If you think we already live in a connected world (and we do!), get ready to fasten your seatbelts.
Today, there are “only” about 10 billion connected “things” on the planet. This includes hundreds of millions of people communicating with one another in myriad ways, and a rapid increase in two-way conversations between people and machines. That is, when the machines aren’t busy “chatting” with other machines.
It may sound complicated (and it is!). But the Internet of Things is just the proverbial tip of the iceberg. The next phase of the Internet — the Internet of Everything (IoE) — will encompass 50 billion connections involving people, process, data, and things by 2020. This will drive the next wave of dramatic Internet growth and opportunity.
Cisco estimates that the IoE economy promises a staggering $14.4 trillion in Value at Stake for private-sector companies globally over the next 10 years. This value is embedded in five drivers: asset utilization; employee productivity; supply chain and logistics; customer experience; and innovation.
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Tags: asset utilization, Cisco, customer experience, employee productivity, innovation, Internet of Everything, internet of things, IoE, IoE Value Index, IoT, supply chain, value at stake
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?
Tags: Cisco, connected mobile experiences, customer experience, Internet of Everything, internet of things, IoE, IoT, mobility, online shopping, retail, retailing
Cisco Consumer Experience Report for Automotive Surprises Many: Consumers Desire More Automated Automobiles, According to the Cisco Study
I was fortunate enough to lead the Cisco team that looked at consumer experiences in the automotive industry, and the results were eye-opening. For those of you that didn’t know, the study surveyed more than 1,500 consumers across 10 countries. The global report examined consumer preferences of technology used when buying and driving an automobile. Consumers also identified preference for car dealers/manufacturers to provide a more personal driving experience, and their trust in future automotive innovation.
Some pretty interesting results emerged. Prior to purchasing a vehicle, consumers prefer to begin their process online. That’s not too surprising to most of us, since you’re reading this blog online right now, so you yourself are fairly comfortable with online research, I assume! But many had issues trusting the information on the manufacturers’ web sites.
- Most consumers begin their car purchasing process online: 83% of global consumers prefer to research online for information on a car, versus only 17% of consumers that prefer to call or go to dealership.
We were also educated on what mattered most to consumers. Consumers desire a more automated way to track car gas and maintenance costs:
- Impact of gas prices on customer experience: 52% of consumers want to track gas prices from a vehicle. Gas-price tracking was the highest priority, compared to 46% of consumers wanting to track insurance prices, 35% wanting to track roadside assistance availability, and 32% wanted to track recall information.
That was a little different to how folks wearing a manufacturing hat actually thought. Most manufacturing executives (57%) thought that auto manufacturer information is most important for consumers to track!
Consumers are also more willing to trade personal information for customization, security and savings:
- More Personal Security and Customized Cars: 60% would provide biometric information such as fingerprints and DNA samples in return for personalized security or car security. 65% would share personal information such as height/weight, driving habits, entertainment preferences if this allowed a more customized vehicle and driving experience.
“The survey shows consumers’ comfort with technology and need for immediate information whether they are researching, buying, driving or servicing their vehicle. While consumers in diverse parts of the world may expect very different experiences, their technology demand is more positive than many manufacturers imagine. Many consumers are just waiting for manufacturers to respond with better car buying, driving and service experiences augmented by technology.”
Peter Granger, Senior Industry Marketing Manager, Cisco Products Solutions Industry Marketing
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Tags: andreas mai, auto, Automotive, autonomous-car, biometric, BRIC, car, cars, connected car, connected vehicle, consumer experience, consumerexperience, customer experience, customerexperience, driver
The early days of the Internet were a heady time of reimagining, rethinking, and, in effect, “e-enabling” a staggering range of business processes. Today, we stand on the cusp of an equally momentous paradigm shift driven by an explosion in connectivity—not just among devices, but also encompassing people, process, data, and “things.” This next-generation digital revolution will upend entrenched mind-sets and disrupt existing business strategies on a nearly unprecedented scale, transforming, yet again, the customer experience.
As I shared in Part 1 of my blog, the Cisco Internet Business Solutions Group projects that the Internet of Everything (IoE) economy will generate $14.4 trillion in Value at Stake for private-sector companies globally over the next decade. Nearly 26 percent of this total — $3.7 trillion — will be tied to IoE-driven customer experience advances.
