It’s no secret that today’s shopping journey passes through a range of digital and mobile channels. And AR/VR, AI and the Internet of Things are only going to add more shopping and research options along the path to purchase. This will create an even greater need for retailers to put data into action to create mobile-driven experiences along the journey.
Data, of course, is the operative word. Many retailers are still operating with siloed or disorganized customer data, making it impossible to operate with the insight needed to meet customer expectations. Continuing to operate this way leaves opportunities on the table, and in today’s competitive retail landscape, that isn’t a risk you can afford to take. Improving data hygiene and initiatives that resolve data latency and incongruence need to be top priorities for survival.
Now the good news: Resolving data issues opens up a world of opportunity, creating a virtuous cycle of insights that can identify new strategic initiatives that themselves can drive deeper insights. Brands that are doing this today are demonstrating how to boost the customer experience across each leg of the customer journey. Here are some ways the path to purchase is transforming before our eyes.
Pre-purchase: Nurturing, inspiring and enticing your customers
The path to purchase has gotten more complicated with digital. However, that complication has introduced more opportunities to build in positive experiences throughout the “discovery” segment of the journey.
Today, brands that are experimenting with advanced and predictive analytics to inspire or entice customers are reaping promising results.
For example, Facebook’s offline conversions API, introduced in 2017, provides insights into what influences online shoppers to shop in-store and vice versa by integrating first-party point-of-sale data with Facebook user data. Through better targeting, promotions and budget distribution, this has helped retailers log a 27 percent increase in in-store sales for customers.
Other brands are finding ways to remove obstacles in the path to purchase with AR/VR. For example, Ikea recently launched an AR app that allows customers to virtually place furniture in their own homes to see how it would look, creating a distinctive experience and removing a potential purchase barrier. In cosmetics, bareMinerals has combined a virtual experience with product personalization with an app that helps users find and create their exact foundation. Lowe’s has created two apps for measuring and furnishing your home.
Purchase decisions: Complementing the buying experience
By the time customers enter a store, most have done plenty of research, especially when it comes to big ticket purchase items. However, technology is opening up lots of new ways for retailers to encourage customers to engage with new products while they’re in the store.
One way is to use location-based technology to alleviate a leading shopper frustration: finding the product they searched for online in the store. Beacon deployment is on track to reach 400 million by 2020, per recent estimates by Unacast. As location tracking gets more precise, retailers will be able to deliver information about where the product is, and then help you track your path within the store, highlighting items of interest or sales along the way. Further, retail marketers can leverage this location-based information to tailor and more deeply engage their customers in their purchase decisions.
As in-store and digital shopping behaviors continue to converge, clothing retailers are using Smart Mirror devices. Shoppers can see the fit of clothes virtually, swap out colors and sizes with a tap, and then get recommendations for other items to complement their outfit.
Post-purchase: Creating experiences that inspire “irrational” loyalty
The post-purchase experience is often ruled by timing, and that’s where having customer data better connected will truly help. The shopping experience, unfortunately, is littered with instances where data isn’t be used to improve the post-sale experience—the annoying ads that follow you across the web for a product you already purchased; the promotions that go out to a customer who has just complained to your service line. But better linked data can alleviate these issues and enhance the experience.
Consider, for example, calls to your customer service line or posts to your customer service social accounts. A swift and positive resolution can increase brand appreciation and loyalty. So the ability for your service reps to understand a customers’ cross-channel experience with your brand is crucial.
Retailers are not alone in the struggle to retain the customer when an experience goes awry. Airline marketers experience similar challenges. Imagine you’re on a delayed flight–what if the marketer was able to connect with flight data, and be able to frame their next offer to you in a way that acknowledges your frustration? What a difference data can make.
Mobile customer experience is still a fierce battleground. The opportunities today are endless for retailers looking to enhance the shopping journey. Those who’ve done the work to get their data in check to inform new mobile investments will be best positioned to take advantage of them. Where will you place your bets in 2018?
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Tracie Kambies is a principal with Deloitte Consulting LLP and U.S. Retail Analytics & Information Management and IoT lead.
