Bespoke for Billions: Digital Meets Physical

Tech Trends 2021 135 Bespoke for billions: Digital meets physical

DESIGN FOR AN AUDIENCE OF ONE

Designers and coders tailor human experiences to the individual’s behaviors, attitudes, and preferences.

PHYSICAL DIGITAL MERGE

Customer journeys integrate in-person and digital elements to create compelling, customized brand experiences.

TECH SCALES TRUST

Thoughtful design ampliﬁed by trust-enabling tech supports a future with bespoke, human experiences. 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 136

TREND 8 Bespoke for billions: Digital meets physical Creating human experiences at scale

uring the COVID-19 pandemic, a tailor In what we recognize as an emerging trend, transactions, or something else. These digital on London’s Savile Row—unable to consumers are becoming less satisfied alternatives to in-person activities initially travel to customers—found himself with distinct physical or digital experiences. seemed adequate, but the law of diminishing D 3 measuring clients two continents away in They want the best of both: personalized returns quickly asserted itself. As it turns Seoul for bespoke suits ... with the assistance interactions combined with the convenience out, many of the digital experiences that have of a robot.1 By necessity or choice, people of digital. During the next 18 to 24 months, become mission-critical leave customers have increasingly embraced digital interactions we expect to see leading companies embrace wanting more, which is hardly a recipe for in all aspects of their everyday lives, whether the bespoke for billions trend by exploring ways long-term success. in working remotely, online schooling, or to use human-centered design and digital ordering groceries. technology to create personalized, digitally enriched interactions at scale. Our growing reliance on Yet our growing reliance on digital interactions has left many of us pining for The trend carries a degree of urgency, for one digital interactions has more personalized human experiences. simple reason: Customers are impatiently left many of us pining In Deloitte surveys conducted during the waiting. Two-thirds of participants in a spring pandemic’s early months, more than half of 2020 Deloitte survey said they had already for more personalized the participants said they wanted their virtual tried a new digital experience—virtual experiences to feel more “human.”2 concerts, social gatherings, government human experiences. 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 137

What does a bespoke digital experience look Savile Row’s challenge and opportunity is no longer be needed as an interface: The like for your customers? They’re looking for to retain the cachet of customization while consumer will get the experience delivered an answer. widening availability, with the aid of various when, where, and how they want it without technologies. Leading companies and brands even requesting it. As an early example, for Physical + digital is the are looking to arrive at the same place— years ride-share companies have used ML from the opposite direction. Many are in the and data-driven algorithms to predict where new bespoke early stages of experimenting with existing and when consumers might need rides.4 As a and emerging technologies, combining result, the ride-share car is often right around Humans have long valued experiences and them in innovative ways to design and scale the corner when you exit the building, before products that are customized for them. more personalized human experiences and you even open the app. Since the early 1800s, London tailors have outcomes. As opposed to mass customization, created bespoke experiences working in which consumers can choose from a limited Large gaps remain in many physical-plus- intimately with clients who select fabrics, number of options, a bespoke experience is digital consumer experiences. Let’s say buttons, and patterns to compose a physical tailored specifically to an individual’s behaviors, a couple downloads an online retailer’s expression—a flattering one, naturally— preferences, values, and beliefs. Eventually, we augmented reality (AR) app that allows them of their taste, personality, and ambitions. expect that technological advances will allow to envision a sofa in various styles, fabrics, Traditionally, a tailor might create custom companies and brands to create bespoke and colors in their living room. While digital clothes for only dozens of regular customers experiences for billions of people—not just experience can suggest whether and how the during a career. In a field long based on the privileged. size and design will complement their living hands-on personal attention rather than space, the experience is incomplete, since technology and automation, comparatively Right now, there is typically a smartphone the customers are unable to experience the few have experienced creating and wearing or tablet between the consumer and the sofa’s physical comfort. Indeed, because many bespoke clothing. experience. But over time, the device will consumers are still reluctant to purchase 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 138

