Digital Transformation
personalization
supply chain demands
sustainability
innovation
change
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What Consumers Want
What Businesses Want
How to Stay Ahead of the Curve
4 Pillars for Sustainable CX
Good for All: Delivering a Positive Impact CX
Bringing it All Together
Read on to find out:
Case in point, consider some of the following stats that can help your business pinpoint what consumers are asking for right now, and where they may be headed:
78% of US consumers say a sustainable lifestyle is important to them.
Driving many trends that relate to the CX are Millennials and Generation Z, who are expected to account for 70% of the working-age population by 2030, making up the majority of global consumers.
Fast and free delivery is table stakes, but as a share of the total cost of shipping, last-mile delivery costs are substantial at 53% overall and 6 in 10 consumers are unlikely to purchase from a retailer again when a previous order misses the scheduled delivery window.
Fast and free delivery is table stakes (thanks largely to Amazon Prime) especially as the rise of e-commerce continues. That said, as a share of the total cost of shipping, last-mile delivery costs are substantial at 53% overall.
Six in 10 consumers are unlikely to purchase from a retailer again when a previous order misses the scheduled delivery window.
consumers
When it comes to creating a personalized consumer experience, one size does not fit all — and offering custom products pays off for brands that get it right.
More than 7 in 10 consumers will shop more often with brands that offer personalization.
68% of consumers say personalization increases brand satisfaction significantly.
2 in 5 consumers said they purchased more from a brand as the result of personalization, and 37% said they recommended the brand to friends or family.
In fact, by 2025, 60% of customers will seek service from third-party sources of information not owned by the company, according to Gartner, Inc.
66% of millennials, 56% of Gen Z, and 25% of baby-boomer customers reported using a third-party source before contacting official service channels.
58% of younger consumers (Millennials and Gen Z) indicated they trust third-party information sources as much as company-provided information because they find the information easier to use or less biased.
Allergen information that is required
Provides nutrient and health claims
Explanation of what ingredients are used for
Information on how products are produced
Value-based info (animal welfare, fair trade, labor practices
Information about how ingredients are sourced
Provides allergen information beyond what is required
Sustainability practices
In 2023 sales via social media platforms across the world will add up to:
Social Media by the Numbers
The average daily time spent using social media is 2 hours and 27 minutes.
Just over 26% of internet users aged 16 to 64 revealed that their main reason for using social media is to find products that they can buy.
What’s more, the number of US social buyers is expected to increase by 35+% according to eMarketer.
In addition, more sustainable supply chains need to be built with new mechanisms for value exchange between people and organizations. By creating models of sustainable consumption — for example, circular economic aspects such as incentivizing and rewarding recycling — organizations can not only drive sustainable economic growth but also provide value to consumers.
For example, the traditional model of buying and consuming a product only to discard it is not sustainable. Innovative solutions such as product-as-a-service schemes (where consumers can purchase the result rather than the product), and collaborative consumption (where access is purchased instead of ownership) are helping to address this challenge.
So, what are businesses doing about it? Many organizations are already listening and addressing the evolving demands with CX that evolves with each change to stay ahead of the curve.
Research shows that consumers are demanding more information, transparency and content, all while still expecting fast and free delivery that is sustainable as possible. While this is a tall order for most businesses, getting it right can have a big impact on the bottom line.
Endless CX possibilities
businesses
Along the same lines, personalization and customization are also important to a more sustainable consumer experience. If products are custom-made to order, consumers get exactly what they want, which results in less waste. Again, it makes a positive financial impact on the business: Personalization leaders were nearly twice as likely to have exceeded revenue goals in 2021 compared to brands with low personalization capabilities.
As such, businesses embracing sustainability and transparency are establishing growth that is not only good for revenue, but also makes consumers happier and the planet healthier.
In fact, according to McKinsey and NielsenIQ, “There is strong evidence that consumers’ expressed sentiments about ESG-related product claims translate, on average, into actual spending behavior. And this suggests that companies don’t need to choose between ESG and growth. They can achieve both simultaneously by employing a thoughtful, fact-based, consumer-centric ESG strategy. The overarching result might be not just healthier financial performance but also a healthier planet.”
