One of the primary tactics we’ve used to create substantial retail business efficiencies is through something we call Platform Design. Platform Design lowers overall costs while making interactions with customers much more personal and enjoyable.
Most recently, we helped build customer journeys through platform design by combining a mobile application experience with dynamic inventory tracking, product suggestions, and consumer guides. The mobile app allowed users to customize a product, and buy appropriate accessories for their custom product. From there, we connected to a centralized inventory system that checks to see if all the components in the custom order are available and determines whether or not there was an excess of stock warehoused for any particular accessory. By using technology to detect inventory, dynamic pricing was used to discount the accessory for the client where necessary. Fulfillment was then able to electronically receive the order, build it automatically, and ship it to the client. At the tail end of the journey, the customer was able to further their interaction with the brand by being able to log into the brand’s website to obtain help in configuring the customized product. Through single sign-on, the system was capable of knowing exactly what was purchased and was able to serve up help videos to guide them through configuration. At the end of the journey, customers feel the thrill of a seamless and unique product experience. These emotions are what platform design zeroes in on and uses to tie consumers to brands.
To build on that, we’ve found that the journeys we are building aren’t limited to the online ecosystem. Using innovation to guide customers through physical stores is just as important. For the in-store customer we’ve taken this realization and built a mobile app that is capable of reading in-store beacons and triggering a CRM to obtain recent purchases from the customer. In addition to knowing past purchases, the app can entice in-store customers to make purchases outside of their typical buying patterns. If, for instance, the app is able to notify the customer that certain accessories purchased in the past are items that typically run out, we are able to provide an in-store map guiding them to the product where the customer will not only be tempted purchase the product, but purchase multiple products so that they do not run out. The effortlessness of the in-store journey cultivates repeat customers using brand loyalty, just like it does for the online customer.
Automation is the process of replacing formerly manual activities with digital magic. It is another one of the key factors that makes enhancing customer journeys possible. A great example of this can be seen through our work with GoPro. A typical GoPro customer would go out surfing and capture some amazing video. They would get back to the parking lot, jump into their car and want to immediately share a 15 second clip of their surfing session on Instagram. In order to do that, they would have to manually plug the camera into their computer, download the files, edit them, and finally post them. This was a major pain point for customers. To alleviate this, we automated the process by using wifi to transfer the files to customers’ phones with no manual process necessary. Customers are now able to shred waves, get in their car, have the mobile app see their camera, magically downloads the files, edit and post to friends and family in seconds.
This is just one example of the plethora of ways that digital is automating the customer journey, but automation itself can be tricky. From a customer’s standpoint, automation either needs to be invisible or interesting. Technically, making automation invisible is difficult. You have to think through user experiences to make the technology disappear. That’s hard. But if you pull it off, the rewards are substantial. Automation that interests and delights is less technically demanding, but requires a strong experience on the part of the user. One of the best ways to create that sort of an experience is through personalization.
The days of broadcasting a marketing message to one monolithic group of customers have passed. Technology has allowed marketers to craft messages on a one-to-one basis between their brand and a single shopper. Personalization takes these messages a step further. In our work for retail clients, every part of the customer journey is personalized. Once a customer has created an account, the websites, mobile apps and physical stores they interact with all change for that particular person. When a customer walks into a store, they can be digitally welcomed by name. Or, a notification can be sent to a store associate who can give them a warm, human welcome and assist them. This allows for storytelling on a very intimate, human level. By bringing elements of joy to customers by making them feel special, we are providing increased lifetime value to brands through personalization.
According to a study by MyBuys and the e-tailing group, 40% of survey respondents said they buy more from retailers that personalize their shopping experience across channels. Based on sales data from MyBuys’ database of over 250 million shoppers, customer-centric marketing delivers a 25% increase in total online sales and a 300% improvement in customer lifetime value. (Datamentors, 2015)
Creating a personalized story for a customer’s journey requires context. This leads us to the final part of our customer journey: contextual interactivity.