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Put Your Customers At The Heart Of Your Innovation To Drive Brand Loyalty

Michele Hackshall

When you think of ASICS, most likely the first thing that comes to mind are running shoes. The company, however, recognizes that customers are after much more – and arguably, it has done so since it first started trading.

“Our brand writes its story by itself. The story is amazing. The backbone is strong: how can we make people excited and enjoy life,” says Thomas Wasser, global CRM lead for ASICS. Perception is critical for brands. “As a brand you have a perception of what you’re delivering. We think we are providing the best products, but the consumer experience isn’t matching what we’re thinking.”

ASICS is striving to chip away at that gap to make it smaller. It is focusing more and more on the customer experience through programs that encourage engagement rather than product sales. This marks a shift for the company and demonstrates not only its understanding of a disrupted marketplace, but its acknowledgement of the disruptive economy.

“It’s not really about digital transformation. It’s a consumer-centric transformation,” Wasser says. Consumers switch brands more easily now and their expectations are constantly moving higher. As a result, the biggest threat isn’t coming from competitors, but from disruptors like Uber and AirBNB. These are the companies that set the benchmark for customers by highlighting  the benefits of a great online experience.

The challenge, therefore, is for ASICS to get conversations started and build connections with consumers. Wasser refers to this as not storytelling, but story doing. “We need to live the story and ensure it cascades.”

For example, they asked marathon runners what products they buy. Nearly half answered ASICS – good result, right? Further digging revealed that the purchase wasn’t driven by a love of the product, but because it was considered the best. There was nothing wrong with it, but the problem was simply that customers didn’t feel a connection to the brand. “If a competitor comes along with a parity perception that doesn’t even have the same quality, then the customer is gone,” Wasser explained.

ASICS is now working not just to stay in the consideration mindset of consumers but to build that bond. Achieving this starts with self reflection by the brand to be authentic and honest. Instead of asking, “What’s best for the company?”, they ask “What’s best for the customer?”.

Building connections starts with engagement. The idea is to identify a customer’s individual goals and then help them achieve these goals. By engaging customers and helping them find new goals, such as trying a new sport or achieving a faster marathon finish time, ASICS is helping customers, not just selling to them. This is accomplished through the creation of programs such as Pace Club, starting running crews and clinics, and the recent acquisition of Runkeeper.

To make this transformation successful, key strategies have been undertaken around the globe.

ASICS is providing training in very region to make sure everyone understands the intelligence the brand gathers and what it can provide. To do this successfully, they’ve acknowledged that a global approach can’t ignore the need for localization. This means that alignment across regions and clearly delineating the objectives and deliverables is critical.

“Sharing best practice sharing is much easier now,” says Wasser. “We can really start working together as regions, instead of competing.”

For more strategies that create brand advocates, see Bridging The Gap: Turning Potential Customers Into Brand Advocates.

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Michele Hackshall

About Michele Hackshall

Michele Hackshall is a writer who helps global brands hone their marketing communications. Over the past two decades she’s managed product launches, strategized campaigns and written everything from scripts and adverts through to annual reports and press releases. Since becoming a freelancer in 2013, she’s focused on project managing the case studies program for Twitter’s emerging markets, through digital marketing agency Wings4U.

Flash Briefing: Turning Customers Into Promoters

Peter Johnson

Today, we’re talking about user-generated content and how it can be an easy way to help improve a brand’s reputation, social engagement, Web-site traffic and overall sales.

 

Tune in Monday through Friday for more Digitalist Flash Briefings on disruptive technologies and trends on your favorite device or app.

  • Amazon Echo or Dot: Enable the “Digitalist” flash briefing skill, and ask Alexa to “play my flash briefings” on every business day.
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    • Download the Amazon Alexa app: Select Skills, and search “Digitalist”. Then, select Digitalist, and click on the Enable button.
    • Download the Amazon app: Click on the microphone icon and say “Play my flash briefing.”

Find and listen to previous Flash Briefings on Digitalistmag.com.

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Peter Johnson

About Peter Johnson

Peter Johnson is a Senior Director of Marketing Strategy and Thought Leadership at SAP, responsible for developing easy to understand corporate level and cross solution messaging. Peter has proven experience leading innovative programs to accelerate and scale Go-To-Market activities, and drive operational efficiencies at industry leading solution providers and global manufactures respectively.

