Disruption is inevitable, but retailers that deliver a great experience at every touchpoint will stay
Evolving your consumer experience to stay ahead of
Digital Transformation
personalization
supply chain demands
sustainability
innovation
change
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ahead of the curve.
There are new buzzwords emerging almost daily in the retail industry making it a challenge for executives to decide where to invest their time and effort, in order to achieve the most sustainable business outcomes. 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.
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:
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.
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.
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.
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.”
Products must be certified by one or more of its 18 sustainability certification partners, which can be accessed to receive this badge.
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
about what consumers want
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Read the full case study >
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.
$1.298 billion
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Explore Endless CX Possibilities
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: 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
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
(see chart)
digital transformation
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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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