But how do companies begin to tap the vast potential of the next-wave Internet? Since the Internet of Everything remains a work in progress, its uncharted waters and multidimensional scope will demand wholly new ways of thinking as organizations connect to a larger — much larger — universe. In order to meet IoE’s challenges effectively, your business will need a multidimensional toolkit — one that bridges marketing, design, engineering, economics, finance, or any other discipline required inside or outside your company.
The methodology that can enable these capabilities is design thinking. Drawing on methods used by design professionals, it combines empathy for the human context of the problem; creativity in the generation of insights and solutions; and rationality and feedback to analyze the solution within the customer context.
Design thinking is ideal for problem solving within highly complex situations. Which brings us to IoE. Its high level of complexity will demand that you rethink what you do for your customers, while redefining how issues can be addressed.
Knowing the customer is an age-old path to success. And at the heart of design thinking is a deeper understanding of the customer, citizen, or patient, pinpointing the human needs that fall between business objectives and the technology solutions. Employing user-centered qualitative research methods of observation, ideation, and prototyping, design thinking cuts to the essence of the human pain point and is centered on understanding the role you play in the lives of those whom you are serving. Defining and shaping the problem — in effect, determining the right question to ask — is key. Problem framing comes before problem solving and will be the foundation the creative insight in IoE innovation.
Unlike analytical thinking, which is based on a breakdown of ideas, design thinking concentrates on building up ideas with a broad focus, especially in the early stages of the problem-solving process. Once those early ideas are encouraged to develop, without judgment, they can spur creative thinking.
Here is an example of design thinking at work:
A retail client asked, “How do we increase sales conversions?” The client had the best merchandise selections, financing options, and competitive prices. Customers sang their praises in focus groups. Yet, they were converting only about 25 percent of shoppers. With a design-thinking approach, we were able to reframe the problem. Customers were attracted by the assortment, we realized, but they were overwhelmed by the choices. They were looking for guidance on the right solution. By reframing the problem (“How do we help customers make a personalized choice?”), we came up with great ideas that led to new services offerings. In the end, conversion increased significantly.
Design thinking is not a new tool—Procter & Gamble and GE are but two companies employing its concepts, and Stanford and Harvard both teach it. It isn’t a magical cure, either. But it could provide critical solutions within the complex scope of the IoE economy.
As in previous Internet eras, organizations that adapt and redesign the customer experience — essentially by knowing their consumers through empathy and innovative solutions — will thrive. IoE will reach its true potential only if it is seamlessly integrated into customers’ lives. And design thinking — with its emphasis on simplicity and empathy—could cut through the complexity of the coming IoE economy, while driving the creation of products and services that resonate with the way your customers live, work, and play.
After all, isn’t that the reason for creating those products and services in the first place?
Tags: Big Data, Cisco, customer experience, design thinking, IBSG, Internet of Everything, IoE, Personalization, Problem solving
Technology has and will continue to be a key enabler across every product delivery channel within the financial services sector. You simply need to explore some of the newer bank branches, available applications within app stores or investigate online innovations inherent in many institutions’ web presence to see how engrained technology has become in the customer experience. While firms are making this transition in differentiated form factors and across different channels, the trend itself is clear and pervasive; underpinned by the “anywhere, anytime” mantra and the continued consumerization of technology.
These channel developments cut across all products, but all have one common element – enabling improved and increased collaboration between institutions, their clients, businesses and/or consumers to drive accretive revenue. While these developments have and will continue to deliver impressive initial returns, they are largely siloed by either a business unit and/or delivery channel. The true potential value can only be unlocked by enabling a seamless and contextual integration of the physical, direct and mobile channels – the evolution from multi-channel to omnichannel.
The omnichannel model enables the customer to choose how and by what method they want to conduct their business, be that in person, via a mobile device, from the home, online or with telephony. Cisco’s IBSG team has published a white paper that looks into the transformation of institutions from multi-channel to omnichannel. While the method of communication is important, the true differentiator in transformational channel evolution is the ability to integrate interaction. Institutions must be aware of the context and outcomes of customer interactions as customers move from channel to channel, product to product, or business line to business line.
From an institutional point of view, the value in the omnichannel impacts multiple factors. Read More »
Tags: Cisco, collaboration, customer experience, Financial Services, insurance, omnichannel, remote expert, retail banking