Customer Experience | Digital Commerce 360 https://www.digitalcommerce360.com/topic/customer-experience/ Your source for ecommerce news, analysis and research Fri, 02 Jun 2023 21:42:30 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://www.digitalcommerce360.com/wp-content/uploads/2022/10/cropped-2022-DC360-favicon-d-32x32.png Customer Experience | Digital Commerce 360 https://www.digitalcommerce360.com/topic/customer-experience/ 32 32 Generative AI will change the B2B customer experience as we know it https://www.digitalcommerce360.com/2023/06/01/generative-ai-will-change-the-b2b-customer-experience-as-we-know-it/ Thu, 01 Jun 2023 18:20:53 +0000 https://www.digitalcommerce360.com/?p=1045709 There was the world before ChatGPT, and there is the world after ChatGPT. In fact, ChatGPT’s emergence is being hailed as the next Industrial Revolution. With over a billion visitors per month, this generative AI tool is being rapidly adopted in fields ranging from creative industries like graphic design and content writing to more technical […]

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MaeveCondell-Ultimate-ai

Maeve Condell

There was the world before ChatGPT, and there is the world after ChatGPT.

In fact, ChatGPT’s emergence is being hailed as the next Industrial Revolution. With over a billion visitors per month, this generative AI tool is being rapidly adopted in fields ranging from creative industries like graphic design and content writing to more technical roles such as software development. Its potential has continued expanding into other arenas, including customer support.

A virtual agent that uses generative AI can seamlessly mimic your brand tone of voice.

No doubt, generative AI is the future of CX. And with 88% of business leaders reporting that their customers’ attitudes towards automation have improved over the past year — it’s no longer a matter of if you should look to automate your support but when.

The benefits for B2B ecommerce brands are clear. Since 80% of customers identify CX as a key differentiator and think it is just as important as products or services, gen AI is a crucial way to improve your customer support offering and get a leg up on your competitors. Yet, because this technology is relatively new, and many B2B companies have more complex product packages and setups, you may still be wondering how, in practice, generative AI can enhance your customer support.

First, let’s take a look at what makes generative AI tools like ChatGPT so much better than their predecessors in simulating human-like conversations. From there, we can better understand how this technology can optimize your customer support.

Generative AI’s technology and how it works

Before we explore some of the best use cases for generative AI in the B2B ecommerce support context, it’s a good idea to understand what the technology is and how it works. Gen AI refers to the particular iteration of artificial intelligence that powers tools like ChatGPT — as well as a growing host of other bots like DALL-E, Google’s Bard, and MidJourney. Gen AI is distinct from previous forms of automation because it enables bots to hold impressively natural conversations. This is because generative AI draws on large language models (LLMs) that, in the case of ChatGPT, have even passed the Turing test, a method of proving machine intelligence.

But what exactly is an LLM and why is it so revolutionary in the AI space? What sets these models apart is the use of “transformers” (as if there wasn’t already something so sci-fi and “Marvel-esque” about this technology). Transformers effectively in mimic human conversational style because they can process all inputs simultaneously rather than needing to be fed data sequentially. This means that, in the case of ChatGPT, the bot can process all of the written content on the internet (up until 2022) to generate the answer to a given prompt. This holistic processing capability allows it to produce responses with the context and tone you expect when talking with a regular person.

As you might have guessed by now, this can be especially useful for customer support automation. This is because a virtual agent that uses generative AI can seamlessly mimic your brand tone of voice as well as the conversational style of your human agents. As a result, you can offer an improved conversational experience for customers, make your support agents’ lives easier, and provide your customers with more than ever before.

The top 3 generative AI use cases revolutionizing CX in the B2B space:

1 – A more advanced conversational experience for customers

With generative AI offering such natural and human-like conversations, you don’t have to worry about automation damaging the customer experience with your brand. With the help of generative AI, the virtual agent can instantly pull info from your FAQ pages, knowledge base, help center, or any other company page — and serve this to customers in a natural, conversational way. There’s no training required, and you can get started in minutes.

As long as a topic is covered in your help center, the bot can process all of the articles available to answer customer queries. So, if a customer asks, ‘Where can I find and download my last invoice?’ the bot can instantly provide instructions.

In this scenario, your customers can have their cake and eat it too — by getting the information they need much more quickly through self-service, without losing the conversational format of speaking with a human agent. This will boost your automation rate, while ensuring that your customers still feel supported with high quality customer service.

2 – Assisting support agents

While a virtual agent powered by generative AI may be able to effectively do the work of several human agents, it doesn’t mean that they will be replacing them anytime soon. Rather, automation serves as a tool that can help agents to do their jobs better. For instance, a virtual agent that uses generative AI can offer a more seamless transition from bot to human agent by helping to structure, summarize, and automatically populate tickets so agents don’t have to. This will lead to much faster response times and a cleaner handover to agents in cases the bot can’t fully resolve. In addition, agents can prompt generative AI to offer suggested replies that help them to draft responses more efficiently.

