deploying customer experience in the digital era - aude baylet-diesel
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How to answer the needs of digitally-savvy customers in 2014? This is a personal piece of university work (December 2013) trying to answer the issue of how to deploy customer experience in the digital era? Copyrights please contact me at [email protected]TRANSCRIPT
Luxury first look: Strategy 2014
“Deploying Exceptional Luxury Customer Experiences in a Digital Era”
Aude
BAYLET-DIESEL
14 20 “A more digitally savvy consumer will demand more of luxury
brands and experiences, and 2014 seems to be a key year to test old relationships with new technology.”
-Mickey Alam Khan, editor in chief of Luxury Daily, New York.
A C
Competitive Advantage In 2014 luxury brands must add lavish experiential elements in their offering, websites and in-store.
Be consumer-centric Propose individual brand value proposition
Deliver superior customer experience Emphasize on service innovations
Develop cohesive value-added experiences Implement CRM and Customer Experience Management
&
Sources: BCG, 2012 Harvard Business Review, 2013
13 20
Digital Today Digital is key to luxury purchases. Affluent buyers: - Research online before buying - Use several digital devices - Are constantly connected
Source: Google/Ipsos
E R
Retail Experience “Retailing is strategic for the luxury world, first of all for the opportunity to have a direct contact and feed-back from the customers, but also in order to provide an exclusive customer experience showcasing and communicating the entire world of the company in terms of product variety and cohesive message. “ – Stefano Canali, Canali SpA
Digital is changing the way luxury retailers do business
Sources: CPP-‐Luxury, 2013 Google, 2013
M I Integrated Marketing
Individual brand value proposi0on = Unique Experience
Mobile markeHng
In-‐store best pracHces
Transversal ecommerce funcHonaliHes
Linking offline and online marketing efforts
M I Integrated Marketing
Digital Marketing allows: Active engagement of the luxury consumer
Build personal attachment Identification with the brand’s community
Reach brand’s resonance with exceptional experiences.
Sources: Heine, 2012 Keller, 2011
The brand’s marketing must be coherent: the brand communicates with one voice through the e-channel.
To avoid the “Communication Paradox” of luxury
brands, the marketing should only communicate the brand’s personality.
E E
Engaging Experiences Encourage to SHOP. Apps and HTML5 mobile Web extremely flexible, accessible and adaptable. Encourage to SPEND. The digital technology implemented in stores must enhance the customer service and make the overall experience more desirable. Encourage to ENGAGE. As luxury consumers go back-and-forth between physical and digital brand channels, luxury marketers can digitally engage the consumer while he is shopping. He must be able to socially interact and share his shopping experience.
Sources: The Luxury Daily Guide, 2013
T N
New Technologies According to KPMG Technology Innovation Survey 2013, 32% of companies’ executives consider that the Cloud, Mobile devices (26%), Big Data (8%) and Artificial Intelligence (5%) will lead the digital era and drive business transformation in the next 3 years.
Source: KPMG, 2013
C T
The Cloud Systems that run the World become more interconnected
The cloud allows very personable experiences for each individual
The cloud also facilitates crowdsourcing
D MMobile Devices Losing favor in all luxury segments – consumers spend most of the time on Facebook, Twitter, Maps, Instagram and games such as Angry Birds. Apps don’t seem to create a better user experience.
Source: L2ThinkTank, 2013
Mobile Apps
Burberry smart personalization technology, 2013
Chanel new mobile Website, 2013
D MMobile Devices
Source: Retail-‐innovaHon, 2013
Beacon geofence technology
The service allows customers to walk up to a product or a store and to receive a notification on their smartphones with information and specific services offered by the brand. Beacon location accuracy combined with iCloud data can create very personable user experiences.
D MMobile Devices
Source: Luxury Daily, 2013
Mobile Augmented Reality
The service bring products to life while educating the customer and creating a “wow factor”. Excellent way to build a relationship with the digital customer and to provide an entertaining visual and experiential appreciation.
Chanel augmented reality app for the J12 Chromatic watch
McLaren P1 augmented reality App
D B
Big Data
“It’s about detecting the underlying patterns to make predictions on customers’ selection processes and then make the best recommendations.” – David McQueeny Source:
Tim Michaelis KPMG, 2013 McKinsey, 2013
What is it ?
