Brands Struggle with Generation Z
January 12, 2017
Retailers are grappling to meet the
demands of consumers and must transform quickly to inspire loyalty with
customers who are hopping from store to web to mobile to social, and
IBM’s IBV study of 15,000 Generation
Z shoppers, which represent $44 Billion in estimated buying power, found
- Despite living largely
digital lives, 67 percent of Generation Z prefer to shop in a
brick-and-mortar store all the time, with another 31 percent
preferring to shop in-store sometimes.
- 66 percent frequently use
more than one device and 60 percent will not use an app or website
if they are too slow to load.
- Gen Zers demand highly
personalized interactions, value quality over price and want to be
engaged with the brand across all channels.
IBM’s new Customer Experience
study of more than 500 brands in 24 countries shows that despite
changing customer demands, businesses are struggling to deliver on the
expectations of consumers. The research shows:
- Only19 percent of retailers
can provide a highly personalized digital shopping experience
- A mere 17 percent can provide
more than in stock/out of stock information.
- 84 percent did not offer any
in-store mobile services.
This gap between what consumers
demand and what brands can deliver requires cognitive capabilities that
allow retailers to take information from all types of engagement,
quickly act across multiple channels and change the rules of engagement.
IBM’s cloud-based cognitive solutions can examine customer data and
combine it with data on other critical factors such as weather patterns,
pricing trends, buying behaviors, and supplier availability to deliver
personalized experiences that customer demand.
“In this new era of customer
engagement, what will separate the winners from everyone else is a
differentiated brand experience that delivers high impact engagements
with compelling personalization regardless of where the customer is,”
said Harriet Green, General Manager of IBM Watson Customer Engagement.
“With Watson Cognitive Engagement solutions, IBM is working with
retailers across globe to make these experiences a reality for millions
IBM Watson Customer Engagement is
helping leading retailers drive enduring brand loyalty with their
Inc.: HSN, Inc. is comprised of a portfolio of brands that
offer innovative, differentiated experiences on TV, online, via
mobile devices, in catalogs, and in brick and mortar stores. One of
its operating segments, leading direct-to-consumer retailer HSN,
uses Watson Marketing to enhance its commitment to delivering a
personal and customized cross-platform customer experience. By
leveraging IBM’s cognitive marketing capabilities to gather data and
uncover insights, HSN is able to create meaningful relationships
that improve customer engagement and enhance loyalty.
Ermes: The Ermes Group,
the largest and most diversified retailer in Cyprus, is using IBM’s
cloud-based Watson Commerce pricing optimization solutions to
determine which specific products in each store should be marked
down due to stagnant sales, what the new price should be and when
the reduction should take place. As a result, Ermes can introduce
product markdowns at a price that resonates with the needs of
value-seeking customers while contributing to the profits for most
of its key retail locations. Since going live with IBM, Ermes has
significantly streamlined its retail pricing strategy while
1-800 FLOWERS.COM: GWYN
(Gifts when you Need) is a Watson powered gift concierge. Since
launching GWYN less than a year ago, 1-800 Flowers.com has noticed a
distinct change in customer behavior. There has been a measurable
increase in customer engagement that comes from GWYN helping to find
the perfect gift across the company’s family of brands. Because of
the value GWYN provides, consumers are willing to devote more time
to the process, asking on average five questions per session and
interacting with GWYN for more than two minutes. 80% of consumers
who tried GWYN said they would use the service again.