Experiential Commerce Blending Marketing and e-commerce to Engage and Convert Demanding Consumers

Transcription

1 BUSINESS SOLUTIONS GUIDE: MARKETING AND E-COMMERCE Experiential Commerce Blending Marketing and e-commerce to Engage and Convert Demanding Consumers Unifying the customer experience across.com and online store sites will help marketers and e-commerce teams transform mundane, uninspiring transactions into compelling commerce experiences. This guide will help you set the vision and identify what needs to be done to get there. You ll learn: JJHow to set the vision for unifying the customer experience JJWhy experiential commerce is reliant on product-aligned storytelling JJHow to create cross-channel consistency that accelerates conversions JJThree goals for transformation as you take an iterative approach to experiential commerce

2 BUSINESS SOLUTIONS GUIDE: MARKETING AND E-COMMERCE CUSTOMER EXPERIENCE AS A KEY DIFFERENTIATOR Digital marketing and e-commerce teams have traditionally worked on separate missions. Marketers have been focused on creating higher engagement with the brand, while e-commerce teams have had laser vision on product sell-through and revenues. Unfortunately, the variation in experiences can be so abrupt that customers end up confused and not at all pleased with the friction. Inconsistencies that can result from two-site syndrome that manifests a bit like Dr. Jekyll and Mr. Hyde between the.com experience and the shopping experience are usually due to context vs. function. Consider the glossy magazine-type experience that marketers produce to romance customers as compared to the functional, dry, and inflexible catalog customers encounter when they decide to buy. Shoppers want to do more than simply transact. They want to be able to interact with the brand, explore different product categories, converse with their peers, get tips on how to use a product, and see a product in context. The actual purchase and fulfillment of a product is really just one part of a much broader customer journey that many people are beginning to call experiential commerce. And according to Martin Ryan of Javelin Group Retailers understand that online customer experience has to evolve beyond simple product browse and shopping cart functions. The most valuable customer is inspired by, reassured by, and emotionally attached to a retail brand. Managing the effort to unify the customers shopping and brand experiences requires a concerted effort from marketing and e-commerce teams. Siloed teams and missions need to be aligned, but so do the technologies that often compound the problem. Technology should be seen as the enabler to smoothing channel progression and eliminating the confusion and friction. Collaboration and workflow tools that expand visibility to teams will need to work effectively together and the teams that use them rather than in silos. The Need for a Unified, Compelling Destination There s no doubt that a compelling and unified customer experience is a competitive advantage. In fact, the customer experience may be one of the last and most appealing ways to differentiate a brand in the marketplace. The smart integration and use of the two primary technologies supporting each team Web Content Management (WCM) and e-commerce platforms are critical to eliminating the friction to allow both marketers and e-commerce teams to achieve their goals in concert. Unified experiences will result in a contextually relevant and compelling experience for your customers. Transforming transactional into experiential commerce will support customers throughout the discover, explore, buy and engage stages of their journey, resulting in increases in engagement, revenue and loyalty. 2

3 The Vision and Value for Unifying the Customer Experience As e-commerce and marketing professionals work to unify fragmented customer experiences by incorporating personalized brand stories with transactional e-commerce creating experiential commerce appreciated by customers the WCM and e-commerce platforms in use must help, not hinder, their efforts. It should not go unnoticed that unifying the customers experience begins with unifying the marketing and e-commerce teams. Setting the Vision Making the move from transactional to experiential commerce requires companies to rethink the decades-old models for how they go to market. Recognizing that the product or service is not the primary vehicle for value is the first step in shifting away from a purely transactional focus. As you work to unify customer experiences, a few questions to ask include: J JHow can you create synergies across product lines to provide higher consistency and make the customers experience simpler and more gratifying? J JWhat would it look like to evaluate the cross-channel experience as a whole in its contribution to revenues, rather than the parts that comprise it? Would this contribute to higher cooperation on behalf of the customer? J JHow can operational efficiency based on what matters to the customer also contribute to sales and margins? J JHow will visual elements and relevant content create better experiences that can prove contribution to increased sales, repurchases and customer loyalty? Driving higher traffic, alone, isn t going to solve the customer experience dilemma. The vision for customer shopping experiences must be connected to specific and practical customer-facing business objectives that can align marketing and e-commerce teams. The vision you create will help your company to achieve the differentiation that counts in the eyes of your customers. 3