These things can be a major game-changer in the event of an uptick in queries, unexpected or otherwise. This makes automation useful for answering simple questions like order status or requesting a password change. It also helps to free up agents’ time to deal with more complicated issues. For B2B ecommerce brands where queries can be complex and technical, having a primer from the bot allows agents to hit the ground running when addressing customer issues. With the help of generative AI, the bot assists your agents in having better and faster insights into customers’ needs and helps your team work more efficiently.

3 – Understanding your customers and what they’re asking

Lastly, generative AI will help you to educate your customers and offer them even more value than they were expecting from interactions with your support team. Businesses often shop around between different suppliers before making a purchase, so you want them to discover the unique selling point of your product offerings as quickly as possible. This discovery process is where generative AI comes in. It can comb your existing content to offer useful, educational suggestions to answer any pre-purchase questions. It can also provide such content to busy support agents when prompted. Through the transformer model that powers it, generative AI can instantly serve up this information without needing to be manually updated as you publish new content on your site.

Conclusion

Generative AI is the latest and most sophisticated edition of automation technology, and it has real potential to optimize the B2B customer experience. In particular, it has the capacity to mimic natural conversations, assist your agents in structuring support tickets, and provide customers with an enriched support experience — all without hiring any extra agents. It’s a time-efficient, affordable, and scalable solution to mitigating long wait times, depersonalized CX, and clunky self-service offerings. While the technology may be new, the sky is hardly the limit on its potential for supercharging your CX as the number of applicable use cases only continues to grow.

About the author:

Maeve Condell is a solution architect at Ultimate, a customer service automation company. Her focus is on combining AI and conversation design to build personalized virtual agents.

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New personalization survey shows consumers are reluctant to share much with retailers https://www.digitalcommerce360.com/2023/05/22/new-personalization-survey-shows-consumers-are-reluctant-to-share-much-with-retailers/ Mon, 22 May 2023 19:28:50 +0000 https://www.digitalcommerce360.com/?p=1045148 Retailers have the capacity to create a fine-tuned shopping experience for consumers based on personal information — but should they? Consumers currently do not feel comfortable sharing much beyond gender, what city they live in, how much they’re willing to spend on an item, and their age, according to a personalization survey conducted by CI&T […]

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Retailers have the capacity to create a fine-tuned shopping experience for consumers based on personal information — but should they? Consumers currently do not feel comfortable sharing much beyond gender, what city they live in, how much they’re willing to spend on an item, and their age, according to a personalization survey conducted by CI&T in March 2023.

More than half (52%) of respondents said they prefer that a retailer personalize the shopping experience for groups of similar customers. 48% said they preferred that a retailer personalize the shopping experience to each individual.

Most customers (58%) said they believe data sharing is necessary for brands to provide a personalized experience. 87% of respondents want to be asked for their permission to collect personal data first. Only 13% said it was not important to them to be asked.

A significant portion (42%) of respondents said they do not believe sharing their personal information, whether intentionally or without permission, is necessary for a retailer to personalize their shopping experience.

CI&T, a software and digital consultancy company, surveyed 542 U.S. consumers in March 2023. Respondents were selected to be representative of the demographics of the U.S. population.

Consumers don’t want to share much information about themselves

Consumers are reluctant to share information beyond:

  • Gender: 14%
  • What city they live in: 14%
  • How much they are willing to spend on an item: 11%
  • Age: 11%
  • Who they are shopping for: 10%

Only 8% said they’d be OK with a retailer knowing their shopping history at the retailer’s physical store, or their browsing history on the retailer’s digital channels such as a mobile app or website (7%).

Topping the list of what information consumers do not want retailers to know:

  • Annual household income: 19%
  • How large the household is: 12%
  • Browsing history at this retailer’s physical stores: 11%
  • Race: 11%

Consumers are more likely to share information related to what products they want to buy. When asked which of the following consumers wish retailers knew about them when shopping with the retailer:

  • The sizes I usually fit in best: 17%
  • The styles I prefer to wear: 16%
  • The price point that is most aligned with how I spend: 15%
  • What I’ve bought from them in the past: 13%
  • The color scheme/schemes I prefer: 11%

According to survey author Melissa Minkow, director, retail strategy, “while there is sufficient demand for personalization, achieving it in the most-privacy-respecting way possible is imperative,” she wrote in the report.

While survey respondents said they wanted personalization geared toward similar groups of consumers rather than individual shoppers, 22% said they would share personal information in exchange for a product type, color or style developed just for them with the exact specifications they’d want. 21% said a search process that is quick and oriented to precisely what they are looking for would be an incentive to share data. And 20% cited a personalized price point.

“Consumers will gladly welcome ‘good’ prices,” Minkow said in the report.

Consumers want options

Respondents also said they do not want to miss out on options should they opt for a personalized shopping experience. 47% said they’d like to see the “same web page everyone sees, and then allow me to navigate to the type of item I’m looking for after I select a few filters,” such as price or color.

Only 15% said they’d want to see a retailer’s homepage with personalized options.

