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INDEPENDENT PUBLICATION BY RACONTEUR.NET #0683 01/09/2020 THE FUTURE CUSTOMER

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THE FUTURE OUTLOOK CUSTOMER Delivering the Distributed in Email address* (required) goods post-pandemic

Published in association with COVID-19 has prompted some extreme changes in consumer demands and spending patterns, so how are brands reconnecting with customers for a post-pandemic future?

Morag Cuddeford-Jones masseurs and small cinemas add- Contributors ing to the fun. MaryLou Costa Morag Cuddeford- he start of lockdown was Even without bells and whis- Business writer and editor Jones T for many a rapid and brutal tles, simple face-to-face expertise covering marketing, Journalist, editor and change to everyday living. will still be valued. “Speaking to a tech and startups, with broadcaster, specialising Work and education took on a very knowledgeable person in-store gets work published in The in marketing and business. different look as people congregated a level of service, whereas online Guardian, The Observer and Marketing Week. Tim Gibbon at home in their household bub- it’s about convenience,” Salt insists. Business, marketing and bles. Bricks-and-mortar retail sim- In-store and online shouldn’t be Jack Apollo George technology journalist, ply shut down and typical customer in competition given how differ- Writer, editor and semi- with work published in habits were upended overnight. ent customer habits are on each otician who works with Admap, Direct Commerce Research from Superdrug par- platform. “Customers are doing media startups, with arti- and The Huffington Post. cles in the New Statesman ent A.S. Watson showed that in a their research online and coming

and The Day. Daniela Morosini global survey of 22,000 people in Getty Images via Images/LightRocket Haria/SOPA Dinendra in-store with the intention to buy, Award-winning beauty 20 markets, post-COVID-19 more not browse,” she says. Magda Ibrahim writer and trend- than 80 per cent will continue to But trooping back to the shops is still Award-winning journalist, spotter, contributing to with bylines in London titles including Vogue, shop online; however, almost 100 not a given. Retailers need to address Evening Standard and Refinery29 and WGSN. per cent would go back to physical changing customer habits, includ- specialist media including stores when they could, particu- ing sanitation, keeping a distance, Hate giving up your data Campaign, Third Sector Ana Santi larly Generation Z. mask-wearing and more if they’re to and PRWeek. Former editor at Drapers But, as we emerge from lock- be enticed back. “Reassurance will be and commentator for the Oliver Pickup BBC and Sky News, writing down, shockwaves are still being up there,” Elliott confirms. Award-winning journalist, extensively across fashion, felt across the high street. Retailers Hobbycraft’s Paterson says: “We specialising in technology, business and culture are trying to work out how the brief have surveyed customers visiting for bad content? business and sport, and but wholesale shift to online has our stores and 96 per cent confirmed contributing to a wide Rebecca Stewart changed future customer shopping they’d definitely return to our stores range of publications. Business writer, covering media, technology and habits and what it means for their again, which shows the changes we Emily Seares advertising as a senior omnichannel strategies. Clothing’s digital plans. “We had to capacity by introducing 30 night have implemented in-store to make Editor and writer, reporter at The Drum. “We went from a legacy business work quickly to get them over the stores for quick fulfilment and to customers safe are working. We will specialising in retail, 65 to 35 per cent in favour of shops to line quicker than we ever imagined,” meet increased customer demand. continue to uphold these.” fashion, beauty and luxury, suddenly being thrown into ecom- she says. This expansion will help make Superdrug launched Be Kind, and contributing to a range Your prospects do. merce. It brought some short-term Jewellery brand Pandora also important customer events such as Shop Kind in August to “provide a of national publications. changes in consumer behaviour, but had digital plans underway, but its Black Friday and Christmas even completely safe shopping space for some will remain long term,” says senior vice president, chief digi- bigger and better in 2020,” he says. colleagues and customers”, says Louise Salt, chief customer officer at tal and omnichannel officer David Pandora’s Walmsley adds: “We sell Macnab. This includes maintaining Crew Clothing. Walmsley notes the company had emotion, we don’t sell jewellery,” social distancing and asking cus- Home entertainment was key to “turbocharge” the online service. which is why he believes customers tomers not to handle products they Publishing managers Head of production during lockdown, something He says markets where customer will still want to shop in-store. “It’s are unlikely to buy. So many lead gen campaigns fail because the content Nathan Wilson Hannah Smallman Hobbycraft was well placed to serve. habits weren’t naturally online had a very high-touch product. There’s With the in-store retail expe- David Kells “We are doing all we can to embrace a COVID-19 boost. “Italy went off the endorphin hit of finding just the rience still key to the Pandora Design behind the data capture offers no value, causing frustration the increased customer demand, the scale. People who were too nerv- right thing and putting it in a lovely brand, Walmsley notes the com- Associate editor Sara Gelfgren Peter Archer Kellie Jerrard be it by increasing our ecommerce ous to shop online came over and bag. Online we can create a satisfy- pany will be looking for initiatives and negative brand sentiment. The lead gen campaigns Harry Lewis-Irlam capacity, offering online craft work- that won’t change,” says Walmsley. ing experience, but it’ll never have to help customers feel comfortable: we run for brands are based around high-quality content Deputy editor Celina Lucey shops via Zoom or adapting our pro- “It has set us up for the next phase that emotional hook.” “Appointment booking and video Francesca Cassidy Colm McDermott cess to cater for our click-and-col- of transformation.” Edge by Ascential’s Elliott sees chats are just two of the initiatives.” Samuele Motta lect service,” says customer director Superdrug chief executive Peter the future customer demanding Crew Clothing’s Salt has already that answers a need. Managing editor Jack Woolrich Katherine Paterson. Macnab believes beefing up digital much more in the way of retail the- explored how the company can Benjamin Chiou Art director The key will be in keeping that stands the company in good stead atre. “Shopping will be a special respond to changing customer Digital content executive Joanna Bird momentum post-COVID-19. “We to address future customer needs. trip out. It becomes the all-day- habits, also looking into appoint- Taryn Brickner have adapted our plans to offer more “We are working to future-proof out experience,” he says, adding ment bookings, extended hours on Find out how we can help you Design director chances to learn in a digital way, as online distribution and have tripled that high street stores could see a store-by-store basis, tailored to Tim Whitlock our in-store workshop programme local shopping trends and taking has been temporarily paused. The out unnecessary shopping steps. digital version of our Kids Craft Club “If someone finds what they want in make the most of your leads. Although this publication is funded through advertising and COVID-19 IMPACT ON MARKETING AND BRANDING Bynder 2020 sponsorship, all editorial is without bias and sponsored features was extremely successful,” she adds. the fitting room, why queue to pay. are clearly labelled. For an upcoming schedule, partnership Chris Elliott, digital shelf analyst Global survey of marketing professionals in April Pay instead from an iPad or mobile inquiries or feedback, please call +44 (0)20 3877 3800 or at retail insight specialists Edge phone,” she says. email [email protected] by Ascential, believes the biggest Pre-COVID-19, customers rubbed raconteur.net/lead-generation Raconteur is a leading publisher of special-interest content and change in future customer habits along with the slight mismatch in research. Its publications and articles cover a wide range of topics, post-COVID will be in delivery and experience between online and including business, finance, sustainability, healthcare, lifestyle and technology. Raconteur special reports are published exclusively in tech. “That will be here for some in-store. The pandemic has been the The Times and The Sunday Times as well as online at raconteur.net time,” he says. “At Christmas, shops litmus test for many retailers whose The information contained in this publication has been obtained like Aldi will see a big influx, but experience was not up to scratch. from sources the Proprietors believe to be correct. However, they will run all of that through the Post-COVID, the future customer no legal liability can be accepted for any errors. No part of this Deliveroo app. It will be a Christmas 57% 17% 13% 13% will demand more convenience publication may be reproduced without the prior consent of the essentials service to make things from online, more experience from Publisher. © Raconteur Media There will be a It’s only short COVID-19 has Unsure seamless for the shopper,” he says. lasting impact, term - things permanently in-store and a greater confidence Salt notes that COVID-19 put but it won’t be will go back to changed that their chosen brands can really @raconteur /raconteur.net @raconteur_london something of a rocket under Crew transformative normal soon branding deliver the goods.

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THE FUTURE OUTLOOK CUSTOMER Delivering the Distributed in Email address* (required) goods post-pandemic

Published in association with COVID-19 has prompted some extreme changes in consumer demands and spending patterns, so how are brands reconnecting with customers for a post-pandemic future?

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A LIVING MANIFESTO FOR THESE TIMES We’ve created Brand Leadership for an Anxious World. It’s an open, living platform and FASHION we welcome contributions that add to its depth and relevance. Here are just a few of the propositions, selected for their relevance to the customer conversation and ability to spark important, brand-redefining changes. Secondhand Make your customers give us opportunity areas to focus on. We’ve your advisers been able to humanise a functional product 01 How can you change your oper- like a sanitary pad by seeing feminine care in fashion thrives ating model to see the opportunities your the context of women’s whole selves – while customers can? Don’t view your customers everyone else in the category still focuses only as targets or data points, but as part- on the absorbency of blood. We sometimes ners. Be inspired by what inspires them: their face some pushback whenever we suggest but questions hopes, dreams, realities. Listen and build new work that addresses taboos. But cus- with them. Decide with them where to focus tomers can ‘speak to power’, they can say resources, especially when these are limited. ‘this resonates with me’ and it’s harder to argue against. When we launched, consum- remain “The number one lesson I’ve learnt is always ers celebrated our brand across the globe, check with consumers – the outside world because we recognised their experiences is often braver than you are. We co-create and made it possible to talk about them.“ with our customers, which means they tell Tanja Grubner, Global Marketing and Communications The secondhand fashion market has boomed since us about their experiences and hopes which Director, Essity FemCare the coronavirus pandemic began, but key concerns

have emerged around the impact it is having on prices, You might be selling an a brave leader will change mindset to embrace sustainability and retail business models “if”, not a “what” transformation and possibility. Create or, even 02 How do you increase demand by better, co-create with customers flexible building flexibility into the core of your offer purchasing scenarios. For example, experi- and business model? To survive, business ment with returns, trials, date changes and models must evolve and organisations have to so on, and test these scenarios quantitatively. MaryLou Costa pivot. But the customer must be at the heart of Measure their impact on the share of choice, these shifts. You need to remain relevant, and ultimately building a business case. he market for secondhand is a huge focus on communities, with H&M Group is rolling out initiatives According to Moizant, extending T clothes is swiftly enter- people wanting to look within their with Sellpy, the Swedish resale mar- the lifespan of a garment by just nine ing the mainstream, with own neighbourhoods to fulfil what ketplace it has a majority stake in. months through reselling can reduce a post-lockdown consumer driven they need.” “Secondhand is one of the fast- water and carbon footprints by 20 to See your brand as a Make your brand the stalwart for value creation, by climate, cost and community Big brands have been jumping on est growing business sectors within 30 per cent and cuts resource costs by liquidity engine future revenue and balance-sheet strength, heralding a new era of fashion and the resale bandwagon faster than fashion and it’s a business opportu- 20 per cent. Building brands for 03 Are you aligning your brand strat- attracting investor backing and securing liquid- breed of players. the volume of secondhand clothes nity H&M Group wants to be part of, However, Daswani is not convinced egy and metrics to your liquidity requirements? ity. And if on the offensive, hunt for under-lev- “Online thrifting is a bright spot in shifting. In the United States, thre- so we are investing in different mod- buying secondhand clothes will out- Headwinds in demand will create an increas- eraged assets. Identify and map out potential the COVID retail slump,” resale plat- dUP has been scooping up deals with els among our brands,” says H&M pace traditional or fast fashion, down ing focus on protecting, preserving and raising acquisition targets. Look closely at their poten- form thredUP declared in its 2020 iconic retailers Macy’s, JCPenney Group’s Laura Engels. to the inconsistent nature of both the an anxious world capital. If on the defensive, hunt for capital. tial for short and long-term value creation. Resale Report, projecting the second- and Walmart. “New business models in the areas experience and pricing. “The more hand fashion market to more than of rental, repair and recommerce play people sell fast fashion items via double to £48.3 billion in the next five just as an important part as invest- resale, the lower the price. One of a What used to be about creating brand differentiation in an years. Within ten years, it predicts ments in research and development kind pieces can be priced high which Ambition, not just and clarity among customers and employees resale will dominate our wardrobes. of new recycling technologies and sellers can justify. That’s what con- age of abundance is now about staying relevant in an age of purpose, creates investor alike. As the pandemic escalated, we deep- “The coronavirus has shed light on materials. To sustainably reduce the sumers are looking for: something dif- turbulence and customer expectation is moving faster than ever, 04 FOMO: fear of missing out ened our commitment, understanding that overconsumption, which has made environmental impact of the entire ferent that you can’t just get from the How do you define an ambition that is a worth- we had a triple duty of care: to our people, to consumers think, ‘What could they textile industry, it’s H&M Group´s high street. It’s not just about buying says Manfredi Ricca, global chief strategy officer at Interbrand while investment? While a lofty purpose is our customers, and to our business. There are survive with?’,” notes Saisangeeth We believe this goal to make the best possible use of through a cheaper route,” she says. necessary to appeal to various stakeholders, examples of this incredible focus everywhere Daswani, head of advisory for fash- type of circular limited resources and to keep gar- Andy Mulcahy, strategy and insight it can blind you. A clear ambition will guide at Philips. Philips remotely trained more than ion and beauty in Asia-Pacific at ments in circulation for a long time.” director at UK online retail associa- you. Set an inspiring, credible and measura- 300 NHS staff across the UK to transform a trend analyst Stylus. “This will shape partnership is key As traditional retailers seek to be tion IMRG, hints that the rise of resale ble ambition with a definite time horizon. It specific model of Philips’ non-invasive venti- not just the resale landscape, but the to driving real more relevant to consumers’ chang- could be a Trojan horse for brands to he current economic and are likely to ask three questions: “Is will excite and drive your people, and take lators into invasive ventilators with the ability broader fashion industry.” ing lives, while mitigating the com- shift unsold stock, demonstrated by T cultural environment is one it safe?”, “Is it valuable?” and “Does it them to the edge of possible. It will build and to effectively treat patients in COVID-19 ICUs. Climate, cost and community are industry change petitive threat of resale’s growth, the number of new tags. of near-constant change. mean something to me?”. Those are communicate leadership focus and account- This helped ensure the NHS could make use embedding purchasing secondhand the resale partnership trend is set to Mulcahy says true sustainabil- And customers are changing too. From the three new types of universal need ability, and give investors clarity, confidence of the 1,800 ventilators with this capability clothes “as a new route to access fash- boom. “Consumers expect brands to Brands such as Eileen Fisher, ity may not be the primary motiva- #Metoo to the coronavirus pandemic, or desire, which we define as safety, and interest around your potential. that were already in hospitals. In the Philips ion” and intensifying competition, help them be more sustainable and renowned for its sustainability princi- tor for embracing resale, both from from Black Lives Matter protests to trust and meaning. Marketing and E-Commerce team we are she says. empower them with more positive ples in a backlash against fast fashion, a consumer and brand standpoint, seemingly endless political upheaval, These three dimensions could well “In times of crisis, unpredictable and stewards of the brand purpose, a role that has “A sustainability mindset has been In the UK, Selfridges has followed behaviours. That’s what they are tap- believe all clothing retailers should and won’t be achievable until we what is relevant to a customer can become the platform for a new contract fast-moving events create an environment of become even more important during the pan- brewing for some time. We’re also see- up partnerships with Depop and ping into with these partnerships,” offer resale, based on how consum- experience a seismic cultural shift, change instantly and dramatically. between organisations, consumers and uncertainty, and can leave individuals feeling demic and beyond as we build transformative ing more consumers enter into a dif- Vestiaire Collective with its new says Daswani. ers have responded to its Renew pro- making the market for secondhand And what’s relevant to a customer society, and become the new funda- disempowered. Since joining Philips earlier legacies of which to be proud.” ficult financial situation. And there resale service Resellfridges, while The success of designer market- gramme, which includes resale of its clothes just another part of the fash- – what’s happening in their lives right mental drivers of choice and demand. this year, I have a greater appreciation of the Lorraine Barber-Miller, Chief Marketing and place Vestiaire Collective’s partner- secondhand clothes plus a channel ion ecosystem. now – affects how they make deci- In this dynamic environment, our power of brand purpose to drive teams to suc- E-Commerce Officer, Royal Philips ship with Selfridges is opening the for repurposed items. “If you want a properly sustainable sions. What do they value? What do role at Interbrand is to help clients cess in even the most difficult times. At Philips, door to more collaborations, reveals “We are proud that we take back and fashion industry, you have to get peo- they need? What do they hope for? So stay ahead of customers’ expecta- our brand purpose is to improve lives through “A clear leadership model is the cornerstone SECONDHAND MARKET IS SET TO EXPLODE Globaldata/thredUP 2020 co-founder and president Fanny process everything ourselves. It’s not ple to buy less clothes, that’s what it brands need to adapt just as fast as tions to stay relevant. To do this, we meaningful innovation. It is possibly more rel- of our behaviors and ambitions, defining the Market size and growth estimates of the global secondhand clothing market ($bn) Moizant. Vestiaire Collective’s report, easy, but it helps us protect our brand all comes down to. I don’t see anybody the customer to stay relevant. combine three lenses, which cover evant today than it has been over the course of vision of what are the long-term goals along The Smart Side of Fashion, reveals its and stand behind our goods. We learn doing that,” he says. The most enduring legacy of these the three fundamental elements of our 129-year history. Our purpose has become with the ethical values and principles with shoppers too are gravitating more so much from touching every piece “We don’t have the culture or system anxious times will not be face masks any market: people, businesses and a guiding ambition in our response to the which to lead the business.” 2019 2024 towards sustainable brands, such ourselves,” says Cynthia Power, direc- for it. Businesses are graded on selling and political graffiti, but the end of their interactions. What we call human COVID-19 pandemic, helping instil confidence Massimiliano Pogliani, CEO, illycaffè 21% as Stella McCartney, Ganni, Marine tor of Renew. more stuff and making more money continuity as the default assump- truths, economics and experiences. Traditional thrift Serre, LOQ, Veja and GmbH. But resale platforms are also set to and they’re not going to do that. I tion. The sheer scale, speed and and donation 28% “It’s exciting to see customers come under increasing pressure to don’t see this changing imminently. impact of the COVID-19 crisis is forc- respond to desirable pre-owned fash- demonstrate their sustainability cre- “Culturally, we’re still ingrained to ing businesses to plan for disruption Someone is rethinking and supply chains into broad competitive 7% ion within a traditional retail envi- dentials in the wake of such success. have our ‘outfit of the day’. If celebri- by innovating around principles such For more information please visit: your category arenas. As threats will change and multiply, Resale 36% ronment. We believe this type of “As they come up with more solutions ties moved more to wearing the same as duplication, agility, modularity and interbrand.com 05 How do you redefine your com- so will opportunities. Be ready to restart by circular partnership is key to driv- for people to receive their items faster, clothes regularly and buying less, and diversity, while putting their custom- petition and expand your competencies to reassessing your competition and competen- 28% ing real industry change, so we are there could be backlash with people were to spread that message, then we ers at the heart of that process. thrive in your new arena? The demand for cies. Identify a new departure point for the Total exploring opportunities with brands asking, ‘What are you doing for the would see more of a shift, but we’re Recently, we have seen major shifts seamless, contactless customer experiences brand and speak to customers to identify the 64% in our global markets,” says Moizant. environment?’” says Daswani. not there yet.” in consumers’ mindset. Customers will accelerate the confluence of categories way they fulfil their needs across categories. 04 THE FUTURE CUSTOMER RACONTEUR.NET 05 Commercial feature