McKinsey & Co. describes it as “The next frontier for innovation, competition and productivity”
D B
Big Data
Work as CEM data collection,
Source: Tim Michaelis KPMG, 2013
From unstructured data to something that marketers can act upon
Design socially targeted ads
Optimize live experiences and make them more personal
I A
Artificial Intelligence
Source: BoF, 2013
“Network-connected cars, low-cost drones, the proliferation of digital sensors and scannable objects, and the emergence of wearable devices are harbingers of what Mary Meeker calls the era of “everywhere computing”, which will have far-ranging implications for the way we do almost everything in life – including the way we shop for fashion.”
I A
Artificial Intelligence A.I. includes reasoning, learning, communication, and the ability to move objects
Source: KPMG, 2013 PSFK, 2013
Collect data via Sensors
Transmit data to Mobile devices
Customers receive
informaHon How it works:
Example: The digital storefront of the future will access a shopper’s personal data through his mobile devices and will entirely personalize his window shopping experience depending on his shopping habits, interests, preferences, or even up-coming events, the news and the weather.
E B
Best Examples
Sources: WWD.com, 2013 Venturebeat.com, 2013 Reuters, 2013
Audi automotive retail for the future: entire model lines presented fully digitally
Tweets about the Diane Von Furstenberg show during the 2013 New York Fashion Week rose by 160% from last season thanks to the Google partnership and the online video inter views/shopping experience
Apple iBeacon pilot program has produced over 75% response rate in Kenneth Cole store
EBAY Inc. and Kate Spade Partner for interactive storefronts, June 2013
O C Challenges & Opportunities
-Fitting new technology into existing infrastructure -Privacy concerns: consumers are already sharing many information in the Cloud but brands must work on the privacy and security of their data collection and ethical use -Cost and Pricing models: for marketers and retailers to implement those technologies -Ease of adoption: must be accessible to the mass and intuitive. The skyrocketing use of smartphones and tablets is to be taken into account… -Train and develop marketers’ analytics skills
- 90% of retail sales still take place in brick-n-mortars: huge opportunity for luxury brands to create “smarter” stores and shopping experiences for consumers. - According to McKinsey, the Internet of Things could have a potential impact on our economy of up to $6,2 trillion per year by 2025. - According to KPCB, the era of digital is triggered by the educated consumers using more and more mobile devices - Luxury consumers are also tech-savvy and very keen on discovering new things
Source: Gigaom.com, 2013 KPCB, 2013
LUXURY INFORMATIONAL WEBSITES Women Wear Daily, Evan C., “Google’s Sergey Brin stars as DVF shows Glass”, September 9, 2013 The Luxury Daily, “Guide to Luxury Marketing”, 2013 The Luxury Daily, Tricia C. “Future of Luxury brand augmented reality: Wow to utility”, October 31, 2013 Business Of Fashion, “BoF 500: the store is everywhere”, 2013
CPP-Luxury, Stefano Canali, “The Future of Luxury Menswear – An exclusive interview”, November 21, 2013 TRADE ASSOCIATIONS Altagamma, “Digital Luxury Experience”, 2012
LEADING CONSULTANT SITES BCG, Luxe Redux June 5, 2012 KPMG, “Technology Innovation Survey”, 2013
L2 Think Tank, Homa Z., “Apps not a key driver of mobile sales”, November 19, 2013 McKinsey & Co, “Big Data, Research & Insights”, 2013 LUXURY RESEARCH PAPERS
Google, “How affluent shoppers buy luxury goods global research”, September 11, 2013 PSFK, “Future of Retail 2014”, 2013 Harvard Business Review, Vijay G. and Jatin D., “Innovation Isn’t just about new products”, September 26, 2013 TEXTBOOKS/CLASS
Heine K., “The Concept of Luxury brands”, 2012 Keller K.L., “Strategic Brand Management”, 2011 Tim Michaelis, guest speaker for the Big Data 11.04.2013 TTM & Marketing class presentations
INDEPENDENT READINGS Google/Ipsos, “Luxury Shoppers in America”, 2013 Retail-innovation.com, Craig S., “Apple to implement iBeacon in AppleStore”, November 21, 2013
Reuters.com, Alistair B., “Ebay to open “shoppable window” in New York”, June 5, 2013 Venturebeat.com, Hilmi O., “Is iBeacon ready for prime time retail?”, November 29, 2013 Gigaom.com, Hilmi O., “Sensing the future of retail”, November 29, 2013 KPCB, Mary Meeker, Internet Trends, 2013
REFERENCES