4 BUSINESS SOLUTIONS GUIDE: MARKETING AND E-COMMERCE The Payoff Is in Transforming the Experience, Not Improving the Transaction Trying to improve a customer experience built on a transactional construct will not provide the differentiation that enables you to establish clear competitive advantage. Transforming the experience is the better choice. Visual engagement, immersive content, and an incremental approach to innovation are three components that will help you do so. Visual Engagement The first component to consider during transformation is the importance of visual engagement. In fact, 92.6 percent of people said that the visuals are one of the top influential factor affecting a purchase decision. 1 They also assess products within 90 seconds of viewing them, making an initial judgment about whether or not to purchase. A standard catalog that doesn t offer contextual relevance will not meet this requirement. The visuals must clearly represent the quality and value of the product and set the appropriate expectations. Twenty-five percent of returns happen because the product was not what the customer was expecting. Design elements, such as slide shows, carousel views, tabs and more presented via a responsive Web design that adapts to screen size and browser on any device are becoming table stakes for earning the shopping customer s attention. Immersive Content It s also interesting to note that 42 percent of consumers are identified as vague consumers. This category represents customers who need more information in order to decide to buy. Consider the benefits of video as part of the experiential shopping process. Fifty-seven percent of people say they re more confident when they see a video prior to purchase and are less likely to return the item. They also stay on your site longer, return more often and buy more. The traditional product catalog, focused on transactions, doesn t allow for the sharing of brand and product stories that are personalized and based on the context of the customer. Flat and static transactions will result in higher cart abandonment, whereas dynamic and interactive digital experiences will produce more profitable engagement due to higher conversions. It also doesn t hurt that increasing amounts of relevant content improve search engine rankings and result in earned media traffic. Incremental Innovation According to Harley Manning, Vice President and Research Director of the Customer Experience practice at Forrester, roughly half of the attendees at Forrester s three customer experience forums in 2013 said that their organizations are in the first phase of the path to CX maturity (repair). Their priority is and for the immediate future will remain finding and fixing broken experiences. 2 4

5 As you work your way through fixing broken experiences, it s important to be proactive about acquiring the capabilities that enable you to transform them. The combination of WCM solutions and e-commerce platforms that are integrated to provide contextual, rich media experiences your customers care about will help you make the transition. A recent survey of ebusiness and channel strategy professionals, conducted by Forrester, indicated that an investment in those two technology platforms trumps all other technology investment priorities. An approach inclusive of these three components will help to bring the vision for a unified customer experience to life, while also delivering the value related to your company s business objectives by weaving products into the stories you share. Experiential Commerce Is Reliant on Product-Aligned Storytelling Some shoppers know exactly what they want others don t. Some are driven primarily by price and availability, whereas others have an emotional attachment to a particular brand that is best addressed through storytelling. Experiential commerce enables marketers and e-commerce teams to supersede the common transaction to create the uncommon experience that customers deserve. Stories can be constructed around virtually any product or collection of products. When products are combined together with rich media as part of a real-life user story, they do a much better job of addressing the practical and emotional needs of the shopper. These stories can include additional lifestyle content and show the product in use in a variety of real-world contexts, including seasonal, current topics and trends that inspire and engage shoppers on a far deeper level compared to scrolling through a long list of unrelated products. Imagine what becomes possible when content and commerce are brought together seamlessly to engage your customers. A static product catalog template that presents standard product specifications, pricing and shopping cart functionality no longer convinces today s customer to buy. In a digital world where they can t touch and feel the product, your site must enable them to visualize its application to their lifestyle or situation. 5