Categories that consumers said they would prefer to have a personalized experience:

  • Apparel and accessories: 17%
  • Personal care (body wash, razors, hair brushes): 13%
  • Beauty (cosmetics): 12%
  • Electronics: 12%
  • Grocery: 12%

Human interaction vs. chatbot

Overall, consumers slightly preferred interacting with humans over artificial intelligence when it came to:

  • Apparel/accessories: Fit and sizing experience.
  • Electronics: Differences between brands.
  • Grocery: Recipes and brands, or finding the least expensive ingredients.

Categories where consumers were comfortable interacting with a chatbot as much or nearly as much as a human:

  • Household goods: Explanations of chemicals used in manufacturing.
  • Furniture and appliances: Interior design consultations.
  • Personal care consultations: Ingredient explanations and suggestions.
  • Beauty consultations: Color match appointments for foundation and concealers recommendations, or makeup lessons.
  • Pet supply consultants: Suggesting the right food or toys.

What retailers can do to entice shoppers to share information

Retailers can incentivize providing data by building exclusive content, creating limited product ranges, offering unique services, and launching early drops for shoppers who share more personal information, Minkow said.

“Right now, the best examples I’ve seen are Nike and Levi’s,” she said. Levi’s Red Tab loyalty program prompts shoppers to answer a few questions for Levi’s to suggest relevant products.

 

Levi's red tab loyalty program

Levi’s engages with consumers through its Red Tab loyalty program by asking questions to tailor the shopping experience.

“The more consumers engage with these brands by giving up more information about them through their loyalty programs [as well as outside loyalty programs], the more tailored and interactive the shopping experience,” Minkow said.

Consumers want options. Minkow warns retailers to be careful not to suggest that the customer bypass certain products “because consumers seem to worry that personalization may lead to shortcuts that omit products they would want to see,” she said.

Instead, when asking for data, retailers could explain the benefits such as “this will allow us to show you more items you might be interested in.”

Or, for omnichannel shoppers interested in buy online, pick up in store (BOPIS), “if you’re solely open to picking up in store today, sharing your location with us will ensure we only show you items in stock at the stores within the amount of miles from you that you’ll accept.”

Using AI to personalize the shopping experience

Survey respondents are open to interacting with AI chat bots. Minkow said pricing models offering personalized discounts are another example of how technology can power the type of personalization consumers want.

“Sizing suggestions and styling recommendations leverage technology to facilitate personalization as well,” she said.

She warns that once a problem arises that cannot be easily resolved by a chatbot, the conversation should be handed to a customer service agent immediately.

“Too much friction can be created when a problem is handled by technology for longer than it should be, which would result in an abandoned shopping cart and/or not returning post-purchase to the retailer,” she said. “There should be an automatic threshold wherein if a customer has been interacting with technology for a certain amount of time, a service agent is automatically triggered to step in.”

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Take the Power of Search Into Your Own Hands https://www.digitalcommerce360.com/webinar/take-the-power-of-search-into-your-own-hands/ Mon, 15 May 2023 16:23:36 +0000 https://www.digitalcommerce360.com/?post_type=webinar&p=1044588 In the webinar “Take the Power of Search into Your Own Hands,” Kendra Guersoy, Sr. Solutions Consultant at Bloomreach, and Emily Snyder, Sr. Director of Merchandise Planning at Mejuri, will discuss strategies and techniques for businesses to maximize the potential of their search engine. They will share top tips and tricks on utilizing search to […]

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In the webinar “Take the Power of Search into Your Own Hands,” Kendra Guersoy, Sr. Solutions Consultant at Bloomreach, and Emily Snyder, Sr. Director of Merchandise Planning at Mejuri, will discuss strategies and techniques for businesses to maximize the potential of their search engine. They will share top tips and tricks on utilizing search to build customer loyalty and drive revenue growth, covering topics such as search engine algorithms, recommendation optimization, and curating exceptional customer experiences. Attendees can gain valuable insights to take control of their search strategies and propel their brands to success.

ALL attendees will receive a 2022 Digital Commerce 360 research report — the 2022 Leading Vendors to the Top 1000 Retailers (a $399 value). Note, only retailers, consumer brands, manufacturers and distributors are eligible for the complimentary report and subject to approval.

Sponsored by:

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For GearSource.com, the live event must go on https://www.digitalcommerce360.com/2023/05/02/for-gearsource-com-the-live-event-must-go-on/ Tue, 02 May 2023 15:04:06 +0000 https://www.digitalcommerce360.com/?p=1043813 GearSource.com has been around since 2002, but the online global marketplace of equipment for the entertainment industry hasn’t thought of itself as a tech firm. But that’s changing now that GearSource is using a high-performance platform and preparing to roll out new services. “I would say I wasn’t brought up as a tech founder, I […]

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GearSource.com has been around since 2002, but the online global marketplace of equipment for the entertainment industry hasn’t thought of itself as a tech firm. But that’s changing now that GearSource is using a high-performance platform and preparing to roll out new services.

