The modern consumer has largely grasped the benefit and convenience offered by emerging technologies – something that has now begun to exert serious pressure on the technology resources of marketing organisations. After all, consumers today expect always-on access and immersive service – in other words, they expect to interact with a brand on their own terms. This, naturally, creates a whole host of new challenges for customer experience and marketing leaders.
The first thing businesses need to understand is that in a world where technology is smart, its consumers are no longer defined as using digital; rather, they are digital. A recent Futurum Research survey of more than 4 000 consumers, executives, marketers and technology professionals has sought to understand what defines the customer experience today, as well as how it will likely evolve by 2030.
Akesh Lalla, Country Manager of SAS South Africa, explains that the research revealed five key themes driving the evolution of customer experience over this period. Obviously, consumer behaviour over the coming decade is expected to become more digital, more mobile, more social and more engaging. This will be driven by consumers who are increasingly agile, online and immersed in consumer technology.
“Consumers today are getting accustomed to the convenience of ‘everything as a service’, so it is only a matter of time before they come to expect ‘relevance as a service’. This means that brands must design experiences and services that adapt to the ever-changing digital consumer,” says Lalla.
“Looking at the five themes identified, the first is ‘mobile’. A third of all consumers reported having three or more mobile phones in regular use within their household, 41% expect to have more mobile phones in their home in 2025 than they do today, and this number will only increase further by 2030. The key take-home here for businesses is that for many consumers, mobile is the only technology used to access online services, so adopting a mobile-first or mobile-only strategy may be best.”
The second theme, continues Lalla, is ‘wearable devices’, such as smart watches or fitness trackers. The main vendors of this are helping to create new segments of market opportunity, with 44% of consumers stating that they already have one wearable in the house, with more than half expecting to begin or increase their use of such technology by 2025.
“The value to brands is potentially significant – wearables provide a way to engage with consumers more often, helping them complete tasks or co-ordinate their personal lives. Brands can not only gather valuable data on their customers, but should also utilise embedded Internet of things (IOT) sensors to provide real-time information and feedback to the consumer.
“The proliferation of Siri and Alexa and the rise of Google Home indicates that artificial intelligence (AI) infused smart technology is becoming common. With consumers expecting to use it soon and often, it is no surprise to learn that the third theme is ‘smart assistants’. Some 35% of homes have two or more units in operation now, and 80% expect to use a smart assistant to make purchases or control a smart home by 2030.”
What this offers brands is an opportunity to become part of an automated household, recommending products and services or supplying information when a consumer needs it, without having to ask. These assistants will also enable companies to collect and analyse data to develop predictive behavioural insights, which lead to a more personalised consumer experience.
“The fourth theme is ‘applications’, particularly of a financial nature. In fact, close to a third of consumers use three or more financial apps on a regular basis, and 45% expect their app use to increase in the next five years. From a technology perspective, the growth in demand for financial apps is highly dependent on a brand’s ability to build a relationship of digital trust between brand and consumer,” says Lalla.
“Finally, augmented reality/virtual reality (AR/VR) is also a theme worth considering. While mass adoption of standalone AR and VR devices has not yet materialised, we already know these technologies are making inroads through devices such as smartphone apps and heads-up displays in vehicles, so the future here looks promising. After all, 78% of consumers say they expect to use AR or VR as part of their brand engagement experience by 2030.”
Lalla adds that AR is making its way to most households through applications on consumers’ mobile devices, such as making it possible to ‘see’ directions through the camera on a mobile phone, or to ‘try on’ apparel without having the actual clothes. This opens new ways for brands to create enhanced media and new content forms, spark empathy and transform offline experiences.
“Ultimately, what it boils down to is the fact that consumers want to be remembered and understood, regardless of how many times they crisscross a myriad devices, channels, touch-points and contexts.
“Brands, therefore, need to embrace a holistic data strategy that they can personalise at scale, and they should employ journey analytics capabilities that can adapt in real-time and enable a self-reinforcing cycle of tailored experiences. All of this will need to be powered by analytical optimisation processes and automated decision-making capabilities. In the end, the success of future of customer experiences is completely dependent on the ability of brands to have a full understanding of, and alignment with, the evolving perspectives of the consumer,” concludes Lalla.
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