More Than 80 Percent of Retailers Plan to Increase Their Customer Experience Spending in 2015, According to New Survey from S...
February 03 2015 - 7:30AM
Business Wire
Research reveals important insights on how
North American retailers view customer experience and challenges to
improve customers’ shopping journeys
SDL (LSE: SDL) today unveiled the latest in customer experience
research with its new study, “The Retailer’s Imperative: A
Strategic Approach to Customer Experience.” Findings from the
online survey, conducted by Econsultancy in conjunction with SDL,
reveal that North American retailers are past the stage of debating
the importance of customer experience management and are now trying
to master it.
“Mastery of the customer experience is a challenge with many
facets. Retailers are overwhelmed by the complexity of data,
technology and understanding of the customer journey,” said Paige
O’Neill, Chief Marketing Officer at SDL. “Our latest research
indicates that North American retailers are acutely aware of their
technological shortfalls when it comes to creating a seamless,
personalized customer experience across multiple channels.”
The online survey, which was sent to more than 225 senior
marketers at North American retail companies with annual revenues
of more than $100M, revealed some key findings.
Customer experience importance on the rise
Increasingly, companies understand the importance of delivering
a superior customer experience (CX). The combination of intense
competition, more demanding customers, and an increasing range of
channels, mean that organizations have to continually improve the
service they offer to consumers if they are to retain business –
regardless of the sector they’re in. In fact, the vast majority (80
percent) of retailers surveyed are increasing their customer
experience budgets, and one in three is planning a significant
increase of more than 10 percent from their current level. In
addition:
- Among the respondent organizations,
none plan to reduce their CX commitment in 2015.
- Nearly half of retailers strongly agree
with the statement “our customer experience is our brand” – a
remarkable figure that balloons to over 80 percent when those who
simply “agree” are included.
Customer experience is the path to higher profit
While many retailers view CX as a tool for higher conversion and
retention, they don’t necessarily see the connection to
acquisition. This is an important disconnect, and one that creates
a competitive advantage for those focused on content and social
marketing. When asked about the ways they can differentiate
themselves and attract new customers, retailers were varied in
their responses.
- Despite the realities of
commoditization and competition, most retailers point to product
offerings (54 percent) and price (45 percent) as their primary
methods for attracting new customers.
- For 45 percent of retailers, content is
a tool to grow their audience, often in tandem with social
reach.
- Omni-channel retailing is cited by 22
percent of marketers. This reflects the challenges in creating a
truly seamless experience, but also highlights that it can be a
powerful differentiator for those that achieve it.
Integration is lacking across customer experience
technologies
Realizing that they must create consistent and engaging
experiences across a multitude of online and offline touch points
to compete in today's business environment, many organizations are
attempting to establish true integration across systems and
technologies.
- The research shows that North American
retailer brands appreciate the need for technology integration,
with 97 percent citing integration of CX technology as “important”
or “essential” to their growth.
- Yet only 40 percent describe their
relevant systems as integrated and cross-functional, revealing a
significant gap between the industry today, and where it needs to
go.
- Only two percent have no plan for
integrating their technologies at all.
Mobile customer experience is an untapped resource
Mobile commerce is among the fastest growing segments in retail,
as smartphones and tablets play bigger roles in the shopping
journey. More and more brands are taking mobile commerce by storm,
offering both mobile applications and mobile-optimized sites to
their customers. The research reveals that mobile has been a
dominant priority for retailers across 2013 and 2014, and that
investment has paid off.
- More than 50 percent now say they have
a strong understanding of the mobile user experience.
- However, only a third of retail
marketers (35 percent) believe they can differentiate using
mobile.
The challenge is for retailers to move beyond usability in
mobile and advance to more sophisticated merchandising. An
increasing percentage of buyers are mobile-only, especially in
younger demographics, and their numbers are growing quickly. This
presents a challenge in creating an experience that’s simple enough
for the small screen, but involves the consumer with the brand and
opens up opportunities for continued shopping and loyalty.
To learn more about how retailers are addressing the strategic
and tactical use of customer experience, view the SDL webinar. The
complete results of The Retailer’s Imperative: A Strategic Approach
to Customer Experience study can also be found here and you can
read more on our blog.
About Econsultancy
Econsultancy’s mission is to help its customers achieve
excellence in digital business, marketing and ecommerce through
research, training and events. Founded in 1999, Econsultancy has
offices in New York, London and Singapore. Econsultancy is used by
over 600,000 professionals every month. Subscribers get access to
research, market data, best practice guides, case studies and
elearning – all focused on helping individuals and enterprises get
better at digital.
About SDL
SDL (LSE: SDL) is the leader in global customer experience. With
a completely integrated cloud solution for content management,
analytics, language and documentation, SDL solves the complexity of
managing your brand’s digital footprint as it grows across multiple
languages, cultures, websites, devices and channels. Seventy-nine
of the top 100 global companies trust SDL to help them create
authentic, in-context customer experiences that drive demand and
loyalty. SDL brings your brand to the world, and the world to your
brand. Learn more at SDL.com. Follow SDL on Facebook and
Twitter.
SDLJessica Hohn-Cabana, +1-508-353-3454jcabana@sdl.comorPAN
CommunicationsEmily Held/ Jenny Gardynski,
+1-617-502-4300sdl@pancomm.com
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