Sixty to 70% of our transactions involve more than one currency.
Marcel Fairbairn, CEO
GearSource.com
MarcelFairbairn-GearSource

Marcel Fairbairn, CEO, GearSource.com

“I would say I wasn’t brought up as a tech founder, I was brought up as a pretty normal, boot-strapping business guy,” says chief executive Marcel Fairbairn, who launched the business in 2002.

That approach has worked well for GearSource, which gets 70% of its orders through online searches and the remaining 30% through live customer service. Relying mostly on email and word of mouth to build business, revenue growth averaged 5% to 7% annually without acquisitions, says Fairbairn, who won’t reveal actual numbers.

“Everything we’ve done is organic,” he says. “We’ve been profitable almost every year.” The only exceptions were in 2008 in the wake of the economic crash and more recently in the fallout from the COVID-19 pandemic.

Customers range from the Super Bowl to Google and Apple

GearSource provides all manner of lighting, audio, video, staging and rigging, and related equipment to vendors servicing live entertainment venues. Ultimate users have included touring bands and mega-events such as Super Bowl half-time shows, and occasionally such large companies as Google and Apple.

More typical purchasers are companies working with nightclubs, other smaller entertainment venues, and wedding-reception halls. In one notable instance of GearSource working in what Fairbairn calls “very high-touch mode,” the country-music star Morgan Wallen needed 100 rare lighting fixtures ASAP. GearSource found them in Singapore and got them delivered to Nashville in six weeks — a quick turnaround given the logistics involved.

GearSource works both ways, providing vendors with the equipment they want and as a market for disposing of equipment no longer needed by the original buyer. In all, GearSource claims 40,000 users, including 5,000 to 6,000 active sellers offering 933 brands and between 30,000 and 60,000 products, according to Fairbairn.

“I would venture a guess that about 98% of our business is B2B,” he says.

GearSource focusing on fast growth

GearSource’s parent company, GearSource Holdings LLC, is based in Miami, but its 17 employees are fully remote. Most are in the United States, with some in Canada, Europe, and Asia.

Now GearSource aims to grow revenue by 10 to 20 times over current levels in three to five years, Fairbairn says. To do that, it’s going to ramp up search and email marketing, employ some unspecified “in-person branding opportunities,” and possibly return to trade shows, which it used in the past but hasn’t recently.

The company shifted into a higher gear recently after  a larger marketplace expressed interest in acquiring it. No deal materialized as GearSource’s would-be acquirer itself became acquisition bait. But the suitor’s interest prompted Fairbairn and his team to take a close look at their operations and business model. They soon saw untapped growth potential.

The platform clearly needed improvements. GearSource had used an in-house platform for 15 years, until 2020, when it was replaced by one developed by a third-party vendor augmented by various plug-ins and custom coding. But while the new platform had some strengths, order documentation sometimes took 30 to 40 seconds to pull up, and it had difficulty handling complex orders,  Fairbairn says.

“We were on a Frankenstein platform,” he says.

Managing a complicated marketplace

There’s no lack of complex orders on GearSource. The marketplace operates in 100 countries, thus “we’re a very complicated marketplace,” says Fairbairn. “Sixty to 70% of our transactions involve more than one currency,” he says, adding that all settle in U.S. dollars. The average transaction is $18,000. The company also has to track taxes and logistical data.

Enter New York City-based Nautical Commerce Inc., a multi-vendor marketplace platform founded in 2020. CEO and founder Ryan Lee had done stints at Apple Inc., where he worked on the Apple Pay payments service, and at Visa Inc. in new products and business development. GearSource decided to take a chance, signing on with the newbie last May and going live on Nautical’s platform in November.

So far, so good

“Speed is one of them,” he says when asked about Nautical Commerce’s advantages. Other improvements include better dashboards and reconciliation processes. “The information is more accurate, the dashboards are very clean and simple,” he says. The platform also gives GearSource customers the ability to create so-called micro-marketplaces for their own customers within the GearSource site, he says.

GearSource accepts credit cards through payment processor Stripe Inc., but most of its transactions are wire transfers processed through Nautical Commerce. GearSource charges fees to sellers based on order size and frequency.

Next up, within a couple of months, is the planned launch of a freight-brokerage subsidiary dubbed GearMoves to handle customers’ transportation and logistics needs throughout GearSource’s global footprint. Buyers will continue to be able to use sellers’ shippers or third-party shippers, but GearMoves will provide another option, says Fairbairn. Also in the works, though Fairbairn isn’t ready to give details, is a software-as-a-service (SaaS) offering.

All of this is part of a drive to keep his online market a go-to place for equipment buyers and sellers. “The show must go on is the overriding theme in our industry,” Fairbairn says.

B2B Ecommerce Handbook

This article is part of special report, B2B Ecommerce Handbook: Formulas for Digital Growth, which is available at no cost from Digital Commerce 360.

Jim Daly is a Mount Prospect, Illinois-based freelance journalist covering business and technology.