without physically experiencing items— with curated items based on that individual’s Over time, we expect, digital interactions especially expensive ones—some online online behaviors and preferences.6 will enhance a growing number of physical retailers are opening physical stores to round experiences, and vice versa. The out the shopping experience. For example, Imagine that consumers could opt in to convenience and simplicity of digital Casper, an online mattress company, has continue that journey in the physical world interactions will eventually be seamlessly opened 20 stores, with plans for more, to with a personal experience tailored to their infused with the warmth and assurance of allow customers to try out their mattresses; individual tastes and preferences. One meaningful human exchanges. they can even book a nap.5 consumer may like a dress she sees online but hates dealing with returns; she wants to try Without a digital infrastructure in place, sectors the dress on before deciding to buy. Perhaps Design for an audience of one traditionally grounded in the physical world this customer requests a reminder when will likely be slower to evolve. To overcome she finds herself in the vicinity of a branch In a January 2020 survey, 3,000 C-suite this challenge, some brick-and-mortar of the department store. If she prefers not executives said that they believe elevating companies are partnering with digital natives to interact with a salesperson, her mobile the human experience should be a top to blend their physical human experiences device—equipped to access the spatial web— organizational priority, yet 96% of them have with digital elements. For example, one social could help her locate the dress in the store. struggled to design and launch anything media platform offers its retail advertisers a Another individual may prefer that the store’s resembling human-centered experiences.7 customized online storefront that delivers a virtual stylist arrange to have the dress, along seamless digital experience to attract new with coordinating accessories in her preferred Pioneering companies and brands are customers from the platform’s vast social colors and sizes, waiting for her in a private exploring ways to fill this need with human network. Targeted social ads entice a consumer dressing room. And yet another individual may experience designers who create value- to click on desirable items to learn more, which simply want a personalized selection of clothing enriched human interactions, both physical takes the consumer to a mini website stocked delivered to her home. and digital. These designers possess the 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 139

sensibilities, empathy, and imagination could become obsolete. There’s a new breed to tweak the experience to suit that person, needed to create satisfying, trust-enhancing of human experience creative: designers who essentially creating bespoke experiences interactions for personas, which are groups use code as their medium, eliminating the gap based on understanding who the individual is, of consumers who share similar needs, between design and execution. By combining where they are, and which offers they are likely behaviors, and goals. They create highly creative sensibilities with technical know-how, to want. nuanced elements of the customer journey these designers/coders can create increasingly and specify the various ways those elements seamless experiences based on individuals’ Technologies scale trust can be strung together to reach an outcome behaviors and preferences, defined by real- that’s satisfying for both the customers and time data that’s relevant in the moment. for billions the brand. Experiences designed for groups of similar people can be more satisfying than As physical and digital experiences merge, one-size-fits-all but still do not meet the notion There’s a new breed building trust will become an even more critical of bespoke. element in delivering meaningful human of human experience experiences. Looking back to our London The companies and brands further along creative: designers tailor, trust is at the heart of the client’s in the quest for bespoke experiences are experience during the design and creation pairing designers and coders in cross- who use code as of his custom-made suit—or any bespoke functional teams with the goal of designing experience, for that matter. Trust is why the for an audience of one—a truly customized their medium. client returns to his tailor again and again, even experience tailored to the behaviors, needs, when a pandemic makes travel difficult. He’s and values of a single individual. Using AI and ML, designers/coders can unlikely to trust a robot to fit his suit, except But human experience design is evolving so develop a deeper understanding of what when his tailor is directing its movements. fast that even designer/coder collaboration individual consumers want, enabling them So how can companies scale intimate one-to- 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 140

