blank">Lessons in brand building from Deliciously Ella</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/69504 2017-10-18T01:00:00+01:00 2017-10-18T01:00:00+01:00 Three promising signs that companies are finally starting to appreciate CX Jeff Rajeck <p>Things do seem to be going in the right direction, though. Econsultancy's <a href="https://econsultancy.com/reports/quarterly-digital-intelligence-briefing-the-cx-challenge">many</a> <a href="https://econsultancy.com/reports/customer-experience-maturity-in-australia-and-new-zealand">CX </a><a href="https://econsultancy.com/reports/customer-experience-maturity-in-india">surveys</a> indicate that organisations are starting to 'get CX' and, as a result, are increasingly customer-focused.</p> <p>To see where we're at right now, Econsultancy recently invited dozens of marketers to Digital Cream Sydney for roundtable discussions about the state of CX within their organisations. Throughout the day, table leader Luke Williams, associate director of digital experience at ACU, heard some surprisingly positive views on the state of CX – with a few caveats, of course.  </p> <p>Before we get into them, though, we'd just like to let you know about a related course we are offering on November 30th in Singapore: Mastering Customer Experience (CX) Management in the Digital Age.  For more information and to reserve your spot, <a href="https://econsultancy.com/training/courses/mastering-customer-experience-cx-management-in-the-digital-age/dates/3243/">please visit this link</a>.</p> <p>So here are three of the highlights from the CX discussions and some parting words of advice.</p> <h3>1. Marketers are investing significant time in CX work</h3> <p>The first sign that things are looking up for customer experience improvement is that most organisations represented at the discussion had done some user experience (UX) or customer experience (CX) work. </p> <p>Attendees were all aware of the key activities required to improve CX: <a href="https://www.econsultancy.com/blog/69322-what-are-customer-personas-and-why-are-they-so-important">Creating personas</a>, <a href="https://econsultancy.com/reports/understanding-the-customer-journey">mapping the customer journeys</a>, and integrating touchpoints. This is a significant change from a few years ago where CX terms were not very well known at all.</p> <p>While this is a step in the right direction, marketers reported that <strong>CX activities tended to be siloed. </strong>That is, different departments were improving customer experience in their own way and so CX is not yet improving in a 'joined-up' way across the organisation.</p> <p><img src="https://assets.econsultancy.com/images/0008/9661/1.jpg" alt="" width="800" height="533"></p> <h3>2) CX initiatives are now being taken seriously</h3> <p>Participants reported that CX is now a common discussion topic within organisations and there is broad recognition of the value of CX initiatives. Companies are also looking to CX as a means to differentiate themselves from competition, something which our surveys have pointed out a number of times.</p> <p> <img src="https://assets.econsultancy.com/images/0008/9662/CX_chart.png" alt="" width="800" height="428"></p> <p>On the down side, attendees identified a few obstacles that still impede the progress of CX within companies.</p> <p>First off, <strong>organisations still do not assign clear ownership of CX to a particular department</strong>. Because of this, few felt that CX was genuinely part of their company's overall strategy.</p> <p>And finally, because CX is not strategic, <strong>marketers found it difficult to drive CX initiatives across multiple channels</strong>. CX efforts remained, for the most part, siloed.</p> <p><img src="https://assets.econsultancy.com/images/0008/9663/3.jpg" alt="" width="800" height="533"></p> <h3>3) Organisations are measuring CX success</h3> <p>Possibly one of the most telling signs that CX is moving on from being just a 'good idea' is that <strong>companies are starting to adopt a consistent approach to measuring customer sentiment. </strong></p> <p>Most participants are using Net Promoter Score (NPS) and while they admitted that the metric may be overly simplistic, <strong>all attendees agreed that NPS is an important tool for aligning the organisation around improving CX.</strong></p> <p>Attendees also pointed out that organisations were facing some obstacles in this area, though.</p> <p>Virtually everyone admitted that they were struggling to realise the vision put forward by the vendors that better CX data would lead to better CX. The issue is that once the platforms are deployed, integration was lacking and so the full benefits were not being realised.</p> <p>Also, because CX efforts are still not considered strategic (see point 2.), CX initiatives were not getting the budget they needed to spend on the technology to measure and report successes properly.</p> <p>It was also noted that the required <strong>data analytics skills were also lacking</strong>, also largely down to budget constraints.</p> <p><img src="https://assets.econsultancy.com/images/0008/9664/2.jpg" alt="" width="800" height="533"></p> <h3>The way forward</h3> <p>So overall, there was plenty of good news and a fair share of bad news, but the discussions ended on notes of advice and encouragement about what needed to happen next.</p> <ul> <li><strong>Focus on the 'moments that matter'</strong></li> <ul> <li>CX experts advised attendees to identify key moments in the customer journey which really matter to your customer and then realign your efforts around improving them.</li> </ul> <li><strong>Scale down CX initiatives</strong></li> <ul> <li>Reducing CX initiatives to just trying to improve a few 'moments that matter' helps marketers align around CX as it will be much easier to visualize improvements.</li> </ul> <li><strong>Report wins to stakeholders</strong></li> <ul> <li>Having a simplified CX strategy will also make it easier for stakeholders to understand and recognize CX success.</li> </ul> </ul> <h3>A word of thanks</h3> <p>Econsultancy would like to thank all of the marketers who participated on the day and especially our Customer Experience Management table moderator, <strong>Luke Williams, associate director of digital experience at ACU.</strong></p> <p>We hope to see you all at future Sydney Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/9665/4.jpg" alt="" width="800" height="533"></p> tag:econsultancy.com,2008:BlogPost/69496 2017-10-17T14:30:00+01:00 2017-10-17T14:30:00+01:00 Four examples of automotive brands that are innovating the customer experience Patricio Robles <p>Here are four examples of how automakers are innovating the customer experience to meet changing consumer expectations.