6 BUSINESS SOLUTIONS GUIDE: MARKETING AND E-COMMERCE Product Stories Motivate Customers With the ability to present customers with immersive and inspiring content, such as a video showing them how to use it and why features are valuable, you can create an anchor against which all other options must compete. By immersing them in the product with a story, you allow them the space to create the vision for how the product may impact their reality. This concept is related to neuroscience. According to Uri Hasson, a neuroscientist from Princeton University, a story is the primary way to activate parts in the brain so that a listener turns the story into their own idea and experience. 3 His research also showed that images must be connected to narrative if they are to have any value. Therefore, we now have science to prove that storytelling is the most effective way to create empathy that motivates the interpretation, anticipation and behavior of the listener (shopper). With the ability to embed product stories seamlessly with product and cart information, you ll be able to deliver on the goals of both marketing and e-commerce teams: engagement and conversions. Let s not forget that storytelling is also a social experience. To enhance your product stories and help them spread, including social capabilities such as ratings, comments, discussions and rich media uploads can also motivate buying. By allowing customers to share their stories about your products, you also help new customers see the value of the product through various contextual interpretations. With powerful moderation tools, marketers and channel groups can manage the conversations, maintain the brand and curate the best stories to help your customers visualize the role that your products can play in their lives. The integration of WCM and e-commerce platforms allows your company to develop experiential commerce by sharing compelling stories creating cross-channel consistency to help customers become loyal advocates that bring new business through positive reviews and referrals. Create Omni-Channel Consistency for Every Touchpoint Assuming that your customers know just what to buy can be a missed opportunity that transactional commerce isn t equipped to address. Experiential commerce attempts to understand the shopper throughout their journey and develop an emotional connection that delights, inspires and informs. This is achieved through immersive, contextual and rich media content that unravels the story that connects your brand with consumers. Online shopping experiences are now multi-touch, omni-channel journeys that require context and consistency to motivate conversions. The experience must prevail over the transaction. To attract and inspire buying intent, the experience with your online store must be flexible, fluid and visual. 6

7 According to research by the Custom Content Council, 90 percent of consumers find custom content useful. 4 But, for 61 percent of them, they actually feel better about a company that delivers custom content and are more likely to buy from them. It s important to realize that your customers browsing and buying habits have changed. They are more likely to buy from brands they follow on social media as well as to recommend those brands to their networks. 5 A fragmented experience won t bring this advantage. The challenge this creates for marketers and e-commerce teams is in how to effectively manage both owned and leased Web properties. From the promise made in posts on social media channels that pull consumers back to your online store, to the stories you share about your brand and products when they arrive, the experience must be fluid, consistent and transparent. Blended Content Delivers Content and commerce must be brought together and blended to share a story that engages customers with an experience that motivates conversions. Based on what you know about your customers, the content you serve them must be as closely related to their context as possible. Whether based on a user profile, past purchases or social media activity, the depth of personalization will be a determining factor driving the quality of the customer experience. Product detail pages must go beyond the product features and functions to include rich media, social media such as reviews and ratings instructional videos, support information, and links to related products. By sharing product-aligned stories, your online store will be better equipped to secure conversions, generate up and cross-sell opportunities or enhance the post-purchasing process. Blended, content-rich shopping experiences result in higher sales per transaction, greater loyalty and more vocal advocacy that spreads the word. People follow brands with interesting content. They share experiences that delight them with their social connections. And this word of mouth fuels up to 50 percent of buying decisions. Powerful Design Environments Provide the Flexibility Given the real-time nature of customer experiences, marketing and e-commerce teams need to be able to serve up stellar visual content without waiting in the IT or design agency queue. Visually appealing free-form layout options and a comprehensive catalogue of design elements should be available to help facilitate creative and execution. A platform that separates content from layout and presentation layers means contextually rich stories can be shared along with product and pricing information to maximize the impact and effectiveness of the customer experience with no IT involvement needed. 7

8 BUSINESS SOLUTIONS GUIDE: MARKETING AND E-COMMERCE Responsiveness Is Required These capabilities combined with built-in responsive Web design technologies allow for the creation of modern, experiential commerce on any device or screen size. Tagging and asset management capabilities enable the system to detect the consumer s device in use and deliver relevant, device-specific experience. With this level of flexible design and blended content and commerce, marketing and e-commerce teams will have the speed and predictability that are essential to meeting customer experience expectations at the time of need regardless of the channel and device in use. Set Three Goals and Take an Iterative Approach Making the transition from transactional to experiential commerce can be a challenge. Taking an iterative approach is one way to ensure that the project is successful. Considering that McKinsey & Company finds that, on average, large IT projects run 45 percent over budget and 7 percent over time, while delivering 56 percent less value than predicted, an iterative approach affords a higher probability of success. 6 Being aware of the risk will help you make smarter choices when taking the initiative to remove the friction from the customer experience. When making the transition, there are three goals that will help you to chart your path to transformation; brand consistency, unified experiences, and revenue growth. 1 Brand Consistency Keeping track of a global brand across a myriad of communication channels is key to maintaining its strength, which translates into customer affinity and ultimately sales. However, research from Meaningful Brands has found that the relationship between people and brands is broken. 7 In fact, research that included 700 brands and over 134,000 consumers in 23 countries found that: Most people worldwide would not care if more than 73% of brands disappeared tomorrow. This finding has frightening implications. But marketers and e-commerce teams can rise to the occasion by sharing product-aligned stories that address the context of customers and provide compelling experiences, rather than confusion. By choosing effective and efficient two-way integration between WCM and e-commerce platforms, fluid, visually inspiring and immersive interactions become the norm rather than the exception. 8

