Controlling consumer touchpoints by designing from outside-in

January 21, 2013

Designing from outside-in has been on top of my mind these days and I’ve decided to write about it. If you are in Singapore, this is the Lean UX week! Do catch it if you can.

I’ve decided to cover something a little bit more traditional that I feel people kinda forgot. We talk a lot about user experience (UX), be it a device, website, let alone a service. But I found myself lost about what it really is. So I’m figuring out how to be able to, in baby-steps, design experience in a way that is simple yet effective.

Experience has been especially relevant in this era of free information where it is much more difficult to earn loyalty or simply presence in the minds of consumers. As such, marketing strategies has moved from a one-way communication push to a 2-way conversation. Or better still, one that gets viral.

The big question I’m posing here is; how do we, with limited resources, provide the best experience for a consumer in a way that will translate to brand equity? I think that it is as important to slip in nuances of your identity system so people would link that experience you provide uniquely to your brand. What kind of experiences actually matter uniquely to your consumers? That’s how you earn loyalty. It’s when you OWN a good experience in your customers minds. So in simple terms, today’s formula is;

Customer needs + Brand Promise = Brand experience

As a cumulative process, we have to provide many mini good experiences at all stages of the consumer decision process; that is pre-purchase, purchase and post purchase

purchasedecision

 

In the pre-purchase stage, we are looking at making a good initial impression. Looking professional is the basic requirement for one to consider your product, and this applies to all, from low-cost to premium products. What’s more important here is to create an accurate impression. A visual designer would come handy here to know exactly the kind of visual that would best elicit the right impression to readers at a particular touchpoint. Give a misleading visual + copy; A consumer gets the wrong expectation of the product; He ends up disappointed in your store. Such a bad experience would actually backfire on your credibility simply because you’ve just broken what the audience has perceived as your brand promise.

A good pre-purchase experience would land the brand in the consumers’ consideration list, making them move on to the purchase stage. The idea in the purchase stage is to give the consumer a taste of the product. Common examples include free product samples, test-drives for cars and free trials for software. The challenge here, is making sure that the consumer gets a good experience as how you controlled it to be, even if the consumer did not end up buying it. One could come out from a automobile showroom tweeting either of this two;

1 – “Decided to drop the option of car XXX, doesn’t feel quite right.”

2 – “Car XXX a little too sporty for me. Nice to drive but just not my type I guess :) “

Do you see the difference? Not only is the consumer complimenting but also branding car XXX as sporty. That would probably attract sporty people from that particular consumer’s network. The potent for network marketing is probably the reason why companies invest so much in making stores look good and that the staff are well trained to preach the brand promise. Starbucks scores in this area I would say. For sure their coffee is not the best in my list. From their friendly staff that would remember your name to the lucky 100th customer that gets a free drink ( I got it twice already!). These are simply but well-thought experiences that are within the provider’s control.

brand_touchpoint_wheel

Controlling post-purchase touchpoints entails delivering on your brand promise. Exceed the customers’ expectation beyond usage and performance. A lot of companies under leverage post purchase touchpoints. Increase your brand loyalty through say, efficient after sale services, loyalty coupons, newsletters, or anything to delight your customers. Invest in your customers for they are a strong marketing tool. This will get you not only repeat purchases but also customers endorsing and recommending your brand to others. Such brand equity is key to sustainable and profitable growth to any company.

designoutside-in

To sum everything up, I conclude with the notion of designing from outside-in, something I’m still trying to fully grasp - a design process that is user-centered and focused on brand experience. Be in control of the important consumer touchpoints and slip in nuances of your brand promise to increase brand equity.

Source;

Harmonizing your ‘Touchpoints’ by Scott Davis and Tina Longoria

The consumer decision journey – McKinsey Quarterly


Shifts in Retail Demand New Analytics

October 15, 2012

Our benchmark research into retail analytics says that only 34 percent of retail companies are satisfied with the process they currently use to create analytics. That’s a 10 percent lower satisfaction score than we found for all industries combined. The dissatisfaction is being driven by underperforming technology that cannot keep up with the dramatic changes that are occurring in the retail industry. Retail analytics lag those in the broader business world, with 71 percent still using spreadsheets as their primary analysis tool. This is significantly higher than other industries and shows the immaturity in the field of retail analytics.