</p> <h3>Ford becomes a mobility solutions provider with FordPass</h3> <p>Need to get from Point A to Point B? A car can help you get there, but as American automaker Ford looks to the future, it is slowly starting to transform itself into a mobility solutions provider.</p> <p>This transformation is exemplified through its "one-stop mobility app" dubbed <a href="https://www.fordpass.com">FordPass</a>. </p> <p>Launched in 2016, FordPass helps users with numerous mobility tasks. It can help users find and pay for parking and locate gas stations based on their preferences. It allows Ford owners to access vehicle information, including their service history, and configure alerts and service reminders.</p> <p>Owners of Ford vehicles with SYNC Connect technology can use the FordPass app to remotely access information about their car, such as fuel level, and unlock the car and start it. It's even possible to schedule the vehicle to start ahead of time.</p> <p>To encourage use, Ford has even added gamification to FordPass. Users can unlock badges if they make Ford a part of their journeys and earn the ability to enter sweepstakes through a feature called FordPass Perks. </p> <p><img src="https://assets.econsultancy.com/images/0008/9591/Perks_HalfDash.png" alt="" width="236" height="260"></p> <p><a href="https://media.ford.com/content/fordmedia/fna/us/en/news/2016/01/11/making-of-fordpass.html">According to</a> Ford, the "reimagined customer experience" FordPass represents took 18 months to bring to fruition and, while the offering is still evolving, it is a good example of how automakers are increasingly having to look beyond manufacturing and selling cars to stay relevant with consumers today.</p> <h3>Hyundai is trying to create "the Amazon experience" for car buyers</h3> <p>After studying used car dealers and online retailers including Amazon, Korean automaker Hyundai <a href="https://www.bloomberg.com/news/articles/2017-10-10/hyundai-mounts-charm-offensive-at-dealerships-to-stem-u-s-slump">this week announced</a> a new program called Shopper Assurance that will add pricing transparency and allow buyers to handle most of the purchase process – such as calculating the value of a trade-in and completing a loan application – online before they come in to a dealership.</p> <p>For added convenience, Hyundai is giving potential buyers the ability to schedule test drives at their home or work and to give buyers peace of mind, it is offering a three-day buyback period in which a customer can return the car he or she bought for a full refund provided that it has been driven less than 300 miles. In other words, returning a new Hyundai won't be all that different from returning a pair of jeans that didn't fit.</p> <p>According to Hyundai Motor America's CMO Dean Evans, the goal is to bring "the Amazon experience" to car buying. "I don’t have to tell you we’re undergoing a paradigm shift when it comes to how people are buying cars," he stated at a press conference.</p> <p>While automakers like Hyundai will obviously have to manufacture car models consumers want to buy, there's no doubt that the purchase is now an important part of the overall customer experience – one that can't be overlooked.</p> <h3>Porsche Passport could make dreams come true</h3> <p>Did you dream of owning a garage full of exotic sports cars as a kid? Most of the people who have will never realize that dream, but Porsche might soon offer affluent consumers a consolation prize.</p> <p><a href="https://www.bloomberg.com/news/articles/2017-10-10/drivers-to-summon-porsches-with-new-2-000-a-month-subscriptions">As detailed by</a> Bloomberg, the storied automaker is piloting an app-based subscription service called Porsche Passport that allows subscribers to drive a Porsche model of their choice on demand. For $2,000/month, subscribers can drive a 718 Boxster, Cayman S, Macan S or Cayenne. For $3,000/month, they can select from 22 Porsche models.</p> <p>Subscribers can hop in and out of models at their convenience, making it possible to, say, hop into a new Porsche every week. The subscription fee covers registration, insurance and maintenance costs; subscribers are responsible for gas.</p> <p>Porsche Passport is similar in nature to a subscription service Cadillac launched earlier this year. Dubbed <a href="http://media.cadillac.com/media/us/en/cadillac/news.detail.html/content/Pages/news/us/en/2017/jan/0105-cadillac-book.html">BOOK by Cadillac</a>, that service gives subscribers on-demand access to a fleet of Cadillacs for $1,500 per month.</p> <p>According to Klaus Zellmer, Porsche's North American president, Porsche Passport is targeting younger consumers who have the cash to drive a Porsche but might not be willing to buy one outright. "We now have millennials who are incredibly successful and have the financial power to own a Porsche, but might not be willing to own a Porsche today," he told Bloomberg.</p> <p>Zellmer said he expects the program to help sales, "especially in the mid and long term", and if that comes to pass, expect to see other automakers launch similar offerings, proving that there are fewer and fewer products for which a subscription model can't be applied. </p> <h3>Tesla is revolutionizing the way cars are serviced</h3> <p>It's hard to talk about customer experience innovation in the auto industry without mentioning Tesla. The electric vehicle upstart has built an enviable following that many established automakers would die for and it has done that by innovating the customer experience in numerous ways.</p> <p>While one could look at the purchase process – Tesla has convinced hundreds of thousands of consumers to pre-order its new Model 3 – Tesla's customer experience innovation is perhaps most notable when it comes to what happens <em>after</em> customers have their cars. </p> <p>Tesla models are truly connected cars and the company boasts that "90% of issues can be identified from a customer's garage." When service is needed, Tesla has built a service network that is capable of sending mobile technicians to customers. For issues that require a customer to bring a car into a Tesla service center, customers will soon be able to schedule an appointment directly through their car's console.