Case in point, products making ESG-related claims averaged 28% cumulative growth over the past five-year period, versus 20% for products that made no such claims.
Products must be certified by one or more of its 18 sustainability certification partners, which can be accessed to receive this badge.
What consumers want and what businesses want are constantly evolving. As such, addressing the key business challenges that will help solve societal issues is critical for retailers to stay ahead of the curve and deliver a positive impact for the consumer, the business and the planet.
That said, there are three key recommendations that can help companies keep up with evolving needs.
Develop your offering as needs change. To stay ahead of the curve, organizations must be able to align their products and services with changing needs.
Enable consumer-centric experiences: online and offline convergence. It’s vital that retailers offer an experience that’s seamless across all touchpoints as any level of friction can negatively impact consumer engagement. When things are easy, accurate, instantaneous and efficient, customers return and stay loyal.
“Loyalty in retail is the absence of something better. Customer experience is the most important practice and focus for retailers today.”
Support a sustainable future. Fujitsu Uvance enables organizations to connect with one another, harness their strengths and drive positive change. When the CX is approached in a sustainable and strategic way, it has not only financial benefits but positive environmental, societal, and economic ones. This way organizations can make sure that their business priorities are aligned with their sustainability goals:
Providing sustainable economic growth
Creating a more sustainable environment
Making wellbeing sustainable
ahead of the curve
sustainable CX
The Fujitsu Uvance approach to Consumer Experience is built on four pillars. Together, these pillars provide a comprehensive approach to the overall consumer experience.
Enabling informed and convenient experiences to help organizations capture future growth while minimizing environmental impact. The solutions help consumers consume the way they want to, across a whole network of connections that come together to create a more sustainable experience.
Optimizing efficiency and resilience stems from building trust and transparency across an entire supply chain to realize more sustainable business outcomes. Through advanced supply chain optimization, data is leveraged to improve operational efficiencies, reduce waste and more.
Enabling data-driven decision-making and automation drives efficiencies and streamlines business operations. With Fujitsu Uvance, data can be used to detect and predict changes allowing companies to quickly update their strategy and uncover efficiency opportunities.
Sustainable consumption ensures a better quality of life for present and future generations. Today, consumers prefer sustainable options and purpose-driven brands. However, they need more choices to implement environmentally sustainable everyday habits and consumption patterns.
Sustainable experience
Sustainable supply chain
Intelligent enterprise
Sustainable consumption
Dig deeper...
“The CX programs of the future will be holistic, predictive, precise, and clearly tied to business outcomes. Evidence suggests that the advantages will be substantial for companies that start building the capabilities, talent, and organizational structure needed for this transition. Those that stick with the traditional systems will be forced to play catch-up in the years to come.”
Artificial Intelligence embedded in everything from chatbots to CRM platforms to virtual and voice assistants. We already know AI is here, but the possibilities are still being used to enhance and even transform the CX. According to Gartner, 80% of all customer contacts will take place via artificial intelligence by 2030.
AEON RETAIL is headquartered in Japan and plays a central role in the general merchandise store business of the AEON Group, a major distributor and retailer.
Creating New Shopping Experiences
Tex.tracer is a platform for fashion companies to bring transparency to their supply chain and empower both brands and consumers to make educated decisions.
Tracing Garments Through Supply Chains
United Super Markets Holdings Inc. (USMH) provides consumers with a more enjoyable and stress-free shopping experience by enabling them to make purchases via a Smartphone.
Revolutionizing the CX with Frictionless Checkout
Addressing consumer demands, while doing what is good for business is no easy feat and it can be daunting for retailers to get started. The following are three real-world examples that help make a case for delivering a positive impact CX.
delivering a positive impact CX
With the increasing awareness of the environmental impact of our actions, consumers are looking for ways to consume products and services in a more sustainable manner. Fujitsu Uvance for CX solutions is at the forefront of this movement, working to re-evaluate the way we consume, and explore new ways of exchanging value.