Why $4.6 Trillion Was Left In Abandoned Online Shopping Carts In 2016

Aaron Solomon

Nearly 70% of online shopping carts are abandoned without the customer ever completing the purchase. According to Business Insider, that added up to over $4.6 trillion in the global economy in 2016. So, what can online retailers do to fix this problem? Keep reading to learn why cart abandonment is so prevalent, and the steps you can take to recapture potential sales in your business.

Top 3 (preventable) reasons for cart abandonment

Customers abandon online carts for a variety of reasons, ranging from issues with your online store to simply getting distracted and leaving their computer. Studies show three common, and often preventable, reasons customers do not complete the checkout process.

1. Shipping cost sticker shock

For a whopping 61% of U.S. shoppers, the number one reason they don’t complete the checkout process is unexpectedly high shipping costs. Customers may have found your product prices acceptable, but high shipping costs can change their view completely. Not every company can subsidize shipping, and even fewer can on all orders, but here are a few things you can do to try to reduce your customers’ shipping cost shock:

  • Price fairly: Review what you are charging your customers for shipping against what your actual costs are. It’s no sin to turn shipping into a revenue stream, but if these costs are excessive, it may be costing you more in sales than it’s worth.
  • Offer options: Depending on your carriers, consider offering customers slower, but more cost-effective options, such as UPS 3 Day Select instead of Next Day or Second Day Air.
  • In-store pickup: If you also have physical stores, consider offering in-store pickup as an option.

2. Lack of trust in your site

Whenever a first-time customer makes a purchase, they are demonstrating trust in your ability to fulfill their order, charge them accurately, and most importantly, protect their data. There are several website attributes that could cause customers to consider shopping elsewhere:

  • Site maintenance: If your site has blurry images or broken links, customers may doubt your ability to meet their needs.
  • Online security: Include a “Trusted Site” logo from your certificate authority on your site to tell customers that you have properly secured your site.
  • Return policy: Having a complete and accessible return policy on your online store can provide customers with the reassurance that if the product does not meet their expectations, there will be a way for them to address this issue.
  • Shipping clarity: A shipping information page provides customers information they will want to know before committing to a purchase, such as how long after an order is placed it will be shipped or what shipping carriers and delivery options are available.

3. Frustration during the checkout process

The main perk of online shopping is convenience. If your checkout process is slow or tedious, customers get frustrated quickly. Take the following three points into consideration to mitigate this concern:

  • Guest checkout: In 2016, 33% of U.S. shoppers abandoned their carts when forced to create an account. Having a customer create an account can be beneficial for your business, but, if customers are forced to create an account to make a purchase, is it worth it? Consider leaving the option for them to check out as a guest to simplify their shopping experience.
  • Coupon codes: If you offer promotions with coupon codes, make sure that all your marketing information has the correct coupon codes and expiration dates for these codes.
  • Make it easy for customers to reach you: As a best practice, online stores should always have a “Contact Us” page to allow customers to easily reach out. If customers are experiencing frustration, being able to reach you can be the deciding factor on whether they give up or not.

Successful online retailers manage these issues to ensure that when customers abandon carts, it is not due to failures of the business. Taking these steps can reduce the amount of lost revenue, as well as increase your business’ reputation with both current and prospective customers.

For more insight on selling through digital channels, see Primed: Prompting Customers to Buy.

This blog was originally posted on the SAP Anywhere Customer Success Portal, and has been reposted with permission.

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Aaron Solomon

About Aaron Solomon

Aaron Solomon is the head of Training and Content Development for SAP Anywhere. With a dedicated history in knowledge management and consulting, he is driven to provide quality information to customers and help them understand how best to grow their businesses. His areas of expertise include e-commerce management, data analysis, and leveraging technology to improve efficiency.

Running Future Cities on Blockchain

Dan Wellers , Raimund Gross and Ulrich Scholl

Building on the Blockchain Framework

Some experts say these seemingly far-future speculations about the possibilities of combining technologies using blockchain are actually both inevitable and imminent:


Democratizing design and manufacturing by enabling individuals and small businesses to buy, sell, share, and digitally remix products affordably while protecting intellectual property rights.
Decentralizing warehousing and logistics by combining autonomous vehicles, 3D printers, and smart contracts to optimize delivery of products and materials, and even to create them on site as needed.
Distributing commerce by mixing virtual reality, 3D scanning and printing, self-driving vehicles, and artificial intelligence into immersive, personalized, on-demand shopping experiences that still protect buyers’ personal and proprietary data.