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Conversion Rates for Retail: Best Practices & How to Improve ROI https://www.digitalcommerce360.com/industry-resource/conversion-rates-for-retail-best-practices-how-to-improve-roi/ Fri, 21 Apr 2023 15:27:18 +0000 https://www.digitalcommerce360.com/?post_type=whitepaper&p=1043035 Conversion rates are largely unchanged from 2022 and there seems to be little in the data to suggest that rates will move much one way or another in 2023. For now, the challenge—and urgency—for retailers is to hold the line while seeking incremental gains. Turn to Digital Commerce 360’s latest report, Conversion Rates for Retail: […]

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Conversion rates are largely unchanged from 2022 and there seems to be little in the data to suggest that rates will move much one way or another in 2023.

For now, the challenge—and urgency—for retailers is to hold the line while seeking incremental gains.

Turn to Digital Commerce 360’s latest report, Conversion Rates for Retail: Best Practices & How to Improve ROI, to receive expert analysis and advice on several types of online experiences that prompt a shopper to purchase, including product offerings, customer service, website design, price and shipping, and the payment and checkout experience.

This report also includes 3 data-packed charts with exclusive insights directly from the shoppers themselves.

Compliments of: Signifyd, Melissa, Vizit, Algolia, Insider

042123_DC360_ConversionRates_KFR_TOC

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New UPS shipping report shows consumers and retailers face similar frustrations https://www.digitalcommerce360.com/2023/04/18/ups-shipping-report-retailers/ Tue, 18 Apr 2023 17:29:54 +0000 https://www.digitalcommerce360.com/?p=1042626 UPS released a new report on shipping, and it shows consumers prioritize fast shipping and communication from retailers. The report is based on surveys of 500 ecommerce businesses and 1,000 online shoppers in the U.S.  Customers say bad shipping can ruin a good experience Consumers told UPS that fast and reliable shipping is key for […]

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UPS released a new report on shipping, and it shows consumers prioritize fast shipping and communication from retailers.

The report is based on surveys of 500 ecommerce businesses and 1,000 online shoppers in the U.S. 

Customers say bad shipping can ruin a good experience

Consumers told UPS that fast and reliable shipping is key for being happy with purchases. 90% of those consumers said shipping quality accounts for at least half of their online shopping experience.

Negative experiences happen periodically, according to the report. 71% of consumers said they had contacted customer service for an online order in the last year for shipping or delivery issues. Late deliveries were the most common reason to contact customer service, with 39% having cited this reason. Close behind, 36% of customer service interactions were due to lost orders that were never delivered. That was followed by damaged products (27%), late shipment (21%), and stolen orders (11%).

Consumers have clear expectations

Customer responses largely showed a desire for fast, inexpensive shipping, and up-to-date communication from retailers. 87% of consumers told UPS that they’d be more likely to buy from a specific retailer if they could personalize shipping, like choosing the arrival day and tracking packages.

UPS also asked consumers what delivery offerings they were most interested in. Respondents could select multiple offerings. Just over half, 52%, wanted the option to choose between standard and expedited shipping. 51% wanted the ability to select a specific date for deliveries; 42% also wanted to be able to select time of day.

Convenience of picking up and dropping off packages was also a consideration for many consumers. 45% wanted the option to return online orders in a variety of ways, including dropping off in stores and pre-printed labels. 29% want the choice of local pickup locations for orders, like a UPS store or retail location. Required signatures (22%) and sustainable shipping (22%) rounded out the list.

Digital Commerce 360’s August 2022 consumer poll found similar results about the importance of shipping quality and communication to customers. 76% of the 1,116 consumers surveyed ranked free shipping as one of the three most important factors in online shopping, more than any other option. Delivery speed was a distant second place at 43%. 33% said quality customer service was also a factor. Returns were also a factor in this survey, with 25% prioritizing free return shipping, though just 3% selected a physical store for returning orders.

Retailers face shipping challenges

Ecommerce businesses UPS surveyed said they were facing challenges providing these services to customers.

41% of retailers told UPS the reliability of shipping carriers was a top factor negatively impacting their business, and 26% named package theft. 27% said it was “difficult to manage shipments and ensure a consistent, positive shipping experience across multiple marketplaces and carriers.”

81% of the retailers UPS surveyed sell products across at least two marketplaces, with nearly half (42%) selling on four or more. That introduces another level of complexity into shipping. 41% of retailers said shipping requirements, like delivery timelines, were among the most difficult aspects to manage across multiple marketplaces. 38% named processes for lost or stolen deliveries, and 31% said return policies were among the most difficult. Delivery status updates are particularly difficult for 28% of retailers, while 26% named marketing and 20% cited fulfillment requirements.

