From the Editor –
After a much-longer-than-anticipated hiatus the QT newsletter is back! (There’s a whole story there) A lot of good has transpired over that time – mostly in the form of feedback from readers like you expressing their wants & wish lists, and wondering when (ok, if) the QT would return. I’m very happy to report that today marks the first edition of the fresh QT. You’ll notice a shorter, more focused format and this one will show up twice each week delivering the essential news, ideas and tech to keep your customers … your customers.
On a related note, there is a LOT going on here at TheCustomer right now that you’ll be seeing evidence of in coming weeks. New people, new channels, new products, and new partners! 2023 is off to a big start and we’re looking forward to building it with you.
– Mike Giambattista, Editor in Chief
FEATURE: Winning at REAL Loyalty
Shifts in the order of category loyalty drivers have fundamentally changed the face of brand loyalty for 91% of the categories we track. Oh, and modifications in how consumers are viewing, comparing, and buying have generated a radically widened gap between customer desire and brand delivery. Expectations are up! Again and a lot! Read more here.
CX
Forrester foresees 2023 to be a year of great upheaval for those responsible for CX at their organisations.
- 1 in 5 CX programs will disappear entirely
- 1 in 10 programs will be stronger than ever
- 4 in 5 CX teams will lack critical skills for executing programs
- CX as a differentiator will erode in 3 out of 4 industries
Retail Technology
According to IHL’s research there are three specific items that are driving technology purchases for 2023
- Reducing margin loss associated with online transactions for store fulfillment, an area that has seen up to 800% growth as a percentage of revenue since 2019 depending on the segment, much faster than retailers could accomplish efficiently.
- Reducing the amount of labor required to operate stores. Whether through true labor replacing technologies such as self-checkout, scan and go, electronic shelf labels or automated micro-fulfillment centers, or those that make associates more efficient (updated mobile devices, communication to the parking lots, Waze-like directions for pick instore), retailers are trying to do more with fewer workers due to challenges with staffing.
- Security technologies to reduce impact of theft. Tools from physical security to Predictive and Prescriptive Analytics, Computervision to identify threats and other loss prevention technologies.
The current state of retail tech funding
At the close of Q3’22, retail tech funding for 2022 overall was projected to trail 2021 by 45%, and has continued to fall since. This decline largely tracks the trend overall for venture funding. In spite of the cool down, the retail space is on par with pre-2021 investment levels.
CMOs
Gartner Predictions for CMOs Show AI, Social Toxicity, and Data Privacy Forge the Future of Marketing.
“Against a backdrop of unrelenting social and economic pressures, marketing leaders look toward a future where smarter marketing leads to deeper, more valuable connections between customers and brands,” said Andrew Frank, Distinguished VP Analyst in the Gartner Marketing practice.
“From managing misinformation to ensuring effective first-party data collection, this year’s predictions prioritize the trends that marketers and advertisers can no longer afford to ignore,”
Good policy
India has become first country to have a framework to curb fake and deceptive online reviews.
Khare further said that under the latest BIS guidelines, e-commerce platforms cannot post paid reviews from now on and the earlier reviews which were posted onto their platform through various tactics like fictitious impersonation won’t be allowed under the new guidelines.
Happy new year!
