CXM Customer Experience Management - Engaging the Connected Customer
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CXM Customer Experience Management Engaging the Connected Customer
“They’re attacking us and being disruptive.
You have to change, and you have to
service the customer the way they want to
be serviced.”
Irv Blumkin - CEO
Provide a Great Customer Experience
Customer
Service
vs.
Customer
Experience
// THE CHALLENGE Competition There are several well funded home furnishings retailers competing for online customer traffic and engagement.
// WAYFAIR Wayfair will average 6 million orders per quarter by the end of 2018. Source: Wayfair.com, Q2 2018
// WAYFAIR Notice that Ad Tech Stack is identified as a key part of their business. 1,300 Engineers & Data Scientists. • Keyword and Search • Campaign Management • Retargeting Source: Wayfair.com, Q4 2017
// WAYFAIR Proprietary technology makes Wayfair extremely effective across all of its marketing channels. • Online Paid • Brand Integrations • Direct Mail • National Promo • Organic Source: Wayfair.com, Q4 2018
// WAYFAIR Incredibly strong Customer Acquisition. Source: Wayfair.com, Q2 2018
// WAYFAIR Wayfair will spend $550+ million on advertising in 2018. CAC = $46 AOV = $239 Source: Wayfair.com, Q2 2018
// WAYFAIR 30%+ of wayfair.com orders come from customers who already purchased at least two other times in the prior 12 months. Source: Wayfair.com, Q2 2018
// GROWTH
eCommerce Share of Total Retail Sales
20.0%
Purchases 15.0% 13.7%
Move Online
12.4%
11.1%
10.0%
10.0% 9.0%
7.3% 8.0%
5.8% 6.5%
5.0%
Over the next five
0.0%
years, revenues for
2013 2014 2015 2016 2017 2018* 2019* 2020* 2021*
brick-and-mortar
furniture and
appliance retailers Online US Furniture & Appliance Sales
are projected to grow $140,000
($ in Millions)
at 0.5% annualized. $120,000
$100,000
Online purchases $80,000
$99,876
of furniture and $60,000
$74,912
$84,162 $92,537
$65,112
appliances are $40,000 $55,304
projected to grow at $20,000
$15,482 $16,567 $17,521 $18,341
$13,007 $14,284
11.6% annualized. $0
2017 2018 2019 2020 2021 2022
Appliance Furniture
Source: IBIS World & Statista (LINK & LINK)// COMPETITVE STRATEGIES
Competitive Price?
Strategies Best price for the best product.
Selection?
Largest or best selection.
Digital?
Customer acquisition and retention.// BLUE OCEAN STRATEGIES Avoiding head to head COMPETITION CREATE AND CAPTURE UNCONTESTED MARKET SPACE. FOCUS ON COMPARATIVE ADVANTAGES. PURSUE DIFFERENTIATION.
Focus every strategy and initiative on your unique CUSTOMER EXPERIENCE
// IN THE NUMBERS
54% 82%
of consumers say of top-performing
customer experience companies pay close
at most companies attention to the
needs improvement human experience
around technology
PwC 2018// IN THE NUMBERS
17% 32%
of consumers will One in three consumers say
walk away after ONE they will walk away from a
bad experience brand they love after just
one bad experience
PwC 2018// IN THE NUMBERS
59% 82%
of consumers will walk of consumers
away after several bad want more human
experiences interaction in
the future
PwC 2018// IN THE NUMBERS
64% 71%
of consumer feel of consumers would
companies have rather interact with a
lost touch with the human than a chatbot
human element or some other
of customer automated process
experience
PwC 2018// IN THE NUMBERS
46% 44%
of consumers will consumers said they
abandon a brand if shop in stores daily or
the employees are weekly (for items
not knowledgeable other than groceries)
…Up from 36% in 2014
PwC 2018// IN THE NUMBERS
What really drives
customers away…
…and what can
we control?
PwC 2018// CUSTOMER JOURNEY
Transforming Awareness
The Path to
Purchase Consideration
Inspire
Engagement
Engage Selection
{Acquisition} Retarget
Decision
Delight {Retention}
Service
Identify
Purchase Walk// CUSTOMER JOURNEY
Every stage of the
path to purchase is
important to the
customer
experience.
Awareness &
Selection Fulfillment Service
Engagement// CUSTOMER JOURNEY
90%+
shop online
CONSUMERS BEGIN THEIR
PURCHASE EXPERIENCE ONLINE.
But the vast majority
Purchase In-store
~88% HOME FURNISHING SALES
STILL OCCUR IN THE STORE.
Source: Statista, 2018 LINK// CUSTOMER JOURNEY
Every stage of the
path to purchase is
important to the
customer
experience.