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The No. 1 reason you need to deploy digital self-service technology https://www.digitalcommerce360.com/2023/04/10/the-no-1-reason-you-need-to-deploy-digital-self-service-technology/ Mon, 10 Apr 2023 13:00:50 +0000 https://www.digitalcommerce360.com/?p=1041839 The most important reason you need to implement digital self-service technologies now is that we live in an increasingly digital-native world.  This shift is quickly changing customer expectations and how they want to do business. According to a recent report by technology research and advisory firm Gartner Inc., “Digital-native expectations will influence every industry, and […]

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Kristina Harrington, CEO, GenAlpha Technologies

Kris Harrington

The most important reason you need to implement digital self-service technologies now is that we live in an increasingly digital-native world.  This shift is quickly changing customer expectations and how they want to do business.

If you don’t adopt some of these new ways of doing business, you will exclude a growing population of customers and employees.

According to a recent report by technology research and advisory firm Gartner Inc., “Digital-native expectations will influence every industry, and companies that ignore them will be left behind.”

In order to stay competitive and meet the expectations of your customers, you must implement digital self-service solutions that provide convenient, accessible, and efficient information to your customers.

So, what do we mean when we talk about digital natives and living in a digital-native world?

To explain this trend, it’s crucial to understand the differences between a digital native and a native analog. A digital native (or person born after 1995) is typically defined as someone born after the widespread adoption of digital technologies, such as the internet and mobile devices. This means that they have grown up with technology as a part of their daily lives and may be more comfortable using digital tools for a variety of purposes.

A native analog (sometimes called a digital immigrant and a person born before 1995) is someone who was born before the widespread adoption of digital technologies. They may have had to adapt to using new technologies as they were developed rather than growing up with them as a part of their daily lives.

Please note these terms are not concrete. There are many factors that can influence how comfortable someone is with using technology, such as access to digital tools, education level, and personal preferences. Generally speaking, these terms help us to understand the changes we are experiencing in the world today.

If we think about the rise of digital natives, we can use various examples to illustrate how a digital native may behave differently from a native analog.

Think about how you’ve changed your business to adapt to these new behaviors:

1. Shopping habits

Digital natives are more likely to shop online, using their smartphones and other digital devices to research and identify the right products, compare prices, and make purchases. Native analogs, on the other hand, may prefer to shop in a physical dealership or depot and use printed manuals or brochures to research products.

2. Communication

Digital natives are more likely to communicate via digital channels, such as social media, instant messaging, and email. They also prefer short-form content, such as memes and emojis, over longer-form written communication. Native analogs, by contrast, may prefer face-to-face conversations, phone calls, or even written cards and letters.

3. Education

Digital natives often learn differently from analog natives, using digital tools like online courses and interactive educational software. They may also be more comfortable with self-directed learning and less reliant on traditional lecture-style instruction. Analog natives may prefer a more structured, teacher-led approach to education.

4. Work style

Digital natives often have a different work style, favoring remote work, flexible schedules, and digital collaboration tools (Slack, Zoom, Teams, etc.). They may also be more comfortable with a less hierarchical work environment and less formal communication. Native analogs may prefer a more structured in-person work environment with clear hierarchies and more formal communication.

5. News consumption

Digital natives often get their news from online sources, such as social media and news websites, and are more likely to fact-check and verify the information before sharing it. Native analogs may be more likely to get their news from traditional print media and may be less skeptical of the information they encounter.

6. Entertainment

Digital natives consume entertainment differently from analog natives, often streaming movies and music online. They also tend to prefer short-form content, such as YouTube videos and social media stories, over longer-form content, like feature films or albums.

One example of how the world has become increasingly digital is the widespread adoption of smartphones and mobile devices. According to a report by Pew Research Center, 85% of adults in the United States now own a smartphone. This figure is even higher among younger generations, with 96% of adults aged 18-29 owning a smartphone. The adopted use of smartphones and other mobile devices has fundamentally changed how people interact with each other, with businesses, and with the world around them.

These are just a few examples, but they illustrate how the rise of digital natives has transformed consumer behavior, workplace culture, and even how we learn and communicate. They also demonstrate that if you don’t adopt some of these new ways of doing business, you will exclude a growing population of customers and employees.

Digital self-service solutions are essential in today’s digital native world. It’s more important than ever to implement these solutions now.

About the author

Kristina Harrington is the co-founder and CEO of GenAlpha Technologies, which provides digital commerce technology for manufacturers. Prior to GenAlpha, Kris worked for more than 10 years in leadership positions at two large multinational original equipment manufacturers, Bucyrus International and Caterpillar, supporting the mining industry. In her various positions, she worked with internal stakeholders, dealers, and customers to deliver business results both in aftermarket and equipment sales. She can be reached at kharrington@genalpha.com.