one experiences to fit billions? Accomplishing behave in trustworthy and ethical ways, as The figure “Technology tools of the bespoke this will require thoughtful human design we described in Ethical technology and trust experiences trade” (page 141) outlines the amplified with trust-enabling technologies. in Tech Trends 2020. Moreover, meeting the foundational technologies supporting the Two main technologies that can enhance— local, regional, national, and transnational bespoke for billions trend; many of these have or destroy—trust are AI and the use of patchwork of data and data-usage regulations been around for years, becoming more personal data. will require careful planning and engineering. sophisticated with each evolution. What’s new are the possibilities that are created at their Intuitive, experiential technologies supporting intersection. Consider the innovations that Building trust will the bespoke for billions trend today are laying could result from increased deployment of the groundwork for an era in which it will LIDAR sensors and AR capabilities on mobile become an even more be possible to be human at scale. As we phones, or the hypertargeted personalization critical element in discussed in Tech Trends 2020, affective possible via AI/ML platforms. In these computing technologies such as natural cases, and many more, the power is in the delivering meaningful language processing, facial expression intersection of technologies. recognition, eye tracking, and sentiment human experiences. analysis algorithms recognize, understand, and Individually, each of these technologies is respond to human emotion. Right now, true incredibly powerful. Together, the ability To drive increasingly powerful—and human connections are limited to the number to recognize and respond to emotions, personal—human interactions, algorithms and of people we can fit into a room. Technologies transact seamlessly across channels, move systems will need vast amounts of personal such as phones or webcams connect us to effortlessly between virtual and digital space, data and information. To build the trust that’s other humans, but they remain only a conduit. and leverage the increasing power of mobile essential to the interaction, organizations Connections made through technology platforms is enabling the next generation of will need to carefully design technologies to conduits are useful yet emotionally limited. human experiences. 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 141

Omnichannel Handheld devices Affective Spatial Next-generation Technology tools marketing platforms as platforms computing web identity management of the bespoke As digital and physical Mobile phones and other Also sometimes known By combining high-resolution The underpinning of trusted interactions begin to merge, devices have evolved from as “Emotion AI,” affective mapping of the physical world interactions is the knowledge experiences trade we are seeing omnichannel devices simply enabling computing is increasing the with AR and VR capabilities, of the identity of the user. platforms evolve from previous phone calls to sophisticated ability of computers to interpret spatial web technologies Without robust identity Many of the generations of digital marketing mobile computing platforms. and react to human emotions allow the projection of virtual verification, organizations risk platforms. Combining the Today, advanced devices in real time. Whether through objects into the physical world. losing trust by leaking data. technologies that ability to accurately target feature increasingly powerful natural language processing Leveraging the increasingly Identity management systems underlie the bespoke consumers in real time in the cameras, GPS and location and sentiment analysis, voice powerful technologies built are hard at work to supplement for billions trend have digital world with the increased sensors, LIDAR for measuring stress analysis, or cameras into phones, tablets, headsets, credential validation and two- been around for ability to identify consumers spaces, native AR libraries cataloging microexpressions, and more, the spatial web factor authentication to also years, becoming more in the physical world enables for overlaying virtual objects AI is increasingly capable of allows users to interact include biometrics, behavior more targeted and more helpful on reality, 5G high-speed recognizing our emotional state with increasingly lifelike validation, and other advanced sophisticated with interactions. Increasingly, connectivity, and much, much and intent. It might manifest virtual environments. As this mechanisms for validating each iteration. What’s through the power of MLOps, more. The near future will as a helpful virtual salesperson technology evolves, users identity. new is the exponential these platforms can generate feature body scanning to who welcomes you to your will be able to interact with capabilities that are better and more cost-effective support virtual clothing favorite store and directs you information within physical enabled when these recommendations, nudges, fittings and the ability to to sale items you might love. Or spaces, instead of relying on and promotions to support identify or produce perfectly it could be the virtual customer traditional screens, tablets, technologies are customers.8 fitted clothing.9 support agent who echoes and phones.11 combined in your frustration while following meaningful ways. a “save” script to persuade you not to cancel your service; only this agent has access to all of your data and history and the ability to tailor the perfect proposal to entice you to stay.10 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 142

The way forward

The instability and uncertainty created by the pandemic seem to have only amplified the need for authentic human connection. Organizations are combining and refining existing and emerging technologies to create a more meaningful blend of physical and digital experiences to engage their customers. And the best of those experiences will be targeted to an audience of one, in a more human, trustworthy fashion, creating the possibility of bespoke experiences for billions—delivering to each exactly what they want, when, and how they want it. 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 143

MY TAKE Physical environments are an important Hans Neubert beacon for the relationships we have with brands and companies. Principal and global practice Even digital-first companies are building physical outlets as another way to create engagement with their customers. In many ways, leader, Digital Experience blending digital and physical experiences is easier for them because Design, Gensler they already have a robust digital infrastructure in place. The building sector is ancient, and understandably slower to evolve. As the world’s largest architecture firm, Gensler has refined the physical process of orchestrating thousands, sometimes millions, of moving parts to create something that’s safe, useful, and beautiful. Real estate is just at the beginning of its digital transformation. Our advantage in this new world is that architecture has always been bespoke, so we’re accustomed to tailoring designs for individuals.