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">The future of Tesla service <a href="https://t.co/lWx0rDr4Ix">pic.twitter.com/lWx0rDr4Ix</a></p> — Tesla (@Tesla) <a href="https://twitter.com/Tesla/status/884759299028697089?ref_src=twsrc%5Etfw">July 11, 2017</a> </blockquote> <p>What's more, Tesla has pioneered over-the-air (OTA) software updates that can literally "upgrade" cars in an instant. Some of the upgrades are relatively simple and relate software accessed via the car's console, but OTA updates have been used to deliver a new Auto High Beam feature and <a href="http://fortune.com/2017/03/29/tesla-software-autopilot/">Tesla's Autopilot 2.0 functionality</a>.</p> <p>Because Tesla can add significant capabilities to existing cars without any physical modification, essentially giving Tesla owners a continuously improving car, one analyst <a href="https://electrek.co/2017/07/19/tesla-software-updates-vs-auto-industry/">has suggested</a> that other automakers are "highly vulnerable to obsolescence" if they don't catch up and embrace OTA updates themselves.</p> <p><strong><em>For more on this topic, read:</em></strong></p> <ul> <li><a href="https://econsultancy.com/blog/67700-what-can-automotive-brands-learn-from-the-tesla-website/"><em>What can automotive brands learn from the Tesla website?</em></a></li> <li><a href="https://econsultancy.com/blog/69321-with-peugeot-now-selling-cars-online-how-is-retail-influencing-automotive"><em>With Peugeot now selling cars online, how is retail influencing automotive?</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/69483 2017-10-06T18:07:00+01:00 2017-10-06T18:07:00+01:00 The National Trust: Using neuroscience to optimise visitor journeys & marketing messages David Moth <p>At the Festival of Marketing last week <a href="https://www.linkedin.com/in/christinafinlay/?ppe=1">Christina Finlay</a> from the Trust and <a href="https://www.linkedin.com/in/cristina-de-balanzo-ph-d-1693694/?ppe=1">Dr Cristina De Balanzo</a> from Walnut gave an insight into two different projects, codenamed Potter and Rawnsley, that combined elements of user surveys and more complex methods of gathering feedback.</p> <p>Here’s an overview of what they discussed – as it was a detailed talk, I’ll lean heavily on my slightly dodgy photos of the presenters’ slides. Apologies for the laptop and water bottle that crop up in the bottom corner.</p> <h3>Some background</h3> <p>For those unfamiliar with the National Trust, it was established in 1895 to protect and preserve Britain’s countryside and historic buildings. Its mission hasn’t changed much since then.</p> <p>This handy slide gives an overview of some key stats:</p> <p><em>(Click to enlarge)</em></p> <p><a href="https://assets.econsultancy.com/images/0008/9451/national_trust_in_numbers.jpg"><img src="https://assets.econsultancy.com/images/0008/9452/national_trust_in_numbers_little.jpeg" alt="" width="700" height="420"></a></p> <p>According to Christina Finlay, as a cause-driven organisation the Trust's marketing messages need to take people on a journey to convince them to support its cause. This requires messaging that has an emotional appeal, which is why neuroscience techniques are effective.</p> <p>Dr Balanzo explained that it’s hard for people to articulate emotions, so user research needs to go beyond simple questions and answers. Neuroscience can provide that additional human insight.</p> <p>So how does the National Trust combine traditional research techniques with neuroscience? Let’s look at the first project…</p> <h3>Project Potter</h3> <p>This project aimed to give the National Trust a better understanding of visitor journeys at its various locations around Britain. By understanding the frame of mind people were in at each stage of their visit (e.g. upon arrival vs. touring a property), the Trust could then develop a messaging strategy that appealed to their emotions.</p> <p>To begin with, Walnut ran a user survey to discover the explicit and implicit associations that people had with the National Trust brand.</p> <p>Explicit associations are those attributes that users selected in the survey, while the implicit associations were deduced based on the speed of the participants’ answers. </p> <p>This slide shows the results, with the grey bars showing the percentage of people who chose that attribute overall, while the orange bars also factor in the speed of selection.</p> <address>(Click to enlarge)</address> <p><a href="https://assets.econsultancy.com/images/0008/9455/national_trust_survey_results.jpg"><img src="https://assets.econsultancy.com/images/0008/9456/national_trust_survey_results_little.jpeg" alt="" width="700" height="364"></a></p> <p>The next step was to look at actual journeys at National Trust properties. Respondents were asked how they felt at each stage of their visit in order to work out their frame of mind and emotional state.</p> <p>Perhaps unsurprisingly, the results showed that upon arrival people want functional messages. As Christina Finlay succinctly put it: “They want car parks, toilets and maps.”</p> <p>Armed with this insight, the National Trust knew it would be wasted effort to have recruiters at its welcome centres, as people weren’t yet ready to consider signing up for membership. Equally, messaging around conservation would probably go unheeded at this stage.</p> <p>But as people moved onto the next phase of their visit, exploring the property during the learning and discovery phase, they were more open to messaging around conservation and the Trust’s values.</p> <p>Finally, as people are ending their visit and exiting the property they become more relaxed, contemplative and fulfilled. This means the Trust can use more emotional messaging that reinforces a connection with the brand.</p> <p>These insights have allowed the Trust to refresh its high-level strategic thinking around messaging and visitor flow.</p> <p>Christina Finlay said that previously the National Trust hadn’t spent enough time thinking about the arrival and exit part of visits. “When people exit a property it’s normally by a little lane that just leads down to the car park. We need to think more about how we can improve that part of the experience.”</p> <h4>Three parts of the customer experience</h4> <p>Finlay explained that the visit experience was broken into three sections: </p> <ul> <li> <strong>Hygiene factors:</strong> basic factors such as customer service, loos, car parks, maps, etc.</li> <li> <strong>Expectations:</strong> what do people expect to encounter during their visit? What will be new, what will be different? Finlay said that guests tend to have high expectations.</li> <li> <strong>Delight:</strong> how can the National Trust exceed expectations and delight its visitors?</li> </ul> <p>In the past the visitor journey framework had been preoccupied with getting hygiene factors in place, but now the focus is moving on to the Expectation and Delight elements.  </p> <h4>Eye tracking</h4> <p>To gain further insight into the visitor journey, Walnut used eye tracking to explore how people engaged and interacted with the messaging at National Trust properties. It helped reinforce the idea that context is important when thinking about where to place key messaging.</p> <p>The same message around buying membership achieved extremely different results depending on where it appeared, largely due to people expectations but also the size and the amount of clutter that appeared alongside the message. </p> <p>For example, A-board signage visible as people approached a property achieved reach of 90% and a dwell time of 16.8 seconds, while the same message positioned by the welcome desk achieved reach of around 60% and dwell time of two seconds or less.</p> <p><em>(Click to enlarge)</em></p> <p><a href="https://assets.econsultancy.com/images/0008/9457/national_trust_messaging_context.jpg"><em><img src="https://assets.econsultancy.com/images/0008/9458/national_trust_messaging_context_little.jpeg" alt="" width="700" height="307"></em></a></p> <p>To improve the efficacy of its messaging, the Trust began using a reduced number of larger images at its welcome centres to increase the clarity and impact.</p> <h3>Rawnsley: Positioning the National Trust membership</h3> <p>To understand the impact of imagery and messaging in positioning the National Trust membership, the team undertook research using: </p> <ul> <li> <a href="https://en.wikipedia.org/wiki/Electroencephalography">EEG (brain monitoring)</a> to understand relevance.</li> <li> <a href="https://imotions.com/blog/gsr/">GSR (physical response testing)</a> to understand activation.</li> <li>Eye tracking to evaluate whether the messaging grabbed people’s attention.</li> </ul> <p>Dr Balanzo shared some very useful insight into what makes a memorable creative execution. In essence, simplicity is key, but to add some further detail:</p> <ul> <li>Our brains like simple communications as this aids processing fluency (i.e. the ease with which information is processed).</li> <li>The easier something is to process the more impact it can have on people’s judgements and the more likeable it is.</li> <li>Executional elements like contrast, redundancy or symmetry can increase this processing fluency.</li> </ul> <p>Tied into this is a requirement to make the messaging consistent with imagery. Dr Balanzo explained that imagery generates certain associations and emotions, so any copy that sits alongside it has to be congruent with the image otherwise it will be jarring and reduce the impact.</p> <p>Thankfully Dr Balanzo also showed an example – as you can hopefully see in this image, the copy which referenced sandy shores and rolling hills achieved much higher emotional relevance compared to copy about ‘places of discovery’.</p> <p><em>(Click to enlarge)</em></p> <p><a href="https://assets.econsultancy.com/images/0008/9459/national_trust_messaging.jpg"><img src="https://assets.econsultancy.com/images/0008/9460/national_trust_messaging_little.jpeg" alt="" width="750" height="423"></a></p> <h4>Principles of design</h4> <p>Finally, Dr Balanzo shared her design principles as well as a nice quip about how to create an emotional connection.</p> <p>Noting that children and animals drive positive emotional engagement in people, Dr Balanzo said that marketers should all be on the lookout for “a baby that barks”.</p> <p><em>(Click to enlarge)</em></p> <p><a href="https://assets.econsultancy.com/images/0008/9461/design_principles.jpg"><img src="https://assets.econsultancy.com/images/0008/9462/design_principles_little.jpeg" alt="" width="700" height="435"></a></p> <p>Overall Christina Finlay and Dr Balanzo gave a really fascinating overview of the importance of creating an emotional connection with customers and showed how neuroscience techniques can be combined with traditional research to achieve tangible insights into customer behaviour.</p> <p><strong><em>For more on the National Trust, see:</em></strong></p> <ul> <li><a href="https://www.econsultancy.com/blog/69325-the-national-trust-on-its-digital-roadmap-and-moving-from-waterfall-to-agile"><em>The National Trust on its digital roadmap (and moving from Waterfall to Agile)</em></a></li> <li><a href="https://econsultancy.com/blog/68235-a-closer-look-at-the-national-trust-s-content-strategy"><em>A closer look at the National Trust's content strategy</em></a></li> <li><a href="https://econsultancy.com/blog/67231-eight-reasons-the-new-national-trust-website-is-funkier-than-yours/"><em>Eight reasons the new National Trust website is funkier than yours</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/69472 2017-10-04T14:38:00+01:00 2017-10-04T14:38:00+01:00 How Brompton Bicycles is overcoming purchase friction using content and social Ben Davis <p>As such, the way that <a href="https://emea01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.brompton.com%2F&amp;data=02%7C01%7Cben.davis%40econsultancy.com%7C1ecf3748a62a4ad6194d08d511836603%7Cfdd3bf0d1bfa49198a45f1a311d56753%7C0%7C0%7C636434178409574410&amp;sdata=%2BL4sg%2BhDYbU%2BDE0VKhSRZXI0UkwNMm3SqyxZj%2FJc22Y%3D&amp;reserved=0">Bromptons</a> are marketed is pretty inconsistent across the world. Brompton's Head of Customer experience Harry Mann speaking at <a href="https://goo.gl/dsqgYw">FoM17</a> tells us that in Japan the Brompton is known as a bike for the besuited businessman who wants the best and most expensive bike and will never ride it on the weekend, whereas in Korea, the Brompton is marketed to a younger audience with brighter colours and festival events for owners.</p> <p>Even in the UK, the Brompton means different things to different people. Mann discussed how Brompton have been associated with such disparate types as those that live on canal boats and Hugh Bonneville’s character in the BBC’s sitcom W1A.</p> <h3>A difficult purchase journey </h3> <p>Historically, some of the marketing done by retailers has been a little bit cheesy or uninspiring, with the incredible demand for Bromptons (outstripping supply) leading to little investment from the brand.</p> <p>However, this purchase journey can seem like it creates quite a lot of friction for consumers. In Mann’s own words, “the experience of buying a Brompton is challenging.”</p> <p>Buyers have to do their research, then head to one of 1,600 stores that stock Bromptons to try one out, then go back online to configure it, then head back to store to place their order, and go back a final time to collect their finished bike.