shopping on their computer and 33 per cent on their tablet. “Digital is the biggest opportunity In times of crisis, by far,” says Inglis. “There is nothing new in that for retailers, but the innovation and pandemic has turbo-charged digi- creativity are not tal. It is no longer a question of how or when, but a case of survival. just important “Digital is not to be underesti- David Cliff/NurPhoto via Getty Images mated. It is not just about creating but essential a website, but a total re-engineer- ing of a business.” That can mean some tough decisions and making calls that have long been put on the RETAIL INTERVIEW “too difficult pile”, he adds. by our actions,” warns Inglis. High street retailer Marks & “Movements like Black Lives Spencer is a good example, as its Matter have grown out of very recent announcement of 7,000 job deep-seated issues that matter losses to free up cash for a digital Four landmark Relevance and very deeply to people who have renaissance that includes a part- often had very significant and nership with Ocado has been tipped painful life experiences. to be a sink-or-swim decision. “Brands cannot expect to just And John Lewis unveiled a new shopping moments creativity will connect with that; we must expect digital first strategy at the end of to be challenged. Caring about July, revealing its expectation of issues is not new for consum- increasing to 60 per cent online, ers, but what is different is their from 40 per cent pre-pandemic, reimagined set brands apart preparedness to walk away from while Waitrose is expected to rise brands they don’t believe are rele- to at least 20 per cent online, com- vant to their lives.” pared to 5 per cent before the crisis. As lockdown lifts and consumers It’s essential to “invest in the cus- From Black Friday to store launches, how is the coronavirus Craig Inglis, chair of the Marketing emerge back into near-traditional tomer proposition you need to cre- physical shopping and socialising ate to remain relevant”, says Inglis, pandemic likely to affect four key events in the retail calendar? Society, explores how the current crisis environments, the biggest focus as well as capturing the commer- is on safety, with an expectation cial benefit from investing in mar- is changing consumer behaviour and that businesses allay those fears keting at a time when reduced ad Sue Omar in practical ways. But with digital rates provide great value. how they connect with brands spaces feeling like a safe haven, it “The world is moving fast and so is inevitable the online experience are our customers’ lives,” he con- Black Friday has become a priority. cludes. “In times of crisis, innovation Coronavirus may have cancelled most major online. “Black Friday has already shifted PwC’s study found that 45 per and creativity are not just important retail events this year, but Black Friday online, merging with Cyber Monday to mark Magda Ibrahim cent of people have increased but essential. This is the time to dif- on November 27, 2020, followed by Cyber the official start of Christmas shopping for their shopping by mobile phone, ferentiate to remain relevant. That is Monday a few days later, will be viewed as many consumers,” says Simon Hathaway, while 41 per cent are doing more really business critical.” a potential saving grace for many brands. managing director, Europe, Middle East and emanding, discerning and considered about what they buy, “When you look at big moments with an ethical purpose and online caused us all to step back and think However, with longer queue times antic- Africa, at Outform. Ultimately, with 2020 so D considered. Three words and who they buy it from. like the 2008 financial crisis, and shopping have been “accelerated” about what really matters in life. ipated and social distancing restrictions far being a catastrophic year for the majority that sum up the consumer “That means brilliant products the current pandemic, the anchor because of the pandemic, he high- 2I think that marketers, as the lead- to remain in place to protect shoppers of retailers, many will be redirecting a lot of today and tomorrow. and great service, but also trust points are taken away for con- lights, which provide opportunities ers in brands on behalf of consum- BIGGEST BRANDING CONCERNS FOR 2020 Bynder 2020 in-store, experts predict consumers will be of time and resources to Black Friday in an That is the view of Craig Inglis, and finding a connection with that sumers, which can cause them to in the short and longer term. ers, need to be really challenging more likely to participate in the sales events effort to mitigate the sales decline. Global survey of marketing professionals in April chair of the Marketing Society and sentiment of brand purpose.” reel,” says Inglis. “Everything we “Lockdown fundamentally about how those brands behave. former customer director for John There is no doubt that 2020 will thought was the norm is disrupted, changed our habits around travel “Don’t talk at customers about 1 Lewis & Partners, who believes the be chalked up as one of the most which can run deep and challenge and consumption, and retailers who what you think they want to hear; it emerging consumer psyche is an challenging and volatile of times, our beliefs about who and what can respond to that with creative and is about really understanding your opportunity for creativity to shine. as on an individual level people we trust. authentic propositions will be a great customers and genuinely connect- Christmas shopping After months of lockdown, faced health concerns, personal “We definitely saw that in 2008. No commercial success,” says Inglis, ing with them with honesty, human- Christmas shopping is traditionally full of shopping is an annual ritual for many,” says changes to work patterns and loss and financial worries, while one would have believed it was possi- pointing to the latest Global Consumer ity and warmth.” festive fun, bright lights, warm smiles and Hathaway. “It’s a social experience bringing social behaviour, the crisis of the the wider UK economy shrank ble to see the scenes of people queu- Insights Survey from PwC, which The growing trend for businesses socialising. But this year, retailers will be families and friends together that cannot be coronavirus pandemic has mor- more than 20 per cent in the three ing around the block to take their life found customers will become long- to engage in brand activism, driven pressured to offer smart solutions in-store or replicated online; these sort of interactions phed into the new normal. months to June. savings out of banks to hide under term advocates of brands that prior- by consumers’ desire to see brands create magical moments for consumers who are what's going to revive the high street.” “This pandemic has been a mas- Understanding customer psy- the mattress. This crisis is like that, itise care, wellbeing and innovation. they connect with taking a positive choose to do their Christmas shopping online. For bricks-and-mortar retail, however, social sive jolt to us all and made us chology will be the linchpin for but magnified many times over so, “We see consumers are actively role in society, has to be backed up From personalised packaging to thought- distancing measures and one-way systems think very carefully about what businesses to emerge successfully, inevitably, confidence is very low.” choosing brands that support the with action, he says. ful gifting options and exceptional customer in-store may make festive shopping a more really matters,” says Inglis, who points out Inglis, who is no stranger Customer trends including sus- NHS, look after employees or have For example, brands trying to care, digital demands more attention to detail pleasant, organised experience for those brav- overhauled John Lewis’s cus- to market turmoil. Having been tainability, searching for brands a purpose. That cannot just be for- engage with the recent resurgence this Christmas than ever before. “Christmas ing the shops. tomer strategy as well as leading appointed marketing director at gotten now we are coming out of of the Black Lives Matter movement 42.9% its now-legendary Christmas cam- John Lewis in March 2008, he was lockdown as I honestly think these following the death of George Floyd Growing brand awareness 2 paigns during his 12-year tenure at immediately faced with respond- actions will build long-term advo- in America and examples of ine- the retailer, which ended in March. ing to the fallout of the global finan- cacy and loyalty, as long as they are qualities in the UK have been put “People still want to buy and cial crisis. Just six months earlier, authentic and rooted in truth about under intense scrutiny when the Store launches engage with brands, but in a dif- Northern Rock had been national- the business.” make-up of their leadership teams Store launches in a post-pandemic world may want more than just a transaction of money ferent way. Technology has led ised after a bank run unprecedented People still want to buy For Inglis, it is “as much about do not reflect the diversity messages seem like a risky investment, but are necessary and goods when shopping in-store; they want consumers to become more since 1866, while the collapse of and engage with brands, what you do as what you say”. He they have adopted. for brands to build long-standing customer rela- an experience,” says Raj De Datta, chief execu- informed, which means they are Lehman Brothers in the United explains: “It has been shocking “Brands need to have their own tionships. COVID-19 restrictions will shape the tive at Bloomreach. “The winners will be brands more demanding, discerning and States was around the corner. but in a different way and scary, but this pandemic has house in order as we are judged way store launches look and feel, making it more that put the customer experience at the heart challenging for brands to engage with custom- of their store launches, whatever the channel, 3 ers and create a consistent footfall. “Consumers location or products they offer.” Craig Inglis’s five tips for Wedding dress shopping customer 1 2 3 4 5 From finding the right style to tearful try-ons wedding dress rental services,” says fashion connection Listen to your Invest in delivering a Create a culture of Connect with customers Do the right thing and sipping champagne with loved ones, wed- stylist Erica Matthews. Meanwhile, brides on customers and brilliant experience experimentation to emotionally and by your customers, ding dress shopping pre-pandemic was all a budget may turn to fast fashion retailers for understand their across every part of your get new propositions empathetically by telling employees and the about the experience. With weddings in the ready-to-wear wedding dress options. “Women lives, hopes, fears, customer’s journey at that excite and engaging stories that are communities you 23.5% 12.4% 11.5% 9.7% UK limited to 30 guests, brides face less pres- can now buy bridal gowns from House of CB or needs and wants. every touchpoint. inspire customers. true to your brand. are part of. Measuring Lack of brand Violating user Coming across sure to spend big on the dress. “Sustainability- ASOS that still look picture perfect for a frac- marketing value consistency privacy as inauthentic conscious consumers are more likely to use tion of the price,” Matthews adds. 4 06 THE FUTURE CUSTOMER RACONTEUR.NET 07

The client perspective

Laura Jones, global head of product marketing and customer engagement at Uber, says the ride-hailing and delivery app’s challenge, as it continues to grow and evolve, will be to stay ahead of customers’ needs. “Our challenge will be to continue to delight and surprise people with new modes of transportation that deliver on our original value proposition of being fast, frictionless and delightful,” she says. The Better Why “Now the challenge is how do we keep doing that? Every product we bring to life needs to respond to that core value proposition of giving people In the battle for relevance, why does time back and giving them energy the promise of big data alone still fail to back so they can focus on what really matters to them. deliver? Context holds the answer “As you know Uber started in rides, then we started to innovate into new areas like food delivery which is how we developed Uber Eats. The initial advantage we had was the fact that we et’s talk about Gillette, an competition when consumers have had a huge base of drivers who were L incredibly powerful brand an almost limitless choice of prod- ready to not only drive people from built for a world in which ucts at their fingertips. For the point A to point B, but also pick up food incremental innovation around a world’s biggest brands, the question and deliver it really quickly to our users. “functional sell” was what it took to of how to create and maintain rele- “What’s interesting about this is become a market leader. vance is becoming more urgent. This that from a user standpoint is we’ve Gillette launched with a razor that is an era in which 90 of the top 100 really come to represent convenience app, as well as the deep ethnographic had two blades. The next year it inno- US publicly listed consumer pack- and the idea of not expending energy insight I think we and our partners vated a superior razor with three aged goods brands are stagnating or on things you don’t want to expend in user research are uniquely well blades. Then four. Then five. It made in decline. energy on, like transportation, like positioned to uncover. perfect sense as a strategy: the more Choice is a powerful force and not meal prep, and so what’s exciting as we “Then, as well, some traditional blades the product had, the better it always entirely rational. C Space data think about the future is just how many market research methodology, which was and the more people would buy it. shows the reason customers choose directions this could take us. I think can’t be cast aside, even in Except that was the old world. One in one product over another is as much “So how do we decide what to do this era of big data, because it’s the which the brand owned the message, about the context and emotion the next? What will keep us ahead of intersection of all three of those the barriers of entry were too great customer brings as the benefits the customers as their expectations evolve? sources that lead us to the most and the cost too high for disruption product offers. “Obviously, it’s incredibly powerful to powerful and game-changing insights. to be a significant threat. Companies As Dollar Shave Club proved, for have 100 million monthly active users The better why. could get away with treating custom- a company to create an advantage around the world and be able to look at “And that’s where I think people ers as captives. within fiercely competitive market that data and understand how they’re look to marketing to say how do we Then along came new technologies dynamics, it needs to “get” its cus- behaving on the platform. But the truth reconcile this and what is the bigger and Michael Dubin with Gillette’s cut- tomers, speak their language, know is that’s a very limited picture because picture? And that’s our superpower; price competitor Dollar Shave Club. what they stand for, be frictionless And this story happens time and time contain a roadmap for the future to we’re only seeing behavioural data and taking that complexity and distilling it Dubin posted a video on YouTube to use, and make them feel smart and again. Remember Amstrad, Kodak, put you ahead of your customer in the the way they’re currently interacting. to a universal human truth, which can and Facebook which told customers proud for their choices. That’s rele- THE COMMERCIAL VALUE OF CUSTOMER CONTEXT Blockbuster, Woolworths, Toys R Us? battle for relevance. “To get to true innovation, I think of inform something that will stand the they had been duped: “Do you like vance and our data shows a company’s “Kids will always want toys,” right? This is a fast world and nothing is it as a kind of triage exercise between test of time, is actionable and can be spending $20 a month on brand-name ability to get its customers has a direct And now, as we slowly emerge While data literacy has exploded changing faster than your customer; the observed data we get from the used by the business.” razors? $19 goes to Roger Federer!” It correlation with business growth. from the coronavirus crisis, there’s across every level of business, this is both an opportunity and a risk. was a smart, witty and cheap way of % k another inflection point on the hori- rapid customer intuition just The path to relevance isn’t found in big turning Gillette’s multi-million-dol- Spotting inflection points 11 250 zon. Because customers – people – data nor is it found in episodic feed- new subscribers when EE lar tennis star’s sponsorship back on Business exists in such a data-rich have changed deeply as a result of this back. True relevance co-exists with a realised customers value what hasn’t increased in step them. Advantage, Dollar Shave Club. environment, in which we know so fall in Gillette’s market share when they had saved in their phone experience, it’s inevitable business strategic customer intuition, founded Customers loved it. But here’s the much about customers, that devel- consumers realised they could more highly than the handset will change as a result. on a better why and building it can be kicker: they didn’t love it because the oping and maintaining a strategic cus- have greater convenience and a While some things will return to how your only agenda. C-level agenda product was better. In fact, reviews tomer intuition should be easy. But fairer price from new competitors they were, much will not. Unmet needs suggested the blades weren’t quite companies are still getting it wrong. are emerging, right now. Anticipating To get ahead of customer inflection customers – a part of what we call as good. It turned out that a sizeable Consider Victoria’s Secret. Women the universal human truths that under- As businesses look to win in relevance Want to get ahead of the next cus- points, insights professionals argue ‘Intelligence CapitalTM’ – enables this number of men didn’t actually want will always need underwear and, 60% pin them is the single most impor- – the big battle of our time – they need tomer inflection point? that the customer should be a C-level responsiveness, allowing businesses to more blades; what they wanted was to moreover, such a large retailer has tant perspective a company can grasp to push themselves further to identify Join us to learn how at our ‘Better concern. Jane Frost, chief executive harness what they already know and use avoid the experience of buying a razor access to a lot of sales, loyalty and $2bn in its bid to stay relevant. But how? a better why, a commonly held version Why’ conference, with headline of MRS, the world’s oldest research it to drive business growth.” merchandise revenue generated per seat revenue increase (and 2x in-store, when razors were kept in other data. Surely, it can’t fail? And of a customer truth that can unify the speakers including Wharton Business association, says: “Financial and human Making sure that every employee when Disney realised little girls increase in customer satisfaction) kiosks, guarded by assistants, behind yet it has just gone into receivership wanted to be the princess, not just when British Airways discovered Why business needs a “better why” business and galvanise change. School professor and identity theorist capital have long been the cornerstones understands the customer agenda the checkout. They also wanted to in the UK. see the princess that business customers value rest What we hear from chief marketing They need a why that’s generated by Americus Reed II, and satirical cartoon- of business growth strategies. matters too, and senior sponsorship is feel like they’d made a savvier finan- What went wrong? They missed before big meetings, not indulgence officers is they are almost drowning in gathering and synthesising all the avail- ist, The Marketoonist, who will both “But just because insight is more critical to landing this message. Estrella cial decision and their dollars weren’t their customer inflection point in mid-air a sea of data. Their data gives them a able data and interrogating it in ways speak to the promise of a powerful cus- difficult to measure, it doesn’t mean it Lopez, EMEA HOI at General Mills, recalls: going directly into big business’s cof- because, while sales data can show picture of what is happening; it shows which reveal the emotion and context tomer / brand relationship and the gap is less important. In fact, in our world of “Two years ago, a new CEO came in to fers as profit. you there is a problem, it simply can’t sales are slowing, certain SKUs, or stock sitting beneath, the factors that can that still exists in achieving one. ever-advancing technologies, research, the business and started sending selfies Dollar Shave Club simply felt more tell you why the problem exists or give 53% keeping units, are exceeding targets, move the dial. A better why that con- insight and data analytics should be to staff of him spending time with relevant to consumers and the num- you the key to solving it. Sales and loy- footfall is high or that customers would tains a framework for understanding See more on our website centre stage as they hold the key to consumers. All of a sudden, everyone bers reflected that as Gillette’s market alty data alone couldn’t tell Victoria’s 2x recommend them. how emotional drivers of behaviour www.cspace.com untapped assets and long-term growth. was being consumer first. It’s possible increase in stock value when Pet share dropped from 70 to 59 per cent. Secret that women’s view of their own increase in market share of Greek But what they lack is an understand- complement the functional and which “In a fast-moving world, companies to agitate for the customer from the Smart understood that owners sexuality has evolved. That in a post- yoghurt when Chobani realised ing of why these things are happening. matter most to your customers. need to evolve faster than their bottom. But if there’s no traction from people could emotionally identify cared about their pet’s experience An era of choice #MeToo era, the kittenish, angelic While data literacy has exploded across A better why is one that can be tested customer bases and understanding the top, it’s going to be extremely hard.” with a yoghurt in store as much as their own More than ten years later, we find version of womanhood offered by every level of business, rapid customer and validated at speed and scale. ourselves in an era of hyper-dynamic Victoria’s Secret felt irrelevant. intuition just hasn’t increased in step. More than anything, a better why must 08 THE FUTURE CUSTOMER RACONTEUR.NET 09 Commercial feature Commercial feature

