I love shopping. I love traveling. I hate going to the hospital. I sometimes like going to the bank (only if it involves the depositing a large check). On the surface, it may seem that there’s no common thread about each of these experiences, however, there actually is a lot in common!
Each of these industries (retail, transportation, healthcare, banking) is becoming more passionate about truly delivering good customer experience and building customer loyalty. Why? Research has established that satisfied customers spend more money “now” and, in the longer term, become more loyal. For example, according to a J.D. Power survey, a delighted traveler is likely to spend 45% more money at the airport than someone who is disappointed with their experience.
Okay, sold! Let’s start delivering “good” experience and start counting the money…right? Not exactly. Unfortunately, it’s not quite that simple.
First of all, what exactly is “good” experience? The answers will vary greatly depending on the industry vertical and brands within a vertical. Hence, one of the major challenges is actually defining “good” experience.
While there are certainly unique attributes to “good” experience in different industries, there is a common theme emerging: the synchronization of physical and digital experience. For example, research by Cisco’s Internet Business Solutions Group, revealed 93% of products sold in the United States are still bought in brick-and-mortar locations. In addition, over 50% of all consumers access (or would like to access) to digital content while shopping in a store, either through digital touch-screens or their own smartphones/tablets. This research reveals that more and more consumers are relying on real-time digital content to make purchasing decisions. In essence, consumers are becoming “informed buyers” during the shopping experience.
Unfortunately, with respect to customer experience, in many companies today the physical and digital worlds still sit across a great divide. Often, these two functions are housed in different organizations and are loosely coupled with respect to operations and culture. While we’ve made significant progress, digital experience is often an after-thought that peacefully co-exists with physical experience.
But, that’s not going to work any more. Consumers are expecting more, and they vote with their wallets. So, start truly synchronizing your digital and physical experiences…or else!
There are indeed a number of challenges in making smart stores, what do you think is most difficult in actually accomplishing this?