Contact Fujitsu Uvance today and find out how to start your journey to a CX that delivers a positive impact for the consumer, the business and the planet.
Fujitsu Uvance is a Consumer Experience Evolution — with a mission.
Let’s talk
Bringing it all together
What
want
What
want
How to stay
Four pillars for
Good for all:
to develop your offerings
as needs change
.
— John Furner, US Pres. & CEO, Walmart, NRF Opening Session 2023
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However, the common thread that remains regardless of what each trend brings is an underlying opportunity to create a unique consumer experience — one that is so powerful, it brings consumers back to your brand time and time again.
Click here to learn more in the
Fujitsu Uvance Complimentary eBook
$1.298 billion
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Hospitality
Fuel
Quick-service restaurants
Utility
Services companies,
and more
While consumer experience imperatives can create a positive impact for retailers, these initiatives can also support any consumer-based company including:
Explore Endless CX Possibilities
How much do you know about ESG?
More Big Brands Focused on Sustainability (and the ROI)
Hellmann’s is trialing smart mayonnaise jars that indicate when fridge temperatures are at the optimum levels for freshness to help combat food waste.
Nestle will pilot paper-wrapped versions of its four-bar KitKat chocolates across select stores in Australia. Similarly, Kraft-Heinz piloted a paper-based ketchup bottle last year to reduce plastic use.
Adore Me brand has partnered to conduct holistic Life Cycle Assessments (LCA) throughout the product design process and track its catalog’s carbon footprint in near real-time.
Amazon Climate Pledge Friendly Badge:
Unilever Smart Jars:
Nestle and Kraft Heinz Paper Pilots:
Victoria’s Secret Carbon Tracking:
What’s Next in the CX Evolution?
While we don’t know what the future holds or what the next great trend will be when it comes to the consumer experience, we know that change is inevitable. Here’s what to watch in order to stay one step ahead:
Augmented Reality for product visualization, customer support and fully immersive experiences.
Omnichannel enabled by intelligent and ultra-fast technology as the foundation for online and offline convergence, seamlessly connecting people and services for consumer-centric experiences, and more sustainable social impacts.
Ethical Supply Chains empowered by intelligent services supporting the whole shopping and supply chain cycle, i.e. technology that enables the consumer to simply scan a code, then drop the item off at a convenient location and finally get a swift (personalized) notification on their device that their refund has been processed. Both drive consumer satisfaction and loyalty, but also can reduce energy costs and product waste.
Products-as-a-Service and Subscriptions where The Future of Commerce predicts that nearly every product will become available as a service and offer subscriptions to drive consistent bottom lines by 2030.
Interactive Store Fronts where consumers who are passing by can immediately order the displayed items with their smartphone, and have easy access to more product information via QR code. They can even virtually try on products as they walk by via store window screens.
Drones to address last-mile delivery costs and concerns, and even quicker delivery times to meet consumer expectations.
Blockchain for supply chain transparency that cannot be tampered with, leading to easily accessible information for consumers and subsequently fewer returns.
Sustainability in business and the circular economy will continue to rise, due to consumer concerns about the environment and demands that brands do their part.
The well-being of people who remain a high-value resource in any consumer operation. Improving their working experience is critical to success. Supporting consumers by automating tasks and giving employees the ability to focus on more meaningful jobs improves the overall CX.
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Challenge: With the growing demand for more personalized shopping services, it needed a flexible and agile platform for rapid service development and deployment.
Outcome: This cut the lead time of new digital services by half while the introduction of a smartphone app revolutionized the consumer shopping experience.
“By integrating smartphones into our payment infrastructure, we’re redefining the very nature of the retail business.”
— Taiji Sumino, VP of Digital Transformation Dept & Program Manager of DX Dev. Bureau, United Super Markets Holdings Inc.
Challenge: To achieve its transparency goals tex.tracer needed a solution for blockchain development and future managed services.