The City of the Future

Imagine that every agency, building, office, residence, and piece of infrastructure has an entry on a blockchain used as a city’s digital ledger. This “digital twin” could transform the delivery of city services.

For example:

  • Property owners could easily monetize assets by renting rooms, selling solar power back to the grid, and more.
  • Utilities could use customer data and AIs to make energy-saving recommendations, and smart contracts to automatically adjust power usage for greater efficiency.
  • Embedded sensors could sense problems (like a water main break) and alert an AI to send a technician with the right parts, tools, and training.
  • Autonomous vehicles could route themselves to open parking spaces or charging stations, and pay for services safely and automatically.
  • Cities could improve traffic monitoring and routing, saving commuters’ time and fuel while increasing productivity.

Every interaction would be transparent and verifiable, providing more data to analyze for future improvements.


Welcome to the Next Industrial Revolution

When exponential technologies intersect and combine, transformation happens on a massive scale. It’s time to start thinking through outcomes in a disciplined, proactive way to prepare for a future we’re only just beginning to imagine.

Download the executive brief Running Future Cities on Blockchain.


Read the full article Pulling Cities Into The Future With Blockchain

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Dan Wellers

About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Raimund Gross

About Raimund Gross

Raimund Gross is a solution architect and futurist at SAP Innovation Center Network, where he evaluates emerging technologies and trends to address the challenges of businesses arising from digitization. He is currently evaluating the impact of blockchain for SAP and our enterprise customers.

Ulrich Scholl

About Ulrich Scholl

Ulrich Scholl is Vice President of Industry Cloud and Custom Development at SAP. In this role, Ulrich discovers and implements best practices to help further the understanding and adoption of the SAP portfolio of industry cloud innovations.

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4 Traits Set Digital Leaders Apart From 97% Of The Competition

Vivek Bapat

Like the classic parable of the blind man and the elephant, it seems everyone has a unique take on digital transformation. Some equate digital transformation with emerging technologies, placing their bets on as the Internet of Things, machine learning, and artificial intelligence. Others see it as a way to increase efficiencies and change business processes to accelerate product to market. Some others think of it is a means of strategic differentiation, innovating new business models for serving and engaging their customers. Despite the range of viewpoints, many businesses are still challenged with pragmatically evolving digital in ways that are meaningful, industry-disruptive, and market-leading.

According to a recent study of more than 3,000 senior executives across 17 countries and regions, only a paltry three percent of businesses worldwide have successfully completed enterprise-wide digital transformation initiatives, even though 84% of C-level executives ranks such efforts as “critically important” to the fundamental sustenance of their business.

The most comprehensive global study of its kind, the SAP Center for Business Insight report “SAP Digital Transformation Executive Study: 4 Ways Leaders Set Themselves Apart,” in collaboration with Oxford Economics, identified the challenges, opportunities, value, and key technologies driving digital transformation. The findings specifically analyzed the performance of “digital leaders” – those who are connecting people, things, and businesses more intelligently, more effectively, and creating punctuated change faster than their less advanced rivals.

After analyzing the data, it was eye-opening to see that only three percent of companies (top 100) are successfully realizing their full potential through digital transformation. However, even more remarkable was that these leaders have four fundamental traits in common, regardless of their region of operation, their size, their organizational structure, or their industry.

We distilled these traits in the hope that others in the early stages of transformation or that are still struggling to find their bearings can embrace these principles in order to succeed. Ultimately I see these leaders as true ambidextrous organizations, managing evolutionary and revolutionary change simultaneously, willing to embrace innovation – not just on the edges of their business, but firmly into their core.

Here are the four traits that set these leaders apart from the rest:

Trait #1: They see digital transformation as truly transformational

An overwhelming majority (96%) of digital leaders view digital transformation as a core business goal that requires a unified digital mindset across the entire enterprise. But instead of allowing individual functions to change at their own pace, digital leaders prefer to evolve the organization to help ensure the success of their digital strategies.