The client perspective

Laura Jones, global head of product marketing and customer engagement at Uber, says the ride-hailing and delivery app’s challenge, as it continues to grow and evolve, will be to stay ahead of customers’ needs. “Our challenge will be to continue to delight and surprise people with new modes of transportation that deliver on our original value proposition of being fast, frictionless and delightful,” she says. The Better Why “Now the challenge is how do we keep doing that? Every product we bring to life needs to respond to that core value proposition of giving people In the battle for relevance, why does time back and giving them energy the promise of big data alone still fail to back so they can focus on what really matters to them. deliver? Context holds the answer “As you know Uber started in rides, then we started to innovate into new areas like food delivery which is how we developed Uber Eats. The initial advantage we had was the fact that we et’s talk about Gillette, an competition when consumers have had a huge base of drivers who were L incredibly powerful brand an almost limitless choice of prod- ready to not only drive people from built for a world in which ucts at their fingertips. For the point A to point B, but also pick up food incremental innovation around a world’s biggest brands, the question and deliver it really quickly to our users. “functional sell” was what it took to of how to create and maintain rele- “What’s interesting about this is become a market leader. vance is becoming more urgent. This that from a user standpoint is we’ve Gillette launched with a razor that is an era in which 90 of the top 100 really come to represent convenience app, as well as the deep ethnographic had two blades. The next year it inno- US publicly listed consumer pack- and the idea of not expending energy insight I think we and our partners vated a superior razor with three aged goods brands are stagnating or on things you don’t want to expend in user research are uniquely well blades. Then four. Then five. It made in decline. energy on, like transportation, like positioned to uncover. perfect sense as a strategy: the more Choice is a powerful force and not meal prep, and so what’s exciting as we “Then, as well, some traditional blades the product had, the better it always entirely rational. C Space data think about the future is just how many market research methodology, which was and the more people would buy it. shows the reason customers choose directions this could take us. I think can’t be cast aside, even in Except that was the old world. One in one product over another is as much “So how do we decide what to do this era of big data, because it’s the which the brand owned the message, about the context and emotion the next? What will keep us ahead of intersection of all three of those the barriers of entry were too great customer brings as the benefits the customers as their expectations evolve? sources that lead us to the most and the cost too high for disruption product offers. “Obviously, it’s incredibly powerful to powerful and game-changing insights. to be a significant threat. Companies As Dollar Shave Club proved, for have 100 million monthly active users The better why. could get away with treating custom- a company to create an advantage around the world and be able to look at “And that’s where I think people ers as captives. within fiercely competitive market that data and understand how they’re look to marketing to say how do we Then along came new technologies dynamics, it needs to “get” its cus- behaving on the platform. But the truth reconcile this and what is the bigger and Michael Dubin with Gillette’s cut- tomers, speak their language, know is that’s a very limited picture because picture? And that’s our superpower; price competitor Dollar Shave Club. what they stand for, be frictionless And this story happens time and time contain a roadmap for the future to we’re only seeing behavioural data and taking that complexity and distilling it Dubin posted a video on YouTube to use, and make them feel smart and again. Remember Amstrad, Kodak, put you ahead of your customer in the the way they’re currently interacting. to a universal human truth, which can and Facebook which told customers proud for their choices. That’s rele- THE COMMERCIAL VALUE OF CUSTOMER CONTEXT Blockbuster, Woolworths, Toys R Us? battle for relevance. “To get to true innovation, I think of inform something that will stand the they had been duped: “Do you like vance and our data shows a company’s “Kids will always want toys,” right? This is a fast world and nothing is it as a kind of triage exercise between test of time, is actionable and can be spending $20 a month on brand-name ability to get its customers has a direct And now, as we slowly emerge While data literacy has exploded changing faster than your customer; the observed data we get from the used by the business.” razors? $19 goes to Roger Federer!” It correlation with business growth. from the coronavirus crisis, there’s across every level of business, this is both an opportunity and a risk. was a smart, witty and cheap way of % k another inflection point on the hori- rapid customer intuition just The path to relevance isn’t found in big turning Gillette’s multi-million-dol- Spotting inflection points 11 250 zon. Because customers – people – data nor is it found in episodic feed- new subscribers when EE lar tennis star’s sponsorship back on Business exists in such a data-rich have changed deeply as a result of this back. True relevance co-exists with a realised customers value what hasn’t increased in step them. Advantage, Dollar Shave Club. environment, in which we know so fall in Gillette’s market share when they had saved in their phone experience, it’s inevitable business strategic customer intuition, founded Customers loved it. But here’s the much about customers, that devel- consumers realised they could more highly than the handset will change as a result. on a better why and building it can be kicker: they didn’t love it because the oping and maintaining a strategic cus- have greater convenience and a While some things will return to how your only agenda. C-level agenda product was better. In fact, reviews tomer intuition should be easy. But fairer price from new competitors they were, much will not. Unmet needs suggested the blades weren’t quite companies are still getting it wrong. are emerging, right now. Anticipating To get ahead of customer inflection customers – a part of what we call as good. It turned out that a sizeable Consider Victoria’s Secret. Women the universal human truths that under- As businesses look to win in relevance Want to get ahead of the next cus- points, insights professionals argue ‘Intelligence CapitalTM’ – enables this number of men didn’t actually want will always need underwear and, 60% pin them is the single most impor- – the big battle of our time – they need tomer inflection point? that the customer should be a C-level responsiveness, allowing businesses to more blades; what they wanted was to moreover, such a large retailer has tant perspective a company can grasp to push themselves further to identify Join us to learn how at our ‘Better concern. Jane Frost, chief executive harness what they already know and use avoid the experience of buying a razor access to a lot of sales, loyalty and $2bn in its bid to stay relevant. But how? a better why, a commonly held version Why’ conference, with headline of MRS, the world’s oldest research it to drive business growth.” merchandise revenue generated per seat revenue increase (and 2x in-store, when razors were kept in other data. Surely, it can’t fail? And of a customer truth that can unify the speakers including Wharton Business association, says: “Financial and human Making sure that every employee when Disney realised little girls increase in customer satisfaction) kiosks, guarded by assistants, behind yet it has just gone into receivership wanted to be the princess, not just when British Airways discovered Why business needs a “better why” business and galvanise change. School professor and identity theorist capital have long been the cornerstones understands the customer agenda the checkout. They also wanted to in the UK. see the princess that business customers value rest What we hear from chief marketing They need a why that’s generated by Americus Reed II, and satirical cartoon- of business growth strategies. matters too, and senior sponsorship is feel like they’d made a savvier finan- What went wrong? They missed before big meetings, not indulgence officers is they are almost drowning in gathering and synthesising all the avail- ist, The Marketoonist, who will both “But just because insight is more critical to landing this message. Estrella cial decision and their dollars weren’t their customer inflection point in mid-air a sea of data. Their data gives them a able data and interrogating it in ways speak to the promise of a powerful cus- difficult to measure, it doesn’t mean it Lopez, EMEA HOI at General Mills, recalls: going directly into big business’s cof- because, while sales data can show picture of what is happening; it shows which reveal the emotion and context tomer / brand relationship and the gap is less important. In fact, in our world of “Two years ago, a new CEO came in to fers as profit. you there is a problem, it simply can’t sales are slowing, certain SKUs, or stock sitting beneath, the factors that can that still exists in achieving one. ever-advancing technologies, research, the business and started sending selfies Dollar Shave Club simply felt more tell you why the problem exists or give 53% keeping units, are exceeding targets, move the dial. A better why that con- insight and data analytics should be to staff of him spending time with relevant to consumers and the num- you the key to solving it. Sales and loy- footfall is high or that customers would tains a framework for understanding See more on our website centre stage as they hold the key to consumers. All of a sudden, everyone bers reflected that as Gillette’s market alty data alone couldn’t tell Victoria’s 2x recommend them. how emotional drivers of behaviour www.cspace.com untapped assets and long-term growth. was being consumer first. It’s possible increase in stock value when Pet share dropped from 70 to 59 per cent. Secret that women’s view of their own increase in market share of Greek But what they lack is an understand- complement the functional and which “In a fast-moving world, companies to agitate for the customer from the Smart understood that owners sexuality has evolved. That in a post- yoghurt when Chobani realised ing of why these things are happening. matter most to your customers. need to evolve faster than their bottom. But if there’s no traction from people could emotionally identify cared about their pet’s experience An era of choice #MeToo era, the kittenish, angelic While data literacy has exploded across A better why is one that can be tested customer bases and understanding the top, it’s going to be extremely hard.” with a yoghurt in store as much as their own More than ten years later, we find version of womanhood offered by every level of business, rapid customer and validated at speed and scale. ourselves in an era of hyper-dynamic Victoria’s Secret felt irrelevant. intuition just hasn’t increased in step. More than anything, a better why must 10 THE FUTURE CUSTOMER RACONTEUR.NET 11 adidas MATCHESFASHION IN-STORE What's next for bricks and mortar?

With the coronavirus pandemic likely to impact the retail experience for some time, 02 what will high street shopping be like in 2021? And how are brands innovating to 01 “Done well, AR gives shoppers on their purchasing decisions,” The private the confidence to buy online know- McGregor adds. “Fashion brands THE RETAIL RETURN keep customers safe, happy and excited to shopping suite of ing that an item of clothing is likely can use bricks-and-mortar stores MATCHESFASHION Percentage of consumers who say they return to the stores? at 5 Carlos Place to suit their body shape or size and to demonstrate their values reflect need the following before they return in London it can reduce return rates,” says those of their customers, such as to stores Kirsty McGregor, editor of fashion Timberland’s ‘purpose-led’ flag- 02 Salesforce 2020 business magazine Drapers. ship store on Carnaby Street.” Ana Santi Inside adidas's flagship on Oxford “However, it is expensive to Timberland’s 2,594-sq-ft space Street, kitted out implement and already-tight retail brings the brand’s corporate social

he magnificent window stores. Some have disappeared from with interactive budgets have been squeezed by the responsibility strategy to life with 62% 57% 50% 37% 36% 35% 29% 23% mirrors and in- T display stops her in her the high street, others have down- store geolocation pandemic, so it is still not widely living trees and towering pillars tracks. A brilliant compo- sized their portfolios. But many are tracking used. But technology that allows referencing the brand’s use of recy- sition of theatrical brand values innovating by placing experiential customers to shop and pay quickly, cled materials, community pro- and a new collection; it’s experi- retail, with a blend of digital and 03 such as self-checkout and mobile jects and overall creative vision. Customers at ential retail at its best. She smiles, physical, at the forefront of their 01 Marks & Spencer pay options, has gone from being a The theatrics of a bricks-and- before turning her attention to the post-pandemic strategy. can buy groceries nice to have to a necessity.” mortar store remain pivotal for a product. “Gorgeous dress,” she “Many of the experiential ele- without visiting Customers feel safer now, too, brand like adidas too. “We have a till by using the thinks. She knows exactly what’s in ments of retail are becoming dig- shopping appointments are prov- experience to be including whether their [store] visit, reducing wait In M&S’s footwear department, thanks to improved technology in been deepening our relationship retailer’s Mobile stock and if it’s available in her size. ital, while bricks and mortar ing very popular with its discern- they would like to be accompanied, times outside and allowing more shoppers carry a print-out of a Pay Go app bricks-and-mortar stores. Both adi- with local artists through store Should she wish, a sales assistant evolves to serve some of the more ing, global shoppers. at a distance, as they browse.” time experiencing our stores,” says measuring guide or consult the das and M&S have developed their events and locally relevant prod- awaits to offer advice. She takes the functional aspects of shopping,” Tech that allows customers to shop “There remains, of course, an Fans of the sports giant adidas, Steven Woolley, senior director for guide on their phones. M&S sells respective apps to count the num- ucts, to connect our store spaces dress and two tops. Click. She puts explains Alex Hawkins, senior fore- and pay quickly has gone from appetite to touch and feel the which opened its LDN store on adidas’s retail operations. a quarter of a million school shoes ber of shoppers in stores, in real and provide an experience for peo- her phone down. sight writer at consultancy The clothes, so physical visits remain London’s Oxford Street in October Customers at Marks & Spencer, each year, but it cannot offer an time. M&S’s was initially created in ple with the kind of human con- Next week, she will visit her Future Laboratory. being a nice to have to a necessity available, in line with government 2019 – a shiny, bright example of meanwhile, quickly buy their gro- in-store shoe-fitting service in a just three days, demonstrating the nection they have been missing,” favourite shop in person, for a pri- “Brands and retailers are now start- guidelines,” says Jess Christie, experiential retail – continue to ceries in stores without visiting a socially distanced environment. retailer’s ability to react quickly to says Woolley. vate appointment. And on her way, ing to invest in digital design to cre- chief brand and content officer. interact with more than 100 digi- till by using the retailer’s Mobile Pay “The team created a bespoke unprecedented changes. “Whether it's through augmented she’ll be stopped in her tracks once ate beautiful, dynamic and interac- “And [physical] private appoint- tal touchpoints and myriad immer- Go app on their smartphones. Sarah measuring guide which custom- “Our counting app allows col- reality versions of our new ZX again, literally this time, to watch a tive virtual showrooms that recreate The most popular stores in ments are proving successful. sive experiences, albeit in a more Cokayne, head of retail support ser- ers can easily access on their phone leagues to count the number of Boost sneaker or showcasing speed film by a different brand, screened many of the immersive and experien- 2021 will have blended the dig- Luxury customers want inspira- orderly way. The brand has max- vices, says M&S has seen a signif- in-store or they can use a print-out. customers into store and can be for our new X Ghosted football as a window display. tial touchpoints we used to associate ital and the physical to perfec- tion, immediacy and intimacy. imised its app for augmenting the icant move towards contact-free It’s one small example of how we’ve used simultaneously by colleagues boot, our stores are there to excite It’s 2021 and the coronavirus con- with the store. The role of sales asso- tion. At luxury fashion brand We know many of our clients on a in-store experience. shopping during the pandemic. adapted our offering; something on different doors,” Cokayne and engage.” tinues to circulate, leaving behind it ciates is also being transformed to MATCHESFASHION, which has five personal basis; they can quickly “It has been developed further to “Over 10,000 new regular users of we’ll continue to do,” Cokayne adds. explains. “Managing the flow of At the other end of the spec- a trail of closed bricks-and-mortar become virtual brand ambassadors.” stores in London, virtual private tell us how they would like their allow consumers to set times for Mobile Pay Go have come on board For all the technological prowess customers in and out is a really trum, bricks-and-mortar stores since March 2020; this technol- of certain brands, many consum- important part of helping our cus- are performing another important ogy will only continue to progress. ers still miss being able to try on tomers shop with confidence.” role: function. “Stores are being Digitally connected stores are more clothes after lockdown was lifted; While safety remains a concern, transformed into logistics hubs as THE RETAIL ROUT ShopperTrak/British Retail Consortium 2020 important now than ever before,” not all retailers can offer private 2021 could see a shift back to cre- click-and-collect culture becomes Year-on-year change in monthly footfall across UK high streets, shopping centres and retail parks (%) she says. M&S has tripled its Mobile appointments. But augmented ating unique, fun and experiential the norm, with retail brands con- Pay Go network from 100 to 310 reality (AR) is helping to replicate shopping experiences. “Shoppers sidering how logistics hubs can High streets Shopping centres Retail parks stores this summer. that experience. can expect a more localised and become destinations in and of personal approach, with improved themselves,” says The Future customer service, particularly from Laboratory’s Hawkins.

June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 03 M&S high street chains,” says McGregor. “Before the pandemic, brands Retailers are also using their were already experimenting with 20% physical stores to emphasise brand creating in-store studios to attract values, notably when it comes to YouTubers and influencers. Now,

0% sustainability and diversity. “The stores are becoming spaces for pandemic has made people reflect brand-broadcasting, as they are utilised to create their own social -20% media and marketing content.” There’s a school of thought that

-40% says out of difficult times comes moments of clarity, bursts of cre- % ativity. For some, COVID-19 was -60% 82 an insurmountable challenge. For of non-food retailers surveyed in mid-May said Stores are becoming spaces for others, it pushed them to innovate. they will have between 81 and 100 per cent brand-broadcasting, as they are People have an immense capac- -80% of their stores open by the end of September ity for change and that includes Deloitte 2020 utilised to create their own social our capacity for shopping in very

-100% media and marketing content different ways. measures distancing Social Required PPE for employees Required PPE for customers Availability of COVID-19 treatment Availability of COVID-19 vaccine Availability of COVID-19 testing assurance government Local assurance government National 10 THE FUTURE CUSTOMER RACONTEUR.NET 11 adidas MATCHESFASHION IN-STORE What's next for bricks and mortar?