</p> <p><img src="https://assets.econsultancy.com/images/0008/9385/Screen_Shot_2017-10-04_at_14.31.43.png" alt="brompton builder" width="615" height="325"></p> <p><em>Brompton bike builder</em></p> <p>Brompton and Mann realise that the idea of a bike shop is changing – rather than a room crammed full of frames, a store has to work better in tandem (no pun intended) with an online store front.</p> <p>As part of this effort, Brompton set out to define what their product is, who it is for, and what consumers want in the purchase journey. A sobering bit of trivia to frame the problem, the content most searched for on Brompton’s website was an article titled ‘How to buy a Brompton’.</p> <p>The strength of the Brompton is partly that it is one design with 17 million combinations according to Mann. But this mass customisation also presents a challenge to the consumer – which one to have?</p> <h3>Content design </h3> <p>Brompton customers and prospective buyers clearly wanted to get more from the brand. Before looking at some of the new content the brand created, it’s worthwhile looking at how Brompton defined its brand.</p> <p>A new motto - ‘Made for cities. Made for you. Made in London’ – described how the bike is:</p> <ul> <li>not part of the ‘folding bike niche’ but is now about commuting</li> <li>ultimately about improving how we live in cities by how we move around</li> <li>a product that people become attached to, not dissimilar to things like smartphone</li> <li>produced in the UK</li> </ul> <p>This new definition of the brand was used alongside customer insight to create new content for each stage of the customer journey.</p> <p>Content such as interviews with Brompton owners in different cities around the world was designed to target browsers. Where these owners live can impact how they use their bike, with customer in Amsterdam, for example, often purchasing a Brompton because of bike overcrowding and a lack of parking.</p> <p><iframe src="https://www.youtube.com/embed/SxP8LigkZAo?wmode=transparent" width="560" height="315"></iframe></p> <p>For those ready to build their bike specification online, Brompton created content showing the level of research and tech that goes into each bike. This content was designed to emphasise quality (justifying price) and to explain what each feature does.</p> <p>Content for owners was designed, such as how to look after your bike and even how to get involved with a race event.</p> <p>In-session personalisation is used on site, focusing first on a few key personas aligned to key parts of the purchase journey. For example, the absolute novice would be recognised by certain variables and perhaps served content about events where they can try riding one for the first time. </p> <p>Known owners would be served content more relevant to them, such as some information on the IoT augmentation that Brompton is enabling.</p> <p>Crucially, in order to enable personalisation in the build stage, Brompton designed a series of lifestyle questions which asked how often people ride, where and when, to try to eliminate some extraneous customisation options.</p> <p><img src="https://assets.econsultancy.com/images/0008/9380/brompton_choose.jpg" alt="how to choose a brompton" width="615" height="303"></p> <p>As 80% of their bikes are exported to 48 countries around the world, Brompton worked with Sitecore to develop international versions of their content.</p> <h3>Social as a shortcut</h3> <p>Mann described “social as a shortcut”. As Brompton doesn’t have the budget to send video teams all around the world to shoot on location, it uses user-generated content (UGC) to tell the brand story.</p> <p>This UGC is about showing off not just where in the world a Brompton can be used, but how it can be used. Mann said they wanted to “echo brands such as GoPro, and show where Brompton can take you”.</p> <p>An example of this UGC is shown below, with hashtags such as #madeforstoring and #myunseencity providing a canvas for bike owners.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">The Brompton has it's own shelf. <a href="https://twitter.com/hashtag/MyBrompton?src=hash&amp;ref_src=twsrc%5Etfw">#MyBrompton</a> <a href="https://twitter.com/hashtag/MadeForStoring?src=hash&amp;ref_src=twsrc%5Etfw">#MadeForStoring</a> <a href="https://t.co/WQ2RbuLZwI">pic.twitter.com/WQ2RbuLZwI</a></p> — Love of Cycling (@LoveofCycling) <a href="https://twitter.com/LoveofCycling/status/831951909384695809?ref_src=twsrc%5Etfw">15 February 2017</a> </blockquote> <p>Mann did though say that Brompton is also happy to “shamelessly rely on celebrities, too,” showing a picture of Owen Wilson happily riding his Brompton.</p> <h3>Direct-to-consumer? </h3> <p>The next step in having a better relationship with customers seems to be transactional, with Mann saying that deposits for the forthcoming electric Brompton are being taken on the brand website.</p> <p>Though Mann gave no further details about going direct to consumer, he did reveal some interesting insights into how online data can shape offline strategy. One such example was the planning of store locations in France based upon online store search data from their website.</p> <p>More innovative ways in which Brompton is interacting with consumers includes upgrades and updates - sending new kit to customers to improve their existing product – as well as finding new audiences with lifestyle campaign video targeted at serious cyclists.</p> <p><iframe src="https://www.youtube.com/embed/z3ZncvrdBI0?wmode=transparent" width="560" height="315"></iframe></p> <p>All in all, Brompton is a brand with incredible customer love thanks to a brilliant product, but the effort to remove friction from the customer journey can only add to the positive sentiment seen online.</p> tag:econsultancy.com,2008:BlogPost/69458 2017-10-02T15:30:00+01:00 2017-10-02T15:30:00+01:00 How Disney World has mastered customer experience Nikki Gilliland <p>Delivering a <a href="https://www.econsultancy.com/blog/69269-17-stats-that-show-why-cx-is-so-important" target="_blank">great customer experience</a> might seem like an easy task for the ‘happiest place on earth’, but Disney uses much more to delight visitors than Mickey Mouse pancakes.</p> <p>Let's take a look at how we might learn from Disney’s approach to customer experience.</p> <h3>Making the mundane magical</h3> <p>Disney’s brand promise, i.e. what makes it most desirable as well as how it differentiates itself from others, has been the same since Walt Disney opened the first theme park in 1955. Essentially, it is to make magical experiences come alive, and to create happiness via these experiences.