So is the Awareness &
transition Selection Fulfillment Service
Engagement
between these
different stages.// COMPETITION
ASK
What is your customer’s
experience like between
online shopping and in-
store shopping?
What’s it like after they
buy? Or don’t buy?// RETAIL COMPETITIVE FACTORS
Brick &
Mortar Customer Relationship
&
Customer Experience
Fundamental Competitive Advantages// WAYFAIR Wayfair, Amazon, William & Sonoma all know furniture retail is better suited to the in- store experience. They are all trying to solve for this retail dynamics in any way that they can. These challenges though are all fundamental advantages of brick-and- mortar retail.
// STARBUCKS CASE STUDY
Differentiate
• Crowded Market
• Over Priced ($5 for coffee?!)
But STARBUCKS doesn’t sell
coffee and tea.// VALUE CURVE
10
9
STARBUCKS differentiates
itself by offering 8
experience and
7
community.
6
Before STARBUCKS these
competitive factors didn’t 5
exist in the retail coffee
market. 4
3
2
1
0
Location Price Variety Quality Customer Service Experience Community
Starbucks Other Coffee Shop// COMPETITIVE FACTORS
Some of your biggest Description
opportunities are brick-
and-mortar competitive Community Presence
1
differentiators. Presence, commitment and involvement.
Purchase Confidence
2
Customer can touch, feel and experience product
Service & Delivery
3
Excellence in issue resolution and delivery experience
Visualizing and Discovery
4
Fun to browse, easy to visualize in-person
Personal Relationship
5
Human to human connection// COMPETITIVE FACTORS
10
9
There are several important
8
factors on which brick-
and-mortar retailers 7
have the competitive
edge. 6
5
4
3
2
1
0
Community Presence Purchase Confidence Service & Delivery Visualizing & Personal Relationship
Discovering
STORIS Home Wayfair// CUSTOMER EXPERIENCE
In-Store AR
“That can’t be duplicated online”
Tech-Savvy Sales Associates
Guiding shoppers to view on store monitors large
images of their rooms// CUSTOMER EXPERIENCE
Expedited Check Out
Introduced iPads to the showroom floor
reducing checkout from 20 minutes to 2.
Personalized Shopping Carts
Build carts, even for 80% of customers that do not
buy on the first visit, to retain history, retarget via
digital marketing, and increase closing of sales via
eCommerce cart integration.// CUSTOMER EXPERIENCE
How to
execute? Unified Commerce
Meet the customer where they are.
Customer Experience
Put yourself in their shoes.Store “WSJ reports that retailers could see sales
Stickiness increases of up to 40% from encouraging
lingering shoppers.”
1. Encourage store traffic
2. Give customers a reason to not just come by, but stay longer
3. Provide social worthy experiences including visuals
4. Value time in-store like you do time on site engagementUnderstanding “Today’s consumers are quickly frustrated with
Your Customer brands that collect data but don’t use it to create
a better experience.”
1. Use business intelligence as your competitive advantage
2. Collect and analyze data across channels in real-time
3. Don’t restrict to executive team, but empower staff
4. Find opportunity on the frontlinesPersonalize “Product recommendations account for up to 31%
Merchandising of eCommerce site revenues and personal
recommendations outperform generic ones.”
1. Use data to empower merchandising recommendations
2. Narrow down options smartly in an over-saturated world
3. Upsell and increase average ticket
4. Denote best sellers and customers also bought
5. Target sales pitch and landing pages to returning customers
6. Use wishlists and design boards to encourage engagementTechnological “Effective ‘brick and tech’ blends the best of the
Showrooms both worlds, creating concierge shopping
experiences to replicate online customer-
recognition benefits, continuing engagement,
rather than starting over.”
1. Provide mobile tools to your sales associates to grow effectiveness
2. Use CXM to provide relationship context
3. Build shopping carts from anywhere in your showroom
4. Use kiosks for when customers do want self-service
5. Wow customers with in-store AR/VR// UNIFIED COMMERCE
Awareness
Is the customer’s
experience
Consideration
consistent across
every stage of the
Inspire
path to purchase?
Engagement
Selection
Is your journey Engage
{Acquisition} Retarget
unified?
Decision
Delight {Retention}
Service
Identify
Purchase Walk// Repeat Customers
Empirical and anecdotal evidence
REPEAT CUSTOMERS
BRICK AND MORTAR RETAILERS UNDERSTAND
THE IMPORTANCE OF REPEAT CUSTOMERS.Focus every strategy and initiative on your unique CUSTOMER EXPERIENCE
// Summary
1. Pinpoint your unique brand differentiators
2. Use technology to identify your customers
across channels
Let’s recap.
3. Expand your data points
4. Foster communication with existing customers
and non-purchasers
5. Exceed expectations on your foundational
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