-100% media and marketing content different ways. measures distancing Social Required PPE for employees Required PPE for customers Availability of COVID-19 treatment Availability of COVID-19 vaccine Availability of COVID-19 testing assurance government Local assurance government National 12 THE FUTURE CUSTOMER RACONTEUR.NET 13 Commercial feature

retail operations. And yet, in a time alternative to fizzy drinks brands when consumer spending has been that charge a premium to enjoy 'the disrupted and shopping patterns good life'.” are turned on their head by the Consultant Marandiz admits that coronavirus crisis, some important while currently it is “primarily a questions have arisen about the middle-class and above industry”,

Anna Efetova/Getty Images Efetova/Getty Anna long-term validity of the D2C model. times are changing. Once every With public spaces reduced to customer demographic is used to no-go zones across much of the buying products online, and data How to win the customer experience battle world, the consequences of the insights are available for every pandemic might have initially spending category, he says "we will seemed like good news to many start to see cheaper products at A cloud omnichannel interaction hub offers seamless customer experience D2C brands already providing sub- higher volume at the lower end of scriptions services, home deliver- the market”. ies and digital-first customer ser- Such an evolution is expected. vice. Ecommerce exploded as more For Sharma, D2C is “not a business very minute of every hour, and more consumers became accus- model; it’s more just a channel of E every day, consumer-facing tomed to ordering online. revenue”. Many brands already use companies are bombarded WHICH OF THE FOLLOWING CUSTOMER SERVICE CHANNELS DO YOU PREFER? DO YOU EXPECT A CUSTOMER Orla Weir, global D2C and brand the insights of the D2C channel to with questions, requests and com- SERVICE REPRESENTATIVE TO KNOW manager for doorstep-delivered then scale their offering and move plaints, especially during a lockdown. Email Live chat Online self service Social media YOUR CONTACT, PRODUCT AND flavoured sparkling water startup into larger, more traditional retail And the proliferation of digital chan- SERVICE HISTORY? Ugly Drinks, says: “We've seen avenues. As the challenges ramp up, nels through which people interact with Phone/Other voice SMS/Text message Undecided uplift in grocery outlets and 400 such flexibility will be key. brands – social, text, email, voice or Yes No per cent-plus growth online. In chatbot – has created a perfect storm Age such a crazy and difficult time for those mastering customer service. for the world, we have focused on “Everyone now wants to commu- 18-34 20% 21% 13% 10% 29% 4% 4% Age where we can add value.” nicate how they want to communi- D2C INTENT While some more agile brands cate. Everyone also expects a mean- 18-34 79% have been able to succeed, D2C Share of online purchases that US ingful interaction with a brand on 35-54 21% 16% 12% 4% 38% 4% 5% companies in verticals like travel consumers expect to buy from D2C their preferred channel. Baby boom- or leisure have suffered. Others, companies over the next five years ers still prefer to speak to a contact 1% 1% 21% over-reliant on sleek market- centre agent, while Generation Z will 55+ 20% 20% 10% 50% 6% ing and messaging, took a hit for try a chatbot and are happy to get a being, as Sharma puts it, “not response via text,” says Neil Titcomb, functionally necessary”. managing director for UK and Ireland Percentages may not add up to 100 due to rounding “Generally the smaller you are at Odigo, a leading contact centre-as and the more nimble you are, -a-service (CCaaS) provider. 35-54 the better you can react,” “We live in a multichannel world; HOW MANY DIFFERENT CUSTOMER SERVICE CHANNELS DO YOU USE? 76% says Marandiz. But even it’s why brands increasingly need a small brands are vulnera- joined-up, multichannel response. One to two channels Three to five channels Six or more channels None of these DIRECT TO CONSUMER customer service company that sells ble to global supply chain 25% “Consumers have rising expecta- 24% a product.” disruption, like that pro- tions, even more so if they’re younger. Age 1-19% A more accountable and honest voked by the coronavirus. They demand that issues are resolved 18-34 32% 52% 12% 4% relationship between buyer and With a global recession instantly, not in hours or days. They seller enables D2C companies to on the horizon, D2C chal- expect a personalised, informed and present themselves as being on the lenges are unlikely to end intuitive experience, which is primar- Road bumps 35-54 37% 48% 10% 5% consumer’s side. here. Major retail players will ily digital first. Right now, 90 per cent 55+ For an emerging brand such as no longer be focusing on tradi- of companies are failing to deploy 72% Estrid, which delivers fuzz-friendly tional advertising and offline acti- anything like this level of customer 55+ 43% 49% 4% 4% in D2C vegan razors for women, the direct- vation. Their budgets will go into service. They have a one-size-fits-all, to-consumer model allows them to channels until now enjoyed by first in, first out approach and that’s 28% be upfront about their values. “We D2C brands, Marandiz explains. not working.” 13% Microsoft, State of global customer service report had been frustrated with the way While a startup with a lim- Legacy systems have a lot to answer 20-39% evolution women were portrayed in media and ited budget relies on its market- for, especially among large organisa- commercials, particularly by the ing spend to be efficient enough tions, with many still utilising outdated “The coronavirus pandemic shone a It is one thing to deploy CCaaS tech- speech tools, sentiment analysis and major razor brands,” says founder to acquire new customers, larger platforms. They receive thousands light on how many brands couldn’t ser- nology, but with all innovative technol- biometrics to achieve this. It’s getting The direct-to-consumer model has been Amanda Westerbom. companies aren’t so bothered. And of inquiries logged on to ageing cus- vice customers effectively. It highlighted ogy, it is how it’s designed and config- cleverer all the time and moving at Vocal, very-online consumers are while it is a bonus, spending effi- tomer relationship management sys- how little intelligence they have on con- ured and ultimately used by customer pace,” says Titcomb. working well for smaller, more agile increasingly expecting D2C com- ciently is far from necessary. tems. Then there are disparate data sumers and their lack of ability to deal Personalisation is so crucial service staff that matters. “Personalisation is the golden ticket panies to reflect their own cultural “By [larger companies] being sources that don’t talk to one another. with people’s issues effectively, espe- that customers will pay more for “It is our job as experts in technol- to creating improved customer expe- companies over the years, but what prerogatives. Such centring of eth- inefficient, it makes it harder for Some can have as many as eight differ- cially when not in the office. Many busi- ogy, customer behaviour and psy- riences. Very few companies do it well. impact will a global recession have? ics – sustainability and body pos- smaller businesses to survive 12% ent information sources on customers, nesses don’t have that agility or insight. it; it shows engagement, forms chology to give businesses proactive It’s possible now and the impact is enor- itivity in Estrid’s case – is critical. and to take their traffic and their their products and processes, from This is a wake-up call,” says Titcomb, bonds and drives efficiency guidance on what they should be mous. Today, the opportunity to stand “The brands of today need to deliver customers away from them,” 40-59% call centres, to online queries, to those whose company works with 200 cli- doing and how best to deploy solu- out from the crowd is huge. Businesses societal and cultural value beyond a says Marandiz. managing social-media feeds. ents, including EDF, La Redoute and tions. That’s why we have an experi- can achieve higher customer retention, physical product,” says Westerbom. In turn, this could lead to a con- Achieving channel-less approach DHL, providing channel-less customer ence services division. It’s designed lower churn and greater productivity if Paying attention to the customer’s solidation of the D2C space. Only the to customer service can be a huge engagement solutions, and serves more for business optimisation, analysis they get this right. The return on invest- and consulting, which we’re evolv- Jack Apollo George demands and desires is also smart most successful brands will be able ask for enterprise-level companies. than 400,000 agents worldwide. ment is massive.” business. “Most D2C brands will to survive a global recession while Redesigning IT services is a task that “Yet good customer service is all doesn’t know enough detail on the cus- ing all the time,” says Titcomb from As the future unfolds, younger launch products based on what they having to compete with the market- can often be too big to tackle, espe- that people will judge a business on. tomer. This can lead to ‘blind’ transfers Odigo, a Capgemini brand recognised generations will call a business as a last irect-to-consumer (D2C) Warby Parker and Allbirds can con- hear from their customer service ing spend of retail behemoths. cially with millions of customers and Corporations can make quick wins by so they have to explain the issue again as a market leader in CCaaS solutions. resort. A lot of customer engagement is D companies have had it trol every aspect of their messaging, teams,” says Sharma. By primarily appealing to young thousands of call centre staff to please. deploying the right systems. It’s not or the agent doesn’t know they’re With increasing pressure on compa- increasingly digital, managed through good. Podcast hosts rave distribution and reputation. But marketing directly to the peo- digital natives who have money 7% This is why smaller, challenger brands difficult to identify and verify custom- calling for the third time today. This is nies to deliver exceptional customer mobile apps, chatbots and self- about their benefits. Social media “You can just have fun and cre- ple who will buy your product is to splash on new products, many offer better service with seamless, ers, but it’s harder to understand why because the relevant information is not experience, it’s no wonder this issue service. Brands will have to move with feeds fidget with their discount ate new things,” says D2C consult- hardly a counter-intuitive strategy; D2C brands appear as relatively 60-79% connected systems. they want to contact you, what frame made available to the agent at the time is on the boardroom agenda. The cus- the times, whether they like it or not. codes. Their subscriptions boxes ant Marco Marandiz, who calls it the it is simply a leaner way of running up market. of mind they’re in and determine how they need it most. The fact is the customer interface is no longer seen as a slip through neighbours’ post- “sexy” side to ecommerce marketing. When asked whether her company to handle them.” tomer experience is won and lost at the run-of-the-mill IT change project. It’s boxes. From pet food to house With high street stores shutting targets an affluent demographic, The challenge is how do you gather agent desktop,” says Titcomb. increasingly a priority; get it wrong and plants, lingerie to tuxedos, the their doors, emergent digital-first Estrid’s Westerbom stands firm: all the information together and have “The agent desktop is often invis- shocking contact centre experiences Find out more about world-class, direct-to-consumer boom has brands are able to undercut main- “We are on a mission to eliminate a “single source of truth” on the cus- ible to management teams and the make headline news. cloud-based contact centre solutions allowed for a whole host of spritely, stream providers by swiftly reach- the pink tax and reduce the cost of tomer? In recent years, software as a customer, however for the frontline “Consumers will pay a premium for a at odigo.com millennial-friendly companies ing out to discerning customers and razors for women; we believe the 90% service from the cloud, deploying the agent it’s fundamental. Its content can better, personalised service, which is to make their mark in the last delivering straight to their homes. Every D2C brand is opposite to be true.” latest technology, has helped, present- make a huge difference to the public frictionless, engaging, intelligent with few years. "D2C brands are what existed pre- Weir from Ugly Drinks argues a 3% ing contact centre staff with a single image of a company and how its ‘shop smart self-service tools, where aug- Trendy slogans and ethical pos- club stores or mass-retailers,” says inherently a customer similar line. “We believe healthy 80-100% of companies are failing view of the customer via a state-of- window’ is portrayed. That’s why we mented systems and contact centre tures are married with highly Nik Sharma, who invests in and service company that products should be affordable and to deploy a personalised, the-art dashboard. focus critically on the design of our staff not only understand who I am, but detailed customer data and effective advises many companies in the sec- accessible for everyone,” she says. informed and intuitive level “The greatest frustration people face agent desktop. It is vital to orchestrate what I want and why. We can now use digital ads. D2C companies such as tor. “Every D2C brand is inherently a sells a product “We created Ugly as a down-to-earth YouGov/eMarketer 2019 of customer service is when a call centre representative the customer experience in one place.” artificial intelligence and sophisticated 12 THE FUTURE CUSTOMER RACONTEUR.NET 13 Commercial feature

40% WE VALUE ADAPTABILITY OVER PRICE 21 PER CENT OF RACONTEUR READERS HAD PC/video games or board STOPPED SHOPPING FROM CERTAIN BRANDS Elements of customer experience that have made the biggest positive impact during lockdown, according to Raconteur readers games DUE TO HOW THEY RESPONDED TO THE BUILDING BETTER PANDEMIC. OF THIS GROUP... 31% 26% 20% 19% 4%

29% 19% SHOPPERS? Kids/baby products Delivery time New models or ways to Accessible, transparent Range of products/ Price buy (e.g. online) customer service services available Raconteur survey 2020 The COVID-19 pandemic has changed everything, not least the way in which we stopped shopping at Wetherspoons shop. Along with the necessary transition to buying online, there has been a WE WANT BRANDS TO DO MORE FOR US AND THE PLANET 27% notable shift in mindset. To understand this, we consulted global and national Raconteur readers' views on what they want brands to be going forward Indoor data on customer behaviour, as well as running our own survey, to get a clearer furniture/ 66% 41% 36% 31% 15% picture of how our audience is feeling about how they buy. So, what have we homeware 13% learned about ourselves as customers?

stopped shopping at Amazon

WE PLAN TO STICK WITH ONLINE SHOPPING WE'RE BUYING MORE More sustainable and I would like to be able More reasonably Quicker and more More personalised ONLINE THAN EVER environmentally-friendly to do most of my priced efficient delivery to my lifestyle Percentage of UK shoppers of all ages who say they shopping online % plan to buy more things online after lockdown than Items which UK consumers have bought Raconteur survey 2020 8 they did before more of online since lockdown commenced

stopped shopping at Sports Direct National average WE ARE BUYING MORE MINDFULLY WE EXPECT OUR SHOPPING HABITS TO CHANGE FOR GOOD 18% Percentage of UK shoppers who said they are thinking Share of UK consumers who state the following as their top 9% more carefully about how they spend their money priorities while shopping now, and who say they are likely to 18-24 sustain this post-outbreak Groceries 24% 29% Activewear/ I’ve stopped shopping at too Limiting food waste 25-34 exercise many brands to mention! 9% equipment 68% 22% I won’t be buying from Clothes/Beauty % Shopping more health-consciously 35-44 products 44 companies who treated their Becoming more mindful of 21% 59% 19% where I spend my money staff or suppliers poorly 10% Alcohol Making more sustainable choices 44-54 Medicine or health 54% 15% products 16% 20 PER CENT OF RACONTEUR READERS STARTED Shopping more cost consciously SHOPPING AT NEW BRANDS SPECIFICALLY 55-64 11% Electronic equipment (games BECAUSE OF HOW THEY HAD RESPONDED TO consoles, phones, TVs etc) 14% DIY/arts and crafts supplies 49% THE PANDEMIC. OF THIS GROUP... Shopping in closer neighbourhood stores 16% % 65+ 32Changing to less expensive 16% Outdoor furniture or products to save money 46% 13% Physical books, magazines, or comics gardening products PwC 2020 YouGov 2020 McKinsey 2020 Accenture 2020 33%

said they had started shopping at local businesses WE ARE DEMANDING BETTER FROM BRANDS Healthy and How companies take care of Retailers’ promotion of Sustainable/eco- Company’s Hygienic packaging the safety of their employees sustainable solutions friendly products purpose/values Percentage of global customers who have said they bought more from a company during the pandemic due to the following factors

50% I’ve started shopping at local shops who were offering 40% deliveries, like my local cafe.

30% It felt important to support local independent shops over

20% big brands. Getting a cake delivery is something I’d never

10% do in my usual life, but getting that delivery in lockdown felt

0% like a real treat! US UK France Germany Spain Italy India Japan Korea China McKinsey 2020 Raconteur survey 2020 14 THE FUTURE CUSTOMER RACONTEUR.NET 15

stopped shopping at Amazon

50% I’ve started shopping at local shops who were offering 40% deliveries, like my local cafe.

30% It felt important to support local independent shops over

20% big brands. Getting a cake delivery is something I’d never

10% do in my usual life, but getting that delivery in lockdown felt

0% like a real treat! US UK France Germany Spain Italy India Japan Korea China McKinsey 2020 Raconteur survey 2020 16 THE FUTURE CUSTOMER RACONTEUR.NET 17