9 2 Unified Experiences Customers have a variety of experiences with your brand, including your online store, brand.com site, social media, mobile and customer service. When these interactions are managed in operational silos, experiences become fragmented and confusing for the customer. By their very nature, transactional commerce is focused inside-out, based on what the company considers important, such as process improvements, pricing optimization, order fulfillment, calls to action, and more. The importance of making the shift to experiential commerce is summed up nicely by Peter Sheldon and Stephen Powers of Forrester Research: It is no longer enough to enable an online catalog and transactional e-commerce: Today s marketers want to tell brand and product stories through the deep personalization and contextualization of content and interactive digital experiences. 8 This is also what your customers want. 3 Revenue Growth Improved search engine optimization made possible through blended content will bring higher traffic from earned media at higher levels of engagement. Greater brand awareness and consistency will result in higher conversion rates and revenue that leads to improved customer loyalty. Meaningful Brands finds proof that brands that deliver immersive experiences that customers want have higher financial performance: In addition to outperforming their competitors in traditional brand measures, the top 20% of brands also dramatically outperform financial leaders across a spectrum of industries These are financial advantages that are durable, sustainable and disruptive. 9 Cross-channel consistency creates higher, more sustainable levels of engagement at every touchpoint. Armed with the engagement tools that allow marketers and e-commerce teams to continuously edit and refine the digital customer experience without depending on IT, opportunities for experience-driven conversions can be seized in the moment, not queued up with IT for implementation after the fact. 9

10 BUSINESS SOLUTIONS GUIDE: MARKETING AND E-COMMERCE CoreMedia LiveContext 2.0 If your company would like to overcome the challenges of moving from transactional to experiential commerce with an incremental approach aligned with the three goals above, the solution is available to unify experiences that build brand equity and revenue. Effective brand management, collaborative teamwork and a digital experience hub provide the ecosystem of tools you need for a successful transformation. CoreMedia has engineered its experiential commerce solution CoreMedia LiveContext to effectively address a broad range of digital content and asset management scenarios for IBM WebSphere Commerce and In-house e-commerce platforms. Each system is utilized for its strengths. The e-commerce platform provides a powerful customer interaction platform for cross-channel commerce. And CoreMedia is the expert at delivering engaging, contextual customer experiences across all touchpoints. Working together, these platforms provide a rich experience-driven e-commerce solution to drive brand building and enrich the product catalog, with tools that ensure maximum flexibility of design and layout. You ll also enjoy minimal risk with our Express Deployment Solution that provides a fixed-price, fixed-scope deployment offering to ensure successful implementation within a reasonable timeframe. To learn more more, visit 10

11 About CoreMedia CoreMedia is a leading digital experience (DX) company that has been powering the online strategy of organizations across varied industries for more than 19 years. We partner with our customers to connect them with their audiences wherever they are by seamlessly integrating digital, e-commerce and social media assets, accelerating time to market and increasing the productivity of business users. Our solutions also help transform e-commerce stores by infusing visually compelling and immersive content into the online customer experience, resulting in increased engagement, sales, and loyalty. Established in 1996, CoreMedia is headquartered in Hamburg, Germany, with offices in San Francisco, Washington DC, London and Singapore. CoreMedia s clients include global brands, such as Australian Broadcasting Corporation (ABC), BILD, CLAAS, Continental, Deutsche Telekom, Henkel, Internet Broadcasting, Office Depot and Telefónica Germany. 1 Research study conducted by the Seoul International Color Expo, powerful-local-businesses budget_and_on_value Peter Sheldon and Stephen Powers. Content and Commerce: The Odd Couple or The Power Couple. November Forrester Research, Inc

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