Solution: A transparency platform called tex.tracer was developed and Fujitsu was chosen for blockchain development and future managed services.
Outcome: Brand owners and retailers now have insight into their supply chains, and consumers can scan QR codes in-store to check the garment’s history, including any ethical and environmental issues.
“We see ourselves as the go-to transparency platform for the fashion industry and are keen to continue working with Fujitsu for the foreseeable future.”
— Jolanda Kooi, Co-Founder and CTO, tex.tracer
Challenge: AEON RETAIL faced challenges such as intense competition, labor shortages, and operational difficulties due to COVID-19.
Solution: AI-based video analysis to monitor in-store congestion, estimate customer ages, identify customers in need of assistance, and support the planning of optimal layouts and product lineups.
Outcome: The system is now being deployed to 76 AEON and AEON STYLE stores across Japan, with plans to integrate with pedestrian-flow simulation technology to enhance the shopping experience. AI-based store operations have also improved customer service for store staff.
“Our mission is to provide our customers with pleasant, safe and secure shopping experiences in the new normal. We're working with Fujitsu to create new shopping models.”
— Minoru Yamamoto, Executive Officer and GM of System Planning Division, AEON RETAIL
What Do Consumers Mean by Transparency?
Q: How do you determine whether a brand or manufacturer is being transparent?
*Source: FMI, Transparency, Health & Well-Being, 2022
59%
Products that make environmental, social and governance-related claims have achieved disproportionate growth:
Products without
ESG*-related claims
Products with
ESG-related claims
4.7
6.4
+ 1.7
percentage points
Retail Sales Growth, US, CAGR 2018-2022 %
Did You Know?
McKinsey and NielsenIQ identified 93 different ESG-related claims that are used in CPG packaging — embodied in terms such as “cage-free,” “vegan,” “eco-friendly,” and “biodegradable”. The claims were divided into 6 classifications:
Animal Welfare
Environmental Sustainability
Organic Positioning
Plant-Based
Social Responsibility
Sustainable Packaging
While 59% of consumers want a complete list of ingredients, 26% want value-based information like animal welfare, fair trade or labor practices, for example (see chart).
Today, industry research tells us that people want to consume products in a better way, and not only does that open the opportunity for retailers to deliver a memorable experience, but it also correlates to being good for business, and simultaneously, good for the planet.
(see chart)
2 in 5 consumers said they purchased more from a brand as the result of personalization, and 37% said they recommended the brand to friends or family.
68% of consumers say personalization increases brand satisfaction significantly.
More than 7 in 10 consumers will shop more often with brands that offer personalization.
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*Environmental, scoial and governance
Source: NielsenIQ
McKinsey & Company
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Sources:
1 – McKinsey and NielsenIQ, “Consumers care about sustainability—and back it up with their wallets”; 2 – Global Focus, “The working world of 2023”; 3 – Insider Intelligence, “The challenges of last mile delivery logistics and the tech solutions cutting costs in the final mile”; 4 – DispatchTrack, “DispatchTrack's 2022 Big and Bulky Last Mile Delivery Report”; 5 – Sailthru, “Retail Personalization Index 2022: Balancing Trust, Data Collection and Privacy”; 6 – Deloitte Digital, “Embrace meaningful personalization to maximize growth.”; 7 – FMI and NielsenIQ, “FMI, Transparency, Health & Well-Being: In an Evolving Omnichannel World, 2022”; 8 – Influencer MarketingHub, “Key Social Commerce Statistics You Should Know in 2023”; 9 – We are social, “Digital 2022: Another Year of Bumper Growth”; 10 – McKinsey, “Prediction: The Future of CX”; 11 – SurveySparrow, “The Future Of Customer Experience: 7 Trends That Will Define It”; 12 – The Future of Commerce, “Customer experience in 2030: This is how it looks"
49%
45%
37%
30%
28%
28%
26%
26%
25%
24%
19%
Social media by the numbers
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Provides a complete list of ingredients
Plain English description of ingredients
In-depth nutritional information
Certifications and claims