OPINION

the brand and have people apply,” advises Timothy Armoo, chief executive at influencer marketing agency Fanbytes. TIKTOK The Association of Chartered Certified XanderSt/Shutterstock Accountants (ACCA), established in 1904, successfully worked with two creators with the ‘The landscape may support of Fanbytes to produce content for TikTok PHILIPPE LOPEZ/AFP via Getty via Images LOPEZ/AFP PHILIPPE and Snapchat to reach new recruits, which was Tapping essentially a B2C play for a B2B organisation. be radically changed, TikTok marketing for B2B “We worked with two influencers [James Owen and Sherice Banton] who visited accountancy TikTok For Business is supposedly for brands firms, Flinder and Peter Jarman who had the but we can, and must, into TikTok targeting both business-to-business (B2B) or right following, not just a sizeable following. The business-to-consumer (B2C) audiences. “TikTok content showed off ACCA and student accountants is where creativity can be unleashed. Modern redefining the profession, abolishing the stereotype embrace this to customers for both want the fundamentally same that accountants are boring by creating organic Despite takeover talks and geopolitical thing out of brand interactions: entertaining, TikToks,” explains Karen Smith, head of UK our advantage’ inspiring or informative experiences improving marketing, at ACCA. wrangling, brands the world over have their lives,” says TikTok’s Stuart Flint. The activity generated 890,800 views, 182,900 finally woken up to the potential TikTok But catering for both B2B and B2C campaigns has likes, 1,069 comments and an average engagement been a struggle for most social media platforms on TikTok of 13.6 per cent, according to the ACCA. he effects of COVID-19 are as a top-line growth driver, advising marketing holds and TikTok isn’t immune. Some specialists aren’t “There was a lot of research and a lot of dialogue T being felt across the world. marketing and the supply chain need convinced the platform is right for B2B brands or to ensure there wasn’t anything that would jar For marketers, everything to be hand in hand. “One of the most campaigns just yet. with our brand and placing trust in the influencers has changed: every touchpoint, disci- important things that a marketer can “If B2B brands need to be on TikTok, then it we’d chosen, given the live aspect of the content pline, budget and revenue is affected. do is drive demand, but if that prod- TIm Gibbon should be for recruitment purposes showcasing created,” Smith adds. The retail and consumer landscape is uct is not available at the right time seeing seismic shifts and witnessing a in the right place to shift to the con- t’s the sixth most-used app In December 2019 alone, 9 per cent rapid ecommerce acceleration. sumer, then we have definitely failed I on the planet and high on of UK smartphone users aged 25 to Rewind to 2019. The Cannes Lions together as a unit,” she said. the agenda for marketers 34 were on TikTok, compared with festival stages focused on customers Furthermore, as part of the WARC worldwide as it continues to be one 8 per cent of those aged 35 to 44 and could even win a very special pair of Owned by Chinese multinational demanding genuine brand purpose, COVID-19 Series, the advice to brands of the hottest social destinations. 5 per cent of phone users aged 45 to #MagicBoots,” according to the cen- ByteDance, TikTok started life as the importance of the brand experi- looking to drive ecommerce revenue But TikTok’s potential for brands to 54, according to WARC estimates. tral campaign page. Douyin in 2016, but rapidly became ence being a human experience and is to learn from past recessions and build mass awareness and reach new Accordingly, celebrities, influenc- TikTok’s Flint explains how the more popular on a global scale after Anybody on the new consumer groups forming as a ensure their tech and supply chain audiences is only just beginning to ers and household names are all get- amplification with advertising works acquiring and merging with lip-sync result of the pressure that both people are in a place to deliver. We know be understood. ting in on the act as the desperation with the brand and creator Black, app Musical.ly in 2018. But as its platform has the and the planet are facing. learning from the past and the appli- Known for its predominantly for brands and individuals to go viral “‘Don't make ads, make TikToks’ French influencers user-generated content (UGC) aggre- For Chipotle’s latest TikTok market- praising the strength of collaboration. audience continues to swell, many, In 2020 these priorities remain, but cation of this knowledge to current Generation-Z user base with 800 continues to gather momentum. isn’t just our proposition to marketers; (L to R) Théo gating in the central page. ing campaign, #ChipotleSponsorMe “Nike was able to leverage his large such as Donald Trump, are now wor- opportunity to be now brands are faced with an addi- situations is crucial, but we must also Bignonneau, Sacha million global monthly active users, But it’s the app’s content-centric it’s something we believe in passion- Sadok and Rafael And it is this UGC model where on Cinco de Mayo 2020, it teamed up following in a key target demographic ried the platform could be amassing seen... It's a more tional layer of complexity as they nav- factor in the future, and a careful use TikTok’s explosion onto the world model that sets it apart from the ately,” says Stuart Flint, head of busi- Caplan creating TikTok’s true potential lies. with influencer and brand superfan to generate huge organic reach right data on American citizens to pass to igate, react and adapt to ecommerce of both will help brands and retailers stage has been profound, especially competition. Unlike Instagram or ness solutions for Europe at TikTok. content on Tik Tok According to Salesforce, social cam- David Dobrik to challenge creators to from the start. To maximise reach, the Chinese government, something even playing field acceleration and an increased con- ride the waves of this acceleration. in Paris over recent months as whole nations YouTube, the content, not a channel’s “We think there is a clear opportunity paigns that have some element of showcase why they should be spon- Nike ran additional topview-lite ByteDance denies. sumer expectation that brands prop- In their recent report Future went into lockdown and teenagers following, reigns supreme, which for brands to tell important stories on UGC achieve a 50 per cent increase in sored by Chipotle. The campaign was and in-feed ads, as part of a wider In August, the US president ordered agate a diverse and inclusive society. Consumer 2022, trend forecast- went in search of entertainment to means accounts with just a few likes our platform, to create a depth of what engagement, while ads with signifi- inspired by the influx of fans who were advertising campaign. On TikTok, ByteDance to sell TikTok’s US opera- The short-term effects of lockdown ing company WGSN identified two pass the time. or “hearts” still have the potential to they can share, what they believe and cant UGC generate five times higher requesting Chipotle sponsorships #MagicBoots saw more than one bil- tions before the middle of September new owners may be able to sidestep saw a surge in ecommerce uptake as global sentiments – fear and desyn- The app, available across 149 coun- reach millions of eyeballs. to connect with the community, but click-through rates. across social. Tressie Lieberman, vice lion video views.” or face a nationwide ban, with the political issues currently plaguing shoppers tried to avoid leaving home. chronised society – predicting these tries and regions and in 39 languages, The Washington Post’s channel, to do so in a way that is truly TikTok.” “In a very dynamic media land- president of digital and off-premise at The success has led Black to travel Microsoft, Twitter and Oracle among it, in addition to the challenges of pri- Insight from ecommerce and data mindsets are set to impact the future allows users to create and share three for example, which provides a light- The platform offers a variety of scape, we are constantly looking the American chain of fast food res- the world to work with football super- the leading contenders to take over vacy, spam and inappropriate content analytics platform Edge by Ascential consumer landscape. In response, sixty-second videos on topics rang- hearted, behind-the-scenes look at advertising options, from in-feed and to address the right target group taurants, explains: “TikTok creators stars Kevin de Bruyne, Neymar and the unit. that will inevitably follow. Like other shows store traffic is dramatically to continue to remain relevant, new ing from music and lip-synced dance how the publication is made, has takeover ads to branded video filters and nurture our target group of the jumped at the opportunity to share Cristiano Ronaldo, directing, editing TikTok, which boasts 80 million platforms, transparency and trust down, overall spending is in decline thinking in terms of a brand’s over- routines to geopolitical news and cur- amassed nearly 600,000 followers and the ever-popular hashtag chal- future,” says Wim Van Bogaert, man- new original content that proved and publishing content. “It just feels active users in the United States, is will be critical to its future success. and online shopping is increasing. all online environment will be criti- rent affairs. But if you thought it was and 25 million likes since launching lenge ads, where companies invite ager of digital marketing at BMW, their undeniable love for Chipotle’s like TikTok have nailed it. The trends fighting its corner and taking legal With competition from Instagram’s Alongside these changes, we are cal. Already, innovative companies just another social platform made for in May 2019, as it attempts to reach a all users to create content around which doesn’t yet have a central real food. and the use of audio makes it easier action against the Trump administra- newly launched Reels product, and witnessing category shifts, with are decluttering the customer experi- under-18s, think again. younger, more global demographic. their campaign theme, with all TikTok channel, but is looking to “We worked with David to pick for people to get involved. These are tion to challenge the accusations lev- more copycats expected to follow, search terms for COVID-19 essentials ence, investing in new livestream and integrate the platform into its overall five winners who became the first probably the two things that make it elled at it. Meanwhile, India banned President Trump creating an account winning the top search ranks. In a conversational commerce, and trial- strategy in the future. Chipotle fans to receive the famed so unique,” adds Black. the app in June, citing security and on competitor Triller, and a dozen financial context, the surge in online ing new formats such as livestream “With TikTok showing the most Celebrity Card, which is normally But the breakneck speed of TikTok’s privacy concerns. other similar platforms wanting to shopping caused by the COVID-19 shopping events to drive sales and TIKTOK TRENDING Priori Data/Statista 2020 year-on-year growth [compared with reserved for a small, elite group of world domination is not without its The unfolding TikTok story is replicate TikTok’s success, how solid pandemic is expected to add £5.3 bil- social return on investment (ROI). Monthly active users of TikTok in the UK on Android and iOS devices (millions) other platforms] of above 30 per cent, brand superfans who are celebri- challenges, with privacy and national equally entertaining as the con- is its future? There is a potentially lion to UK ecommerce sales this year So, while change will continue an audience of above 800 million and ties, athletes and influencers, and security among the top concerns of tent published across its platform. complex road ahead. But achieving to make a total of £78.9 billion. at pace, what’s clear is the winners 6m growing, as well as recording the long- grants access to free Chipotle. The some governments as geopolitical From the economic, geopolitical and huge Western adoption where one- So how can brands make the accel- will be those marketers who adopt a est amount of time per day on a social campaign generated 1.2 billion total manoeuvring attempts to stall its everything in-between, it’s attracting stop Chinese technology powerhouse eration in ecommerce their success positive mindset, as what we really platform, we would only deny TikTok views on TikTok.” rapid growth. controversy and interest. Its potential WeChat failed, it is tempting to sur- story? There are some fundamental have is opportunity. Opportunity for at our own peril. We’re witnessing the UK-based 22-year-old Ben Black, mise more success awaits. ByteDance checkpoints, such as brand build- brand-building, opportunity to cre- 5m coming of age of TikTok.” a Nike football ambassador with 2.3 itself reportedly estimates annual rev- ing with a long-term view, creating ate first-class consumer experiences Last year, BMW launched a dance million followers on TikTok alone, enues will surge to $6 billion by the end humanity and purpose and the abil- and opportunity to increase ROI. The SOCIAL SURGE campaign on social channels was an early adopter of the platform. of 2021, up from $1 billion this year. ity to be agile. landscape may be radically changed, under the #THE1challenge hash- As one of the first football creators Percentage of UK children using social media before and during the pandemic With its growth, investment, reach, In WARC’s recent Lions Live ses- and still changing, but as marketers publishing content on Musical.ly, he tag, whereby users were tasked February 2020 April 2020 virality and ability to evolve quickly, sion, David Tiltman, vice presi- we can, and must, embrace this to 4m with performing a choreographed witnessed the platform evolving first it’s impressive. Announcements such dent of content, offered three clear our advantage. dance “inspired by the new BMW hand. “Anybody on the platform has as its newly launched Creator Funds actions for marketers: transform per- 1 Series”, which on TikTok gener- the opportunity to be seen. On any 18% aren’t hurting either, whereby TikTok formance marketing and eliminate TikTok ated 1.4 million likes, 7,400 com- other platform it can be quite hard to 60% is investing billions in supporting friction between advertising and ments and 7.1 million views, out- get exposure. On TikTok it’s a more “creators of all sizes and backgrounds purchase; resist the shift to short-ter- 3m performing Instagram. even playing field,” says Black. through earnings that reward the mism; and fundamentally reassess 20% “If we do not bond with this younger He works alongside Nike, its agency Instagram passion and dedication they put into the experience you can offer as a target group who are at the brink of and TikTok, and has earned their 49% inspiring, uplifting and entertaining brand. The importance of the brand owning a driver’s licence and spend trust leading him to have creative con- the TikTok community”. experience is particularly interesting 2m an average 53 minutes per day on trol and steer activity and campaigns, TikTokers are unapologetically because getting closer to the supply Snapchat 17% TikTok, when will be the right time?,” including Nike’s #MagicBoots, which loyal and they’re the audience defin- chain will be an integral element of 40% asks BMW’s Van Bogaert. “The female challenges users to show off their soc- ing its future. What’s apparent is the delivering this experience. ratio is between 60 and 70 per cent cer skills to win a pair of boots. “Take interest brands have in TikTok mar- When Tiffany Lilze, senior ecom- and this is very important. The major- inspiration from some of the finest Houseparty 2% keting, the TikTok creator ecosys- merce supply director, North 1m ity are using high-end smartphones, #nikefootball players in the game 23% tem and its audience. These don’t America, at Procter & Gamble, spoke Anna Reeves an indication of the purchasing power and show us what you’ve got. And if appear to be going anywhere else at Lions Live, she highlighted the Chief marketing officer Jan '17 Mar '17 May '17 Jul '17 Sep '17 Nov '17 Jan '18 Jul '18 Sep '18 Jan '19 Mar '19 Jul '19 Sep '19 Mar '18 May '18 Nov '18 May '19 Nov '19 Jan '20 Mar '20 May '20 of the audience which is on TikTok.” you impress our baller, @ben, you Qustodio 2020 any time soon. importance of using the supply chain Ascential Group, owner of Cannes Lions 16 THE FUTURE CUSTOMER RACONTEUR.NET 17

OPINION

DAILY ROUTINES CHANGE Coronavirus is affecting many aspects of people’s lives. We asked in Why experiences what ways the coronavirus is impacting daily routines. 90% of consumers expect it 49% 44% 37% matter to the will be more than two months before routines go back to normal said they are not are not comfortable are buying items changing consumer going out to eat going outside for online, but not non-essential items going in-store of 2020 More than ITEMS THAT SURVEYED CONSUMERS SAID THEY INTEND TO % PURCHASE IN THE NEXT 30 DAYS Ongoing reverberations from the coronavirus pandemic 50 expect it to be four How to build months or more

are dramatically reshaping what customers expect from % % % % % % % % % % % % 17 15 19 72 37 26 23 52 28 84 20 their interactions with brands. As behaviours continue McKinsey & Company April 2020 50 to shift, businesses that prioritise experiences at a experiences for the corporate and local level will emerge stronger CONSUMER SENTIMENT ON BRAND COMMUNICATIONS DURING THE COVID-19 PANDEMIC customer of 2020 Digital transformation has been ushered in overnight across a wide variety of industry verticals, from consumer packaged goods ngoing reverberations from to onboard new customers and retain shopping at retailers that are not % % % to automotive, restaurant to travel, and it’s forcing big shifts in O the coronavirus pandemic current ones will be in a better position taking health and safety seriously. 56 40 43 are dramatically reshap- for the post-COVID-19 world and long- Some 24 per cent say they would I am pleased to hear I want to hear what It is reassuring to hear strategy across the board ing what customers expect from their term changes that will come with it. pay 10 per cent more for products about brands taking brands are doing in from the brands I interactions with brands. As behav- at stores doing a superior job with actions like making response to know and trust donations of goods the pandemic iours continue to shift, businesses that Customers in flux health and safety. nsira delivers digital, chan- a day that optimised against the Put the customer in the and services 3 prioritise experiences at a corporate “Customers are now demanding an The new customers aren’t just A nel and hyper-local market- changing dynamic. driving seat and local level will emerge stronger. experience that, in many ways, tran- focused on health either, they want ing solutions to meet clients Panera had built up a solid tech stack The automotive sector has also proven Though it’s not over yet, 2020 has scends product,” says Jay Dettling, reassurance in other areas. where they are on their customer expe- over the years, which facilitated this itself to be ripe for disruption in already delivered a year of seismic chief executive officer of independent So brands have a once-in-a-lifetime 15% rience journey. Here are some examples integration and allowed it to keep cus- recent months. change for businesses. global marketing technology and ser- opportunity to use experiences to build I do not want to of how it has been helping companies tomers up to date and cement its pres- In the UK, new car registrations In a short period of time, the locked- vices firm Ansira. a deeper connection with consumers hear from brands across a variety of sectors implement ence in the local community. fell 44 per cent in March, which is a at this time down nature of the response to coro- Dettling observes that even pre- or risk losing the relationship forever. new strategies that deliver the best steeper drop than during the 2008 navirus has forced companies to accel- COVID-19, there was a distinct pivot possible customer experience and sales Keep in touch recession and the worst since 1999, 2 erate their digital and ecommerce away from brand loyalty being forged Local lens potential now and in the future. The World Travel and Tourism according to the Society of Motor capabilities, while ensuring they deliver by differentiation or value. Instead cus- For Andy Arnold, executive vice pres- Council, which represents major global Manufacturers and Traders. It was a brand communications and experi- tomers are now buying into what busi- ident of Ansira Channel, who has Bake technology into travel companies, is projecting a 2020 similar picture across Europe, with 1 ences that support customers in a rel- nesses stand for and the frictionless experience across the automotive, your business global loss of $2.1 trillion in revenue for new car sales falling 85 per cent in Food evant, human way. experiences they can provide, whether consumer packaged goods, retail, Books The hospitality sector has faced fresh the industry. Italy, 72 per cent in France and 69 per Where marketers are operating in an that’s using an app to order groceries or hospitality and technology indus- challenges daily since the novel coro- For companies operating in the ver- cent in Spain over the same period. In era of uncertainty, so too are consumers. asking Alexa about store opening times. tries, COVID-19 is shining a light on an Electronics navirus first took hold. Many restaurants tical, there’s been a fundamental shift the United States, the figure declined

