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
Superheroes and their super strengths have long captured our imaginations. And since many of these abilities are normal human traits stretched to a magical extreme, you may well have pictured how your own life would change with super speed, agility, or senses.
Today, such daydreams are getting just a bit closer to reality. And while such powers won’t necessarily save the world (yet), they will make some common activities, such as shopping, a bit more super.
Smartphones have already assumed a central role in the retail experience. Yet the current level of smartphone interactivity is just the beginning. Exciting new capabilities are transforming the ways in which we interact — connecting our physical world to digital dimensions in very simple and intelligent ways. We will see more intelligent connections emerging across the entire customer journey: consideration, purchase, and usage.
Read More »
Tags: Big Data, brand loyalty, Cisco, Cisco Consulting Services, FutureOf, innovation, Internet of Everything, internet of things, IoE, IoE Value Index, IoT, MobilizeMag, NRF, nrf14, retail, value at stake
As 2014 kicks off and gets rolling, the economic supply-and-demand landscape is starting to look much different than recent years. Many manufacturing companies are rethinking strategies, investments and competitive approaches to take advantage of an emerging industrial renaissance globally. Savvy manufacturers are utilizing the Internet of Everything (IoE) to converge and secure real-time visibility between business networks (information technology, IT) and control and automation systems (operational technology, OT) and to reduce costs, improve uptime, increase asset utilization, and lock-down on end-to-end security.
In fact, as part of our overall industry presence, we will be discussing this very topic at an upcoming session at Cisco Live Milan. At the “Connecting Manufacturers for Productivity, Growth and Time to Value with the Internet of Everything” (session # BRKIND-1229), held on Wednesday 29 January at 4:30 pm, we will discuss how IoE solution architecture provisions immediate, secure access to plant performance and production automation systems for management and expert teams worldwide, providing open-standard, IP-based communication and control infrastructure for production operations.
Many of our customers tell us that because Cisco’s solutions for manufacturing have proven, validated architectures, we reduce the risk for operations and control engineers. In addition, we provide them with access to networking knowledge, design guidance and expertise and more, so they can rapidly deploy smart and connected factories. If you are coming to Cisco Live Milan, please join our Cisco Manufacturing Industry and IT/OT Business Group executives and subject matter experts to learn more about best practices for this growing segment. Similarly, for the Oil and Gas industry, we have a session called “IoE in Action: Solutions and Case Studies in Oil and Gas” (BRKIND-1230) which will offer guidance and strategies to companies in this segment.
Cisco Live Milan is a chance for you to learn more about networking issues for industrial environments and figure out how to leverage IoE to meet your goals – whether it’s reducing costs, speeding time to market or improving operational effectiveness.
If you are already registered to attend Cisco Live Milan, you can register to attend this session on your Cisco Live Schedule Builder today. For more general information on Cisco Live, please visit the main event website here. See you in Milan!
Tags: cisco live, Cisco Live Milan, information technology, Internet of Everything, IoE, Manufacturing, operational technology
Are you at #NRF14 this week? Join us in Booth 1954 and learn about our solutions to integrate next-gen technology into retail.
Superheroes and their super strengths have long captured our imaginations. Today, such daydreams – and abilities are getting just a bit closer to reality.
When your smartphone meets the Internet of Everything (IoE), it will make some common activities, such as shopping, a bit more super. Mobility has already assumed a central role in the retail experience, but how are increased contextual capabilities emerging across the entire customer journey?
This blog discusses how some retailers are connecting people to people and people to things, while tapping superpower abilities and making their brands and product experiences distinct.
With the superpowers of smartphones and IoE, retailers can insert themselves into crucial conversations with the customer by offering price matching, access to expanded inventories, suggestions, and shopping lists. All of these combine to keep shoppers engaged and moving along the journey – and beyond.
Read the full article: With IoE and a Smartphone, You Can Shop Like a Superhero
Tags: Cisco, CiscoMobility, connected mobile experiences, connected retail, future of mobility, Internet of Everything, IoE, mobility, network, retail, security, wi-fi, wifi, wireless
Each week, we’ll highlight the most important Cisco partner news and stories, as well as point you to important, Cisco-related partner content you may have missed along the way. Here’s what you might have missed this week:
Welcome back! This is my first Partner Weekly Rewind of 2014. While the great holiday memories with friends and family slowly fade, I am quite excited to be back with you. There will be a lot headed your way in 2014, and I’ll do my best to make sure you don’t miss anything.
With that in mind, here’s what is new on the Channels Blog this week:
Off the Top
Sherri Liebo brought us all great news about the Internet of Everything (IoE) $4.6 trillion opportunity available to you in the Public Sector. Combined with the $14.4 trillion identified in the private sector, that is an incredible $19 trillion opportunity available in IoE!
Also with regards to IoE, Cisco CEO John Chambers delivered the keynote address at the 2014 International CES and shared the Cisco vision for IoE. Read More »
Tags: Cisco, Internet of Everything, IoE, john chambers, partner weekly rewind, Sherri Liebo, Weekly Rewind