</p> <p>Now anyone who has visited a theme park before knows that ‘magic’ (or perhaps enjoyment or entertainment when it comes to non-Disney parks) is often quashed by the mundane. This means basic tasks like buying a ticket, queuing for rides, and if you are an international visitor – getting to the resort in the first place.</p> <p>Disney aims to deliver its brand promise by making even mundane details magical, and focusing on the unexpected ways it might bring happiness to customers.</p> <p>There are tonnes of ways Disney does this, but one in particular is to turn around any misfortune. For example, since recognising that children often queue up for rides only to find out that they aren’t tall enough – it now hands out special passes to enable disappointed kids to skip to the front on their next ride.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">What do you think of today's <a href="https://twitter.com/hashtag/DThink?src=hash&amp;ref_src=twsrc%5Etfw">#DThink</a> tip? Learn more: <a href="https://t.co/ZOlST5KK2c">https://t.co/ZOlST5KK2c</a> <a href="https://t.co/62kXOJM4hY">pic.twitter.com/62kXOJM4hY</a></p> — Disney Institute (@DisneyInstitute) <a href="https://twitter.com/DisneyInstitute/status/908495587351449601?ref_src=twsrc%5Etfw">September 15, 2017</a> </blockquote> <p>The Disney brand promise is also a natural extension of its internal company culture, with Disney employees (or cast members as they’re known) embodying values such as openness, communication, and courtesy.</p> <p>One small but interesting example of this is how employees can become ‘language certified’, which means that they can then wear pins which indicate what languages they speak, in turn making it clear to guests that they can assist them if necessary.</p> <h3>Immersion is everything</h3> <p>Dedication to the little details means that Disney is about much more than just the rides – and in turn visitors want to entirely immerse themselves in its world. </p> <p>One way the company extends this immersion even further is through its hotels, which allow consumers to enjoy Disney from the moment they wake up to the moment they go to sleep. According to Skift, US hotels contributed $2.8bn in revenue in 2016, while occupancy rates reached 89%. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">The Disney Parks Moms Panelists share their top reasons why you should stay at a Walt Disney World Resort Hotel: <a href="https://t.co/bYbqmsHyqq">https://t.co/bYbqmsHyqq</a> <a href="https://t.co/xlNtk6H0P2">pic.twitter.com/xlNtk6H0P2</a></p> — Disney Parks (@DisneyParks) <a href="https://twitter.com/DisneyParks/status/902264787949674496?ref_src=twsrc%5Etfw">August 28, 2017</a> </blockquote> <p>This is also something that Disney is heavily investing in, even going so far as to make ‘immersion’ the USP of a brand new hotel. At the D23 event earlier this year, it was announced that Disney is to open a “100% immersive” <a href="https://econsultancy.com/blog/69374-star-wars-uses-ar-experiential-campaign-to-drive-people-in-store" target="_blank">Star Wars</a> hotel, which allows visitors to watch or participate in themed stories throughout their stay.</p> <p><iframe src="https://www.youtube.com/embed/dJxDQVnOyx4?wmode=transparent" width="624" height="315"></iframe></p> <p>While it’s been pointed out that many hotels also have immersive qualities, such as the Legoland Hotel and the Wizarding World of Harry Potter – Disney seems intent on raising the bar. A scale 3D model of the park shows the intended attention to detail, with guests even reportedly seeing a depiction of outer space outside their windows instead of the real world.</p> <p><img src="https://assets.econsultancy.com/images/0008/9250/Star_Wars_hotel.JPG" alt="" width="560" height="311"></p> <h3>Unexpected moments of personalisation</h3> <p>With thousands of people attending its parks every day, creating a personal connection with visitors is a huge part of Disney’s CX strategy. </p> <p>Technology plays a critical part in delivering <a href="https://econsultancy.com/blog/68285-six-things-to-consider-when-implementing-personalisation" target="_blank">personalisation</a>, specifically tools that help to both streamline and elevate the park and hotel experience. The MyMagic+ vacation planning system is one of the most notable examples, allowing visitors to plan and access information and perks such as advance ride booking and restaurant reservations.</p> <p>It also allows the brand to create a more seamless experience, with the MagicBand acting as a room key, park ticket, and even an optional payment method.</p> <p><img src="https://assets.econsultancy.com/images/0008/9251/Magic_Band.JPG" alt="" width="550" height="324"></p> <p>Meanwhile, MyMagic+ enables Disney to increase levels of personalisation – not only in the messages it sends via the mobile app, but also at particular touchpoints within the park and resort. For example, MyMagic+ members might see their name appear on a screen as they walk by (alongside the caption “it’s a small world”), or a photo taken on a ride might unexpectedly appear on the app (along with the option to buy).</p> <p>Unsurprisingly, the MyMagic+ system is continuously evolving, with reports suggesting that slimmer bands are in the works, as well as the possibility of the technology being transferred to smartphones at some point in the future.</p> <h3>Listening to customers</h3> <p>To complete the cycle, Disney uses ‘listening posts’ to assess the customer experience and identify which areas need to be improved upon.</p> <p>Unlike data which enables the brand to better target and engage consumers, listening posts allow Disney to understand the expectations, needs and wants of visitors. In turn, this can be used to address gaps in customer service or areas where the aforementioned ‘magic’ might be lacking. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">What do you think of today's <a href="https://twitter.com/hashtag/WaltQuote?src=hash&amp;ref_src=twsrc%5Etfw">#WaltQuote</a>? Get inspired with more <a href="https://twitter.com/hashtag/WaltWisdom?src=hash&amp;ref_src=twsrc%5Etfw">#WaltWisdom</a> here: <a href="https://t.co/p1yIu15L8c">https://t.co/p1yIu15L8c</a> <a href="https://t.co/bsn4Kug7qC">pic.twitter.com/bsn4Kug7qC</a></p> — Disney Institute (@DisneyInstitute) <a href="https://twitter.com/DisneyInstitute/status/908133202191155201?ref_src=twsrc%5Etfw">September 14, 2017</a> </blockquote> <p>Just like the previous example of children being given free queue passes, Disney continuously introduces features to improve the customer experience based on this feedback. For instance, it created subtle ‘Special Assistance’ passes for disabled guests, to take away the need for any potentially intrusive questions. Similarly, after discovering that visitors would often ask about the location of characters, it introduced the CHIP system (which stands for Character Hotline and Information Program) to let visitors find out where they are located at any given time,</p> <p>These are fairly small but significant details which visitors might not even think twice about. And yet without them, Disney and its customer experience might not be quite so magical.