You order a movie online and additional suggestions pop up, based on a deep knowledge of your likes and dislikes. You plan a vacation and similar suggestions appear, reflecting your financial state, the climate in which you live (and may hope to escape for a time), and past travel history. These convenient, personalized interactions are common today — and even expected.
Yet according to a Cisco survey of 7,200 retail banking consumers in 12 countries, customer expectations for financial services are not being met. Many of the most valued customers — and not just tech-savvy Gen Y ones — feel disconnected from their financial services institutions. They state that their banks do not know them personally, and are providing advice only on the bank’s terms — in the branch, during banking hours, when staff is available, — if at all. Read More »
Tags: CCS, Cisco, customer experience, digital, digital bank, Financial Services, Internet of Everything, IoE, omnichannel, Personalization, remote expert, retail banking, video
This week, I had the opportunity to focus on digital business as an attendee and presenter at Gartner’s ITxpo in Orlando, Fla. It was a sold out crowd with 8,500 attendees and approximately 2,700 CIOs. And one insight that seemed to resonate with the audience was Gartner’s belief that by 2018, digital business will require 50 percent fewer business process workers and 500 percent more key digital business jobs.
At the ITxpo discussing how the Internet of Everything enables the transition to Gartner’s All Things Digital
We already live in a world that is rapidly connecting people, process, data, and things in ways that were unimaginable just a few years ago. I believe that IoE is a key driver of this transition and a fundamental stepping stone to making “All Things Digital.”
Gartner defines All Things Digital as “blurring the physical and digital worlds to create new business designs.” Interestingly, Gartner focuses on people, business, and things, but omits process. Gartner’s view is that process will happen dynamically and be measured in not months or weeks, but nanoseconds. While this is a true statement, it reflects the end goal. The key question is, how does an enterprise become digitally enabled?
A first step in transitioning to All Things Digital, is embracing IoE by lighting up “dark assets.” A dark asset is something that is currently not connected to the Internet. A dark asset in itself however, does not create value. ln All Things Digital, connected devices begin to talk with other connected devices. These devices interact with one another dynamically, which in turn creates processes in just nanoseconds. In this environment, IoE allows you to understand what process to focus on and which assets to connect. In other words, IoE is the pathway to Gartner’s All Things Digital. The overarching goal is business outcomes. One retail example is connecting a parking lot to a retail store. In a recent trial, we found that data from parking lot sensors, when analyzed correctly, can predict when checkouts will get busy, so that more cashiers can be deployed. There are many other dark assets in a retail environment that have the potential to increase revenue, lower costs, and grow margins once they are lit up.
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Tags: All Things Digital, analytics, CCS, Cisco, data, Fast IT, Future of IT, Gartner, information, IoE, ITxpo, Joseph Bradley, people, process, retail, things
As I’m sure most of you know, Jon Stine presented this morning at NRF on the results of his fourth “Catch ‘Em and Keep ‘Em” survey, which is a highly respected study done each year to identify how shoppers are responding to retail technologies. As a followup to his NRF Big Ideas session, I’d like to reproduce here Jon’s blog on his findings and thoughts. Thank you, Jon!
Want Your Share of $100 Billion? Build Customer Trust
By Jon Stine
Trust. It’s a powerful human emotion that often drives our behavior. The level of trust, or lack thereof, between a retailer and its customers can literally make or break the business. Given the importance of trust, many retailers are asking: How much do customers trust retailers? What are the benefits of increasing trust? How do retailers gather the information needed to provide the personalized experiences many customers want, while maintaining and even building trusted relationships?
These questions are especially important given the critical juncture at which we find ourselves—the convergence of people, process, data, and things called the Internet of Everything (IoE).
To help retailers build customer trust in an increasingly digitally connected world, Cisco Consulting Services surveyed 1,174 consumers in its fourth annual Digital Shopping Behavior survey.* From a behavior perspective, shoppers are becoming more digital. In fact, eighty percent of respondents are what we call Digital Mass shoppers—people who research, browse, and purchase digitally. Within this group, Über Digitals, who almost always use a smartphone to shop, increased from 11 percent last year to 18 percent this year. Clearly, your customers are digital.
Before we discuss “how,” it is important to understand “why.” Our research showed $100 billion of IoE value was available for retailers in the United States to capture in 2013 by offering more personalized shopping experiences. If you missed your share, don’t worry. This number is expected to increase slightly in 2014. Realizing this value, however, isn’t easy.
When it comes to trust, retailers are starting from a low base. When asked, “How much would you trust these companies/institutions to protect your personal data and use it to provide something you value?” respondents ranked retailers second to last, at 31 percent—behind government agencies (37 percent), and ahead of Internet companies (18 percent).
Even so, shoppers want personalized experiences. When asked, “Which personalized experiences do you prefer?” respondents ranked promotions via touch-screen or smartphone first (Digital Mass: 46 percent; Über Digitals: 53 percent). This was followed by personalized products, personalized shopping lists, and personalized service.
So, how do we solve this dilemma between a lack of trust and the desire for personalized shopping experiences, which require the collection of personal information? For answers, let’s look at a few of the research findings.
- Shoppers want personalized offers that are easy to use – Most people want to receive personalized offers via email at home. This suggests that shoppers — even Über Digitals — start the shopping process while they are in their home environment. The vision of in-store offers may simply not be in sync with the reality of shopper decision making and in-store behavior.
- Shoppers are willing to share information – Both Digital Mass and Über Digital shoppers are willing to share past purchase history and basic personal information (name, age, etc.) with retailers to receive a more personalized shopping experience. Topping the list of acceptable information for retailers to use are time spent in the store, location in the store, and products you try but don’t buy.
Based on our experience working with many of the world’s leading retailers, there are three key takeaways and actions when it comes to building trust:
- Shopper trust must be earned. Retailers can do this by delivering a clear data policy and making the benefits of providing personal information transparent and easy to understand.
- IoE is already here. To capture your share of the $100 billion value at stake, develop a strategic plan that takes into account the information above.
- Über Digitals are too important to ignore. Selling to these shoppers requires an architecture and infrastructure that can support their increasing expectations for connected, digital shopping experiences.
To gain even more insights into developing trust in an IoE world, take a look at:
* This year’s Cisco Consulting Digital Shopping Behavior survey includes responses from 1,174 consumers who are representative of the United States broadband population by age, income, and region. It is the fourth in a series of popular “Catch ‘Em and Keep ‘Em” studies by Cisco Consulting Services.
Tags: CCS, Cisco Consulting Services, Cisco Retail, data, Digital Mass, Internet of Everything, IoE, Jon Stine, nrf14, Personalization, personalized experiences, personalized shopping, protection, retail, Rose Depoe, trust, Über Digitals