While in the past retailers did not need to be on the cutting edge of analytics, dramatic changes occurring in retail are driving a new analytics imperative:

Manufacturers are forming direct relationships with consumers through communities and e-commerce. These relationships can extend into the store and influence buyers at the point of purchase.  This “pull-through” strategy increases the power and brand equity of the supplier while decreasing the position strength of the retailer. This dynamic is evidenced by JC Penney, which positions itself as a storefront for an entire portfolio of supplier brands. Whereas before the retailer owned the relationship with the consumer, the relationship is now shared between the retailer and its suppliers.

What this means for retail analytics: Our benchmark research shows retail has lagged behind other businesses with respect to analytics. Given the new co-opitition environment with suppliers, retailers must use analytics to compete. Their decreasing brand equity means that they need analytics not just for brand strategy and planning, but also in tactical areas such as merchandising and promotional management. At the same time, retailers are working with ever-increasing amounts of data that is often shared throughout the supply chain to build business cases and to enrich customer experience, and that data is ripe for analysis in service to business goals.

E-commerce is driving a convergence of offline and online retail consumer behavior, forcing change to a historically inert retail analytics culture. As we’ve all heard by now, online retailers such as Amazon threaten the business models of showroom retailers. Some old-line companies are dealing with the change by taking an “if you can’t beat ’em, join ’em” approach. Traditional brick-and-mortar company Walgreens, for instance, acquired Drugstore.com and put kiosks in its stores to let customers order out-of-stock items immediately at the same price. However, online retailers, instead of looking to move into a brick-and-mortar environment, are driving their business model back into the data center and forward onto mobile devices. Amazon, for instance, offers Amazon Web Services and Kindle tablet.

What this means for retail analytics: There has historically been a wall between the .com area of a company and the rest of the organization. Companies did mystery shopping to do price checks in physical trade areas and bots to do the same thing over the Internet. Now companies such as Sears are investing heavily to gain full digital transparency into the supply chain so that they can change pricing on the fly – that is, it may choose to undercut a competitor on a specific SKU, then when its system finds a lack of inventory among competitors for the item, it can automatically increase its price and its margin. Eventually the entire industry, including midtier retailers, will have to focus on how analytics can improve their business.

Retailers are moving the focus of their strategy away from customer acquisition and toward customer retention. We see this change of focus both on the brick-and-mortar side, where loyalty card programs are becoming ubiquitous, and online via key technology enablers such as Google, whose I/O 2012 conference focused on the shift from online customer acquisition to online customer retention.

What this means for retail analytics: As data proliferates, businesses gain the ability to look more closely at how individuals contribute to a company’s revenue and profit. Traditional RFM and attribution approaches are becoming more precise as we move away from aggregate models and begin to look at particular consumer behavior. Analytics can help pinpoint changes in behavior that matter, and more importantly, indicate what organizations can do to retain desired customers or expand share-of-wallet. In addition, software to improve the customer experience within the context of a site visit is becoming more important. This sort of analytics, which might be called a type of online ethnography, is a powerful tool for improving the customer experience and increasing the stickiness of a retailer’s site.

In sum, our research on retail analytics shows that outdated technological and analytical approaches still dominate the retail industry. At the same time, changes in the industry are forcing companies to rethink their strategies, and many companies are addressing these challenges by leveraging analytics to attract and retain the most valued customers. For large firms, the stakes are extremely high, and the decisions around how to implement this strategy can determine not just profitability but potentially their future existence. Retail organizations need to consider investments into new approaches for getting access to analytics. For example, analytics provided via cloud computing and software as a service are becoming more pervasive help ensure they meet the capabilities and needs of business roles. Such approaches are a step function above the excel based environments that many retailers are living in today.

thanks to http://tonycosentino.ventanaresearch.com/2012/10/12/shifts-in-retail-demand-new-analytics/

 


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