Welcome back from the holidays and welcome to 2015! I trust you’ve all settled back into your work routines after enjoying some much-earned time off with friends and family. Temperatures across the U.S. continue to drop, but things in our world are heating up as we kick off the New Year. In fact, Cisco Partner Summit 2015 will be here before you know it.
The end of April is just a little more than three months out and we can’t wait to see some of you in Montreal this year. Speaking of Partner Summit, it was at last year’s event where we launched what I wanted to touch on today.
I promise I’ll keep this one short, but since launching Cisco Intercloud in Las Vegas last year, we really have accomplished a great deal, and I want to be sure that you, as a member of The Cisco Partner Ecosystem, are not missing out on any opportunities. Hhere is a little recap on Cisco Intercloud from Partner Summit 2014 until now. Read More »
As Cisco’s chief marketing officer, an important part of my role is to build and maintain the trust of Cisco’s customers.In fact, “brand promise” ultimately relies upon the trust consumers have placed in a brand. Customers who are loyal to a brand will trust that the next product or service introduced under that brand will fulfill the brand promise. However, trust can also have more widespread impacts that affect an organization’s ability to compete and to provide the innovative customer experiences required in the Internet of Everything (IoE) era.
This week at the National Retail Federation’s “Big Show” in New York, Cisco released a new study that uncovered some unique insights about shopping behaviors and attitudes among U.S. and U.K. consumers in the digital age. The findings point to the need for retailers to provide “hyper-relevant” shopping experiences that deliver value to the consumer in real time throughout the shopping lifecycle. Hyper-relevance comes with the ability to dynamically compare real-time customer information with historical data, and the resulting insights allow retailers to improve operations and the customer experience. At stake, according to our research, is an estimated profit improvement of 15.6 percent for an illustrative $20 billion retailer that builds agile business processes for turning these insights into value.
Our research shows that consumers are looking for retailers to deliver hyper-relevance via three value proposition categories: efficiency, engagement, and savings. In the area of efficiency, for example, 77 percent of respondents said they would be “somewhat” or “very likely” to use a solution to optimize the checkout process. In terms of savings, 79 percent indicated a willingness to take advantage of in-store offers provided via digital signage, while 73 percent said they’d like to receive special offers through augmented-reality solutions. And, in the area of engagement, 57 percent indicated a desire to learn more about products in the store by using augmented-reality capabilities.
One of the points I found particularly interesting is that consumers are relatively willing to provide certain types of personal information to retailers—such as name, age, past purchasing history, interests, and hobbies—in order to get a more personally relevant shopping experience. But beyond this basic information, there is a “trust cliff,” a steep drop-off in willingness to share certain types of personal information. A significant 16 percent of respondents were not willing to share any personal information at all.
This trust cliff presents an interesting conundrum for retailers. On one hand, our study shows that customers want personalized and contextually relevant shopping experiences. But on the other hand, they are reluctant to share the very information that can help provide these “hyper-relevant” experiences.
Remember when moustaches were cool? For those who weren’t paying attention, it was back in the 1980s when Tom Selleck–sporting that signature facial hair–ruled the T.V. airwaves as private investigator Magnum, P.I. Most guys old enough to shave (or who thought they were) tried to proclaim their manliness with a Magnum-style moustache. We thought 128 kB of RAM and the 5 1/4″ floppy drives on our IBM XT personal computers were pretty neat, too.
The early 80s were also the last time many consumers thought that contact centers–or call centers, as they were known then–were cool. People appreciated being able to call businesses if they had a question about their bill or needed product information (remember, those were the Dark Ages before the internet). But as related in a noted white paper, contact centers soon became more about minimizing costs than providing exceptional customer care. And of course we started getting annoying telemarketing calls in the middle of dinner.
In the last couple of years, however, customer care has begun to swing back in favor of the customer.
“Mike” may be an avid golfer who enjoys meandering through the sporting goods section of his local retailer. But he would be a very different shopper the morning his plumbing fails and threatens to flood his basement. In such a context, efficiency rules, and it is critical for the retailer to speed his shopping journey — from product research to fast checkout and payment. Friendly, by-name greetings offering prompts for new golf products on Mike’s smartphone would seem irrelevant at best, and intrusive at worst.
