Customers expect simple, sophisticated experiences - Some Cool Ones from SXSW!
Experience with new platform technologies and business models is dramatically increasing both the expectations and
empowerment of consumers. They are developing an insatiable desire for compelling experiences across all areas of life.
Increasing technological sophistication is leading to:
- More information to consumers, allowing more choices and enabling greater opportunity to influence organizations
- Higher expectations of integrated and sophisticated — yet simple — experiences
- Decreasing brand loyalty, as consumers have less patience and are more willing to switch interchangeably among
brands.
At SXSW, we saw Mophie leverage a simple "dog" to deliver power at the sound of a tweet! This simple yet impactful experience will remain one of the top at SXSW. The other great example was in Start up WonderWoof. Designing a FitBit for dogs, they have delivered more information to consumers allowing them more informed decisions.
In response, organizations are increasingly pressured to play catch-up and meet the next generation of consumer demands
by providing integrated, customized experiences. Consumers expect personalization across all of their experiences, from
airline counters, to online mega-retailers, to the showroom floors of automobile dealerships. They expect integration
across channels and touch points, and they are quick to change loyalties to organizations that can better meet their needs.
Today, 81 percent of millennial consumers demand improved response time; 76 percent expect organizations to understand
individual needs and 68 percent anticipate organizations to harmonize consumer experiences. In fact, at SXSW at our Millennail panel, Monday night, IBM hosted the first ever new way to startup Gen Y pitch party, attracting over 250 guests. 10 teams participated and only 5 were picked to move on to live in a house in Austin, TX for an exciting reality webseries. They will compete to win software, services, mentorship and a trip to TED@IBM. The documented webisodes will demonstrate how these innovators are working with IBM to transform their big ideas into big change. These types of experiences humanize brands.
Chinese smartphone manufacturer Xiaomi, for example, is seeking to engage connected consumers. Xiaomi uses customer
segmentation as a brand differentiator. It sells high-end phones for prices close to cost, less than half the price of some rivals.
The company leverages consumer feedback captured via Weibo (i.e. Twitter-like social media application) to release new versions
of its operating system, which it does on a weekly schedule.
The Xiaomi example demonstrates that, to create an opportunity to provide a differentiated experience in line with consumer expectations, organizations must embrace data and analytics to underpin experience and pursue social media to promote collaboration. They will also need to reduce barriers to engagement and partnering.
Luxury fashion house Burberry, a traditionally conservative brand, digitized its organization to create a seamless consumer experience. Burberry removed organizational boundaries between digital and physical; for example, it equipped employees with iPads to enable online access to leverage consumer data to improve the in-store experience. Through digital-physical integration, Burberry has transformed into a modern, relevant, and hip luxury brand.
Focus on these simple, yet impactful brand experiences!!!
