Retail CIOs have always had a tough job, but digital makes it tougher. Emerging digital technologies threaten to transform retail experiences both in stores and at home. Without a good business case, CIOs at large retailers will find it hard to prepare their business to compete with small, nimble startups. My latest report highlights the potential of today's digital technologies to radically disrupt the retail industry once more. It serves as a call to CIOs to begin shaping their strategy to digitize the end-to-end customer experience and start proving the business case in time to make the investments needed.
Specialty fashion retailer Rebecca Minkoff is creating a truly differentiated in-store customer experience by combining RFID tags with new technologies like digital mirrors in the changing room connected to employee mobile devices. At the NYC Rebecca Minkoff store, customers can select products from racks or a digital fashion wall and head to the dressing room, where they meet their personal fashion consultant. Once in the dressing room, a digital mirror displays all the products and sizes the customer has in the room. The customer can easily request a new size by selecting it on the mirror. The consultant delivers the new sizes to the dressing room without the customer having to redress or wander the store half-undressed. By extending what Rebecca Minkoff has already achieved, we get a glimpse of a future in-store experience that helps each customer quickly find more products that satisfy their desires.
According to our fellow consumers, we’re more productive. Ask any mother, and she’ll tell you we’re addicted. Listen to a doctor, and you’ll think we’re creating clinical problems. The consequences are up for debate, but the fact of the matter is clear: US online adults get things done by switching from one screen to another.
Today, the majority of the US population uses three or more connected devices; we don’t only live among screens – we live by them. We complete tasks by gliding from one screen to another without a second thought. In fact, over half of US online consumers often carry out a single activity across multiple devices, and one-fifth admits they always do this.
While consumers commonly start certain tasks on their smartphone and complete them on a desktop, they also move from desktops to portable devices. The devices consumers use and the frequency with which they move between screens vary by activity. A blend of Forrester’s Consumer Technographics® survey data and passive behavioral tracking shows that retail behaviors are most fragmented across devices, followed by media consumption activities:
I can’t tell you how excited I am about how the London event is shaping up.
On second thought, I can tell you. Read on!
This year’s theme is “Boost Your Customer Experience To The Next Level.” What’s that about? Well, we know from our research that companies are at wildly varying levels of customer experience maturity, ranging from not having gotten started yet to pulling even further ahead of competitors through CX differentiation. That’s why we’ve tailored this event to show attendees the one sure path to CX maturity and provide detailed guidance on how to advance along that path.
2013 is going to be a fascinating year for retail in Europe.
When I look at what’s to come this year, I can paint a picture of what Forrester predicts by looking at a tale of two brands. Both are iconic, heritage British brands that have responded to their increasingly digitally enabled consumers in two very different ways. Naturally, this has resulted in two very different levels of success.
...but I’ve spoken to a number of eBusiness executives in luxury retail companies over the last 12 months or so, and by and large they share a similar frustration. For the most part, their senior management remain resolutely defiant in the face of the opportunity that digital brings.
Which is arrogantly short-sighted, when you consider that luxury shoppers are:
Young. Shoppers who buy luxury products online in the US are almost ten years younger on average than regular online shoppers. Globally, online luxury shoppers are more likely to be tech-savvy thirty-somethings rather than brandy-swilling boardroom bumblers.
I had the pleasure of presenting an evolution of our Agile Commerce research last week at the Internet Retailing conference in London. It was an interesting event on a number of fronts, but my key take-away from the event was a very positive one.
eBusiness executives in Europe have definitely woken up to the Agile Commerce message.
We can’t claim all the credit at Forrester, but I definitely got the feeling from listening to my fellow panelists on the Customer track present their stories that they were in the same place as we are now, at least in terms of strategic intent, if not yet in execution:
Simon Smith, Head of Multichannel Experience at O2 Telefonica described how he is bringing a service design ethos to delivering both consumer and employee experiences. Telefonica aims to design service experiences that are Individual, Relevant, Thoughtful, Reassuring and Amazing (SUPER, anyone?), and what was the most interesting piece about their story was that these experiences are designed from an outside in, customer first perspective before any of the individual touchpoints are designed. By basing these experiences on common personas and a wealth of analytical data, Telefonica then overlay touchpoints as appropriate, enabling them to step out of the discussion about “should we or shouldn’t we develop this or that functionality on this or that platform?” and into the more relevant discussion about “what touchpoints and experiences most make sense for our customers?”
Yesterday I wrote a post inspired by insight from Kevin Peters of Office Depot. Today we’re going to hear from the man himself!
My co-author (Kerry Bodine) and I were so impressed by what Kevin’s been doing to reinvent customer experience at his company that we open our upcoming book with a case study about him. We’re also fortunate to have him to speak at our Customer Experience Forum 2012 East in New York just a week from today (June 26th).
Whether you’re going to get a chance to hear Kevin speak next week or not, I’m sure you’ll enjoy the insight he provides in his answers to some questions we sent him. My favorite nugget: Depot Time!
So without further ado . . . heeeeeere’s Kevin!
1. How would you describe the experience that you want Office Depot customers to have?
We care about providing solutions, not just selling products. At the end of the day, we need our customers more than they need us. That philosophy must guide everything that we do. Our customers must feel that their business is valuable to us. To that end:
They are greeted at the front door and feel welcomed and appreciated.
Their success is our success.
Their problems are our challenges to be solved.
They are recognized and remembered when they return.