</p> <p><img src="https://assets.econsultancy.com/images/0008/9252/MM.JPG" alt="" width="650" height="412"></p> <p><em><strong>Now read:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67860-10-examples-of-great-disney-marketing-campaigns" target="_blank">1</a><a href="https://econsultancy.com/blog/67860-10-examples-of-great-disney-marketing-campaigns" target="_blank">0 examples of great Disney marketing campaigns</a></em></li> <li><em><a href="https://econsultancy.com/blog/68372-how-cath-kidston-used-a-disney-tie-up-to-increase-its-customer-database/" target="_blank">How Cath Kidston used a Disney tie-up to increase its customer database</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/69462 2017-09-29T15:40:00+01:00 2017-09-29T15:40:00+01:00 Ikea just purchased TaskRabbit: Here's why Patricio Robles <p>It has also embraced new technologies, <a href="https://econsultancy.com/blog/63574-augmented-reality-the-ikea-catalogue-and-beyond">like augmented reality</a> (AR). In fact, just this week <a href="https://www.wired.com/story/ikea-place-ar-kit-augmented-reality/">it launched a new AR app called Ikea Place</a>, which is built with <a href="https://www.econsultancy.com/blog/69388-ar-is-on-the-brink-of-a-breakout-thanks-to-new-platforms-from-google-apple">Apple’s new ARKit platform</a>.</p> <p>Now, Ikea <a href="http://www.ikea.com/us/en/about_ikea/newsitem/092817-IKEA-Group-signs-to-acquire-TaskRabbit">has acquired</a> a tech company: TaskRabbit, which operates an online marketplace for on-demand gig workers and bills itself as “the convenient and fast way to get things done around the house.”</p> <p>Previously, Ikea had formed a pilot partnership with TaskRabbit under which TaskRabbit's freelance workers, which number some 60,000, could be hired by Ikea customers who wanted help assembling their Ikea furniture.</p> <p>While Ikea boasts that most of its products “are designed to be assembled by the customer”, the reality is that many customers don't feel comfortable assembling furniture themselves or prefer to pay for the convenience of having somebody else assemble the furniture for them.</p> <p>By partnering with and now acquiring TaskRabbit, Ikea effectively gains access to a large number of independent furniture assemblers along with a technology platform that can help its customers more easily find nearby assemblers and schedule an appointment with them when it's most convenient.</p> <h3>A demonstration of the growing importance of customer experience</h3> <p>In explaining his company's acquisition of TaskRabbit, Ikea CEO Jesper Brodin stated:</p> <blockquote> <p>In a fast-changing retail environment, we continuously strive to develop new and improved products and services to make our customers' lives a little bit easier. Entering the on-demand, sharing economy enables us to support that. We will be able to learn from TaskRabbit's digital expertise, while also providing Ikea customers additional ways to access flexible and affordable service solutions to meet the needs of today's customer.</p> </blockquote> <p>Translation: Ikea's acquisition of TaskRabbit is all about customer experience.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Ikea acquires Taskrabbit, b/c customer experience is truly the key area of competition <a href="https://t.co/sZY4bvLIgO">https://t.co/sZY4bvLIgO</a></p> — Marshall Kirkpatrick (@marshallk) <a href="https://twitter.com/marshallk/status/913446657458454529?ref_src=twsrc%5Etfw">September 28, 2017</a> </blockquote> <p>Despite the fact that its furniture is comparatively easy to assemble and it's one of the most successful retailers in the world, furniture assembly is still a pain point for Ikea's customers. TaskRabbit can help it address that pain point.</p> <p>It could also help Ikea as it faces competition from Amazon. Amazon now offers its own furniture assembly help through Amazon Home Services, so there's a good chance Ikea management felt the need to make sure it's competitive on this front.</p> <p>For that reason, Ikea's acquisition is a good reminder for other retailers of the importance of customer experience today, and of the fact that customer experience continues beyond a customer completing a purchase and receiving their package or leaving the store with product in hand.</p> tag:econsultancy.com,2008:BlogPost/69446 2017-09-26T11:43:04+01:00 2017-09-26T11:43:04+01:00 How can brands combat a lack of consumer trust? Nikki Gilliland <p>In Shoppercentric’s survey, local or independent retailers scored a rating of 6.5 for prioritising consumers. However, this decreased to 5.9 or less for supermarkets, grocery brands, and clothing retailers.</p> <p>So, what is causing this lack of trust, and how can brands combat it? Let’s find out, as well as take a look at how a few brands effectively instil customer confidence.</p> <h3>1. Value</h3> <p>As last year’s <a href="https://econsultancy.com/blog/68587-black-friday-cyber-monday-2016-ecommerce-stats-bonanza" target="_blank">record-breaking Black Friday</a> shows, discounts and promotions still hold mass appeal for consumers. </p> <p>But while this strategy can be effective for increasing sales in the short-term, it can also lead to lower levels of long-term trust. This is largely because shoppers are increasingly wary of promotions that aren’t as good as they sound. </p> <p>Grocery retailers appear to be most guilty of this - 59% of people say it is the most annoying thing supermarkets do, even being annoying enough to prevent them from wanting to shop there again.</p> <p><img src="https://assets.econsultancy.com/images/0008/9135/Shoppercentric.JPG" alt="" width="550" height="680"></p> <p>However, it also seems that supermarkets are stuck between a rock and a hard place. With the likes of Lidl and Aldi gaining market share – and low pricing strategies appearing to be the driving force behind their success – how can the other big supermarkets compete?