Long Term Expectations of Brands: Introducing New Technologies and Doing Things Differently
As innovative technologies such as artificial intelligence (AI) and the Internet of Things (IoT) further proliferate in all the industries, an increasing number of customers are fine with paying higher prices as they now prefer more “differentiated, first-to-market products and services” to elevate their customer engagement moments. Around 61% of the customers are stating that companies who are not transforming their businesses to go with the dynamic expectations imply that they do not value their customers. The rest of the findings on the impact of technology on customer behaviors, as well as their expectations on the continuous change from brands were presented in the section below.
Technology Impact on Consumer Behaviors
- Customer engagements now revolve around technology. As more technological advances become available, they now dedicate an average of 6 hours per day on digital channels.
- Based on a survey from ClickZ, around 50.7% of U.S. marketers perceive that the rise of the latest technologies that impact consumer behavior is the most noticeable current marketing trend.
- Based also on the ClickZ survey, an increasing number of households are now engaging more with their brands using the mobile voice search functions of their smart speakers or mobile phone’s voice assistants. Meanwhile, a Hubspot survey revealed that voice searches jumped by 3,400% from 2008 to 2017.
- Technology such as smart devices and the internet has given consumers a new role in society. Consumers have now become “data citizens,” making them data producers and important value generators in the “data economy.”
- As technology continues to penetrate all aspects of the consumer’s life, these consumers are contributing to the creation of value by embracing new behaviors such as sharing assets as part of the new sharing economy. The consumers are also adapting to the use of “result-oriented services.”
- As consumers share assets with each other using digital platforms, they now drive more efficient consumption of readily available resources, thus minimizing the demand for “new products or virgin raw materials.”
- Some of the popular sharing platforms involve ride-sharing, home rentals, and other similar offerings.
- Meanwhile, another survey revealed that 91% of customers would now use an online knowledge platform if this technology is available and can provide personalized services. With the advent of these types of search technology, customers are now more amenable to look for answers on their own.
- As innovative technologies such as artificial intelligence (AI) and the Internet of Things (IoT) further penetrate all the industries, an increasing number of customers are amenable to pay higher prices as they now demand for more “differentiated, first-to-market products and services” to elevate their customer engagement moments.
- Around 75% of customers now have the expectation that businesses will leverage innovative technologies to come up with improved experiences.
- Meanwhile, around 62% of customers are willing to use AI if this can translate to more satisfactory experiences.
Consumers’ Expectations on Brands
- Customers have now raised their expectations when interacting with brands. The engagement level that they want is way ahead of the traditional engagement methods that companies employ in the past.
- The modern customer’s ideal way of engaging with brands now need to be personalized and contextualized in various channels. Customers also go for “disruptive business models” that are leveling up the experience for them.
- Based on a new report from Salesforce, around 73% of these customers mentioned that one exceptional engagement moment elevates their expectations of other businesses.
- Meanwhile, 62% of customers are now looking at businesses to transform their products and services based on the former’s actions and behaviors.
- Based on actual observations, around 47% of the customers surveyed mentioned that businesses typically adjust their offerings based on the former’s actions and behaviors.
- The industry is now moving toward a future where a firm’s expertise to produce innovative offerings is as crucial as the quality of its solutions.
- Based on the survey from Salesforce, around 84% of customers are now taking into account a company’s capability to offer them innovative solutions when evaluating their supplier of choice.
- Around 74% of the customers surveyed mentioned that they are now looking at businesses to provide new offerings by leveraging innovative technologies.
- For 67% of the customers, they mentioned that the innovative practices of the company provide a glimpse of how it runs overall.
- Around 61% of the customers are stating that not transforming their businesses to go with the dynamic expectations implies that a firm does not value its customer.
- Consumers also now have extremely lofty expectations on the technologies that companies provide in terms of the ease of use. They have gotten used to immediate gratification with current innovations such as on-demand entertainment content, quick deliveries of online purchases, and smart gadgets that can do their online shopping for them.
- Compared to the previous year, 54% of customers were found to expect more with regard to the customer experience that companies provide them.
- Around 87% of companies concur that traditional practices are not anymore effective in pleasing customers.
- Around 52% of customers think that businesses need to improve based on the feedback given to them.
- Nine in ten customers want companies to provide a complete omnichannel experience. They are anticipating their interactions to be smooth when transitioning from one medium to another, such as calls to text, and vice versa.
- Around 73% of customers mentioned that a single exceptional experience increases their expectations of other businesses.
- Around 57% of consumers stated that they have ceased purchasing from a business if a rival company can offer a more satisfactory experience.
- Meanwhile, 86% of customers mentioned that they will pay for a higher price for more satisfactory customer experiences.
- In the case of McDonald’s, the company found out that it is losing its customers to its QSR competitors. They then found out that the customers are looking for greater convenience, new value platforms, and more satisfactory experience when dining in QSRs. The company then quickly moved to improve in these areas. It is now experiencing increased visits from these customers.
- Overall, businesses that want to excel in the future will need to establish the right “systems, processes, and infrastructure” right now to prepare their operations to meet the future expectations of their customers.