We all have heard about this in conferences linked with digital, retail or future of shopping. It’s been a while since we knew that customer experience is a major subject which will determine brands success. Might as well get on the move and not miss the boat. The proof in a few statistics.
Capitalize on customer experience to reinvent itself
To use Harley Manning (Forrester Research) definition, customer experience is “how customers perceive and remember all their interactions with your company”.
With the democratization of digital technologies, customer behavior has changed and brands had to adapt. Adapt to new expectations, other ways to look for and buy a product, other ways to consume and to say it simply.
According to a Walker study, “86% of buyers are willing to pay more for a great customer experience“. 73% of buyers think that customer experience is an important factor in purchasing decisions. Some pioneering brands have understood this well (Ikea, Amazon, Séphora), others have been making it their leitmotiv for years (Apple): focusing on the customer experience is a key value. Besides, the same study found that “by the year 2020, customer experience will overtake price and product as the key brand differentiator”.
For stores, it’s time to reinvent themselves. There’s no real borders anymore between e-commerce website and physical store (phygital). Points of contacts have been multiplied and clients want to easily switch from a channel to another that push brands to implement an omnichannel strategy.
What about home furnishings sector ?
Let’s talk about the sector we’re interested in. Where is the phygital in the home furnishings sector? End of 2017, IKEA, to mention a giant, launched its augmented reality app. The brand has always suggested (imposed?) a studied customer journey to bring on emotional reactions seeing that design, this customization (kitchen) or this arrangement.
Another example is Maisons du Monde that is very focused on digital strategy: in-store experience, AR app, online advice on interior design, 3D planner. Nothing is left to chance, everything is done to support and attract the consumer.
We note that this traditional industry is slowly evolving on this matter and sometimes have difficulty integrating digital technologies, intimately linked to today’s customer experience. Nevertheless, we can see that things are gradually moving forward. Driven by the urgent need for change, more and more brands are transforming themselves and demonstrating the ambition of a renewed customer experience, particularly by equipping themselves with innovative technologies.
3D, the digital transformation driver
Whoever says digital transformation must think 3D. Offering a personalized app or an interactive website to its customers necessarily implies a digitalization of its products. Whether in the clothing, furniture or real estate sectors, the experience of a digital catalog or a virtual or augmented reality product visualization is based on 3D.
As an example, Macy’s, famous American retailer, has massively invested in 3D for sales and can see the results today: +60% more sales in a pilot store and a product return rate of less than 2% according to Jeff Gennette, CEO. Once again, IKEA has 75% of its catalog in 3D and more than 2 million installations of its IKEA Place application.
According to a study realized in March 2018 by Grand view Research Inc, “the global visualization & 3D rendering market size is projected to reach USD 5.63 billion by 2025”. A promising sector and an incontestable source of income that it would be a shame to let go!
It is to give brands the benefit of such a dynamic market that Innersense digitizes the catalogs of furniture and home furnishings companies and creates models compatible with most market tools (planners, visuals, 3D databases, etc.). You are hesitating to take the plunge? We will be happy to discuss the issues you are facing, contact us!
Fanny, communication officer with Innersense
*source: Walker – Customers 2020: a progress report