There’s a recipe for successful digital customer experiences, and it may be no surprise therefore that a world famous pizza company is one of the pioneers. In 2008, Domino’s Pizza was staring at a bleak future – plummeting sales, a lackluster brand and stock prices at an all-time low of just $2.83[i]. Fast-forward to 2014, and the company’s stock price is at $70 per share[ii].
What is the recipe for this sort of turnaround? Well, digital is clearly a key ingredient. Domino’s has built its entire customer experience around digital, spanning critical channels from PC/mobile to social. The company decided to go on a journey, but a journey where they would take the customer as co-passenger. The journey began with a social media campaign called “What is wrong with Domino’s Pizza?” which was designed to elicit customer feedback on ways to improve its pizzas. Customers appreciated the sincerity of the campaign strategy and it was a huge success. The pizza major also decided to start a tracking mechanism online that enabled customers to track the progress of their pizzas from order to delivery. Customers could also create online profiles with location and other preferences. The results were phenomenal – order placement time was reduced to as little as 30 seconds. In fact, as of 2012, mobile sales for Domino’s accounted for 22% of online sales – a sum larger than the entire company’s sales in 1999[iii]!
Domino’s is a standout example of a company that has used digital as a key element of its customer experience transformation. And this sort of significant change is by no means easy. First, companies have to deal with new levels of customer expectations. We now live in a digital world where customers expect a response within the hour[iv] and where they will even make a major purchase, such as a car, online[v]. These new levels of expectation are leading to a mismatch between the corporation and its customers. While 56% of marketers felt their organizations were customer-centric, only 12% of customers agreed with their assessment[vi].
Second, integrating new digital channels with existing operations is a significant challenge, with over 38% of marketers saying that the technology to build an integrated digital marketing strategy is overly complicated[vii]. Overall, the organization needs to be incredibly agile, with speedy decision-making and double-quick responses to the next customer expectation.
With these challenges in mind, we see a recipe for success that has four key ingredients.
Ingredient one: Look externally to gain a forensic understanding of customer expectations at each touch point. This is exactly what Barclay’s Bank did. It set up a website called “Your Bank”, which encourages customer opinion, concerns and complaints on the bank’s products and services. Before rolling out a new feature, the bank includes a voting mechanism on the website to gauge customer sentiment[viii].
Ingredient two: Examine the impact of the digital investment instead of focusing on its size. Invest smartly across digital channels, the way Sephora did. When research hinted at the tremendous potential of Pinterest in garnering sales[ix], Sephora integrated the “Pin It” button on its website[x]. They also launched a Pinterest-centric email marketing campaign where users could directly pin products from emails. The result: a 60% increase in Pinterest-originated traffic and Pinterest followers of Sephora spending 15 times more than their Facebook counterparts[xi].
Ingredient three: Apply analytics to understand customer behavior, preferences and motivation. Macy’s uses analytics extensively, which has enabled it to create 500,000 unique versions of a single direct mail catalog[xii]. Macy’s in-store sales have risen by 10% simply by using Big Data[xiii]. Amazon is another company that believes in the transformative power of analytics – its analytics-driven recommendations engine accounts for 29% of overall sales[xiv]. It’s not just retailers who have reaped the benefits of applying analytics to customer behavior. Banks, such as U.S. Bank, integrate online and offline channel data to obtain a unified customer view. This data is then used to create targeted, personalized offerings to customers. As a result, U.S. Bank has improved its lead conversion rates by 100%[xv].
Ingredient four: Seamlessly integrate physical with digital to create unending customer experiences. US financial services major Capital One is experimenting with a café format for its bank branches, designed primarily to drive services offered by their online bank — Capital One 360. The nine café-styled branches offer high levels of customer intimacy along with complimentary services[xvi]. Similarly, automobile giant Audi’s showroom in London is another example of digital blending with physical to create a great customer experience. The company’s digital car showroom, “Audi City”, houses just one car – the company’s most exclusive model. In addition, large screens showcase the complete range of Audi’s car models where customers can view, accessorize, repaint and customize cars. In just 10 months of operations, Audi’s digital car showroom resulted in a 70% increase in car sales compared to the prior retail format[xvii].
Great food has to be carefully prepared. And the same is true of great digital customer experiences. They have to be carefully thought out and carefully prepared. We’ve spelt out the key ingredients that will be needed, and if you want to know more, read our paper at: http://www.capgemini-consulting.com/crafting-a-compelling-customer-experience/ .
[i] Fastcocreate, “How Domino’s Became a Tech Company”, May 2014
[ii] Stock price as of 17th June 2014
[iii] MobileMarketing, “Domino’s Mobile Sales Larger Than its Entire Business in 1999”, June 2013
[iv] Lithium Customer Expectations Survey, May 2014
[v] Capgemini, Cars Online report, May 2014
[vi] Informa.com.au, “Customer Centricity: The Key to a Sustainable Future”, 2012
[vii] IgnitionOne, “Integrated Marketing Survey 2013”, November 2013
[viii] CustomerCentric.info, “Barclays Bank Working Smart and Gathering VoC Data”, September 2013
[ix] Bizrate Insights, “Pinterest vs. Facebook: Which Social Sharing Site Wins at Shopping Engagement?”, October 2012`
[x] Venturebeat, “Sephora: Our Pinterest followers spend 15X more than our Facebook fans”, February 2013
[xi] Social Media Delivered, “Pinterest Case Study: Sephora”, September 2013`
[xii] Direct Marketing News, “Macy’s CMO shares loyalty insights at NRF Big Show”, January 2013`
[xiii] CNBC, “Retail Goes Shopping Through Big Data”, April 2013
[xiv] Yahoo, “Retailers Using Big Data: The Secret Behind Amazon and Nordstrom’s Success”, March 2014`
[xv] Adobe Digital Marketing Suite Success Story, “U.S. Bank”, 2012`
[xvi] Company website, accessed in May 2014`
[xvii] Audi MediaInfo Release on “Audi City”`