</p> <p>The key seems to be in providing value in ways other than rock-bottom prices. Waitrose – known for being one of the most expensive grocery retailers – does this through its personalised offers feature. Its ‘MyWaitrose’ loyalty program allows members to save up to 20% on the items they buy most often. Not only does this guarantee interest from customers (in comparison to randomly discounted items) but it also promotes the idea that Waitrose treats its customers as individuals – not just an opportunity for mass sales.</p> <p><img src="https://assets.econsultancy.com/images/0008/9139/Pick_Your_Own_Offers.JPG" alt="" width="740" height="439"></p> <p>Elsewhere, Asda aims to instil trust by promising value across the board. Instead of using heavy discounting or flash promotions, its ‘price guarantee’ means that if Asda is not 10% cheaper than Tesco, Sainsbury's, Morrison’s, or Waitrose on a comparable shop – it will give back the difference.</p> <p>As well as giving customers a tangible reason not to shop with the competition, this strategy also promotes the idea that the supermarket is to be trusted.</p> <p><img src="https://assets.econsultancy.com/images/0008/9142/Asda_Price_Guarantee.JPG" alt="" width="550"></p> <h3>2. Transparency</h3> <p>Another factor that leads to a lack of consumer trust is (rather obviously) dishonesty. More specifically, when brands display dishonesty during a period of bad publicity, or claiming to be ethical while undertaking unethical practices. In Shoppercentric’s survey, 50% of consumers cited this as reason to abandon a brand or retailer.</p> <p>There are obvious ways to remedy this, such as reacting to bad publicity or <a href="https://econsultancy.com/blog/69153-how-big-brands-coped-with-social-media-crises" target="_blank">social media crises</a> with a swift, honest, and measured response. However, with <a href="https://www.bizjournals.com/prnewswire/press_releases/2016/06/21/CG29004" target="_blank">94% of consumers</a> now saying that transparency can impact purchase decisions, brands are also starting to use this to draw in consumers in the first place.</p> <p><a href="https://econsultancy.com/blog/63032-10-brilliant-digital-marketing-campaigns-from-mcdonald-s" target="_blank">McDonalds</a> famously used transparency to drive its ‘Our food. Your questions’ campaign, where it responded to common concerns about its food and ingredients. By acknowledging that it is often thought of as an unhealthy choice, and responding to this with factual information, the brand was able to raise levels of trust and enhance customer confidence.</p> <p><img src="https://assets.econsultancy.com/images/0008/9162/Mcdonalds.JPG" alt="" width="780" height="483"></p> <p>Customer reviews can also be a great way to instil trust, especially considering <a href="https://econsultancy.com/blog/9366-ecommerce-consumer-reviews-why-you-need-them-and-how-to-use-them" target="_blank">61% of consumers</a> are said to read rating and reviews before making a purchase online. </p> <p>Transferwise, an online money transfer service, uses reviews to ramp up the company’s honest and reputable image. Interestingly, it also highlights reviews on its website which happen to include negative elements, such as restrictions and slowness of service. Instead of putting customers off, however, this is likely to win trust, as it lets people know exactly what they’re going to get. No false promises here.</p> <p><img src="https://assets.econsultancy.com/images/0008/9149/Transferwise_review.JPG" alt="" width="720" height="398"></p> <p>Of course, it helps that the Transferwise brand itself is based around transparency – its USP is that it is different to the banks that don’t disclose hidden charges – so it uses reassurance to inform the vast majority of its brand copy. </p> <p><img src="https://assets.econsultancy.com/images/0008/9151/Transferwise_trust.JPG" alt="" width="600" height="506"></p> <h3>3. Responsiveness</h3> <p>Respondents to Shoppercentric’s survey also cited poor customer service as another key consumer irritant, with low trust in retailers who promise good service but do not deliver it.</p> <p>Again, this perhaps boils down to honesty, as a lot of brands are guilty of promising something they cannot follow through on (with the only real solution being to ensure that they can).</p> <p>For brands that do aim to deliver but fail due to unforeseen circumstances or a lack of resources, being highly responsive on social media certainly helps. Social media ensures a certain level of accountability, with customers able to communicate with a brand in a very public forum. </p> <p><a href="https://econsultancy.com/blog/68380-danone-why-social-media-should-drive-digital-transformation/" target="_blank">Danone</a> brand, Cow &amp; Gate, is one example of a brand that does this. It typically responds to people within an hour on Facebook, replying to both negative and positive comments as well as acting as a source of help and advice for parents. Its high level of consistency is what helps to instil trust, with users knowing that they can reach out and get a response from the brand within a short period of time.</p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fcowandgateuk%2Fposts%2F1496732103704678%3A0&amp;width=500" width="500" height="608"></iframe></p> <p>It's even better when the response is personal or entertaining in some way. There’s been a few instances where brands have mirrored a customer's slang or wry sense of humour, but this example from Tesco stands out for the time and effort it clearly took to reply.</p> <p>After a customer left a tongue-in-cheek complaint about the lack of chocolate in its doughnuts, Tesco replied with a similarly humorous response, leading to the post being shared hundreds of times.</p> <p><img src="https://assets.econsultancy.com/images/0008/9159/Ryan.JPG" alt="" width="500" height="496"></p> <p>As well as winning favour with the person who made the complaint, it meant that Tesco’s level of customer service became highly visible to others, leading to a general increase in brand sentiment and trust.</p> <p><img src="https://assets.econsultancy.com/images/0008/9160/Tesco_reply.JPG" alt="" width="500" height="584"></p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/64107-how-trust-signals-can-double-your-conversions" target="_blank">How trust signals can double your conversions</a></em></li> <li><em><a href="https://www.econsultancy.com/blog/64870-44-reasons-why-people-don-t-trust-your-website" target="_blank">44 reasons why people don't trust your website</a></em></li> <li><em><a href="https://econsultancy.com/blog/67049-data-hoarding-consumer-trust-are-they-mutually-exclusive/" target="_blank">Data hoarding &amp; consumer trust: are they mutually exclusive?</a></em></li> </ul>