Yesterday Salesforce discussed the evolving role of technology at an event dedicated to the future of e-commmerce and retail in Amsterdam. Web3, Generative AI and the Metaverse are set to revolutionize these areas, and the fist examples are already being tested.
“As consumers, we are constantly being bombarded with new products and technologies that claim to revolutionize the way we live, work, and play. But how can retailers and consumer goods companies keep up with these ever-changing trends and technologies while also staying true to their brand values and goals?”, Nino Bergfeld, Retail Advisor at Salesforce, kicked off the event. He has worked with the likes of Adidas, IKEA, and other brands across Europe, helping them navigate the competitive landscape and stay ahead of the curve.
Web3, also known as the decentralized web, is the next evolution of the internet. It promises to create a more open, secure, and transparent digital ecosystem, where users have greater control over their data and online identity. “This new paradigm shift presents a significant opportunity for retailers and consumer goods companies to create more engaging, immersive, and personalized experiences for their customers.”
Another area of innovation that Bergfeld is excited about is generative AI, which uses machine learning algorithms to generate new content, such as images, videos, and music. “This technology has the potential to revolutionize the creative process, allowing companies to generate high-quality content at scale and speed.”
North star
He continues: “Creating a personalized and seamless customer journey has become the North Star for businesses in the retail and consumer goods industry. As consumer behaviors continue to evolve, businesses need to efficiently provide a great customer experience to remain competitive in challenging economic times. While providing a great experience is imperative, businesses also need to focus on driving efficiencies in the post-purchase journey. For example, in the return space, driving efficiencies can be a big area for businesses.”
In today’s market, providing a great experience that is seamless, personalized, and connected across the entire customer journey is an imperative for businesses. It begins with the moment a customer first becomes aware of a product, whether that is through social media or any other marketing channels. From there, it is important to have a connected and seamless journey that involves the website, the store, and any post-purchase interactions.
Customer journey
“As businesses invest more in advertising on social media platforms, customer acquisition costs are increasing. Therefore, businesses must also invest in getting to know their customers through every opportunity they have along the customer journey, including advertising, in-store experiences, mobile apps, and post-purchase interactions. This involves using customer data to create progressive profiling, creating segments, and creating exclusion segments. If a customer is not happy, for example, retargeting them in advertising until the issue is resolved is not a good idea.”
Data is an essential component of creating a great customer experience along the customer journey. “Many businesses are investing lots of money, energy, time, and people to create this experience today. By creating a 360-degree view of the customer, businesses can use customer data to provide a great experience at every stage of the customer journey. This involves collecting feedback data, such as when a parcel is stuck or has been delivered, or a store touchpoint when a customer visits a store.”
New generation
While the status quo is focused on creating a great experience today, it is important to look towards the future. “Generation Z is an emerging target group, with 40% of consumers expected to be Generation Z by 2026. Therefore, it is important for businesses to anticipate the needs of this group and invest in creating a customer journey that resonates with them.”
“These generations have grown up in a world where technology and social media are ubiquitous, and their preferences and expectations are vastly different from those of their predecessors. Big brands like Adidas and Gucci are keenly aware of this shift and are trying to figure out how to engage with these younger demographics.”
Experiences
One key insight that companies are grappling with is that younger generations don’t necessarily need to own things in order to derive value from them. Instead, they place a higher value on experiences, whether that be through renting, sharing, or participating in the sharing economy. This shift is evident in the popularity of services like Airbnb and Uber, which offer access to experiences without the need for ownership.
Furthermore, younger generations are not receptive to traditional product messaging, such as email marketing or advertising. They prefer to seek out information on their own terms, through social media platforms like TikTok and YouTube, where they can engage with influencers and their peers. Companies must adapt their messaging to this reality and find new ways to communicate with these younger demographics.
Challenge
“One significant challenge for companies is the ever-decreasing attention span of younger consumers. With the average attention span estimated to be as low as eight seconds, companies have a very limited window of opportunity to capture their audience’s attention. This means that companies must be creative and strategic in their messaging and delivery to make an impact.”
Another trend that is worth noting is the rise of the Metaverse, where users can immerse themselves in digital environments and experiences. Platforms like Roblox and Fortnite have amassed millions of daily active users, with more than 50% of Generation Z visiting these virtual worlds at least once a day. This trend highlights the importance of creating immersive and engaging experiences that can transcend the physical world and resonate with younger generations.
Ethics
Finally, it’s worth noting that younger consumers place a high value on ethics and social responsibility. “The activism of figures like Greta Thunberg has resonated strongly with younger generations, who are more aware of environmental issues and demand that companies take a stance on these matters. Brands that align with the values of younger consumers are likely to be more successful in engaging with them.”
Companies must therefore adapt to the changing landscape of consumer behavior if they hope to engage with younger demographics effectively. They must shift their focus from product ownership to creating immersive experiences and find new ways to communicate with younger consumers. By embracing these changes and aligning with the values of younger consumers, brands can build a stronger connection with these influential demographics.