Checkout optimization, in-store sensors, augmented-reality solutions, and real-time analytics at the “edge” of the network are just a few of the capabilities that could give the retailer a clear picture of Mike’s shopping habits in that particular context — time, place, and situation — while helping Mike meet his plumbing crisis in a timely and efficient manner.
In effect, Mike is one customer, but he can be many different shoppers. And retailers need to know them all. Technology — specifically Internet of Everything (IoE) solutions that connect people, process, data, and things — is the way to do it.
To better illuminate the competitive dynamics and opportunities for retailers, Cisco this week shared its fifth annual retail consumer survey. Released at the National Retail Federation (NRF) “Big Show” in New York, the study includes a survey of 1240 consumer respondents from the United States and United Kingdom. Later this year, Cisco will release the complete global findings from 6,000 respondents across 10 countries.
At NRF, we also met with retailers from around the world, who shared their successes and challenges. Technology, of course, can be a headache for retailers. From disruptive innovations to rapidly changing customer behaviors, today’s retailers are challenged on multiple fronts. As the Cisco study found, however, IoE-enabled solutions offer retailers an opportunity to provide their customers with hyper-relevant experiences that blend the best of online shopping with the advantages of the in-store experience.
The key is to gain insight into the real-time nuances and context of the many shopping journeys available to consumers. That requires investments in the right technology. But how can retailers avoid the kinds of investments that have not paid off in the past?
In the Cisco study, we tested 19 IoE-enabled shopping experiences, spanning all stages of the shopping journey and addressing many maturing digital enablers, including video, mobility, and analytics. Overall, consumers indicated that they are very interested in using these applications to get more value. The table below illustrates our respondents’ interest level in the 19 individual concept tests, along with the financial opportunity from each of three value proposition categories: efficiency, savings, and engagement. Our economic analysis revealed that roughly two-thirds of the total potential opportunity (or $208 million for an illustrative retailer with $20 billion in annual revenue) comes from applications that deliver greater efficiency for consumers.
In the United States, disruptive innovators (e.g., Groupon, LivingSocial, Gilt) have successfully targeted consumer savings, which has served to exacerbate margin compression for retailers in some categories. We are now exploring these trends in Europe, Asia Pacific, and Latin America. We find that most incumbent retailers, by contrast, are investing heavily in solutions that engage consumers at all points of their shopping journey, including bringing them into the store and cross-selling and up-selling to them (indeed, this is the underlying strategy of today’s discount wars).
Consumers have always been preoccupied with savings. So it is no surprise that savings remain the area of most interest to our survey respondents. Efficiency, however, is a close second in terms of interest. When asked about the areas where they would like to see improvements, 39 percent of our respondents identified the process of selecting and purchasing goods, showing a need for greater ease and efficiency. By contrast, only 13 percent sought improvements that would create a more personalized shopping experience.
In this year’s survey, consumers made it clear that experiences must be efficient, contextual (that is, reflecting a shopper’s individual situation, real-time environment, history, and so forth), relevant to real-time needs, and easy in which to participate. In the retail environment, such situational awareness is essential to creating a better customer experience. Retailers must increase the value to the consumer throughout the shopping journey, demonstrably providing a combination of efficiency, savings, and engagement.
By exploring these solutions today, retailers can begin to realize a new level of innovation and competitive dynamism. And customers like Mike can look forward to getting their plumbing fixed ASAP (and maybe even return to the store later that day to try out some of those new golf products).
Happy New Year! As I return from the holidays and begin the year ahead, I’m energized and excited about all the amazing accomplishments we achieved with WebEx in 2014. Many recollections come to mind that I’d like to share with you. And I have exciting news for 2015 — already! More on this in just a minute…
WebEx is really at the core of everyone’s work life. With over 60 million users and more than 1 million meetings a day, we really impact how people work and live. It was just a little over a year ago that I started leading the Cloud Collaboration Applications team at Cisco. When I started, I challenged the WebEx product team with a new goal to dramatically improve our already great web conferencing tool. A key element of this goal was a focus on simplicity. Making WebEx simple in addition to enhancing functionality was the target. Bottom line: It is our mission to delight every WebEx user and make their work life more productive.
The New WebEx
My team took this challenge to heart and made significant product changes in this direction. In October 2014, we launched the New WebEx that comes with a new clean intuitive interface, improved web landing pages that make it easier to join online meetings, much faster meeting load times, better video layout, and wideband VoIP audio for better audio quality. Read More »