My design team’s role is to disrupt our firm from within. We are helping Gensler transform its approach to architecture from creating 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 144

physical buildings and interiors to creating revolutionary to a digital native, but it is for an that built environment is part of a greater holistic experiences. We are merging physical analog industry like real estate. In a way, journey. So, as the team owner, you have a spaces and digital interactions to create we’ve moved ahead seven to 10 years in just vested interest in not just enriching a fan’s personalized experiences for the end users, six months. interactions in the stadium—you also want to whether they are employees, sports fans, understand how to connect and engage students, passengers, or shoppers. with your fan before, during, and after the We are helping Gensler game. We’re considering the full 360-degree The pandemic has accelerated technological fan engagement. change and acceptance of new innovations. transform its approach to Some of those conversations began earlier, Likewise, we’re diversifying the people we but today people are paying more attention: architecture from creating involve during the design process to better Now, CEOs listen when we describe how their understand the end-user benefits. Beyond the office building can be a more personalized, physical buildings and CEO and the real estate leader, we bring in IT, engaging environment by enriching the built marketing, brand, HR, and other stakeholders environment with digital experiences. interiors to creating holistic to integrate more multidisciplinary and For example, in the analog world, there is multifunctional views. a physical sign on the building that shows experiences. the way to the exit or the elevator. In the One big challenge that’s holding us back from new world, when a remote worker visits the Gensler has also broadened our design reach offering more personalized experiences is the corporate office, the meeting invitation on to include the user’s experience before, lack of an “urban platform,” a common chassis his computer tablet is the clearing pass for during, and after visiting a building. For for building customized digital elements for security, the elevator key, and the map to example, a soccer fan doesn’t engage with the physical world of architecture. We’re the conference room. That may not sound the team only when they’re in the stadium— actively working on that but until that’s fully 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 145

evolved, designing and building 360-degree and we keep investing in the next generation. user experiences will continue to be slower We’re very much driving our own future. and more expensive than we and some clients would like.

Meanwhile, Gensler is committed to creating experiences that serve a higher purpose. We design for the end user, not just the building owner or real estate developer. And because it’s no longer acceptable to consider only half of the population’s needs, we must design for equity. Likewise, designing for safety isn’t enough—we must also design for global health. And finally, because buildings are a major contributor to climate change, we must design with a lens toward protecting the environment.

Transforming our traditional architecture firm into an experience design firm that leads with architecture hasn’t been easy, and the payoff for this innovation isn’t immediate. We’re able to do this because we’re an employee-owned firm, 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 146

EXECUTIVE PERSPECTIVES

STRATEGY // The pandemic has given FINANCE // As human-centered design RISK // Physical and digital are blending fresh importance to the CEO’s role as an improves and IT brings more use cases to create hybrid user experiences. In this end-user ethnographer.12 Organizations to the finance team, CFOs should be new environment, privacy-related issues are scrambling to respond to customers’ values, mindful of the business case: Which metrics (ROI, may be amplified relative to purely physical or digital risk appetites, and preferences as they design safe cost per impression, etc.) will justify investments, and customer interactions. This shift can lead to CROs experiences that blend the physical and digital. CEOs which products or services are ripe for disruption? rethinking traditional forms of security such as the are on point for directing this human experience Moreover, in a primarily digital economy, CFOs should password and opting for newer methods such as strategy. They should consider shifting trends on consider how human connections drive accounting mobile biometrics. They should pay close attention what technology is enabling (for example, increases in and valuation. They may need to revisit concepts to privacy as technology enables organizations to virtual shopping and service) as well as the differences of impairment or sales tax implications to assess increasingly identify unique customers and their in what people are expecting from brands. Ultimately, whether such standards preclude them from showing data across channels. Risk leaders may also be a consistent, humane experience is the goal, and strong financial statements. Likewise, the value of dealing with a generational divide on human setting direction from the top down can help CEOs high-quality human experience platforms may be experience, as expectations vary widely between lead their organizations in line with their values—and difficult to quantify, but it can also become a leading digital natives and older generations.13 Leaps in their vision for responding to unprecedented times. indicator of an organization’s performance. cybersecurity and blended experiences may require organizations to bring along customers who aren’t ready for the change. Accordingly, the CRO’s role in creating trust among consumers becomes more important than ever. 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 147