Amid a decline in consumer con- In this moment, however, a primary experience gap that can be plugged supplies Office and bars quickly pivoted to offer curb- to how they do business, but also an by 35 per cent. fidence and reduced purchasing barometer of brand experience for by approaching marketing through a Toys/arts & crafts side pick-up and delivery in lockdown. opportunity to rethink the experiences With customers reluctant to make Household supplies Household Medical/healthcare Educational materials Educational power, a global economic down- customers is how organisations are local lens. care Beauty/personal “This is an industry that wasn’t just they offer customers. big-ticket purchases in an economic turn is developing. A recent study stepping in to take care of them at a Customers, he says, have grown impacted pretty hard by COVID-19, it Sands zooms in on the many nuances downturn, car dealerships have also Streaming entertainment Streaming Home renovation supplies

from the American Association of time when they feel uncertain about accustomed to the way titans like Exerciseclasses/equipment also leapfrogged somewhat in trans- facing the travel industry: “You have come up against another issue: people Advertising Agencies found this envi- what the future holds, and health and Amazon and Starbucks have disrupted formation and how it got consumers to travel restrictions globally, then social have been unable to visit showrooms ronment is also driving changes to wellbeing is a priority. the market and, amid the pandemic, March 20, 2020. www.aaaa.org March 20, 2020. www.aaaa.org interact with its brands and consume distancing measures on the plane or and test drive due to government-en- long-held habits. Dettling says: “How a brand inter- they’ve come to expect those same its products,” says Kelly Jo Sands, exec- on the bus, then you get to a local level forced closures. Almost half (49 per cent) of people acts with its customers in terms of seamless experiences from smaller, utive vice president of Ansira Digital. where there are different restrictions However, Andy Arnold, executive say they’re avoiding eating out, while health and wellness has really risen more local brands. “A lot of our clients didn’t have delivery there too.” vice president of Ansira Channel, has 27 per cent are ordering food delivery up the importance chart. Companies “Before, customers might have tol- tech, so we had to stand up those capa- She believes maintaining a tailored, been helping Ansira’s cohort of auto and/or takeout. Some 44 per cent say that have demonstrated real empathy erated it if your company was the local United States, where the government at their websites as informational whether they really do and thinking bilities overnight and form quick partner- open line of communication with cus- clients and partners, which includes they aren’t comfortable going outside for customers and put that in front of grocery store and it was easy to walk to has taken a state-by-state approach, landing pads. Now they’re finding about how much they’d want you to ships with aggregators like DoorDash.” tomers will ensure travel brands are Honda, improve the experiences they for non-essential items and another profit have stood apart.” or access. So it wasn’t necessarily crit- franchisees have also leaned into this presence is super important spend on evolving the product versus Though many have since reopened, well placed to compete in the new offer to customers. 37 per cent say they are buying online Building experiences that make ical for you to have digital touchpoints Customers are now demanding more agile media and search engine so they can switch out the content how you interact with them,” he says. savvy restaurant owners and fran- travel landscape. Pointing to capabilities such as vir- instead of in-store. people feel as though their health is or contactless ordering,” says Arnold. optimisation buying to ensure their to make customers aware of their “Stay close to them, monitor chisees are adapting to their next-nor- Ansira and its client, the Aruba Tourism tual walkarounds, digital purchase, and What is also clear, though, is con- a priority are now essential for the “However, COVID-19 has really illumi- an experience that, in many messaging is right. opening times and the nuances of their expectations and their levels mal and embracing the models they Authority, had to spring into action pick-up and drop-off test-ride ser- sumers believe businesses have a key likes of brick-and-mortar retailers nated the brands that are doing those ways, transcends product Kelly Jo Sands, executive vice pres- interacting with them in this period. of satisfaction.” built in lockdown. when the southern Caribbean island vices, Arnold says cutting-edge deal- role to play in responding to the crisis, and restaurants. things, leading customers to realise ident of Ansira Digital, says for local It sounds quite operational, but it’s It’s certainly advice that transcends Among them is sandwich chain shut down at the start of lockdown, but erships in America were already offer- especially at a local level. Solutions might be as simple as imple- someone else is doing it better than operators, franchisees and dealer- so important.” this moment in time. Panera Bread, which quickly sus- the consultancy continued to connect ing this holistic customer experience The same research found 56 per menting frictionless payment sys- you, because they’re focused on a ships, cuts to brand budgets at a cor- Companies, local and national, are pended its coffee subscription with customers throughout this period, and now the entire industry is playing cent of people are happy to hear how tems and clearly communicating in an more holistic customer experience.” porate level have forced a planning and still in the acknowledge-and-adapt fees and extended the offer expi- having already revised the Authority’s catch-up. brands are helping communities in on-brand way how social distancing rules Following a pivot to shopping and “Local has exploded,” says Arnold, owned-platforms rethink. phase of the pandemic. However, for For more information please visit rations for its successful MyPanera visitor segmentation and modelling. “There’s a lot of pressure and incen- response to the pandemic. A further will be adhered to in physical spaces. ordering locally in lockdown, Ansira has attributing it to several factors “With base budgets on hold, we’ve those looking to build customer expe- www.ansira.com loyalty programme. In early-April it The thinking behind this was to enable tive from the brands to have deal- 43 per cent find it reassuring to hear However, those that get the bal- seen an increased demand from local including the slate of new content been giving brands with distributed riences that lead to stickiness beyond also launched a grocery concept. To the client to send more personal- erships come along and offer these from companies they know and trust in ance right will ultimately reap the enterprises, franchises and dealer- required from local firms, from den- ecosystems the tools to plus up local the crisis, Dettling has some guidance. ensure it stayed relevant to custom- ised, relevant content to prospects via features, because that’s the new uncertain times. rewards. Ipsos’ Consumer Health and ships to help them deliver local expe- tists to coffee shops, to relay basic media in their area,” she says. “Businesses often fall into the trap ers, the brand worked closely with a global email platform that deploys expectation from customers,” he says. Brands that adapt to these changing Safety Index from May 2020 shows riences with efficient media spend that information to customers and drive “Historically, verticals like quick of thinking they know their customer. Sands’ team to push out cross-plat- communication in nine languages “We’re seeing a big wave of momentum expectations and experiences designed 62 per cent of Americans will stop accounts for supply chain impacts. physical and digital footfall. In the service restaurants have looked But they should be asking themselves form communications multiple times across 120 countries. to make those things happen.” 18 THE FUTURE CUSTOMER RACONTEUR.NET 19 Commercial feature Commercial feature

from the American Association of time when they feel uncertain about accustomed to the way titans like Exerciseclasses/equipment also leapfrogged somewhat in trans- facing the travel industry: “You have come up against another issue: people Advertising Agencies found this envi- what the future holds, and health and Amazon and Starbucks have disrupted formation and how it got consumers to travel restrictions globally, then social have been unable to visit showrooms ronment is also driving changes to wellbeing is a priority. the market and, amid the pandemic, March 20, 2020. www.aaaa.org March 20, 2020. www.aaaa.org interact with its brands and consume distancing measures on the plane or and test drive due to government-en- long-held habits. Dettling says: “How a brand inter- they’ve come to expect those same its products,” says Kelly Jo Sands, exec- on the bus, then you get to a local level forced closures. Almost half (49 per cent) of people acts with its customers in terms of seamless experiences from smaller, utive vice president of Ansira Digital. where there are different restrictions However, Andy Arnold, executive say they’re avoiding eating out, while health and wellness has really risen more local brands. “A lot of our clients didn’t have delivery there too.” vice president of Ansira Channel, has 27 per cent are ordering food delivery up the importance chart. Companies “Before, customers might have tol- tech, so we had to stand up those capa- She believes maintaining a tailored, been helping Ansira’s cohort of auto and/or takeout. Some 44 per cent say that have demonstrated real empathy erated it if your company was the local United States, where the government at their websites as informational whether they really do and thinking bilities overnight and form quick partner- open line of communication with cus- clients and partners, which includes they aren’t comfortable going outside for customers and put that in front of grocery store and it was easy to walk to has taken a state-by-state approach, landing pads. Now they’re finding about how much they’d want you to ships with aggregators like DoorDash.” tomers will ensure travel brands are Honda, improve the experiences they for non-essential items and another profit have stood apart.” or access. So it wasn’t necessarily crit- franchisees have also leaned into this presence is super important spend on evolving the product versus Though many have since reopened, well placed to compete in the new offer to customers. 37 per cent say they are buying online Building experiences that make ical for you to have digital touchpoints Customers are now demanding more agile media and search engine so they can switch out the content how you interact with them,” he says. savvy restaurant owners and fran- travel landscape. Pointing to capabilities such as vir- instead of in-store. people feel as though their health is or contactless ordering,” says Arnold. optimisation buying to ensure their to make customers aware of their “Stay close to them, monitor chisees are adapting to their next-nor- Ansira and its client, the Aruba Tourism tual walkarounds, digital purchase, and What is also clear, though, is con- a priority are now essential for the “However, COVID-19 has really illumi- an experience that, in many messaging is right. opening times and the nuances of their expectations and their levels mal and embracing the models they Authority, had to spring into action pick-up and drop-off test-ride ser- sumers believe businesses have a key likes of brick-and-mortar retailers nated the brands that are doing those ways, transcends product Kelly Jo Sands, executive vice pres- interacting with them in this period. of satisfaction.” built in lockdown. when the southern Caribbean island vices, Arnold says cutting-edge deal- role to play in responding to the crisis, and restaurants. things, leading customers to realise ident of Ansira Digital, says for local It sounds quite operational, but it’s It’s certainly advice that transcends Among them is sandwich chain shut down at the start of lockdown, but erships in America were already offer- especially at a local level. Solutions might be as simple as imple- someone else is doing it better than operators, franchisees and dealer- so important.” this moment in time. Panera Bread, which quickly sus- the consultancy continued to connect ing this holistic customer experience The same research found 56 per menting frictionless payment sys- you, because they’re focused on a ships, cuts to brand budgets at a cor- Companies, local and national, are pended its coffee subscription with customers throughout this period, and now the entire industry is playing cent of people are happy to hear how tems and clearly communicating in an more holistic customer experience.” porate level have forced a planning and still in the acknowledge-and-adapt fees and extended the offer expi- having already revised the Authority’s catch-up. brands are helping communities in on-brand way how social distancing rules Following a pivot to shopping and “Local has exploded,” says Arnold, owned-platforms rethink. phase of the pandemic. However, for For more information please visit rations for its successful MyPanera visitor segmentation and modelling. “There’s a lot of pressure and incen- response to the pandemic. A further will be adhered to in physical spaces. ordering locally in lockdown, Ansira has attributing it to several factors “With base budgets on hold, we’ve those looking to build customer expe- www.ansira.com loyalty programme. In early-April it The thinking behind this was to enable tive from the brands to have deal- 43 per cent find it reassuring to hear However, those that get the bal- seen an increased demand from local including the slate of new content been giving brands with distributed riences that lead to stickiness beyond also launched a grocery concept. To the client to send more personal- erships come along and offer these from companies they know and trust in ance right will ultimately reap the enterprises, franchises and dealer- required from local firms, from den- ecosystems the tools to plus up local the crisis, Dettling has some guidance. ensure it stayed relevant to custom- ised, relevant content to prospects via features, because that’s the new uncertain times. rewards. Ipsos’ Consumer Health and ships to help them deliver local expe- tists to coffee shops, to relay basic media in their area,” she says. “Businesses often fall into the trap ers, the brand worked closely with a global email platform that deploys expectation from customers,” he says. Brands that adapt to these changing Safety Index from May 2020 shows riences with efficient media spend that information to customers and drive “Historically, verticals like quick of thinking they know their customer. Sands’ team to push out cross-plat- communication in nine languages “We’re seeing a big wave of momentum expectations and experiences designed 62 per cent of Americans will stop accounts for supply chain impacts. physical and digital footfall. In the service restaurants have looked But they should be asking themselves form communications multiple times across 120 countries. to make those things happen.” 20 THE FUTURE CUSTOMER RACONTEUR.NET 21 Commercial feature

EMPATHETIC ADVERTISING

MARKETING How people felt about brands who feature the pandemic in their advertising, with messaging such as “all being in this together” or “we’re here for you”* TOP REASONS CONSUMERS DOWNLOADS FOR THE TOP 30 RETAIL APPS PREFER TO SHOP ONLINE Apptopia

32% 27% 18% 1M The next step for Positive - it would feel Neutral Negative - I think strange not to mention it it’s wrong to use a time like this as a 53% marketing tool

Matthew Chattle/Barcroft Media via Getty Images via Media Chattle/Barcroft Matthew Empathy must emotive advertising 900k become the Convenience % 800k 15% 42 Negative - I’m sick of being reminded next normal of it all the time Limited exposure to health threats 700k for brands % 8% 40 Positive - it feels like 600k Jan Mar May Jul Sep Nov Jan Mar May Jul companies understand In a world where nothing is certain, what we’re going through Better prices 2019 2020 customers want brands to show their human

*Survey of Raconteur readers and social media followers Raconteur 2020 side and deliver personalised, empathetic USERS ACQUIRED VIA MOBILE TOP REASON FOR REPURCHASING FROM A BRAND, BY REGION experiences across every touchpoint APAC (Singapore, have been driving purchase deci- KFC spotted an opportunity. True Indonesia, Malaysia, sions in the current climate, as for- to form, it returned with the social 45% Thailand, South x Better Korea, Australia) mer Unilever marketing exec and media campaign Rate My KFC, which 10 more likely to make a value chief executive at indie ad group The encouraged people to make their eyond the coronavirus pan- Brands, from Facebook to Ford, have 47% purchase Better Beyond Collective, Zaid Al-Zaidy, own fried chicken meals in lieu of B demic, it is difficult to pin- been quick to tailor their above-the- availability points out. stores being open. It then announced point a global event that has line communications to highlight just Brands have been using empathy in advertising to show He observes how consumers its reopening with the We’ll Take It ever created such a unified experience. how they can be a source of support to turned to familiar, comfort brands in From Here TV ad, featuring the best As individuals, communities, customers during this challenging time. 67% how they're supporting customers during an uncertain time. Better quality the early weeks of lockdown. Premier and worst attempts submitted. employers and businesses muddle James Manderson, general manager 12x Foods, makers of Mr Kipling, Bisto “Humour is healing; laughter in through the uncertainty together, one and vice president, customer success, for But as we exit lockdown, are audiences hungry for more more likely to make a US EMEA and Ambrosia, reported a 15.1 per tough times is cathartic, relieving thing that is becoming ever clearer Europe, Middle East and Africa, believes second purchase (France, UK, Germany) than a simple expression of solidarity? cent UK sales increase within the tension and stress, and helping us is customers want to use their pur- this messaging needs to trickle down first three weeks of restrictions tak- take back control and connect with chasing power to reward brands that to every brand touchpoint customers ing hold, for instance. others,” says McGuinness. demonstrate empathy. encounter in their journey, whether it’s KFC removed Rebecca Stewart "So, while some advertisers played Other brands too have managed to A recent Ipsos Mori poll, commis- an in-store transaction, a push notifica- its iconic slogan on qualities within an empathetic illicit similar praise for reactive, off- sioned by PepsiCo North America, tion or an email landing in their inbox. Prioritising personalisation communications on big calendar dates, 'It's Finger Lickin' Good’ strategy, not all did so overtly,” says the-cuff responses to news stories shows that nine in ten US consumers He says COVID-19 has created a “wall- and purpose like Mother’s Day, which some custom- s people sunk into sofas “Empathy gives brands a window Diageo and BrewDog, which both as a result of Al-Zaidy. “Reassurance and com- throughout the crisis. BrewDog is want brands to show empathy through paper effect” where some retailers In a world where customers have ers find difficult. A across the globe in lock- into the emotional map of custom- used their alcohol production facil- the pandemic fort are empathetic qualities that among them. The brand unveiled a their behaviour. A further 86 per cent have felt the need to insert themselves increasingly high expectations of their “That’s an example of a brand listen- down, the ads that flickered ers and helps them design products, ities to produce much-needed hand can be, and often are, built by a Barnard Castle Eye Test ale inspired say showing empathy is critical to fos- into consumers’ lives without consid- Brand values and corporate interactions with brands, personali- ing to signals from customers, under- on their TV screens started to follow services, messaging and a value sanitiser in April, are working brand more subtly, by being present by the lockdown travels of prime tering loyalty. ering the context and using the data at empathy are playing an increasing sation is also key to delivering empa- standing the mechanics of the data a very similar template. proposition that can foster emo- examples. The YouGov BrandIndex and consistent, and so dependable minister Boris Johnson’s chief A separate retail study from cus- their fingertips to guide their strategy. thetic experiences. and acting on it. Bloom & Wild has a Most early coronavirus campaigns tionally engaging relationships,” shows BrewDog enjoyed an uptick over an extended period.” adviser Dominic Cummings. The tomer engagement platform Braze “Brands that consumers hadn’t role in people’s decisions to open Before the pandemic, Epsilon sur- set of values that are important to opened with the melancholy tinkle explains principal Forrester analyst in its reputation score of 5.8 points Context, of course, is also para- “short-sighted beer for tall stories” offers insight into how consumers are heard from for a long time felt the need their wallets veyed 1,000 people and found 80 per them as a brand and the Thoughtful of a piano, playing behind a montage Dipanjan Chatterjee. since March. mount in appealing to customers’ is donating all profits to its NHS choosing where to spend their money to email them and let them know they cent were more likely to make a pur- Marketing Movement reflects that,” of empty public spaces. This was usu- Recent Kantar data, drawn from Author on brand purpose and myriad emotions. When COVID- sanitiser production line, showing a amid COVID-19. were there for them. Right now, com- chase when brands offered person- says Manderson. ally followed by a timely reminder of 100,00 people across six markets, founder of Goodvertising agency 19 first struck, multinationals perfect understanding of agility and The data, drawn from 8,000 global panies need to be reading and listening alised experiences. A separate report Post-pandemic, brands need to stop how the brand has been with the cus- found consumers have indeed been Thomas Kolster agrees the com- such as Coca-Cola quickly froze authenticity for the now. consumers, reveals brand values and to customers,” Manderson says. “Even from BRP Consulting found 64 per cent seeing personalisation as a nice to have, tomer throughout history. Mentions seeking reassurance from brands panies that will emerge stronger ad spend. The World Federation of Forrester’s Chatterjee argues corporate empathy are playing an beyond COVID-19 there’s increased He points to Braze data which shows of consumers were fine with retailers but rather table stakes, he believes. His of unprecedented times, coupled since the start of the pandemic. Some from this period are those employ- Advertisers recently found 61 per that the best campaigns have increasing role in people’s decisions to scrutiny about how brands behave.” that 83 per cent of consumers will shop saving their purchase history and pref- team has been providing agile technol- with a promise to help people stay 77 per cent want advertisers to talk ing empathy in a way which under- cent of global marketers plan to addressed whatever pressing open their wallets, with just 10 per cent And he’s right. Pre-pandemic, the online as much or more than during the erences if it enabled them to offer more ogy to clients that is allowing them to connected, also rang out, before the about how they've been helpful in scores what meaningful role their hold back on investment until the needs customers have in the con- of consumers now viewing “familiarity” Braze Brand Humanity Index study height of the pandemic, even as lock- personalised experiences. understand and react in a time when music reached a crescendo. the new everyday, while 75 per cent brands can contribute to society. end of 2020. However, with media text of the pandemic, made a as a top consideration when deciding conducted by Forrester, found people down restrictions ease. This has been With increasing urgency, personalisa- nothing seems quite certain. This was a format adopted by would like to stay informed about “This is a crisis, a war against a buyers now moving from crisis promise and followed up on it. At where to shop. were 54 per cent more likely to engage supported by a 62 per cent rise in tion must become the next normal for “When we talk about humanity Apple, Budweiser, Fedex and count- brands' reactions to the situation. pandemic, yet most brands went reaction mode into a more prag- the outset of lockdown, Ford ran In sharp contrast, 91 per cent see with a brand when it effectively mobile acquisition. What’s more, these brands, argues Manderson. and personalisation in our industry, less others as they flocked to cre- According to Aoife McGuinness, with an emotional, violin-filled matic response phase, there are ads offering financial relief pro- retailers’ responses to the pandemic, demonstrated human communication. new customers aren’t just browsing “Brand experiences must become as the phrase ‘the new normal’ keeps ate an emotional connection with neuroscience consultant at brand message of hope and optimism fea- big considerations around plan- grammes, allowing deferment on especially towards employees and cus- Some 57 per cent were more likely to on their smartphones, they’re buying close to human conversation as possible. cropping up. But it’s not the new customers. YouTuber Microsoft agency HeyHuman, which works turing beautiful product shots. ning and agility. new car purchase payments. Some tomers, as an important criterion. purchase from a brand that did so and there too, with people acquired via When you talk to someone in person, you normal anymore, it’s just normal,” Sam even made a supercut, enti- with the likes of Oreo, the effective- It’s like putting honey on an open McGuinness at HeyHuman iden- 58 per cent of US viewers reported a further 57 per cent were more likely mobile being ten times more likely listen to what they’re saying and react Manderson concludes. tled Every COVID-19 Commercial Is ness of empathetic advertising fol- wound. It’s less about bragging and tifies KFC as a brand that has gone a positive change in perception of to remain loyal to that brand. to make a purchase and twelve times accordingly. That principle is fundamen- “The impact of the crisis is being felt Exactly The Same, highlighting the lows a u-shaped curve. more about doing,” he says. “from zero to hero” over the past the car marque after seeing the more likely to make a second purchase. tal to getting this right,” he says. everywhere and what’s going to be left clichés of coronavirus advertising. “At the height of the crisis, people However, it is not only empathy three months on this front. Mid- ads, according to Ace Metrics. Using context to add a human touch Though they must be agile with the Amid the pandemic, brands that have after it is a really high expectation of But has it had the desired effect? responded quite favourably to it, seek- or a higher sense of purpose that March, the chicken chain dropped Chatterjee says, as we emerge How then can companies show their communication they’re pushing to cus- used Braze’s personalisation tools to what brands can deliver. Personalisation In 2019, empathetic advertising was ing familiarity and security in uncer- an unfortunately timed campaign from lockdown, companies that human side in an uncertain market tomers, brands must also use analytics tailor messaging to fit the preferences is how you gain that human touch.” nearing exhaustion levels as brands tain times. But over time, and as peo- that had been designed to spotlight implement strategies built around as they clamour for attention with to inform the context, says Manderson. of each audience segment have seen a such as Gillette, Nike and John ple’s emotional resilience has grown, the deeply satisfying post-KFC a deep understanding of their cus- other brands and try to cut through “Data is critically important here. 28 per cent uptick in conversation rates. Lewis turned to sentimental, pur- content that pulls on the heart strings finger lick, just as health organi- tomers’ situations will see an “ever- the platitudes? Technology allows you to better under- Manderson points to the For more information please visit pose-driven creative. A new deluge with ‘we’re here for you’ messaging sations around the globe contin- green” effect. “Not so evergreen are Brands need For Manderson, COVID-19 has first stand the interactions you have with Thoughtful Marketing Movement as www.braze.com/resources/library/ of seemingly formulaic, emotion- doesn’t connect as well,” she says. ued to stress the importance of flimsy, superficial executions of to stop seeing accelerated the need for digital customers: what are they browsing, something brands can learn from guide/2020-the-future-of-retail ally charged ads has now put cus- McGuinness highlights how brands hand-washing. ‘empathy’ in the form of inauthen- transformation and a starting point what’s in their basket, what are they amid the pandemic. tomers at risk of empathy fatigue. that have followed a “don’t say, do” Reassurance and comfort are Then public mood shifted. As tic messaging, which appropriates personalisation as for businesses looking to make that viewing, how are they interacting with Created by flower delivery brand Yet there’s still a place for emo- approach rather than relying on bak- empathetic qualities that can be people adapted to the new normal the crisis to spout words of conso- a nice to have, but emotional connection with custom- an app? Having an intimate under- Bloom & Wild and supported by others tional advertising if executed ing empathy into their advertising are and the UK market felt ready for a lation that are seldom backed up by ers is to build the foundations for standing of all that allows you to act in such as Wagamama, the initiative allows authentically and at the right time. emerging stronger. built by a brand more subtly more humorous take on lockdown, actions,” he concludes. rather table stakes strong online relationships. context,” he says. customers to opt out of receiving 20 THE FUTURE CUSTOMER RACONTEUR.NET 21 Commercial feature

