Navigating the

New Wave of

ConsumerismThe New Reality

By Rosally Daniel

We are in a new era where innovative, disruptive and collaborative forces in technology have converged to re-shape our behaviors and expectations. No one can ride the new wave of consumerism alone. Our physical and our digital world have converged, and there is no turning back. It requires a new way of thinking and looking at both worlds as one. Understanding the new reality is the key to unlocking the door to happiness and profitability.

E-commerce

E-commerce refers to the use of the Internet and the Web to transact business. More formally, e-commerce is about digitally enabled commercial transactions between and among organizations and individuals.

(Laudon & Laudon)

From about 2006 to the present, e-commerce reinvented itself. It involved the extension of Internet technologies, and the discovery of new business models based on consumer-generated content and social networks.

(Laudon & Traver)

M-Commerce

“ Mobile Commerce is the use of information technologies and communication technologies for the purpose of mobile integration of different value chains and business processes, and for the purpose of management of business relationships.” (Webagency 2001)

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Oliver Recklies,in 2001, saw two possible directions for M-Commerce:

• the next hype or

• a natural evolution from E-commerce into a digital and mobile world.

The New Mobility

Enterprise mobility refers to the integration of personal and professional information using mobile devices (Gartner Inc., 2012).

Enterprise mobility fundamentally changed the way people work. In order to remain competitive, organizations needs to make enterprise applications accessible through mobile devices. (www.itstrategists.com)

This convergence of personal and professional information blurred the barrier between physical and digital, personal and professional and evolved to a new wave of consumerism in which the customer expects a seamless integration of their experiences.

What is the Omni-channel?

“Omnichannel is the mix of all physical and digital

channels to create an innovative and unified customer

experience.” (Seadly, D., 2012)

As technology continues to evolve and change

customers’ behavior and expectations, it’s becoming

more and more important for companies, especially

retailers, to be able to connect with their customers

through all channels. At the end, the customer will

decide at which channel they will interact with a

brand, depending on the time and place. And with

today’s tech savvy customers, it can be a choice of at

least two or three channels that are readily available to

them.

The New Wave of Consumerism

Consumerization refers to the democratization of

information through easier access to technology which has

brought about the democratization of consumer power “

The new trends in consumerization is fueling the shift from

“consumer” to “customer”, as the new breed of

superconsumer emerged – the “ubersumer”

The “ubersumer” uses the machinery of Internet

technology to self design and consume unique

experiences.

Today’s customers are tech savvy, impatient and disloyal.

(Burt, M., Gartner Inc. 2011)

Digitization + Social

The ubiquity of the Internet and mobile devices are the main catalysts for the changing consumer expectations.

Online consumers have embraced social networks and online communities. They use technology to shape their own customized shopping experience (Burt, M., Gartner 2013).

Socially connected customers can spread the word of a shopping experience- good or bad – to a network of millions (Burt, M., Gartner Inc. 2011)

Customer engagement in stores could make or break an omni channel experience. Stores will remain to be important as customers still prefer to have that interaction in the physical world to complete their transaction.

The Evolution of the Social Customer

The social customers are hyper connected individuals who regularly broadcast their opinions over Twitter, Facebook, blog posts and in online communities.

They expect to engage in real time interactions with each other and with companies on social media outlets.

This new breed of customers evolved as the result of the ubiquity of the Internet, the Web and mobile technologies.

Are mostly women who requires greater accessibility, personalization and community connections to support their multiple roles, preferences and lifestyles.

(WIPRO)

Digital Integration: Omni Channel

“Meet the customer anywhere” is driven by growing consumer expectations for a seamless service experience between all channels.

Consumers are more willing to share information especially if they know they will benefit from it. It helps businesses provide better treatment, more relevant content, improved suggestions, recommendations and more valuable promotions. (MCommerce 2012)

Improvements in technology should be matched by shifting the company culture as well. Technology alone cannot drive a successful omni channel business – it’s time to go back to basics. In store customer service will be the key differentiator.

A New Era: Understanding & Designing

a New Business Model

In September 2011, Deloitte 39 retail executives to understand how they are adapting to a next generation format. Highlights of their study are:

• A call to retailers to reconfigure talent, physical space and store operations to meet or exceed customer expectations.

• By incorporating social media and ecommerce into their stores

• Hire or train sales associates to meet the demands of an increasingly tech savvy customer

• In addition to technology, to make service quality a focus as this will distinguish good to great companies from their competitors.

(The New Evolution: Store 3.0, 2012)

Understanding the New Reality

The new business reality is social and very customer-

centric.

Managers and associates, especially in stores have to be

savvy working in this new era of social business. Training

and understanding the new service environment is crucial.

Companies needs to review their business practices and

integrate their infrastructure to be able to deliver a

seamless service experience for the customer.

Omni channel is just not about technology – it’s about

connecting with people in all channels, simultaneously.

Leadership Challenges

How to integrate the enterprise by developing cross functional teams and filling in leadership vacuums.

Finding the right managers who have the experience and innovative thinking while at the same time agile to keep up with the digital pace.

How to enable associates to move between physical and digital by updating the company’s systems infrastructure and associate training into the new reality.

How to transform existing business practices into one with social business components.

How to break down departmental silos and change the company’s culture and organizational structure.

Working in Retail after 3.0

Be proactive – learn new skills.

You don’t have to be a techie – good old fashioned customer service skills are better than knowing the latest gadgets.

Know your company’s digital brand image. Check your company’s website and identify at least two social media outlets where you can follow your company.

You don’t have to have a digital presence. However, chances are your customers do. Check out the Twitter or LinkedIn profiles of your best clients. Find out what they’re upto but keep it positive. People will be flattered if you take the time to do your homework.

If you do have a digital presence, just remember that everyone can see it. That’s where you get the best exposure – leverage it!

Good old fashioned networking will always earn you points. In today’s world, you can do this online as well as in person. If you can do both, even better.

It’s all about connections.

We are in this journey

together!