KEY QUESTIONS LEARN MORE ARE YOU How agile are your customer Turn brand into bond READY? journeys? Are they seamless and Learn how understanding consumers’ consistent across all channels, needs can help brands build emotional 1 both physical and digital? What bonds at an enterprise scale. does it feel like from your customers’ perspective?

Is your organization experimenting Human experience in times with technologies that will lead of uncertainty to offering more personalized Tune in to live, weekly conversations 2 experiences, both in-person and and insights on how brands can digital? respond to uncertainty.

Is your customer data formatted Human experience: Know thyself in a way that is machine-readable? Explore the 2021 Global Marketing Can you access customer data Trends to see how organizations are beyond demographic and 3 fostering human connection to meet transactional data to include behaviors, attitudes, emotions, the needs of their stakeholders. and preferences? How can you use technology to build customer trust? 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 148

AUTHORS Our insights can help you take advantage of emerging trends. SENIOR CONTRIBUTORS If you’re looking for fresh ideas to address your challenges, let’s talk. Alex Kelleher Managing director, Erik Duffield Deloitte Consulting LLP General manager, Deloitte Digital experience management platform Rich Whalen Managing director, Deloitte Consulting LLP Deloitte Consulting LLP [email protected]

Amelia Dunlop Deloitte Digital chief experience officer Deloitte Consulting LLP [email protected]

Nelson Kunkel Deloitte Digital chief design officer Deloitte Consulting LLP [email protected] 1 2 3 4 5 6 7 8 9 Bespoke for billions: Digital meets physical 149

ENDNOTES

1. David Segal, “To survive the pandemic, Savile 9. Deloitte Insights, Digital reality: The focus shifts Row cuts a bespoke strategy,” New York Times, from technology to opportunity—Tech Trends 2018, November 15, 2020. December 5, 2017. 2. Deloitte Digital, HX in times of uncertainty, 10. Ibid. accessed November 25, 2020. 11. Allan V. Cook et al., The Spatial Web and Web 3.0: 3. Ibid. What business leaders should know about the next era of computing, Deloitte Insights, July 21, 2020. 4. Larry Dignan, “Uber vs. Lyft: How the rivals approach cloud, AI, and machine learning,” 12. Benjamin Finzi et al., The CEO as ultimate end-user ZDNet, May 10, 2019. ethnographer: Leading the way to understanding customers’ human experience, Deloitte Insights, 5. Anne D’Innocenzio, “Brands born on the internet March 16, 2020. embrace physical stores,” Associated Press, December 11, 2018. 13. Chris Farrell, “Working from home, the great 6. Anthony Ha, “Facebook and Instagram roll divide: Why coronavirus is a double whammy for ,” MarketWatch, April 28, 2020. out Shops, turning business profiles into older workers storefronts,” TechCrunch, May 19, 2020. 7. Deloitte Dbriefs Webcast, “Designing emotionally intelligent human experiences,” Deloitte, January 9, 2020. 8. Angel Vaccaro et al., Beyond marketing: Experience reimagined, Deloitte Insights, January 16, 2019. Sign up for Deloitte Insights updates at www.deloitte.com/insights. www.deloitte.com/us/TechTrends

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Deloitte Insights contributors Editorial: Matthew Budman, Blythe Hurley, Abrar Khan, Rupesh Bhat, and Nairita Gangopadhyay Creative: Alexis Werbeck, Dana Kublin, Tristen Click, and Victoria Lee Promotion: Hannah Rapp Cover artwork: Vault49

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