EMPATHETIC ADVERTISING

32% 27% 18% 1M The next step for Positive - it would feel Neutral Negative - I think strange not to mention it it’s wrong to use a time like this as a 53% marketing tool

HOSPITALITY purchasing power and income, such as a reduction in taxes on labour so employees have a higher net income, but this won’t get rid of underlying A cleaner option uncertainty, whether that’s health is to give people Three restaurants Kickstarting a restaurant resurgence or uncertainty about futures.” Some would argue that the more money in their adapting to the times targeted government measures Government are, the more they incentivise con- pockets, so they can sumers, particularly in the hard- decide what they initiatives to est-hit sectors. And on one level this strategy, favoured by the UK should spend it on reinvigorate an government, seems to work. More The Black Swan, Oldstead ailing hospitality than 35 million meals were enjoyed Acclaimed chef Tommy Banks had to think on by diners across the country in his feet when forced to shut his Michelin-starred the first two weeks of the govern- Yorkshire-based restaurant The Black Swan, in sector have helped Getty Images via SCARFF/AFP OLI ment’s Eat Out to Help Out scheme, Of this group, 36 per cent are now March, alongside sister restaurant Roots, as a result many restaurants according to figures published by dining at restaurants, 28 per cent of coronavirus. the Treasury. are going out for drinks and 34 per In early-April he launched Made in Oldstead, a new stay open over the Food magazine editor King says: cent intend on taking advantage of premium food box service, offering three-course past month, but “It’s been a great headline and it government initiatives. meals designed by Michelin-star teams, delivered plays well to voters. It’s so simple to “If you’re agile and can jump direct to customers’ homes. The boxes include ingre- some warn recent sign up and good news for restau- on the technology, tech can dients grown both on and around the Banks’ family rants and diners, as both will ben- save so many businesses,” says farm and by the restaurant’s local suppliers. Menus measures don’t go efit.” Broadcast widely across social brand experience agency Tribal change weekly and customers can order cocktails media and highly publicised in the Worldwide’s executive creative and drinks too. After success locally, the service has expanded1 far enough media, it enticed people out to visit director Victoria Buchanan. “The uptake has been phenomenal,” says Banks. nationwide and they now deliver more than 500 restaurants and the high street Speaking on an Econsultancy “We’ve had some people order them every week since boxes a week; boxes start at £75. “From a business once again. panel, discussing what’s next for we started. It’s been a way to stay in touch with our point of view, when you own restaurants you have all Figures from Springboard, which hospitality, she pointed out that customers, but also a whole new revenue stream for your eggs in one basket,” Banks explains. “We needed measures footfall, reveal the num- restaurants that have embraced the business. There have been Zoom dinner parties, to make a new business, but one that would still fit Emily Seares ber of people in retail venues after technology are the ones most likely but also customers ordering for special occasions with the ethos of the restaurants. A huge amount of 6pm on August 3 was almost 19 to weather the storm. “Those with or couples with young children who don’t have to thought has gone into the development of the dishes. per cent higher than the previous an ecommerce offering survived arrange childcare,” he adds. It’s gourmet food at home.” he coronavirus pandemic week. The number of visitors dur- the best during the lockdown, T has presented a huge chal- ing lunchtime hours was up by while many quickly partnered lenge to the hospitality 10 per cent. with firms like Deliveroo and were sector, among the hardest hit by the However, King warns that the pol- able to shore themselves up that health crisis. As the world strug- icy itself does not go far enough. way,” she explained. gled to gain control of an unprec- Diners sit at tables in “It’s good if you run a fast food During April, May and June, not really benefit from the government’s schemes, edented global event, consumer a closed-off road in chain, with a low value cheque; cus- delivery firms reported a 50 per apart from the reduction in VAT. We have, however, spending nosedived and restau- Manchester, allowing tomers will be getting a half-price cent increase in breakfast orders launched new ways of dining with Kahani to retain rants lay empty. restaurants to increase meal. But not so good if you’re an and an 80 per cent rise in lunch our loyal customers and gain new ones.” outdoor seating as part According to the latest Office for of the "Eat out to Help independent restaurant, with an orders, according to a new report by These initiatives include Kahani at Home, where National Statistics figures, output out" scheme average order value of about £40 or McKinsey & Company. Joseph cooks a three-course meal for customers in shrank 86.7 per cent in the accom- more,” he explains. Although working from home their home, complete with sommelier and cocktails. modation and food services in the According to new data from Visa, has dampened restaurant footfall, In addition to home-teaching private dining parties, three months to June, with the for a prolonged period of time; it months. In July, they saw year-on- their bills slashed by 50 per cent, 40 per cent of hospitality, food, especially in office-heavy areas, it where clients can cook the meal alongside Joseph and overall economy shrinking 20.4 per doesn’t get much worse.” year falls in spending of 64.2 per up to the value of £10, meaning a drink and franchise businesses has also created new opportunities. his chefs, there are BBQ boxes, tapping into the new cent and the UK subsequently col- Around 80 per cent of hospitality cent and 43 per cent respectively, family of four could save up to £40 have had to adapt their business Data from Deliveroo reveals that “makeaway” trend for home-cooking. lapsing into recession. firms stopped trading in April, with compared to declines of 86 per cent a meal. model during lockdown to tackle Friday and Saturday night orders To reward customer loyalty, he also devised a “The restaurant industry is 1.4 million workers furloughed, the and 93 per cent in June. The Eat Out to Help Out scheme changing consumer spending were up 36 per cent across Europe, so-called Red Envelope Campaign, hiding three 2Kahani, Belgravia hurting in a massive way,” says highest in any sector. To bolster a beleaguered sector, Having a restaurant with zero was one of a number of govern- needs. And the restaurants that compared with pre-lockdown num- envelopes in Kahani takeaways each month with Ryan King, editor in chief of New data from Barclaycard, how- the UK government announced a ment-led measures designed to have pivoted appear to be showing bers, and the increase is likely to Indian restaurant Kahani, in London’s Belgravia, prizes for customers to win. “After Red Envelope online food magazine Fine Dining ever, has revealed some green shoots number of initiatives designed to customers for a prolonged support the ailing sector directly, signs of success. continue at least in the near term. opted to bring the fine-dining experience to custom- launched, we saw a 30 per cent increase in orders,” Lovers. “It’s one of the biggest in consumer spending, with restau- directly kickstart consumer spend- period of time; it doesn’t get others included a VAT cut, business Whether it’s launching a takeout In the UK, they were up more than ers’ homes, with a number of initiatives debuted dur- says Joseph. shocks it has ever seen. Having a rants, alongside bars and pubs, seeing. On August 3, it launched Eat rate holidays and government hos- or takeaway operation that didn’t 40 per cent. ing lockdown to help maintain engagement with its Launching new revenue streams has offered a buffer restaurant with zero customers ing a positive uptick from previous Out To Help Out, with diners seeing much worse pitality grants. previously exist, or “makeaways” “Mobile technology represents a key client base and stay afloat. to the loss of sales from closure of the restaurant. The UK’s targeted approach is in which tap into the consumer lock- solution to a number of the challenges Chef patron and co-owner Peter Joseph explains: Joseph says he is now down only about 20 to 30 per contrast to a number of other coun- down trend for cooking at home, posed in the hospitality sector,” says “As a high-end, independent restaurant, we did cent year on year, as a direct result. tries that have opted to stimulate restaurants have stayed connected Will Broome, chief executive of retail

DINERS ARE STARTING TO RETURN OpenTable 2020 consumer spending across all sec- with their customers through new shopping app Ubamarket. “Not only tors and in more indirect ways. revenue streams. does it monitor consumer demand, it Year-over-year daily change in seated UK restaurant diners (%) “A cleaner option is to give people “As a café that relies on people also provides a solution to increased money in their pockets, so they can socialising in the local park, we safety and hygiene concerns, by ena- 40 decide what they should spend it were faced with a real challenge,” bling features such as in-app pay- Top Cuvée, Highbury East on,” says Florian Hense, European says Antony Wilson, owner of Level ments, remote ordering and person- economist at Berenberg bank. “In Café, Brighton. “We had to quickly alised discounts.” Described as “hip Highbury newcomer” when it 20 the United States, people have had adapt to changing consumer needs, Effective use of data enables res- launched in February 2019, neighbourhood restau- a lot more unemployment benefits, so we started selling make-your- taurants to improve the dining-in rant and wine bar Top Cuvée moved into retail to

24 Feb March 1 March 8 March 15 March 22 March 29 April 5 April 12 April 24 May 1 May 8 May 15 May 22 May 29 June 5 June 12 June 19 June 26 July 3 July 10 July 17 July 24 July 31 Aug 7 Aug 14 but the US knew these people would own pizza kits and were inundated experience for consumers. For help plug the loss of sales after its sudden closure 0 spend the money.” with orders. instance, before a meal, restau- in March. In Germany, they opted for “Since the success of the pizza rants can target nearby consum- Owner Brodie Meah launched Shop Cuvée, a new blanket VAT cuts across all sec- kits, we now sell coffee pack- ers by personalising digital offers online wine delivery and subscription box service to -20 tors, in addition to more generous ages and Italian essentials kits, or promotions. After the meal, res- maintain links with its client base, while tapping into and lengthier furlough schemes, and having them all online has taurants can engage with consum- the growing trend for home-drinking. mirrored by France and the allowed us to upsell these prod- ers via feedback requests or with a With a focus on natural wines, without “excessive Netherlands. However, the down- ucts together. Whereas previously rewards programme. use of chemicals in the vineyards”, he relaunched the -40 3 side of these more indirect methods people were only buying one sin- “Our experience suggests that in website and offered next-day delivery on all wines, He says the new launch has offered a great avenue to is, even with additional money in gular kit, customers are now buy- the context of the pandemic, cus- with a bicycle same-day service anywhere in London, attract new customers to the business. “If you live in a

-60 their pockets, it doesn’t mean con- ing multiple packs and we’ve seen tomer experience leaders are likely to including parks. small town in North Wales, you can’t visit the restau- sumers will go out and spend it. an increase of 50 per cent on these do well,” according to the McKinsey “It was the perfect storm,” says Meah. “The rant, but you can buy some wine from us,” says Meah. “The undermining factor in all add-on products.” study. “During the global financial demand for wine delivery was up and the market The project has been so successful that this this is the fear factor,” says Carsten In encouraging news for the hos- crisis of 2008, restaurants that were was there. The repeat customers have been 60 per September Shop Cuvée is due to launch its first -80 Brzeski, chief economist for the pitality sector in general, one in leaders in customer experience came cent a week, which has been a huge indicator of bricks-and-mortar site, just around the corner from eurozone and global head of macro three consumers told Barclaycard out top, delivering approximately its success.” the restaurant. for ING Research. “Governments they are looking to support the three times greater cumulative -100 can introduce measures to increase industry actively where they can. return to shareholders.” 22 THE FUTURE CUSTOMER RACONTEUR.NET 23

offer customers in-store or online discounts. Whereas manufacturers can TRUST SECOND ONLY TO PRICE get ahead of demand based on what Share of global consumers who focus customers usually order at a specific on each brand attribute when... time of the year, based on decades of data intelligence.” Peter Cade/Getty Images Cade/Getty Peter Reducing costs while delivering And if companies can use real-time data to communicate with custom- 64% 53% 48% 43% 41% 38% 37% ers at particular times, and it feels sincere and authentic, then brownie powerful customer experiences points will be won. “Brands can build trust through meaningful interactions with their customers, anticipating their needs and delighting them,” Budget cuts and ever-increasing expectations from buyers are forcing organisations to urgently re-examine says Spearing. As an example, he lauds Premier League football clubs how they run customer service. Process mining is enabling companies across the globe to highlight hidden that send personalised messages inefficiencies in the way they operate, and empower rapid improvement from star players to supporters on their birthdays. “The more valuable an interaction is for a customer, the more inclined they ustomer service excellence demand, and adding new products will be to continue to trust a brand to C has long been a core compet- and services,” says Sam Attias, market use their data appropriately,” he says, itive differentiator for organi- intelligence manager at Celonis, the DELL TECHNOLOGIES SERVICES VODAFONE though warning there is “a fine line” sations across industries, but for most process mining company that helped We brought Celonis in to help us We achieved a 21 NPS increase in to walk. “Only if brands use the data businesses the methodology for deliv- Uber visualise its processes and visualise the interactions across shopping experience within three respectfully will they gain that trust.” ering it is often manual and inconsistent. improve their execution. Using pro- our complex service lifecycle and months of deploying Celonis Andrew Hood, chief execu- Consumers are more inclined to cess mining, Uber is delivering global for the first time see how they’re tive of data analytics consultancy spend money when they receive service process standardisation, rapid actually working. We can then Lynchpin, is equally ambivalent. excellent and personalised expe- problem resolution and a constant design how we want them to work better in the future “Personalisation perhaps feeds from riences, while business clients focus on excellence. trust as much as it drives it,” he says. demand, and pay for, contractually Celonis, identified by analysts at 68% “While I might be happier to share my agreed levels of service. Companies Gartner as the market-leading process 31% data if I receive a better, more relevant are pushing to meet these expecta- mining provider, works with a wide range experience in return, if I don’t trust tions, while dealing with the enor- of other large businesses, including 35,000 you as a brand with my data in the mous cost and operational pressures Vodafone, GSK, Airbus, L’Oréal, Dell and service professionals cost saving improvement first place, I might not feel confident of the coronavirus pandemic. Siemens, and has found it is common of customer service leaders said enough to make the first move.” This challenge becomes even more for both fast-growing and established that robotics and automation will M&C Saatchi’s senior art direc- complex for businesses built on a organisations to need greater clar- have an even bigger importance in tor Tom Kennedy is treading care- rapid growth trajectory as they may ity over their disparate data. Analysing the next two years fully and acknowledges the risk that be grappling with a growing breadth processes can help meet this challenge 173m assets with customers comes with data-driven personali- of customers, new services being by providing better knowledge of cus- sation. “In January, Aviva addressed sold, and customer knowledge dotted tomers to enhance experiences while

