Are you as digital as the future?
By 2020, more people will own a smartphone than have running water or electricity*. This is dramatic and at the same time shows the extent of digitalization.
Digitalization is also fundamentally changing the world of marketing. Companies must adapt their strategies to the online world if they want to survive in the long term.
Social media already plays a fundamental role in purchasing decisions, especially for the younger generations, i.e., millennials or Generation Y and members of Generation Z ( , born between 2000 and 2015).
These changes pose major challenges for companies. However, they also offer a unique opportunity to stand out successfully in the market.
Comfort is more important than price
New findings show that for most customers, convenience and brand loyalty are key factors in their purchasing decisions. brand loyalty are more relevant than price. Companies can use this knowledge of new market conditions to their advantage. If you offer customers a unique customer experience, they are very likely to become long-term customers of your company—regardless of price.
According to a recent Facebook IQ study, convenience is twice as important to customers as price when shopping. Brands such as Nivea manage to retain and inspire consumers across different stages of life thanks to their distinctive product design.
The price of products and services is becoming less and less important as a result of digitalization. When a customer sees a pair of shoes in a store, they can immediately use their smartphone to check whether the shoes are available online or in another store at a lower price. The same applies to e-commerce , of course. A customer who is only interested in price will find the cheapest shoes anyway.
Can your customers reach you easily enough?
Customers are becoming increasingly demanding as a result of digitalization. Immediacy and convenience are essential for winning customers. This means first reaching customers where they already are: on social media. Through brand pages, contact options, and customer communities. In addition, customer service that responds quickly and easily to customer needs is required.
Long phone calls and endless email correspondence are increasingly driving customers away. According to a study by Salesforce , 89% of customers will not make a second purchase if they are dissatisfied with a company's customer service. More than 50% of customers are also willing to pay more if customer service is satisfactory .
Understand your customer.
Companies that want to hold their own in the market today and in the future must understand that the customer is at the center. All corporate strategies must be customer-focused. Otherwise, it is not possible to retain customers in the long term in a digital world. They will make their purchases from another company that understands their needs. Companies will therefore have to take two concepts increasingly to heart: the user experience and customer experience.
Source: Facebook IQ study
User Experience (UX) - Provide the best possible user experience
User experience (UX) is primarily about understanding customers and their needs. The next step is to create products and services that meet these needs and inspire customers.
UX plays a central role in all websites, apps, and programs. Before creating a website, for example, you need to understand how you want the customer to navigate, how the customer wants to navigate the site, what content they want, and what design appeals to them. Too often, customers visit a website without taking action or making a purchase. This is usually due to a poor user experience.
Customers are increasingly dissatisfied with websites that have poor usability or unimaginative designs. Bank of America reports that it saw a 45% increase in registrations on its website after incorporating UX guidelines into its portal.
Not thinking about UX is a luxury that companies can no longer afford. In the future, poor UX will most likely even cost some companies their existence.
Customer Experience (CX) - Creating a positive customer experience
Customer experience (CX) could be described as the big sister of UX. CX encompasses all of the experiences that customers have when dealing with a company.
CX encompasses the entire product life cycle and all points of contact between companies and customers. Here, too, customer service plays an important role in mitigating negative experiences. Social media should not be overlooked either. Customers are increasingly reading customer reviews on social media and letting the experiences of others guide their purchasing decisions. Customers who have a negative CX often vent their frustration on social media. That is why professional social media management is essential.
More connected than ever before
Market research provider Gartner estimates that there will be 20.8 billion connected devices worldwide by 2020. Each of these devices offers companies an opportunity to interact with customers or potential customers. But you have to know how. Especially when it comes to marketing. You also have to act quickly to channel the potential ahead of your competitors.
Utilize cross-device marketing
Google reports that nine out of ten customers already switch between different digital devices before making a purchase. This knowledge can help companies improve their conversion rate (CTR). The conversion rate is the ratio between visitors to the website and purchases or transactions made. The resulting figure is considered an important benchmark for assessing the effectiveness of a company's marketing.
Companies were able to demonstrate that their conversion rates improved as soon as they took cross-device marketing into account. Shutterfly, an American photo technology company, was able to increase its conversion rate by over 15%, for example. Cross-device marketing means finding the right advertising medium for the right user on different digital devices. Users are increasingly switching between different devices such as smartphones, tablets, and notebooks. They research their purchase on one device, but often end up buying on another.
In its latest report on cross-device commerce , Criteo, a performance marketing platform, states that 31% of consumers use more than one device before completing a transaction.
Next Steps
Do you have questions about your marketing strategy, or would you like to optimize and strengthen your marketing activities? We are happy to assist you. You can contact us here.
*PS: As a sustainable marketing agency, we pay attention to our behavior and support NGOs such as Helvetas and Doctors Without Borders. We are also certified climate neutral.