Retailers once had a pretty clear idea of who shopped where and how they did it. After all, there were not that many options available for shoppers. Consumers would see an ad or peruse a catalog, and then visit the physical store with the hope that their preferred item was in stock.
These days, retailers understand there is an entirely new kind of shopper. Indeed, since the advent of e-commerce, retail complexity has increased exponentially, and today’s digital consumer navigates a wide range of channels and potential shopping journeys.
As a recent Cisco survey of retail trends discovered, e-commerce has added about 40 possible shopping options for a typical shopper. With the rise of the Internet of Everything (IoE) — the explosion in networked connections of people process, data, and things — potential shopping journeys will expand to 800 and beyond. Some of the new options coming into play could include mobile devices equipped for live Web engagements, checkout optimization, mobile payments, wearables, augmented reality, and drone delivery.
The variety of journeys available to shoppers is growing exponentially.
Source: Cisco Consulting Services, 2015
This sweeping digital transformation has dramatically altered the shopping behaviors of consumers, who now demand experiences that are contextual and hyper-relevant (enabling consumers to receive what they want, when and how they want it), whether in-store or out. As a result, retailers are reinventing their business models and rethinking much of what they once knew, including traditional customer segmentation.
Video: IoE in Retail: Hyper-Relevance through Consumer Context
Increasingly, we are entering a period that has been referred to as “post-demographic consumerism” in which consumption patterns are no longer defined by traditional demographic segments such as age, gender, location, income, family status, and the like. This presents a significant challenge to retailers already grappling with growing complexity in their operations.
For example, Cisco’s research reveals that Gen Y is far from monolithic. On one hand, Gen Y continues to accelerate the shift to online channels (faster than any other group): although 34 percent make more than half of all purchases online as they seek convenience and greater access to information, 54 percent would shop only in stores for the next month if they had to make a choice. Moreover, just as the physical store remains important to Gen Y, many seniors are shopping online or with mobile devices.
In short, consumer segments are increasingly fragmented and ephemeral. The sheer number of potential shopping journeys is growing exponentially, and the change is occurring faster than ever before. For an individual shopper, however, the journeys are also dynamic. Consumers are constantly shifting to other journeys as new innovations emerge —
and faster than retailers can respond. Compounding this, the velocity of innovation is increasing as IoE dissolves traditional barriers (for example, through the low cost of app creation, the Kickstarter-style funding model, and so forth).
Since every retailer is unique, and there is enormous variation across categories, each retailer must define its own target segments, and then be prepared for the rapid evolution of new “microsegments.” Cisco is working with retailers to define target segments and prepare for the evolution of new ones.
To enable the customer outcomes that will determine the winners of the IoE era, most retailers understand that they need to know their customers as never before and, critically, possess the requisite business agility to adapt. Fortunately, IoE and consumer analytics technology provide the platform to truly understand, engage and respond to their customer.
Analytics is a key competitive frontier in the IoE era, enabling retailers to provide consumer experiences, offers, and interactions that are contextual, relevant, and timely. Moreover, analytics empowers the retailer to respond dynamically to constantly changing customer behavior.
To succeed in this area, retailers need a technology strategy that captures data at the “edge” of the network — from mobile devices, sensors, video cameras, and the like — and analyzes it locally, in real time, to respond to fast-moving opportunities. By leveraging analytics and other key elements of IoE such as video and mobility, retailers can drive greater efficiency in each customer journey, offer real-time savings, and create a more relevant customer engagement.
As shopper segmentation blurs, analytics is critical to understanding the new digital customer. Old or young, rich or poor, all customers have value and want to interact with retailers in new, hyper-relevant ways. IoE-driven solutions are the way to do it.
Tags: Anabelle Pinto, analytics, CCS, Cisco, Cisco Consulting Services, connected retail, data, digital, hyper-relevance, innovation, Internet of Everything, internet of things, IoE, IoT, National Retail Federation, NRF, retail, shopping
I love sports—playing, watching, you name it. But the sports experience has changed so much over the past few years, in new and exciting ways, which makes being a fan or being a player more dynamic – and way more fun.