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Why some retailers use — and avoid over-using — stores as fulfillment locations https://www.digitalcommerce360.com/2023/04/04/why-some-retailers-use-and-avoid-over-using-stores-as-fulfillment-locations/ Tue, 04 Apr 2023 12:00:05 +0000 https://www.digitalcommerce360.com/?p=1041395 How long a shopper is willing to wait to receive a HomeDepot.com order may be the reason a shopper makes a purchase or not. Home Depot is adapting its fulfillment strategy to meet the evolving demands of today’s hybrid consumer. “You may not have wanted to wait three days for something. But, if we can […]

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How conversion manifests itself: D2C brands merchandise to convert https://www.digitalcommerce360.com/2023/03/27/how-conversion-manifests-itself-d2c-brands-merchandise-to-convert/ Tue, 28 Mar 2023 00:24:40 +0000 https://www.digitalcommerce360.com/?p=1040903 I thought it might be insightful to view the attributes and conditions that are most likely to lead to conversion through the lens of direct-to-consumer (D2C) sellers. To gain those insights, Digital Commerce 360 and Bizrate Insights surveyed 1,060 online shoppers in January 2023. Online shoppers favor free, from shipping to returns 69% of those […]

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I thought it might be insightful to view the attributes and conditions that are most likely to lead to conversion through the lens of direct-to-consumer (D2C) sellers. To gain those insights, Digital Commerce 360 and Bizrate Insights surveyed 1,060 online shoppers in January 2023.

Online shoppers favor free, from shipping to returns

69% of those online shoppers surveyed said free shipping was the No. 1 reason that pushed them to make a purchase. Direct-to-consumer sellers were aggressive in tempting shoppers. The pop-up approach pictured below was prevalent across many that I came across and would certainly be welcome if I planned on making a purchase.

Yeti’s marketing pop-up offers free shipping.

 

Along the same lines, we see heightened interest in free return shipping among online shoppers. The combination of customer convenience, money-savings and a risk-free purchasing experience is hard to beat. Canada Goose’s return information suggests that 30-day complimentary return labels are available with just a few contingencies.

Canada Goose offers free return shipping.

Second on the list of conversion drivers was product selection — a factor for just under half of all participants (47%). While we have come to expect that these sellers feature all of their products for sale, exclusive items give shoppers a distinct reason to visit these sites instead of going to a multi-branded retailer. Dyson calls out “only at Dyson” products so shoppers know they will need to make the purchase at the brand’s own site.

 

Exclusive products at Dyson.

Trust is foundational for conversion

Trust has an array of meanings, but for me, being able to talk with a specialist is important. Not surprisingly, 43% cited purchasing from the retailer in the past as a reason to convert a second time. Often, the products I’m considering are complicated, so I appreciate this opportunity. In this instance, when I click on Ask a Specialist, I have the option to chat online or place a call — even sign language support is available at the Apple store.

Apple’s Ask a Specialist facilitates customer service.

Trust also can come from a brand’s values, and no one was more of a pioneer than Patagonia in this regard. The retailer’s environmental stance always seems to take precedent over the products it sells. On the retailer’s 50th anniversary, it once again sends a powerful message about life on earth.

Patagonia puts forth a powerful brand message.

Can’t buy what isn’t available

High on the list of what causes customers to convert is finding in-stock products. It can be challenging in a category like shoes, so it’s nice to see Rothy’s is transparent with its availability. For the 45% who are pushed to convert based on stock status, this approach can help steer customers to a better option or at a minimum avoid disappointment.

Real-time inventory via Rothy’s product page.

With 39% of survey respondents appreciating the power of product reviews to convert, I thought Estee Lauder had a nice take on this element with its Glowing Reviews on the homepage. The retailer merchandised its five-star products and in particular this “power pair” embracing the customer point-of-view, which is near and dear to the shopper’s heart.

Estee Lauder highlights its five-star products.

Promotions beyond free shipping resonated with 36% of online shoppers. While many sellers offer 10%-20% for one’s email or phone number for customer acquisition purposes, I found Levi’s approach more compelling. The retailer opted for a classic retail theme: Encourage shoppers to buy more and save more. The power of the presentation highlighting the range of the assortment is inspiring, and my interest in buying more is piqued.

Levi’s gets promotional showcasing a broad assortment of products.

Imagery and information guides decision-making

Product information and imagery have always been important when it comes to converting online shoppers. 28% of those surveyed said product information and imagery were important in terms of conversion. The voice in Harry’s marketing has a tone that maintains brand expectations. The retailer goes beyond the details with “what’s good about it.” Additionally, shoppers have the option to gather more information, which includes how products are designed and access to customer service touchpoints.

Harry’s includes comprehensive product information.

Information at Casper includes imagery about how the product is made. At this price point, sellers need to give online shoppers all the details so they can ensure this is the right item for them. Leveraging video helps bring the product to life in a way that’s almost impossible with static images.

Casper integrates videos on how products are made.

The last example from an information and imagery perspective is Tumi. The customer gets wonderful internal and external views of the product, which allows her to get a better sense of the real size and fabrications. Investments in photography can also help reduce return rates, an added benefit for the retailer.

Tumi uses imagery to inform decisions.

Help shoppers find products

Site search means shoppers are typically using standard search parameters like price, size or color. But more interestingly, it can mean focusing on what is unique about a retailer’s product and/or category. Vera Bradley is known for its beautiful fabrics, so allowing customers to view the collection by fabric is a welcome choice. 24% of survey respondents shared they’re likely to place an order as a result of site search, so I advise continuing to optimize that experience.

