By Mariana Fontanezi *
Have you ever stopped to think that in the last decade we are experiencing one of the biggest and most accelerated moments of technological advancement in retail? Mobile devices, Artificial Intelligence, Internet of Things, machine learning, virtual and augmented reality, voice assistants, 3D printers and many other applications have led retailers to question how new technologies impact the mode of consumption and, above all, the way the consumer interacts with brands.
In Brazil, there are already more than 220 million active smartphones - more than one per inhabitant -, according to FGV-SP. And it is not for nothing that Webshoppers 2019 showed that more than 40% of retail purchases in Brazil occur via mobile devices.
Intensified by hyperconnectivity and mobility, recent generations are much more empowered, perceptive, participatory and demanding with brands and the way they are treated by them. Faced with an immense list of brands, services and products to choose from, whoever meets the requirements gains, and a lot, in competitiveness. Therefore, it is worth reflecting whether retail has been operating in a strategic manner - in order to provide unique experiences and retain its customers - or whether the sector has lost sales due to not adapting to the new standard of consumer demand. After all, what are your customer's wants and needs?
If on the one hand Baby Boomers and Generation X (born until 1970) had little contact with technology and with great innovations in retail, from the 1980s Generation Y (or Millennials) emerged in a period of economic prosperity and technological innovation for consumption. They were the first to really pay attention to the experience related to the products, and not just the product itself.
But who really raised this level to the transformations we see today was Generation Z, or the “ctrl + Zs” (born in 1995). The young people of this generation are digital natives and have already been born in a world with internet, where everything is connected and accessible at the click of a button. This audience wants to be able to give an opinion and to be heard. Thus, he is not afraid or ashamed of calling companies via social networks in order to collect a return on an eventual complaint. It is also a generation that has been characterized by a constant change of opinion in relation to work, brands, products, personal life, among other points. They are much more concerned with the experience they will have when purchasing a particular service than with the brand itself. More than status, these young people want to be well cared for!
If we are talking about a consumer who wants relationships based on immersive, immediate and personalized experiences, it is because the digital and multichannel environment has started to provide these advantages for those who invest in this direction. Knowing the journey and consumer behavior in the different channels and predicting their needs and desires has become the most strategic tool for loyalty and competitiveness for retailers. And the impact is not low. According to IDC data, investing in technologies that impact the experience increases the level and satisfaction of retail customers by up to 20%.
To embark on this journey, you can forget about the old Excel spreadsheets and the unidirectional tools and legacies of analysis. The volume of data captured and generated in different channels is demanding a 360 view and in real time about the customer, with automation and artificial intelligence tools that can quickly propose solutions for this generation in the channels where they want to interact. Whether in the physical store or in e-commerce, they want to be recognized and treated in the same way.
One of the largest and most iconic retailers in the US, Macy's, was one of the brands to take the lead in this movement when, about a decade ago, it implemented analytics to better understand its customers and marketing initiatives, and offer personalized experiences through channels.
In Brazil, this movement started to occur with force more recently, and we are already seeing major changes taking place. Brands today are much more concerned with the consumer's journey - from end to end - because they know that the effort to recover a lost customer is much greater, so retaining your audience is paramount. It sounds basic, but nowadays, when brands and new services are emerging at an impressive speed, it has become a real challenge.
I believe that Brazilian companies are maturing and improving the relationship with their consumers, but I still see a lot of potential for improvement. There is no magic formula that guarantees success, but, in my experience, putting the customer at the center, using data appropriately and taking advantage of all the potential that new technologies offer are the main pillars that should guide the companies' strategy.
And what about your company, what has it done to surprise the customer and stay relevant?
* Mariana Fontanezi is a pre-sales consultant at SAS Brasil
Warning: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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