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.
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Tags: analytics, Cisco, Cisco Consulting Services, connected retail, consumer, customer experience, digital, hyper-relevance, Internet of Everything, IoE, National Retail Federation, NRF, privacy, retail, shopping, smart retail, trust
“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
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).
Tags: Anabelle Pinto, analytics, Cisco, Cisco Consulting Services, connected retail, consumer, customer experience, digital, hyper-relevance, Internet of Everything, IoE, National Retail Federation, NRF, privacy, retail, shopping, smart retail, trust
Recently the widespread fire of data breaches impacting privacy of millions of hapless people across the globe has become the stirring news. This spree of cyber attacks unveiling the fact that information security industry, organizations and even governments are vulnerable to today’s persistent, well-organized and sophisticated cyber threats.
There was a common theme among all the recent data breaches shown below and that is the amount of time for initial detection, which is in weeks and months.
According to Verizon data breach report, 85% of cyber attacks Read More »
Tags: Cisco Cloud Security, cloud data center, compliance, Cyber Attacks, cyber threat management, data breach, FISMA, HIPAA, Networks, next-generation, pci, privacy, SecureState, security breaches, security model, service providers
As National Cyber Security Awareness Month (NCSAM) arrives, now is a good time to look at the rapid expansion of information growth. We believe that cyber security centers around an important question that all who serve, protect and educate should consider – if you knew you were going to be compromised, would you prepare security differently?
It’s no longer a matter of “if” an outside party will infiltrate a system, but “when.” We read about new threats in the news every day, and it’s important to consider innovation when it comes to protecting our most precious assets and information.
We look at preparedness from three angles: what it takes to manage security before an attack, how to react during a breach and what to do in the aftermath. Security professionals need to evolve their strategy from a point-in-time approach to a continuous model that addresses the full continuum.
The Cisco approach is visibility-driven, threat-focused and platform-based. By performing live policy and attack demonstrations, organizations can help to ensure that they are prepared for what may come across multiple platforms. Read More »
Tags: cybersecurity, mobile security, NCSAM, network security, privacy
Responses in a recent Cisco-sponsored Cloud Security Alliance survey (hyperlink) illustrate that many data privacy challenges previously cast in the “too hard” basket can be more readily navigated though focusing on universal principles across Cloud, IoT and Big Data. Survey responses showed a surprisingly strong level of interest in a global consumer bill of rights and responses were overwhelming in favor of the OECD data privacy principles facilitating the trends of Cloud, IoT and Big Data.
Following are the most significant findings:
Data Residency and Sovereignty
Data residency and sovereignty challenges continue to emerge. However, there was a common theme of respondents identifying “personal data” and Personally Identifiable Information (PII) as the data that is required to remain resident in most countries.
73 percent of respondents indicated that there should be a call for a global consumer bill of rights and saw the United Nations as fostering that. This is of great significance with the harmonization efforts taking place in Europe with a single EU data Privacy Directive to represent 28 European member states. As well as with the renewed calls for a U.S. Consumer Bill of Privacy Rights in the United States and cross-border privacy arrangements in Australia and Asia.
Finally we explored whether OECD privacy principles that have been very influential in the development of many data privacy regulations also facilitate popular trends in cloud, IoT and big data initiatives or cause room for tension. The responses were very much in favor of facilitating the various trends.
The survey report includes an executive summary from Dr. Ann Cavoukian, Former Information and Privacy Commissioner of Ontario, Canada and commentary from other industry experts on the positive role that privacy can play in developing new and innovative cloud, IoT and Big Data Solutions. Read the Data Protection Heat Index survey report:
Tags: Big Data, cloud, IoE, privacy, report, security, survey