The Internet has disrupted the way brands are engaging with customers. Brands have followed platforms where customers are increasingly spending their time. Starting from Search, digital advertisement to Social network, brands are working to create an immersive experience for their customers. While few brands have mastered the art of online consumer engagement, access to the reliable and fast internet has significantly changed online consumer behavior. We believe brands will need to overcome three significant challenges while trying to boost pre-sales and post-sales customer experience.
It pays to pay heed to your customer's attention. Brands have exclusively focused on increasing online reach of their campaigns that might not necessarily result in a sales conversion. A discount offer, freebies, bonus points are excellent buying stimulus if a customer looks at them. According to Lumen research, an eye tracking marketing and advertising research organization, 96% of customers do not see your digital ad for more than one second. More importantly, Customers are becoming discerning to what they pay attention to. Only 20% of digital advertisements that are on screen get looked at. We call it the customer attention problem and brands need to increasingly look at creative yet effective ways to capture your customer's attention.
Brands have a great deal to learn from technology companies about improving customer experience. Technology companies have leveraged the power of the internet to give consumers everything on demand. Meals, household service, Cabs, Hotel rooms are now available at a click of a button. However, brands have lagged technology companies to provide a seamless customer service experience. Brands especially, automotive, consumer durables, electronics cos, FMCG need to accommodate to the on-demand economy. On demand after sales service, & product availability are a few areas that could challenge brands. Leveraging technology that provides customers on-demand touch point will significantly boost customer satisfaction.
Another effect of a connected world is that loyalty has become fragile. More choice is leading to lower lifetime value resulting in higher customer acquisition cost (CAC). i.e. cost of engaging and reaching customers as a % of expected sales has increased substantially. Balancing CAC and growth is becoming a key agenda in every board room discussions. Innovative technologies and platforms that provide alternate low cost GTM channels can help brands and SMBs grow profitably.