The study found that 56% of these businesses regularly shift their organizational structure, which includes processes, partners, suppliers, and customers, compared to 10% of remaining companies. Plus, 70% actively bring lines of business together through cross-functional processes and technologies.

By creating a firm foundation for transformation, digital leaders are further widening the gap between themselves and their less advanced competitors as they innovate business models that can mitigate emerging risks and seize new opportunities quickly.

Trait #2: They focus on transforming customer-facing functions first

Although most companies believe technology, the pace of change, and growing global competition are the key global trends that will affect everything for years to come, digital leaders are expanding their frame of mind to consider the influence of customer empowerment. Executives who build a momentum of breakthrough innovation and industry transformation are the ones that are moving beyond the high stakes of the market to the activation of complete, end-to-end customer experiences.

In fact, 92% of digital leaders have established sophisticated digital transformation strategies and processes to drive transformational change in customer satisfaction and engagement, compared to 22% of their less mature counterparts. As a result, 70% have realized significant or transformational value from these efforts.

Trait #3: They create a virtuous cycle of digital talent

There’s little doubt that the competition for qualified talent is fierce. But for nearly three-quarters of companies that demonstrate digital-transformation leadership, it is easier to attract and retain talent because they are five times more likely to leverage digitization to change their talent management efforts.

The impact of their efforts goes beyond empowering recruiters to identify best-fit candidates, highlight risk factors and hiring errors, and predict long-term talent needs. Nearly half (48%) of digital leaders understand that they must invest heavily in the development of digital skills and technology to drive revenue, retain productive employees, and create new roles to keep up with their digital maturity over the next two years, compared to 30% of all surveyed executives.

Trait #4: They invest in next-generation technology using a bimodal architecture

A couple years ago, Peter Sondergaard, senior vice president at Gartner and global head of research, observed that “CIOs can’t transform their old IT organization into a digital startup, but they can turn it into a bi-modal IT organization. Forty-five percent of CIOs state they currently have a fast mode of operation, and we predict that 75% of IT organizations will be bimodal in some way by 2017.”

Based on the results of the SAP Center for Business Insight study, Sondergaard’s prediction was spot on. As digital leaders dive into advanced technologies, 72% are using a digital twin of the conventional IT organization to operate efficiently without disruption while refining innovative scenarios to resolve business challenges and integrate them to stay ahead of the competition. Unfortunately, only 30% of less advanced businesses embrace this view.

Working within this bimodal architecture is emboldening digital leaders to take on incredibly progressive technology. For example, the study found that 50% of these firms are using artificial intelligence and machine learning, compared to seven percent of all respondents. They are also leading the adoption curve of Big Data solutions and analytics (94% vs. 60%) and the Internet of Things (76% vs. 52%).

Digital leadership is a practice of balance, not pure digitization

Most executives understand that digital transformation is a critical driver of revenue growth, profitability, and business expansion. However, as digital leaders are proving, digital strategies must deliver a balance of organizational flexibility, forward-looking technology adoption, and bold change. And clearly, this approach is paying dividends for them. They are growing market share, increasing customer satisfaction, improving employee engagement, and, perhaps more important, achieving more profitability than ever before.

For any company looking to catch up to digital leaders, the conversation around digital transformation needs to change immediately to combat three deadly sins: Stop investing in one-off, isolated projects hidden in a single organization. Stop viewing IT as an enabler instead of a strategic partner. Stop walling off the rest of the business from siloed digital successes.

As our study shows, companies that treat their digital transformation as an all-encompassing, all-sharing, and all-knowing business imperative will be the ones that disrupt the competitive landscape and stay ahead of a constantly evolving economy.

Follow me on twitter @vivek_bapat 

For more insight on digital leaders, check out the SAP Center for Business Insight report, conducted in collaboration with Oxford Economics,SAP Digital Transformation Executive Study: 4 Ways Leaders Set Themselves Apart.”

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Vivek Bapat

About Vivek Bapat

Vivek Bapat is the Senior Vice President, Global Head of Marketing Strategy and Thought Leadership, at SAP. He leads SAP's Global Marketing Strategy, Messaging, Positioning and related Thought Leadership initiatives.