Vera Bradley offers shop by fabrication.

 

In the computer category, gaming, like many other aspects of their products, has unique needs. This example from Lenovo suggests some of the elements by which visitors can search: including price, screen size, memory, storage, operating system and even shipping, ensuring that online shoppers can find it their way.

Lenovo includes a broad array of search parameters.

Services are invaluable

Elf allows its shoppers to share with their beauty advisors their desired area of interest. Ideally, this directs the inquiry to a knowledgeable team member, saving everyone time in the process. These options to contact customer service by multiple means are a conversion factor for 19% of participants.

Elf guides those seeking customer service.

Trek promotes the message “Online bike shopping made easy.” The bike category is unique. As such, the services bike retailers make available support biker needs. Particularly interesting was Trek’s option to find a bike locally if one needs to ride the day of purchase. As fast shipping was an important conversion driver for 61% of those surveyed – in third place trailing only free shipping and the right price – this addresses the concern head on. For many who prefer professional assembly, fast shipping is an option with delivery of the shopper’s choice to follow. Trek’s 30-day no-hassle return policy is also welcome. It calls out its local services and support, giving the customer the confidence she needs for a wonderful bike-buying experience.

Trek promotes its capabilities and services.

Retention is essential to growth, and loyalty programs have played a pivotal role in this regard.

28% of survey participants indicated loyalty programs were a factor in placing an order. Lululemon positions the value of its membership, which includes being able to get early access to the newest gear. If you are a fan, that certainly would be a perk of particular interest.

Lululemon’s membership program has its perks.

GoPro has a subscription service that is a time saver and of great value to those who use the brand’s products and services. The automatic upload of your footage to the cloud ensures you never lose that valuable photography. The discount certainly is appealing, at up to 50% on the site. Knowing there is a guaranteed camera replacement makes this brand’s customers confident in the investment they are making when subscribing. The cost is $49.99 per year.

GoPro’s subscription service is benefit-rich.

Direct-to-consumer brands can send a powerful message to their customers. Branding and customer service will help them drive conversion. The choices they make, from free shipping to a free returns shipping policy, also will be integral to securing an order. Investments in information and imagery will pay dividends guiding online shoppers accordingly. While customer acquisition might be their initial play, retention tactics will be key to keeping customers coming back, converting and spending more.

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Toyota, Bendix, McKesson and US Foods join EnvisionB2B’s speaker lineup https://www.digitalcommerce360.com/2023/03/27/dc-360s-envisionb2b-2023-conference-expands-speaker-lineup/ Mon, 27 Mar 2023 21:01:43 +0000 https://www.digitalcommerce360.com/?p=1041017 As B2B ecommerce professionals seek fresh insights this year on how to grow their business, only one industry event gives them the hands-on practical knowledge and thought leadership they need to excel at their job and for their organization: Digital Commerce 360’s EnvisionB2B Conference & Exhibition. The roster of industry thought leaders, movers and shakers […]

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As B2B ecommerce professionals seek fresh insights this year on how to grow their business, only one industry event gives them the hands-on practical knowledge and thought leadership they need to excel at their job and for their organization: Digital Commerce 360’s EnvisionB2B Conference & Exhibition.

The roster of industry thought leaders, movers and shakers is now nearly all set, and our latest speaker additions showcase even more that EnvisionB2B is sparing no expense in vetting and recruiting the best analysts and practitioners in the industry to give attendees helpful, useful, practical best-practice advice they can take and use now to help their organization achieve excellence in B2B ecommerce.

Meet our new speakers:

Our most recent update of industry thought leaders, in alpha order, includes:

 

 

Dan Banks
Founder
Domani Strategies

 

Gene Carbonara
VP, Ecommerce & Digital
US Foods

 

Kellie Casey
Manager, Aftersales Communications and Ecommerce
Hyster-Yale Group

 

Val DuVernet
Senior Director, Digital Strategy & Optimization
McKesson

 

Tom Funk
Ecommerce Director
Ann Clark Ltd.

 

Shep Hickey
Founder & CEO
Bryzos

 

Marylou Hornung
Director, Sales Operations
Bendix Commercial Vehicle Systems

 

Kyle Kaiser
Founder
Our Forest

 

Brooke Logan
Director, B2B Digital
NAPA (Genuine Parts Company)

 

Doug Novack
Managing Director, Business & Industrial Markets Practice
Google

 

Jordan Nussbaum
Chief information officer
Midland Industries

 

Nick Ostergaard
Senior Manager, Head of Digital Advanced Services
Toyota Material Handling

 

Stu Peterson
VP, Inventory Management & Supply Chain
RC Willey

 

Linda Taddonio
Founding Partner
IQ Acceleration Inc.

 

Joe Thomas
Sr. Product Owner, Catalog MDM
Genuine Parts Company

 

Barbara Winters
VP, Principal Analyst
Forrester Research Inc.

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