The digitalization of consumption has turned the codes of commerce upside down. More demanding, less patient, customers want to remain at the heart of the attention of brands, which they expect to be more committed in order to deserve their involvement. The challenges for retailers are increasing, as they have to reinvent the in-store experience and upgrade their customer relations.
The power of adaptation of consumers and brands has been put to the test over the last two years. Purchasing behaviors have evolved, as have the postures and brand image of retailers. As we know, this crisis has had a lasting impact on the relationship with consumption, but also on the customer experience. Strongly and necessarily digitalized, the link between brands and customers, despite the distance, has been strengthened. Forcing some brands to offer a seamless purchasing process, and triggering in others an inordinate amount of expectation in the face of a degraded and frustrating context. While brands have redoubled their efforts to keep their promises, consumers have appreciated being at the heart of all the attention, even if it means making this commitment the "new normal" of customer relations in 2022. "We have seen a kind of restructuring, a prioritization of values and priorities in relation to work and family, to move towards a certain life balance. But I haven't seen any radical changes in behavior. Certain pre-existing phenomena have certainly gained momentum. But be careful not to turn micro upheavals into mass phenomena," analyzes Odile Song, strategic planner at DDB Paris.
A demanding consumer
One of the notable changes noted by Thierry Lalanne, Director of Ipsos' Customer Experience Department in France, is related to the increased demands of consumers. "Customer expectations are permeable from one sector to another. The standards for service quality are set by the best players in the world (e.g. Amazon) and customers expect the same quality of service regardless of the context. With the health crisis and the rise of digital technology, the phenomenon has accelerated". There will be no turning back in terms of the quality of the experience delivered. "The consumer compares in absolute terms. Among all the apps on their phone, they wouldn't understand if one user experience was less good than another. For brands, this is a real challenge," adds Odile Song. The 4th edition of the X Index, BETC Fullsix's* customer experience barometer, states: "Reacting quickly has never been so essential as consumers have become intolerant of waiting time. When it comes to brand salespeople, consumers expect them to be not only efficient, but also as informed as possible, as everyone has become an expert consumer thanks to digital.
Instantness is the most present item of the last two years. "The consumer no longer waits. They want a quick response in terms of offer, service and personalization. In this context, mastering data is a key element," adds Yannick Franc, partner in charge of retail at Deloitte. This concern for personalization must be prioritized, especially since consumers now want a return on their investment after years of consenting to the delivery of their data. "The subject of personal data was focused on a defensive mode (compliance with RGPD rules) and today, customers want their consent to serve a purpose," notes Thierry Lalanne. The criterion "This brand always has extra attention that exceeds my expectations" is also in the top 5 in the United States, Brazil and Spain, according to the results of the X index 2022.
A consumer seeking simplicity
Consumers have become aware of the efforts made by brands during the crisis to analyze online orders, deliver on time, everywhere and sometimes without additional costs. Customer services, logistics services, delivery services, complaint services, have responded and from now on, comfort, ease, fluidity throughout the "customer journey" are prerequisites. The notion of shared effort is important. Brands have to keep up with consumer expectations, and to do this, omnichannel is more important than ever. Simplify, make it easy, are the two leitmotivs. According to Deloitte's third annual Global Marketing Trends 2022 report, as the combination of physical and digital experiences becomes the norm, 75% of global executives plan to invest more in delivering hybrid experiences over the next year. The best place for executives to start is with human-centered design, which can marry the best of physical and digital while offering consumers more choice. Especially since we'll need to support and even drive the return of consumer-internet users to stores to rebalance a trend toward online shopping.
A consumer who is free of brands
Seducing and attracting consumers in post-Covid stores is a subject that is becoming increasingly important, especially as buyers are ordering directly from brands without going through distributors. This phenomenon, D2C (direct to consumer), analyzed by Cap Gemini, is gaining momentum. Indeed, 60% of customers say they have a better buying experience on brand sites. Even better, 55% say they are more aligned with the brand's values and want to engage directly with it. Another motivation is access to loyalty programs for 59% of them. And 45% of all consumers are willing to share data with brands (and 53% of millennials personal data). Certainly, shoppers see stores as an essential part of traditional commerce. But stores need to invent the store of the future with enriched experiences (augmented reality, virtual reality), complementary to the web, and make efficient use of personalized data (recommendations adjusted to the customer's taste). While consumers are slowly returning to physical stores, online shopping is more popular than ever. "But the two are inseparable. The uses will be more and more hybrid with different buying missions", says Odile Song. "The big winner of the last two years is remote living! We will have to justify a return to stores. What will be the martingale to make them come back? Even if they don't intend to desert the stores, they have become windows that need to be animated," says Rémy Oudghiri, Managing Director of Sociovision. The store has become the brand's showcase. "People come to walk around, experiment, test, but not necessarily buy. The new stores, like Google or Samsung in New York, are an example of this. They prioritize the use of the product before the sale," analyzes Yannick Franc, partner in charge of retail at Deloitte. One of the challenges of 2022 is to see customers with a certain purchasing power take action in an experiential economy and durable goods. "They want to indulge themselves, and it's up to brands to capture their attention," says Rémy Oudghiri.
An informed consumer
Consistency between the brand's values and the consumer's experience has become paramount. "As soon as there is a gap between the beautiful promises and the concrete experience, the penalty is immediate on the emotional bond and the loyalty to the brand. The more a brand differentiates itself around certain values, the more it will attract customers who will identify with its values, but be careful not to disappoint them in terms of customer experience," says Thierry Lalanne of Ipsos. The more committed the brand is and the stronger its values, the more zero tolerance applies. The same is true at BETC Fullsix, according to Sébastien Houdusse, Chief Strategy Officer: « The X Index 2022 defines a new era where customer experience takes on its full meaning by integrating citizens' expectations. Of course, brands must still meet functional criteria with effective customer service, but to be recognized among the best, they will have to go further and take concrete actions beyond their commitments ». In fact, the citizen consumer has changed his or her purchasing behavior over the past two years. The circular economy and environmental awareness have changed the French people's relationship to consumption," says Rémy Oudghiri. According to our studies at Sociovision, consumers want more societal and environmental commitment from brands. 76% of people find it normal for a company to have a mission," says the sociologist. Consumers' expectations are high on these subjects. This is reflected in an explosion of re-commerce and sales between individuals of second-hand products. The Fevad reminds us that the trend of second-hand purchases is massively anchored in the practice of cyber-buyers. Thus, 50% have bought online reconditioned or second-hand products in 2021; if we take into account cyber buyers who are also sellers, it is more than 80% of cyber buyers who have already bought reconditioned or second-hand products and/or sold products themselves on the Internet. "This has changed the consumers' reference point: buying on Vinted does not make me guilty of consuming too much", underlines the sociologist who reminds us that according to Sociovision, in 2021, 63% of French people have sold a good and 61% have bought one. No revolution then, but a relationship to consumption that has changed despite everything. Consumers are becoming more independent and discerning, forcing brands to raise their level of service and execution.
* X Index 2022: BETC FULLSIX customer experience barometer, conducted in partnership with Opinion Way: 51,000 consumers surveyed in 9 markets - United States, England, France, China, India, Portugal, Spain, Brazil and Turkey.
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