Growing up playing basketball, we’d play the game, feed off our fans’ energy and cheers, celebrate when we won, and then challenge the next team!
But today, fans are tweeting messages to their favorite players and players are wearing sensors to track their performance—it’s a whole new ballgame. With the transitions we’ve seen in mobile, cloud and the Internet of Everything (IoE), so much has changed—and will continue to change—how we engage with our favorite teams.
I’d even venture to say that the fan-player relationship is now personal. You used to be able to only enjoy a game at the stadium where it was being played, or by listening to the radio or watching TV. You certainly couldn’t share your thoughts on the game with the players playing, except by screaming at them – or the TV.
Innovations in streaming video, live broadcasting and social media, have made today’s experience radically different. Wi-Fi-enabled sports arenas, combined with the huge expansion in mobile capabilities, mean that fans can watch the game live, watch on TV, or via an app on their smart device. Anyone out there like watching the hoop cam during a game?
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Tags: chuck robbins, Cisco NBA, data analytics, innovation, Internet of Everything (IOE)
Digitization, which harnesses the power of what we call the Internet of Everything at Cisco — the connection of people, process, data and things — will change everything from the way we work to how we serve citizens, and teach our young people.
I believe that France will lead in this new era of country digitization. The French government truly understands the economic and societal benefits digitization will bring. Last week, I met with Prime Minister Manuel Valls, and together we announced an ambitious partnership, pledging to transform France into a digital republic. By creating a connected ecosystem, there is tremendous opportunity to fuel economic growth, create jobs, foster innovation — even improve energy use.
Cisco will power this initiative through the network. France has a strong traditional infrastructure in place — roads, water lines, buildings, even parking spaces — and the country is now committing to build out their digital infrastructure, which will help increase productivity, create jobs, and improve the lives of citizens. Cybersecurity will also be enhanced for the country and its businesses and citizens, and the results for France could be dramatic.
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Tags: digitization, France, innovation, Internet of Everything, Prime Minister Manuel Valls, startups
Around the world, banking customers express similar frustrations: they believe the value they receive from their banks is declining, at a time when their trust in those banks already has eroded.
What’s more, according to a Cisco survey of 7,200 banking customers in 12 countries, four out of five customers would trust a non-bank, such as a technology company or retailer, to handle their banking needs. Some of those disruptive competitors are succeeding where banks fail: by engaging customers with convenient transactions and value-added services.
The Cisco study found that Internet of Everything (IoE)-enabled services can help restore the value customers expect from banking institutions. IoE — the networked connection of people, process, data and things — makes it possible for banks to offer a more relevant, engaging, and convenient experience for customers.
Of the $19 trillion in global economic value Cisco estimates IoE can create over the next decade, 7 percent ($1.3 trillion) is accounted for in the finance market and could be addressed with concepts included in this survey.
The digitization of business and society is happening at a rapid pace and people are looking for improved, digital services that make life easier. Banks need to embrace this pace of change and deliver relevant services or risk becoming obsolete in a market where other providers are stepping in to fill the gaps.
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Tags: analytics, banking, CCS, Cisco, Cisco Consulting Services, data, digital, Financial Services, hyper-relevance, innovation, Internet of Everything, internet of things, IoE, IoT, Wim Elfrink
Every day, entrepreneurs launch startup companies to create apps, services, products, you name it! But often these self-starters have limited resources, small staffs and thus encounter other challenges that every new company faces.
So what’s the key to any successful startup? Innovation. By finding new and creative ideas to operate a business, entrepreneurs can unlock more potential with their staff, as well as the products and services they deliver to customers.
But startups aren’t the only companies that innovate. While Cisco may be nearing 30 years old, the company proudly sees itself as a major contender in the innovation space, especially in connection to the Internet of Everything. Here a few examples on how Cisco is the new innovator: Read More »
Tags: innovation, innovation center, Internet of Everything, Startup