its whole email base as ‘Michael’, priceIts and affordability Trust in the brand that makes the product The reputation of the brand Trust in the product perform to well How well they the brand treats its customers How easy it is find to and buy the brand How well it treats the environment across multiple billing, sales and mar- increasing efficiency. DATA corporate marketing at social media proving that with even the most keting systems. For companies selling services to Edelman 2020 - % management platform Hootsuite. basic data, mistakes can happen,” In these conditions, companies need business clients, expectations are 170 % 25 95 different countries 20 However, consumer trust has he says. “The assumptions, errors a more sophisticated approach to hit- usually written into contractually been eroded in the last six months and insults will be amplified with ting targets for their key customer sat- protected service level agreements if engagement from brands has been each step more personal.” isfaction scores, such as CSAT (cus- (SLAs). This is the case for Daisy increase in profits from increasing Consumer buy-in lacking, or tone deaf, according to Hunting for real-time data can “This shift is symptomatic of tomer satisfaction score) and NPS (net Group, the unified communications customer retention rates by 5 per cent new Pegasystems research, which be viewed as insidious and creepy, greater public understanding around promoter score), while doing so at a and internet hosting company, that 94% reveals the extent of damage the and there are many instances data due to Cambridge Analytica’s lower expense. Many are turning to counts critical transport networks CSAT rating, always strive for growth in time to market best-in-class using Celonis Gartner coronavirus pandemic has caused where organisations crossed the influence in the Vote Leave Brexit automated analysis of their operations, among its clients, and in serving them remains pivotal for businesses’ relationships with line. Cassandra Moons, data pri- campaign, as well as greater aware- known as process mining, to identify needs to ensure communications their customers. vacy officer at navigation technology ness of data privacy through the any hidden inefficiencies and reveal work all the time, tracking and rapidly More than a third (36 per cent) of firm TomTom, recalls how in 2012 launch of the General Data Protection how to solve them. resolving all incidents. Customer satisfaction scores, often tools such as process mining to help respondents say they lost existing American retailer Target suppos- Regulation two years ago,” says Jones. One company making strong progress Given it is impossible to know when derived from post-purchase sur- shape and drive our digital transforma- to personalisation customers during the pandemic due edly worked out a teenager was preg- Because customers arguably cher- in this area is Uber, the ride-hailing and incidents are going to happen, it’s veys, are among the useful routes to tion, and drive our customer-obsessed to failings in their communications. nant before her parents through data ish personal data more than before, delivery app, which relies heavily on critical for such communications Celonis has been imperative understanding service perception. culture.” The tool is used regularly by And a similar number (37 per cent) mining. “Knowing intimate details she questions a market strategy maintaining a simple interface for cus- providers to be able to deliver cus- Using process mining, such scores can operational and business improvement admit to communicating at least one about your customer that they have founded on real-time data. “Almost a tomers in more than 700 cities across tomer support quickly and efficiently. in our strategy to increase be automatically mapped to specific managers at the company. message that was poorly received and never told you can make people very decade ago, easyJet stopped investing 63 countries. Uber’s rapid growth had Process mining is critical in meeting efficiency around resolving cases, operations to show the root causes of Across industries, businesses are these requirements and delivering any customer dissatisfaction. Oliver Pickup dented brand reputation. uncomfortable,” she says. in Google search terms and moved led to high data complexity that was under immense pressure to cut costs Real-time insights are It’s not easy for brands, though. More recently, consumer trust has that budget into more traditional holding back customer service and on SLAs. “Celonis has been imper- automating manual tasks, and BT Enterprise, the business broad- in the wake of the COVID-19 pandemic. essential to adapt to The January State of the Connected been chipped away by serious data media to deliver phenomenal results. ticket resolution. ative in our strategy to increase effi- band and cloud computing firm, found At the same time, they must continue he advice that “trust takes Customer report from Salesforce breaches. “Using data to personal- The company saved £6 million a year “Fast-growth companies need ciency around resolving cases, auto- ultimately enabling us to continue its post-purchase customer feedback to deliver excellent customer expe- a changing consumer T years to build, seconds to highlights a rise in consumer expec- ise communications could be the and there was a 95 per cent rise in seat to retain their quality of service, mating manual tasks, and ultimately to deliver great employee and text requests revealed useful informa- riences to stave off competition and break and forever to repair” tations, while stressing four in five tool that destroys people’s trust in sales,” says Jones. while dealing with big fluctuations in enabling us to continue to deliver tion, but manual mapping made it diffi- meet all contractually agreed service landscape, but companies is attributed to an anonymous sage, consumers won’t buy from compa- advertising if not used smartly and “Similarly, last year adidas’ econo- great employee and customer expe- customer experiences cult to identify specific process faults. levels. This means companies are turn- which is good news for the sage nies they don’t trust. respectfully,” says Megan Jones, metric analysis showed they’d been riences,” says Gareth Tunnicliffe, cus- Gareth Tunnicliffe, customer service Working with Celonis, BT Enterprise ing to insights into their processes, that ignore trust and because the dearth of real-time data The research shows almost three senior planner at R/GA London. She relying on ‘personalised’ communi- tomer service director at Daisy Group. connected the data in real time to rel- unlocking the ability to improve effi- transparency as part of the means they’ll escape an endless quarters (73 per cent) of customers points out that record numbers of cations too heavily as it was the broad Not all aspects of customer service director, Daisy Group evant processes and revealed quick, ciency, while delivering much-im- stream of personalised ads. think companies should understand people are using internet ad block- brand-building communication that can be easily quantified, and quality granular visibility over where the neg- proved service. By using technology, process are risking it all But it’s wisdom that brands would their needs and 78 per cent expect ers and search engines protecting got them the majority – around 65 in particular can be hard to measure. ative points are in any sale. The system businesses can root out customer ser- do well to heed. Now more than ever, consistent interactions across depart- privacy, such as DuckDuckGo. per cent – of their sales. And let’s It is this element that can grate most automatically alerts those responsi- vice problems and continue to execute given that consumer trust is so dif- ments. And to make that work, real- not forget that Amazon, hailed as an with customers, however, when organ- Given businesses’ clear need to offer ble for these parts of the process, as on outstanding customer service, even ficult to earn and easy to lose, and time data is required. exemplary data company, was the Putting data at the isations seek to reduce expenditure. reliably positive customer outcomes well as providing addressable analy- in the face of budget cuts. organisations are becoming increas- “Brands that deliver connected, fifth-highest investor in traditional centre of everything we “Often when organisations are cut- under heavy cost pressures, many sis in monthly reports, enabling con- ingly reliant on customer data to multichannel and personalised expe- media in the UK in 2019, with a spend ting costs, as they are at the moment delivering high-quality customer ser- stant operational refinement. Similarly, manage sales. riences will earn consumers’ trust,” of £114 million, £26 million more do is paramount, and because of the COVID-19 pandemic, vice now rely on process mining. They an onboarding process for new BT To find out how to use process mining The Edelman Trust Barometer says Adam Spearing, Salesforce chief than the year before.” Celonis is helping us customer service teams will bear the use the technology to rapidly identify Enterprise clients was streamlined to to improve customer service while Special Report, published in late- technology officer for Europe, Middle Lynchpin’s Hood concludes: brunt of the cuts. The consequences unknown inefficiencies and their root remove excess handovers. cutting costs, please visit celonis.com June, found that, after price, the East and Africa. “Ultimately, privacy and personali- to drive our customer- can quickly become apparent to con- causes, prompting or even automat- The insights from process mining most critical factor in a custom- “Having a 360-degree customer Personalisation sation, using real-time data, go hand obsessed culture sumers and business clients, who may ing improvements. Using the system, are prompting consideration of fur- er’s purchasing decision is trust. view is crucial for enabling brands in hand. And brands that are trans- experience a disappointing decline businesses can cut cycle times, deliver ther automation. Gary Botterill, senior “If trust is a key consideration to have more personal and contextu- perhaps feeds from parent with the former are more Gary Botterill, senior in the quality of service they receive,” a more personalised experience, have manger of technical service enable- for consumers, it must be a key ally aware interactions with custom- trust as much as likely to be able to deliver on the manager of technical service says Attias. “That makes being efficient fewer handovers between service per- ment at BT Enterprise, explains: “Putting consideration for brands,” says ers. For retailers, this may be under- latter effectively to their, and their and maximising existing resources sonnel, improve self-service portal use data at the centre of everything we do Henk Campher, vice president of standing the most appropriate time to it drives it customers’, benefit.” enablement, BT Enterprise more important than ever.” and avoid costly breaches of SLAs. is paramount, and we are using new 24 THE FUTURE CUSTOMER RACONTEUR.NET 25 Commercial feature

brands are caring for their employees The brand always had strong vegan OPINION as the pandemic rages on: who has credentials, and former fans who been furloughing, who is protecting stopped shopping with them follow- If a brand has messed jobs and who is pushing to re-open ing the backlash around Von D have up in the past, they stores? Estée Laundry’s posts are largely re-embraced them. largely anonymous submissions and However, for brands whose issues need to own that the account often shares what would go wider than a celebrity founder, the and explain it usually be private communications price of public approval is a commit- ‘Like it or not, between employers and employees; ment to change. “In life, we all mess memos, emails and conversations up, but it's how you bounce back from between managers and staff. it, and if you do so with integrity and the rules of retail have One post that shared what appears authenticity, I will give you a second caught short. “Just casting a Black to be a contract allowing L'Oréal USA chance. I don’t believe in 'cancel cul- model can be exploitative. It needs to to access their employees’ medical ture’. I’m interested in doing better been permanently be a 360-degree approach to power; records to apply an exemption from and growing,” says Jewel. don’t just use my blackness to make returning to the office garnered hun- Honesty and accountability are key, you more beauty pounds. Incorporate dreds of angry comments. These as Bhagwandas confirms: “If a brand rewritten’ Black people in your company at kinds of social media accounts serve has messed up in the past, they need every level,” says Jewel, who is cur- to tear down the barriers that existed to own that and explain it, and just rently crowdfunding her own inclu- between brands and their consum- be really straightforward with people. sive beauty line to help encourage ers, and put brand activism under a This isn’t just with politics, but with people of colour to “love their mela- close-up lens. charity, too. If a brand is doing a char- he last decade has been a But for retailers to invest in nin and their skin”. Bhagwandas explains: “There’s a lot itable partnership, they should feel T period of extraordinary this technological transformation, Bhagwandas echoes the statement: more accountability now than there comfortable sharing how much they’re change for retail. Digital with slicker online services and an “Such ethos needs to run through the used to be. There used to be more of a actually raising and donating.” transformation and evolving con- upskilled workforce, they need cap- entire brand. It can’t just be a one-off smoke screen that doesn’t exist in the Transparency and corporate com- sumer behaviour have seen more ital. For retailers to operate stores, donation to Black Lives Matter. Are same way as it did before.” munications might not seem the of us shopping online than ever they need a sustainable cost base. you going to set up a scheme to get Sometimes the only hope after most natural of bedfellows, but mod- before. Prior to coronavirus, the Unfortunately, with the cost of coro- more people of colour employed at public backlash is total reinvention. ern beauty consumers has a different proportion of retail sales online had navirus bearing down, especially for your brand? Are you going to make When Kendo purchased Kat Von D kind of relationship with the brands grown from 5 per cent in 2008 to 19 those who faced months of closure, sure your non-white employees feel Beauty from the eponymous founder, they buy. As Cult Beauty’s Inge notes: per cent by March 2020. resources are scarce. Which is why, safe and supported? Are you going to they rebranded it as KVD Vegan “It’s a two-way conversation now. COVID-19 accelerated this change. now more than ever, decisions made make sure this touches every aspect Beauty and said the initials stood for The industry has an excess of choice When many stores were forced to by government will be critical in of your brand?” “kindness, vegan, beauty, discovery and competition.” close, online retail became a life- moulding how retail can adapt. Beauty industry online watch- and doing good” in an attempt to dis- There’s no more hiding the cracks. line for us all with one in every three Without it, the landing will be hard, dog account Estée Laundry, which tance themselves from Von D, who If consumers don’t like what they see, pounds, from food to fashion, spent with unnecessary job losses and store has some 180,000 followers, are also faced a string of anti-semitism alle- they can simply shop elsewhere. Pull online in May. closures. We are already seeing that keeping a close eye on how cosmetic gations, among other controversies. up or shut up, indeed. So who is this new consumer that job-loss tally mounting up. While has emerged from the shadow of government support throughout the COVID? The new consumer is digi- pandemic has been generous, many tally savvy; the new consumer makes shops are still struggling to stay afloat cautious purchases; the new con- and are shouldering unpayable debts BACKING UP WORDS WITH ACTIONS Edelman 2020 sumer is ethically conscientious; and of rent bills from when they were shut. Percentage of consumers who agree with the following statements about brands’ responses to racial inequality now more than ever, the new con- Reopening stores has also created a range of additional costs from imple US UK France German Canada South Africa sumer values safety. - However, with growing economic menting necessary safety measures. uncertainty and rising unemploy- When coupled with low demand, too ment, consumer spending is bal- many retail operations are at risk of Brands and companies that issue a statement anced on a knife edge. The potential becoming unviable. in support of racial equality need to follow it PURPOSE for future lockdowns or other eco- To this end, the British Retail Daniela Morosini up with concrete action to avoid being seen by me as exploitative or as opportunists nomic shocks could quickly bring the Consortium has been calling for meas- first steps of recovery to a shudder- ures to manage the current burden of ou only need to look at the LUSH has run campaigns against fore: Black Lives Matter and how the ing halt. Footfall on our high streets costs and create a more sustainable tax Y example of red lipstick to everything from fracking to police brands were treating their own employ- and our shopping centres has not system for the future. Firstly, the gov- understand beauty has long surveillance and The Body Shop were ees during the pandemic. Brands that recovered, and it may never return to ernment must ensure that there is no When beauty Brands owe it to their employees been political. In the early-20th cen- front-runners in the fight against ani- attempted to show solidarity with to speak out against systemic pre-pandemic levels. cliff edge to the ending of the 12-month tury, it was associated with prosti- mal testing. But on the whole, the the BLM movement with a single racism and racial injustice There is little sign that the dou- business rates discount in April 2021; tutes, until it was defiantly reclaimed extent of brand activism for conglom- Instagram post were held to account in ble-digit growth in online sales will secondly, it should not consider new gets political by the Suffragettes, before becom- erates has largely been via charitable the comments, as fury over years of per- slow anytime soon, especially as the online taxes on an already over- ing a patriotic symbol of hope during donations, not political statements. formative brand activism spilled over. pandemic has given rise to a new taxed industry; and thirdly, it must the Second World War. But politics The difference is that in today’s cli- US-based mobile beauty app group of online shoppers with many extend the moratorium on rent-ar- in beauty now extends beyond the mate, many new, and often direct- Glamsquad was one of many that It is important to earning/keeping my trust older people turning to ecommerce rears enforcement beyond the end of that brands take the steps necessary to coded messages in cosmetics: brands to-consumer, cosmetic brands have posted an Instagram statement about for the first time. September. Without this, both con- Like so many other industries, beauty ensure that their organization is racially themselves are expected to have a made hyper-visibility and radical their commitment to anti-racism, representative of the country as a whole Therefore, it has never been more sumers and retailers face higher costs brands are dipping their toes into voice and to use it loudly. transparency an integral part of their only to experience public backlash crucial for retail businesses to and more disruption. “Today’s beauty consumer under- ethos. Attempting to cherry pick and as their comment section became develop an omnichannel offering One thing is certain and that is the activism, but companies need to show stands the power of their pound and only make political statements when full of voices angry at the vagueness for their customers, blurring the future is uncertain. Retail will be views every pound in their pocket it’s beneficial for the brand won’t work. of the language and lack of commit- lines between the digital and the resilient and will adapt, but govern- honesty and accountability if they are as a vote,” says Cult Beauty founder As beauty consultant Anita ment to change. Not to mention for- It is important to earning/keeping my physical. Many retailers have been ment must be accommodating. Like trust that brands educate the public Alexia Inge. “For a consumer, a vote is Bhagwandas says: “People expect mer employees sharing stories about investing hundreds of millions in it or not, the rules of retail have been and advocate for racial equality truly passionate about change not just for the product they buy, but a to be spoken to more personally and alleged racism they experienced effectively integrating their online permanently rewritten. We do not vote for the brand themselves.” directly, and they want a high level while working there. and offline offerings. want to fight this change, but rather Forays into brand activism from of service; having a political stance As countless identikit political Retail is no longer simply online ver- embrace it. cosmetic brands range from the bril- comes with that.” statements rolled out, UOMA Beauty sus offline, bricks versus clicks. With

liant to the bungled, from the pow- This crystallised perfectly in June, founder Sharon Chuter started the It is important to earning/keeping my eight out of the ten top online retailers erful to the performative. Fence- when two pressing issues came to the Pull Up For Change movement, along trust that brands invest in addressing having a presence on our high streets, sitting isn’t an option: issues about with the hashtag #PullUpOrShutUp, the root causes of racial inequality the two are increasingly intertwined. diversity, sustainability and fair challenging brands to share what per- This shift to online means that treatment of employees are human centage of their staff were non-white. over the next 20 years there are rights issues, and consumers see The figures that emerged were bleak: 8 likely to be fewer shops and fewer silence as complicity. per cent of L'Oréal’s executive US team retail jobs. The jobs that remain will “I think it’s your responsibility to identify as Black, while just 5 per cent be higher skilled and better paid. respect people’s values. Social justice Today’s consumer understands of those at director level or above at It is important to earning/keeping my We already now have 100,000 peo- is a human right. Politics is people,” Revlon are Black and 3 per cent of Estée trust that brands reflect the full diversity ple in jobs that didn’t exist a dec- of the country in their communications says beauty journalist and diversity the power of their pound and Lauder’s executive directors are Black. ade ago: influencer managers, social activist Dr Ateh Jewel. Brands that have attempted to find media experts, data scientists; who Helen Dickinson

views every pound in their 0% 20% 40% 60% 80% Some established cosmetic brands armchair activist options, like sim- knows what other roles the future Chief executive are no strangers to brand activism. pocket as a vote ply casting non-white models, were may hold. British Retail Consortium 26 THE FUTURE CUSTOMER RACONTEUR.NET 27

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